The End Of Fly-By-Night Bargain Buyers?
Many property owners are familiar with letter solicitations offering out of the blue to buy real estate. Almost invariably, these offers propose to purchase property will little to no due diligence and for far below market value. Solicitations may also come by text, email, cold calls, or even door knocking. While sellers statistically ignore the overwhelming majority of these offers, the buyer occasionally gets lucky with a seller who is either naïve enough, desperate enough, or both, to accept. If all goes well for the prospective buyer, the seller will lack the sophistication to appreciate the offer’s terms or what the property’s fair market value is, and the deal will close with the buyer making a killing. Should the seller sign the purchase contract, and have regrets later after realizing the bad deal they just agreed to, the seller may be contractually bound to go through with it, facing a potential lawsuit for breach of contract and specific performance if the seller tries to back out.
Until recently, there were few if any restrictions in Washington State limiting this practice. But in 2025, the Washington State Legislature passed HB 1081, which seeks to prevent unscrupulous buyers from snatching property from sellers on unfair terms. The bill is codified as RCW 61.40.010, and went into effect on January 1, 2026. The law generally applies to real estate transactions in which a potential buyer or someone representing the potential buyer “actively solicits the purchase of real property through public advertising or written, electronic, or in-person contact with an owner of real property that is not currently publicly available or listed on the real estate market for purchase.” In other words, it would not apply to property listed for sale on an MLS, Zillow, or similar platforms; it is intended for off-market properties. In such cases, the owner ordinarily has two important rights: (a) the right to an appraisal by a licensed appraiser of the seller’s choice, at the buyer’s expense; and (b) the right to cancel within ether 4 business days after receiving the appraisal, or within 10 business days after execution of the contract if the seller does not wish to obtain an appraisal. The purchase contract must disclose these seller rights. To help ensure compliance with the statute, the Legislature made violations constitute a violation of the Unfair Business Practices Act, also known as the Consumer Protection Act. The application of the Consumer Protection Act in turn has serious implications for the prospective buyer, as the seller may have a right to both attorneys fees and treble damages up to $25,000.
Notably, the Legislature did a favor for the real estate broker lobby- the statute exempts transactions in which either the buyer or seller is represented by a licensed real estate broker.
Reasonable minds may disagree about the propriety of governmental involvement in this area; on one hand, the statute may protect vulnerable sellers from predatory practices. But on the other hand, the statute may deprive savvy buyers from being able to effectively hunt for bargains, being saddled with bureaucracy and cost attached to transactions where sellers ought to be responsible for their own negotiations.
Whether you are a buyer or seller in a real estate transaction, it is wise to consult an experienced real estate attorney to know your rights and assure compliance with your legal obligations. The lawyers at Beresford Booth have decades of experience with real estate matters, and would be happy to assist you. Please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.