ANALYSIS North Seattle Development Sites 3015 NE 120th St Seattle, WA 98125 - PREPARED FOR
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ANALYSIS North Seattle Development Sites 3015 NE 120th St Seattle, WA 98125 PREPARED FOR SIWADUNE ENTERPRISES INC PREPARED BY Jacob Odegard 206.623.6819 Jacob@ParagonREA.com Nick Hemming 206.812.9105 Agent@ParagonREA.com APRIL 2022
Who is Paragon?
1995
In 1995, Paragon was founded by eleven
local real estate brokers. Since then,
our innovative way of doing business has
attracted many successful, experienced year founded
brokers who are interested in working in
a more collaborative environment. Over
the past twenty-six years, Paragon has
put together a team of expert apartment
advisors who bring a wealth of related
experience. This in-depth knowledge of
the apartment industry gives Paragon 20+ licensed brokers
an inside track on how to best manage
these real estate transactions and achieve
1850+
maximum profitability.
closed transactions
$4.2
MORE THAN JUST A TRANSACTION
By pursuing our goal of providing unparalleled customer service Paragon has become the
number one brokerage firm for multi-family apartment sales in the greater Seattle area.
billion in total sales
We are focused on delivering the highest level of service in all areas. We guide our clients
through every step of the selling process and continue to serve as their trusted advisors. Our
brokers build lifelong partnerships that go beyond the deal. Paragon brokers are available to
our clients whenever a question or issue arises before, during, and after a sale closes. King
Pierce
Snohomish
counties served
APRIL 2022
Paragon’s Key Components
Our brokers help buyers and sellers achieve their long-
and short-term investment goals. We work to help
every client achieve the best possible terms for their
investment. Our company is built around four basic
concepts:
1
TEAMWORK CUSTOMER REPRESENTATION
Our unique, team-based Our brokers are committed
Teamwork approach means our brokers to helping our clients realize
2
share information on listings, their goals and maximize
market trends, negotiating their profitability. We expose
Partnership strategies, and troubleshooting properties to the largest possible
3
strategies, leveraging the audience, creating demand and
collective intellect of our firm for an advantage when it comes
Customer Representation every real estate transaction. time to negotiate the sale.
4 Experience
For more complicated transactions, we can often foresee
issues and resolve them before they become a problem.
We have successfully closed over 1,850 transactions PARTNERSHIP EXPERIENCE
including everything from lowdown seller financing
to all cash transactions, raw land, new construction, At Paragon, our client Our in-depth knowledge of the
condominium conversions, non-traditional properties, and relationships go beyond a single market in Washington state,
more. transaction. We have built particularly in the greater Seattle
connections with respected area and the I-5 corridor, comes
experts for every aspect of from more than twenty four
apartment ownership. years in the industry.
APRIL 2022
Executive Summary
ADDRESS 3015 NE 120th St
PARCEL NUMBER 344800-0800 270560-0007
EXISTING IMPROVEMENTS Duplex none
LOT SIZE 6600 11,991
LOT DIMENSIONS 60x110 120x101
ALLEY Yes none
ZONING LR3 (M) Urban Village LR2 (M)
FLOOR AREA RATIO 2.3 1.4
HEIGHT LIMIT 50' 40'
SETBACKS:
FRONT 7' ave, 5' min 7' ave 5' min
REAR 7'ave, 5'min, 0' w/ alley 7' ave 5' min
SIDES 5'min, 7'ave 7' ave 5' min
POTENTIAL BUILDING SIZE 15180 16787
URBAN VILLAGE Yes No
DENSITY No Limit No limit
PARKING REQUIRED No Limit 1:01
HALA FEE 5%, $7.64 5%, $7.64
APRIL 2022
Property Maps
NORTH SEATTLE
DEVELOPMENT SITE:
344800-0800
Property Maps
NORTH SEATTLE
DEVELOPMENT SITE:
270560-0007
LAND COMPARABLES
APRIL 2022
Executive
Land Comparables
Summary
Property Size Zoning Sale Price $/SF Current Use Planned Sale Date
344800-0800
