The original purpose of House Bill 2791m the Distressed Property Law, was to protect financially strapped homeowners from foreclosure rescue scams.The law, which went into effect in June, has had unintended consequences on the real estate community across Washington. Among the largest concerns:
- It increases the responsibility of the buyer’s agent to the distressed homeowner, making it challenging for the agent to negotiate for the client buyer.
- It creates more paperwork because an agent working with a distressed homeowner should have a written agreement in place, above the listing agreement with that homeowner.
- It’s dissuading agents from working with homeowners on the verge of foreclosure because of added complications to the transaction.
- It increases the liability of agents who could be working with a distressed homeowner without their knowledge, simply because the homeowner or agent wasn’t aware of the new law. Real estate agents could be subject to a penalty of up to $100,000 under the Washington Consumer Protection Act if they don’t act in the seller’s best interest.
Comments on this entry are closed.