Washington Wholesaling Law: RCW 61.40, the Solicited Real Property Act (formerly HB 1081)

State: Washington
Bill: RCW 61.40, the Solicited Real Property Act (passed as HB 1081)
Effective date: January 1, 2026. This law is already in effect.
Applies to: Buyers who actively solicit the purchase of real property that is not publicly listed for sale, when neither party is represented by a Washington-licensed real estate broker. It applies to ALL buyers (wholesalers, flippers, buy-and-hold, even retail buyers), not just wholesalers, and to ALL real property (the statute says "real property" with no residential or unit-count limit, so vacant land, commercial, and multifamily are all inside it).
Bottom line: You can still wholesale in Washington, but every solicited off-market contract now gives the seller a buyer-paid appraisal right and a free cancellation window, so your contract is not solid until those windows expire. The escape hatch written into the law is licensed representation.

What the Law Says (Plain English)

This law is built differently from most state wholesaling laws. It does not regulate assigning contracts at all. It attacks the front end of your business: the moment you sign a direct-to-seller contract on an off-market house, the seller gets rights that let them walk away from you for free.

Who it covers: Any buyer who "actively solicits" the purchase of real property that is "not currently publicly available or listed on the real estate market for purchase." The law defines actively soliciting to include "public advertising or written, electronic, or in-person contact." That language is broad enough to cover direct mail, cold calls, texting, door knocking, and also your online ads, TV, and radio. In other words, inbound marketing (the seller calls you off your ad) still counts as soliciting, because the ad itself is public advertising. There is no property-type carve-out: the statute reaches all "real property," so land, commercial, and multifamily are covered along with houses.

What the seller gets once you sign a contract:

1. A buyer-paid appraisal right. The seller has 3 business days after the contract is signed to order an independent appraisal by an appraiser (licensed under chapter 18.140 RCW) of their choice. You, the buyer, pay for it (roughly $500).
2. A post-appraisal cancellation right. After the seller receives that appraisal, they have 4 business days to cancel the contract, without penalty and without further obligation to you.
3. A no-appraisal cancellation right. If the seller skips the appraisal, they can still cancel for any reason within 10 business days of signing the contract.
4. Mandatory bold disclosure. These rights must be stated in the purchase contract in at least size 10-point boldface type, and the seller must affirmatively acknowledge them in writing.

The seller can deliver their cancellation by email, mail, telegram (yes, the statute says telegram), or "any other written communication."

Who it does NOT cover: The law does not apply if the property is publicly listed for sale, or if the buyer or the seller is "represented by a real estate broker licensed in accordance with chapter 18.85 RCW." That representation exemption is the key to the whole statute. Note the statute says broker, not agent.

What You CANNOT Do (Effective Now)

• Sign a direct-to-seller contract on an unlisted property, with no licensed broker on either side, and treat it as locked up. For at least the first 10 business days (longer if the seller orders an appraisal) the seller can cancel for free, shop your price to other buyers, and owe you nothing
• Refuse to pay for the seller's appraisal if they order one within their window. The buyer pays, even if the seller then uses that appraisal to cancel on you
• Leave the seller's appraisal and cancellation rights out of your contract, or bury them in fine print. They must be in at least size 10-point boldface type with the seller's written acknowledgment. Getting this wrong is not a paperwork nit: a violation of this section is a per se Consumer Protection Act violation (see Penalties)
• Assume you are exempt because the seller contacted you first. The law's definition of actively soliciting includes "public advertising," so leads that come from your ads, mailers, or signs are still solicited
• Assume double closing gets you out. This law triggers on soliciting and contracting, not on assigning, so taking title does not escape it

What You CAN Still Do

• Work with licensed representation. The law does not apply when the buyer or the seller is "represented by a real estate broker licensed in accordance with chapter 18.85 RCW." Get a broker license, put a licensed broker on your team, or align with a broker who genuinely represents you (see Loophole #1)
• Wholesale listed properties. The law only covers property "not currently for sale on the open market." Publicly listed deals are completely outside it
• Assign contracts. Nothing in this law restricts assignment, disclosure of your wholesaler status, or your fee. The risk is that the underlying contract can be canceled during the windows
• Comply and let the clock run. Put the required bold language in your contract, get the acknowledgment, and do not spend marketing dollars or order title work until the seller's cancellation window has expired. A deal that survives the window is a normal deal

The Loopholes

Loophole #1: Licensed Representation (The One Written Into the Law)

The statute does not apply when the buyer or the seller is "represented by a real estate broker licensed in accordance with chapter 18.85 RCW." That is the exemption the law itself provides, so having a licensed broker genuinely represent one side of the transaction takes the deal outside the appraisal and cancellation regime entirely. Clean when a licensed broker actually represents a party.