3015 NE 120th St 6,600 LR3 (M) $990,000 $150 Duplex - TBD
Seattle, WA
270560-0007
3015 NE 120th St 11,991 LR2 (M) $1,798,650 $150 None - TBD
Seattle, WA
1 307 N 138th St
Seattle, WA 98133 9,315 LR2 (M) $1,425,000 $153 Triplex 8 Townhomes 01.28.2022
2 9200 Woodlawn Ave N 27 Unit-
Seattle, WA 98103 71,116 LR2 (M) $10,992,000 $155 Apartment 70+ Townhomes 10.22.2021
Complex
3 10306 Midvale Ave N
Single Family
Seattle, WA 98133 4,820 LR2 (M1) $500,000 $104 Residence
5 Townhomes 10.12.2021
4 14021 Greenwood Ave N
Seattle, WA 98133 8,100 LR2 (M) $1,300,000 $160 Triplex 7 Townhomes 10.08.2021
5 922 N 88th St
Single Family Two Houses and One
Seattle, WA 98103 5,100 LR1 (M1) $550,000 $108 Residence Duplex
07.02.2021
6 526 N 103rd St
Seattle, WA 98133 7,688 LR2 (M) $1,095,000 $142 Fourplex Unknown 03.26.2021
APRIL 2022
Land Comparables Map
307 N 138th St
1
Seattle, WA 98133
9200 Woodlawn Ave N
2
Seattle, WA 98103
10306 Midvale Ave N
3
Seattle, WA 98133 4
14021 Greenwood Ave N
4 1 DEV. SITE
Seattle, WA 98133 344800-0800
922 N 88th St
5
Seattle, WA 98103
DEV. SITE
526 N 103rd St
6 270560-0007
Seattle, WA 98133
6
3
2
5
APRIL 2022
Executive
Land Comparables
Summary
307 N 138th St
Seattle, WA 98133
Total Lot Size 9,315
Zoning LR2 (M)
Price $1,425,000
Price per Foot $153
Lot Dimensions 70x132
Existing Improvements Triplex
Units Planned 8 townhomes
Terms Cash Out
Close of Escrow 1/28/2022
COMMENTS
No alley, or corner lot Buyer plans to build 8 3-story
townhomes with paring for 8 vehicles.
600 University Street | Suite 2018 | Seattle, WA 98101
P 206.623.8880 | ParagonREA.com APRIL 2022Executive
Land Comparables
Summary
9200 - 9218 Woodlawn Ave N
9201 - 9225 Densmore Ave N
Seattle, WA 98103
Total Lot Size 71,116
Zoning LR2 (M)
Price $10,992,000
Price per Foot $155
Lot Dimensions 251x220x310
Existing Improvements 27 unit apartment complex
Units Planned 70 plus townhomes
Terms Cash Out
Close of Escrow 10/22/2021
COMMENTS
Listed and sold by Paragon Real Estate Advisors.
Property has a corner lot and takes has access to both
Densmore Ave N and Woodlawn Ave N.
600 University Street | Suite 2018 | Seattle, WA 98101
P 206.623.8880 | ParagonREA.com APRIL 2022Executive
Land Comparables
Summary
10306 Midvale Ave N
Seattle, WA 98133
Total Lot Size 4,820
Zoning LR2 (M1)
Price $500,000
Price per Foot $104
Lot Dimensions 40x120
Existing Improvements Single Family Residence
Units Planned 5 townhomes.
Terms Cash Out
Close of Escrow 10/12/2021
COMMENTS
Alley access, non corner lot. Buyer plans to build 5
townhomes with 4 parking stalls.
600 University Street | Suite 2018 | Seattle, WA 98101
P 206.623.8880 | ParagonREA.com APRIL 2022Executive
Land Comparables
Summary
14021 Greenwood Ave N
Seattle, WA 98133
Total Lot Size 8,100
Zoning LR2 (M)
Price $1,300,000
Price per Foot $160
Lot Dimensions 60x135
Existing Improvements Triplex
Units Planned 7 townhomes
Terms Cash Out
Close of Escrow 10/8/2021
COMMENTS
No alley or corner lot. Buyer plans to construct a 7 unit
townhome complex with surface level parking.
600 University Street | Suite 2018 | Seattle, WA 98101
P 206.623.8880 | ParagonREA.com APRIL 2022Executive
Land Comparables
Summary
922 N 88th St
Seattle, WA 98103
Total Lot Size 5,100
Zoning LR1 (M1)
Price $550,000
Price per Foot $108
Lot Dimensions 50x102
Existing Improvements Single Family Residence
Units Planned Two houses and one
duplex.
Terms Cash Out
Close of Escrow 7/2/2021
COMMENTS
No alley access, non-corner lot. Buyer plans to build two
single family residences and one duplex.
600 University Street | Suite 2018 | Seattle, WA 98101
P 206.623.8880 | ParagonREA.com APRIL 2022Executive
Land Comparables
Summary
526 N 103rd St
Seattle, WA 98133
Total Lot Size 7,688
Zoning LR2 (M)
Price $1,095,000
Price per Foot $142
Lot Dimensions 80x96
Existing Improvements Fourplex
Units Planned Unknown
Terms Cash Out
Close of Escrow 3/26/2021
COMMENTS
Alley access, non corner lot. No plans available online
through city.
