Selling a House in Washington

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Washington, real estate agents may represent the seller, the buyer, or act as a dual agent and represent both the seller and the buyer in a real estate sales transaction. A real estate agent who is providing real estate brokerage services for a buyer is presumed to be the buyer's agent, unless some other agency agreement is in place, for example, an agreement to be the seller's agent or a dual agent.

Real estate agents have what's called a "fiduciary duty" to the party who they are representing, in this case, the seller. This means that the agents are held by law to owe specific duties to the seller.

In addition to duties or obligations that are stated in a listing agreement, brokerage agreement or other contract, a fiduciary's duties include:

• To exercise reasonable skill and care
• To deal honestly and in good faith
• To present all written offers, written notices and other written communications to and from either party in a timely manner
• To disclose all existing material facts known and not apparent or readily ascertainable to a party
• Account for funds
• To provide a pamphlet on the law of real estate agency to all parties to whom the agent renders real estate brokerage services
• To disclose in writing to all parties to whom the agent renders real estate brokerage services, before the parties sign an offer in a real estate transaction handled by the agent whether the agent represents the seller, the buyer both parties or neither party. This is called an "agency disclosure statement." Under Washington law, you must provide the buyer with a written property disclosure statement, unless the buyer waives the right to receive it.

You should disclose the following potential house defects and information about your property:

• Plumbing and sewage problems
• Water leakage of any type, including in basements
• Termites or other infestations
• Roof defects
• Heating or air conditioning system or electrical system problems
• Property drainage problems
• Foundation instabilities or cracks or other structural problems
• Problems with title to the property
• Property's water source
• Environmental issues or hazards
• Lead paint (required under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 for homes built prior to 1978)

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called an "earnest money agreement" or "purchase agreement," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your Washington real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Washington, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation owed by the current owner of the property. A lien encumbers property as long as it exists and has been recorded in the public records.

In Washington, liens on a piece of property may include:

• Mortgages
• Construction or mechanics' liens
• Judgment liens
• Unpaid taxes

Closing Costs

In Washington, you can expect to pay for some or all of the following charges - called "closing costs"-at the time you sell your home:

• Broker's commission
• Survey
• Title insurance
• Recorded release of mortgage
• Transfer taxes
• Attorney's fee
• Home inspections

Specific Performance

In Washington, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.