Washington Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is a Washington Real Estate Contract?

A Washington real estate contract, also called a residential purchase and sale agreement, is a contract that is drafted when a buyer makes an offer on a real estate listing. If the seller accepts the offer, the contract can be finalized and the process of purchasing the property will begin.

In Washington, there are several steps that must happen to finalize the sale of real estate. The seller must provide disclosures, contingencies must be met like the buyer securing financing, and home inspections must be conducted. The sale process ends on the closing date when money is paid to the seller and the title of the property is transferred to the buyer.

What Agreement is Required Before Selling a Property in Washington?

Before a property can be sold in Washington, the buyer and seller must reach an agreement about the condition of the property. Withing five days of accepting the buyer’s offer, the seller must provide the buyer with a Seller’s Disclosure Statement, also called “Form 17”. The disclosure statement details the condition of the property and informs the buyer of any issues or defects that could affect the property value.

After receiving the disclosure, the buyer then has three days to review the disclosure and decide whether to rescind their offer and terminate the real estate contract or move forward with the sale.

If the buyer wants to terminate the contract, they must let the seller know in writing within the three day window. If the buyer fails to act in these three days, it will mean that the buyer has accepted the agreement and the sale will move forward.

Common Washington Real Estate Contracts

The most common Washington real estate contract is the Northwest Multiple Listing Service residential real estate purchase and sale agreement. This form is often simply called “Form 21”.

For other types of real estate transactions, the following contracts are also commonly used:

  • Real estate assignment contract. Used when purchasing investment properties that may need repairs and maintenance. This contract allows the buyer to assign the contract to a second buyer.
  • Commercial purchase agreement. Used when buying and selling commercially zoned property.
  • Lease agreement. Use when a landlord wants to rent their property to a tenant for use.

4 Essential Elements of a Washington Real Estate Contract

Washington real estate contracts are required to follow the laws governing contracts. All real estate contracts must be in writing and signed by both parties to be legally enforceable. In addition, all contracts must have the following 4 essential elements:

  1. Mutual assent
  2. A valid offer and acceptance of the offer
  3. Adequate consideration
  4. A legal contract purpose and parties who can legally enter a contract

What Must Be Included in a Washington Real Estate Contract?

Washington real estate contract must include specific information about the parties and the property to be valid and enforceable agreements.

Terms that should appear in a real estate contract include:

  • Party information. The names and addresses of the parties involved in the transaction, including the buyer, seller, and any agents or brokers involved.
  • Property description. The address and legal description.
  • Purchase price. The agreed upon sale price for the property.
  • Contingencies. Conditions that must be met before the sale can be completed like the completion of a home inspection.
  • Disclosures. The seller must provide a disclosure statement to the buyer within 5 days of accepting the buyer’s offer. The disclosure will inform the seller of any defects or issues with the property.
  • Closing date. The date on which the sale will be completed, and the property will be transferred to the buyer.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in Washington?
How much does it cost to hire a lawyer to draft a real estate contract in Washington?

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