600 University Street | Suite 2018 | Seattle, WA 98101
P 206.623.8880 | ParagonREA.com APRIL 2022Executive
PropertySummary
Pricing
NORTH SEATTLE
DEVELOPMENT SITES
Parcel Number Estimated Value Zoning Size $/Land SqFt
344800-0800 $990,000 LR3 (M) Urban Village 6,600 $150
270560-0007 $1,798,650 LR2 (M) 11,991 $150
APRIL 2022Marketing Strategy
At Paragon we realize the value and the
SHARING LISTINGS TO GROW THE POOL OF BUYERS
importance of targeted and effective
marketing plans. When marketing an We focus on marketing to the largest pool of buyers possible. One of the most
investment property we have three effective ways we grow our pool of buyers is by sharing property knowledge —
imperatives: both in-house and with outside brokerages.
There are no “in-pocket” listings at Paragon. Every new apartment building we
1
list for sale is immediately shared with other firms. In addition, our brokers share
Create dynamic, informative
commissions with outside brokers. This makes our properties very attractive to
marketing materials that clearly
other brokerages and allows us to rapidly grow our client’s audience of potential
convey all the benefits of the
buyers. Our success is measured in deals closed and total sales for our clients,
property.
not our individual commissions.
2
Distribute marketing materials
and place ads to get properties
in front of the largest audience HOW DO WE ACCOMPLISH THESE MARKETING TACTICS EFFICIENTLY
of potential buyers possible. AND EFFECTIVELY FOR EVERY SALE WE CLOSE?
3
Build a sense of urgency by
completing the marketing efforts
within a tight time line and
narrow the pool of buyers to the
best possible candidates.
This allows natural competition to emerge, Our brokers support each By mining our twenty-plus By creating fresh,
ensuring we obtain the highest profit other during the marketing year’s experience to reach persuasive marketing
margins possible for our clients, with the and sales process, which out to proven contacts and materials that can be
best possible terms. helps to facilitate our by selecting and utilizing the viewed in print, online,
free flowing open lines of most effective media outlets, and on mobile devices.
communication. which allows us to saturate
the market.
APRIL 2022Marketing Materials and Advertising MAXIMIZING AVAILABLE MARKETING CHANNELS There are a myriad of options available for marketing apartment buildings today, and we maximize our advertising opportunities for every available channel. From websites to cutting-edge marketing materials, Paragon delivers fresh, effective marketing that produces superior results. DYNAMIC MARKETING PACKAGES Our marketing is well-researched, comprehensive, and dynamic. We work to grab potential buyers’ attention with all the highlights and benefits a property offers while also providing the essential details a buyer needs to make an informed purchase. A POWERFUL ONLINE MARKETING PRESENCE ParagonREA.com, our corporate website, is a marketing tool first and foremost. We have maximized the functionality from a seller’s perspective to quickly deliver a wealth of targeted information to visitors. We provide a clear and vivid picture of each investment opportunity so potential buyers will contact a Paragon broker for more information. CAPITALIZING ON PRINT AND MEDIA OUTLETS Paragon saturates the print and online markets with our listings to ensure we capture the attention of all the local, national, and international buyers. Paragon advertises in industry specific publications and our listings are showcased on the top apartment search engines and websites available in today’s market. APRIL 2022
Experience and the International Market
TWENTY YEARS OF CONTACTS AND THE INTERNATIONAL
MARKET
After more than twenty-six years, our brokers have extensive
contacts throughout the industry. We utilize this vast network
of professionals every time we list a property. Our ability to
saturate the market with compelling marketing materials
and our extensive connections ensure that foreign buyers
are viewing and taking an interest in our properties. Paragon
brokers have sold multi-family properties to buyers from
Canada, Hong Kong, Japan, China, Russia, Korea, Israel,
Singapore, and Taiwan.
U.S. cities, and Seattle in particular, promise to attract an
even larger segment of foreign buyers in the coming year. The
2018 Association of Foreign Investors in Real Estate (AFIRE)
ranked:
> Multi-family and Industrial as the #1 Property Type for Foreign Investors
> The United States as the #1 Country for Stable and Secure Real Estate Investments
> Seattle as the #3 Best U.S. City to Invest In
APRIL 2022Open Communication is Key
UNIQUE APPROACH
We have an innovative and unique approach to apartment brokerage, which has led to greater
returns on investment, increased profitability, and a higher level of satisfaction for our clients.
