Skip to main content
HomeSolicited Real Property

Solicitation


Washington State Real Estate Investors have two additional laws in 2025 that affect us.
We are told that the laws, and the resulting penalties and fines, can overlap. 

 


The laws are both fully passed and near their respective effective dates of October 20, 2025 and January 01, 2026.
 

Generally, the laws include transactions that arise as the result of solicitation of off-market, unlisted, residential property. Letters, postcards, doorknob hangers, door knocking, cold calls, texts, emails, websites and more, when used to solicit a seller, are all the subjects of the two laws listed below. 

With penalties and fines generally starting at $7,500 coupled with laws that geographically and effectively overlap, not complying with the laws can potentially cost Real Estate Investors thousands of dollars on one transaction.

Statewide & Seattle Solicitation WA Laws Require Caution! More @ www.REIAwa.com
REIA Law Updates for WA Real Estate Investors Regarding Solicitation

Washington State
SHB 1081: Solicitation Real Property-Owner Protection


When fully processed, SHB 1081 will be codified as RCW 61.37. It is a Washington State law that pertains to real estate transactions resulting from solicitation of off-market, unlisted, residential property. It affects all such real estate transactions executed on or after January 1, 2026.


"Solicitation" is discussed within the pages of the passed bill to include many of the approaches used by real estate investors on a regular basis. The Certification of Enrollment of the law, marked as SHB 1081.SL and linked below, cites solicitation as including "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." Thus, it encompasses methodology including, but not limited to, letters, postcards, door knocking, doorknob hangers, cold calls, bandit signs, online advertisements and, presumably, more.

Transactions subject to the law 
are required to provide specific language in specific font size within the "purchase contract" outlined in the law. Language shall include seller cancellation capabilities and the right to an appraisal performed by an appraiser of the Seller's choice at our expense. Please refer to the pages of the law below for specific timelines, all exceeding our norms, associated with the contract when it is provided to the Seller.

Real estate attorneys we have contacted tell us the provisions of the law cannot be waived or disclosed around.

"The legislature finds that the practices covered by this section are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. A violation of this section is not reasonable in relation to the development and preservation of business and 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."

It is too early to ascertain the effects on Title and Escrow services and whether they will be policing transactions, presumably for their own protection from liability. For the same reason, REIA cannot permit offering of contracts at meetings or on the REIA Forum for any transactions that are not in compliance with SHB 1081, later to be codified as RCW 61.37, on or after January 01, 2026.

The inclusion of the Consumer Protection Act brings specific monetary penalties. Please consult your Washington real estate attorney for details, interpretation, penalties and the effects on your business model. 


City of Seattle

Counsil Bill 121039: Homebuyer Protection Ordinance

 

 

When fully processed, Counsil Bill 121039 will be codified as Seattle Municipal Code 6.610. It is a City of Seattle Council Ordinance affecting transactions that pertain to, and purportedly arose as the result of, solicitation of off-market, unlisted, residential property. It goes into effect on October 20, 2025.

 

The Ordinance is similar to SHB 1081 with several caveats. Waiting periods, with the seller capable of canceling the contract without penalty, are longer, fines can be higher and risk of future litigation activities greater.

 

We have read of what we have dubbed a virtual "wall of shame" for repeat offenders that label those included as "predatory buyers". An inclusion as predatory buyer likely easily found online will certainly serve as deterrent to potential sellers in, and well beyond, the City limits whether that is in fact your behavior when viewed outside of the Ordinance.

 

Cold Calling to Solicit Potential Sellers is included in WA SHB 1081. Visit www.REIAwa.com

Definitions within the Ordinance are problematic. As an example, "“Solicit” or “solicitation” means to advertise the accomplishments or abilities of a buyer to an owner, request that an owner list a residential property for sale, or offer to purchase an owner’s residential property through any form of communication including but not limited to mail, oral communication, or electronic communication. It appears that, unlike SHB 1081, Real Estate Brokers may be standing alongside Real Estate Investors in their inability to market to property owners without being subject to the Ordinance.