The cost is either a commission, or the time and expense of getting a broker license yourself. One caution: whether you can hold your own broker license and "self-represent" to satisfy the exemption (rather than a separate broker actually representing a party) is untested against the statute's "represented by a real estate broker" wording. Treat self-representation as Gray until a Washington attorney confirms it.

Loophole #2: Buy Listed Properties

The law only applies to property "not currently for sale on the open market." Anything publicly listed is outside the statute, no appraisal right, no cancellation window. Clean, but it changes your acquisition model, since most wholesalers live in the off-market space this law was aimed at.

Loophole #3: Comply and Outlast the Window (Compliance Play)

The seller's free-cancel rights are time-boxed, and every count is in business days: 3 business days to order an appraisal, 4 business days after receiving it to cancel, or 10 business days if no appraisal is ordered. Build your process around that clock. Include the bold disclosure, get the written acknowledgment, and hold off on dispositions spending until the window closes. You will lose some deals to cancellation (and eat an appraisal fee on some of them), but the deals that survive are enforceable. Clean, this is just following the law.

Loophole #4: "The Seller Came to Me" (Inbound Only)

Tempting, but the definition of actively soliciting includes "public advertising or written, electronic, or in-person contact." If the seller found you through your ad, your mailer, your sign, or your website, the deal was solicited. Closed for any lead generated by marketing. A truly unsolicited seller (a referral who found you with zero advertising involved) might fall outside the definition, but the sources do not test that scenario, so treat it as Gray and talk to a Washington attorney before relying on it.

Loophole #5: Double Closing

Closed, and worth saying loudly because it is the go-to move in assignment-trigger states like Missouri. Washington's law does not care how you exit. It triggers when you solicit and contract on an unlisted property without licensed representation. Taking title changes nothing about the seller's appraisal and cancellation rights on your purchase contract.

Penalties If You Violate It

The teeth here are worse than a lost deal. The statute itself declares (RCW 61.40.010(6)) that a violation "is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW." That is a per se Consumer Protection Act (CPA) violation: the seller does not have to separately prove your conduct was unfair, the statute deems it so.

Worst first:

• A private lawsuit under the Consumer Protection Act. A wronged seller can sue you directly. The CPA (RCW 19.86.090) lets the court award actual damages, then increase (treble) that award up to a statutory cap (Washington caps the extra, exemplary portion at $25,000), plus the seller's reasonable attorney's fees and court costs. Because the violation is per se, this is a real, plaintiff-friendly cause of action, not a theoretical one
• Attorney General enforcement. The CPA is also enforced by the Washington Attorney General, who can seek injunctions and civil penalties for unfair or deceptive acts. This is not limited to the individual seller's damages
• The seller can cancel without penalty during the statutory windows, leaving you with nothing after you have spent money on the deal, including the appraisal you paid for
• You are out the appraisal cost (roughly $500) whenever a seller exercises the appraisal right, whether or not the deal survives

The most common way to trip this is the cheapest to avoid: omit the required 10-point boldface rights language or the seller's written acknowledgment, and you have handed the seller (and the AG) a per se CPA claim.

Required Disclosure Language

RCW 61.40.010(3) mandates the content and formatting of the disclosure, but does not prescribe an exact form of words. There is no state-issued form and no verbatim script to copy. What the statute requires is:

Content. The purchase contract must state, and the seller must affirmatively acknowledge in writing, that the seller:

1. Has a right to an appraisal as specified in subsection (2) of the statute (the buyer-paid appraisal, ordered within 3 business days, seller picks the appraiser); and
2. Has a right to cancel the purchase contract without penalty or further obligation in accordance with subsection (2) (the 4-business-day post-appraisal window, or the 10-business-day no-appraisal window).

Formatting (mandatory).

• The language must appear in the purchase contract itself.
• It must be in at least size 10-point boldface type (the statute says "at least size 10-point boldface type").
• The seller must affirmatively acknowledge it in writing (a signature or initials line tied to the disclosure).

Because the wording is not fixed, you can draft the two rights statements in plain language, but do not shrink the type below 10-point, do not drop the boldface, and do not skip the written acknowledgment. Omitting or burying this is itself a per se Consumer Protection Act violation (see Penalties). Cite: RCW 61.40.010(3).

Quick Reference

This summary is an analysis of the codified statute plus secondary commentary, not legal advice. Confirm your specific deal structure with a Washington real estate attorney before relying on any of it.

Sources: the codified statute text, RCW 61.40.010 (Solicited Real Property; Consumer Protection Act), originally 2025 c 77 (Substitute House Bill 1081), amended by 2026 c 198 (House Bill 2624); the Washington Consumer Protection Act, chapter 19.86 RCW. Also informed by a third-party industry report and video commentary breaking down HB 1081.