Our reputation for open communication is what sets us apart from other brokerages in the Puget
Sound. At Paragon we have no “in house” or “pocket listings.” All of our listings are immediately
exposed to the open market. This exposure generates natural competition between buyers to
ensure our clients receive the best possible price for their assets.
Our reputation speaks for
TEAMWORK GETS IT DONE itself. Other brokers know
Paragon splits their
Our reputation for sharing isn’t limited to We share industry commissions with outside
information. The investment community as a information We work
brokers. This encourages
whole knows our brokers split commissions and trends within together
them to present
as well. This encourages other brokers to the firm. to support our
our listings to their buyers.
present our listings to their clients knowing clients.
their compensation will be covered.
One of the biggest factors in our success Paragon shares Paragon
is our belief in sharing knowledge. Within listings with outside exposes all listings
Paragon, we share market trends and brokers and firms. to the open
industry knowledge between our brokers, market.
which means our team is better informed
than the competition. Supporting each other
as a team also helps our brokers quickly
develop solutions to the wide range of
challenges and issues apartment owners
may encounter.
APRIL 2022Case Study - Increase Real Estate Holdings
THE CIRCUMSTANCE
Our brokers recently advised a couple on how to best
manage their real estate investments so they could add
a 17-unit apartment building to their portfolio. The couple
was uncertain if this apartment building was within their
financial reach.
As interested as they were in purchasing the building,
the investors did not have the cash on hand to go into
negotiations. They hoped that they could leverage the
equity in their current real estate portfolio to come up
with the necessary funds. However, they didn’t know how
to best manage their assets to come up with the down
payment.
1
ASSESSING CURRENT ASSETS
We assessed the couple’s assets to identify the ideal
properties to refinance in order to get the down payment.
THE OUTCOME
This was a complicated transaction with several moving
2
pieces. Many brokers would have recommended that MAKING INTRODUCTIONS
their clients work with a mortgage broker, thereby Our brokers helped the couple select a reliable lender who
removing themselves from a difficult process. But our could complete the transactions in a timely manner.
brokers went above and beyond the standard role of
a broker and put together a workable and profitable
solution for these clients. This couple was able to
3
EXPERT NEGOTIATIONS
purchase the property while holding on to their existing Before the refinances were complete, our brokers wrote
real estate investments – significantly growing their up a solid offer that included a finance contingency.
income and their real estate portfolio.
4
ON TIME CLOSING
The buyers were able to complete their refinances and
close the transaction within the terms of the contract.
APRIL 2022Case Study - Paragon Helps Increase ROI
THE CIRCUMSTANCE
1
ASSESSING THE PROPERTY
After receiving a number of unsolicited offer letters from
The brokers conducted a thorough walk-through of the
interested buyers, these owners decided the time was
building and analyzed the building’s operating income.
right to sell their long-term investment and retire from the
business. After two failed transactions, two Paragon brokers
contacted the sellers to discuss their options. The brokers
2
FULL MARKET EXPOSURE
explained that by using Paragon’s marketing process,
they could build interest in the building and create natural The building was completely exposed to the local, national,
competition. and international open market of buyers.
3
EVALUATE OFFERS
Six solid offers were presented to the sellers - all of which
came in at the asking price or above it.
4
QUICK CLOSING
The strongest offer was $110,000 over asking price. The
owners went into contract and the deal closed in 2 weeks.
THE OUTCOME
Working with Paragon to sell the property exceeded the seller’s
expectations. The sellers were able to maximize their return on
investment and retire from the apartment business, satisfied that
their building had sold for the best possible price —a price that was
well above the offers they had received from unsolicited buyers.
APRIL 2022Case Study - Historic Buildings
1
MAKE REPAIRS AND UPDATES
Our brokers advised the owner on how to update the
building in order to get the best return on her investment.
2
COLLECT ESTIMATES AND OVERSEE WORK
The owner was unable to oversee the repair process, we
collected estimates and were on site to oversee the work.
3
FULL MARKET EXPOSURE
We immediately opened the listing to other brokerage firms.
We have no “pocket listings” at Paragon.
THE CIRCUMSTANCE
4
VETTING QUALIFIED BUYERS
After being contracted to sell the property, our brokers Out brokers make sure they have a clear picture of a
noticed several challenges when they took their first buyer’s situation as it relates to our seller’s needs.
walk through the building, which was built in 1908. The
most obvious hurdle was the 41-unit building’s 14 SROs
— these units are small, single-room apartments without
5
SMOOTH AND EASY CLOSING
bathrooms. Our client accepted the buyer’s all cash offer and the
Paragon brokers quickly developed a solution to that sale closed quickly without any disruptions.
potential obstacle for buyers. New floor plans were
drafted for a remodel that would eliminate the SROs to
create larger, more desirable studio and one-bedroom
apartments. By providing a clear plan and cost analysis
of the renovations, we simplified the process for buyers.