The Ordinance definitions further state that "“Residential property” means all property legally used or held out for individuals to live in, regardless of whether the property is occupied by its owners, rented, or vacant." There is no distinction between single family and multifamily properties of any size. That definition fails to align with long-held real estate and lending industry standards that properties with five or more units are considered commercial properties. We recommend a close reading of the law and consultation with your Washington-licensed real estate attorney for a full evaluation given your own business model.

REIA cannot permit offering of contracts or listings at meetings or on the REIA Forum for any transactions that are not in compliance with City of Seattle Council Bill 121039, later to be codified as Seattle Municipal Code 6.610, on or after October 20, 2025 for reasons described within SHB 1081, above.

To varying degrees, each law paints a dark picture of "predatory home-buying practices [which] target the most vulnerable in the community" with investors causing homelessness, erosion of communities and an end to generational wealth opportunities and legacies.

 

REIA adamantly disagrees with the characterizations of Real Estate Investors in our community. Though there are deceptive practices to at least some extent in virtually every industry, we rarely find it within Real Estate Investors in the Puget Sound. It is even more rare that find this within the REIA Membership.

The majority of the very people lawmakers have painted as "predatory" focus their "solicitations", or marketing, on zoning, potential profits, visual appearances of properties and the like. We do not focus on ages of the homeowners or their race, neither of which are known to us when we knock on a door or send a letter. It seems to be lost on the lawmakers that ours is a numbers game focused on potential profits, not the targeting proclaimed by the laws, particularly those spawned by the City of Seattle.

 

The properties many of us "solicit" are often condemned, horrifically run-down, boarded up and can be riddled with infestation and/or contamination. We often find liens, sometimes significant, that could ultimately cause the owner the loss of the property. They are largely blights on neighborhoods, havens for the homeless and places for drug use and crime. Neighbors are afraid of some of the people and activities within the homes. We are extraordinarily grateful for the licensed professionals who perform the tasks we cannot or will not do. Our roles are often not glamorous but are among the most rewarding. Communities are reinvigorated and delighted when their safety and property values are restored as the properties are rehabbed and resold to new neighbors in their community. They typically thank us profusely, bring food for long days, bring coffee to weary crews and bring addresses of other properties in the community they hope we will bring back to life.

Most of us do not pursue owner-occupied properties to any extent. Many of us have counseled property owners, paid legal costs so they could have our contracts reviewed and helped them remove personal property they wanted from the homes. We have had dumpsters of debris, including drug paraphernalia, hauled away. They say business is not personal. It is all personal and affects our unique approaches to finding, structuring, negotiating and closing deals. Many of those deals were located through "solicitations" , In the process we have improved many lives throughout the Puget Sound and removed burdens they did not have the means of resolving without us.

Beyond the mischaracterization of Real Estate Investors and our investing activities, we are disappointed that, as a Real Estate Investors Association, we were not contacted for public comment. The reach by our elected officials was simply too far. There are workarounds to make the laws less costly and less perilous, topics REIA will cover in upcoming meetings and classes, including the REIA Wholesaling Class. Complain as we will, we still have an obligation to move forward legally, ethically and profitably. 

Whether we love the laws or hate them, one thing remains: we must comply with the laws. We've been called unethical, predatory, deceptive and more. Prove them wrong. Get and stay in compliance.

Links to documents related to Washington State SHB 1081
and the Homebuyer Protection Ordinance, Seattle Counsil Bill 121039


Washington State Substitute House Bill 1081
Washington State Law RCW 61.37 (when codification is complete)
Solicitation Real Property-Owner Protection


City of Seattle Counsil Bill 121039
City of Seattle Municipal Code 6.610 (when codification is complete)
Homebuyer Protection Ordinance

The preceding statements are not intended as legal advise.

Please consult your Washington State licensed real estate attorney for details.

 

Thank you for visiting REIA!

Real Estate Investors Association

of Washington

Copyright 2007-2025. All Rights Reserved.


Questions?

info@REIAwa.com