This enabled us to show buyers the true potential of this
grand historic building.
APRIL 2022Case Study - Maximizing Rental Income
THE CIRCUMSTANCE
We have worked with the owners of this building since 1991 and have
closed multiple successful transactions with them over the past twenty
plus years. Recently, these clients decided that the time was right to sell
one of their top-tier properties. This property had been well-maintained
by the owner, however the current management had not been aggressive
with the rents.
1
ESTABLISHING RENTAL RATES
We advised the owners to raise the rent on several available
units before we started our marketing efforts.
2
FULL MARKET EXPOSURE
We immediately exposed the property to the open market
and shared all information freely with other brokers.
3
GROWING THE BUYER POOL
We made sure the investment community knew what an
excellent opportunity this building was for potential buyers. THE OUTCOME
The property sold for $10,650,000, which was over the
asking price and much more than the owner previously
4
ASSESSING OFFERS
thought possible. By completing the necessary research,
Demand for this property was immediate and intense. A drawing on our considerable experience in the apartment
date for offers was set and a bidding war ensued. industry, and executing a targeted marketing plan,
Paragon brokers were able to substantially increase
the profitability of this apartment owner’s long-term
5
CO-BROKERAGE AT ITS BEST apartment investment. The seller has since moved on to a
We share our listings and commissions with other brokers new area of investing and is very pleased with the outcome
which encourages the promotion of our properties of this transaction.
APRIL 2022Case Study - Selling for Maximum Profitability
THE CIRCUMSTANCE
Recently, Paragon had the pleasure to work with a couple who had
owned and self-managed an apartment building from their home in
San Francisco for almost 20 years. They knew the Seattle apartment
industry was strong and that it was a good time to capitalize on the hot
market.
The owners began receiving unsolicited offers from local Seattle real
estate brokers and developers who offered to buy the property from
them in its current condition. The offers started coming in at $600,000
and climbed up to $800,000 Unsure of what to do, the owners realized
the time had come to get some professional advice. This led them to
call Paragon.
1
DETERMINE TRUE MARKET VALUE
We needed to determine the true market value of the
property in order to advise on next steps.
2
EXTENSIVE RESEARCH AND KNOWLEDGE
Extensive research, coupled with our familiarity with the
market led us to value the property above expectations.
3
FULL MARKET EXPOSURE
The property received ten offers. The seller accepted the
highest offer, at $1,250,000, with the best terms.
4
MANAGING A 1031 EXCHANGE
We helped close the transaction on a tight time line with
the option to extend closing to accommodate an exchange.
APRIL 2022Case Study - Limited Buyer Pool Limits Sellers’ ROI
THE CIRCUMSTANCE
Recently, a Paragon broker helped a client close a
rewarding deal by properly exposing their apartment
building to the open market. Prior to partnering with
Paragon, this client listed the property with a national
brokerage firm which only marketed the property inside the
firm’s preselected in-house network of buyers.
Working with a limited pool of buyers and not getting
exposed to the open market had diminished the demand
1
DETERMINING MARKET VALUE
and the building lingered on the market with very little
interest. An offer was eventually made at $8 million but After extensive research we determined the apartment
was reduced after inspection by an astonishing $2 million building was worth more than the previous list price.
dollars. The seller chose to walk away from both the deal
and the national firm.
2
DYNAMIC MARKETING MATERIALS
A website and traditional materials were created to show the
best features of the building online, in email, or in print.
THE OUTCOME
The seller walked away from a $6 million dollar offer
3
that came from a limited pool of buyers and closed on an GROWING THE BUYER POOL
offer for $8.25 after allowances for repairs were made. The building was listed on an extensive list of local and
national websites and shared with outside brokers.
This can be attributed to working with the largest
possible pool of buyers and executing a results-driven
marketing plan. Paragon takes the listing process one
4
SHARING INFORMATION AND COMMISSIONS
step further than the competition. Our brokers expose
apartment buildings to the open market and motivate Our policy of sharing the commissions with outside firms
outside brokers to market our listing to their clients by encouraged outside brokers to show the listing to clients.
sharing commission fees.
5
COMPETITION LEADS TO MORE OFFERS
Our efforts generated 6 offers close to the list price. The
highest offer was for $8,650,000 and accepted by the seller
APRIL 2022Paragon’s Success
After twenty-six rewarding years advising local apartment building sellers in the
greater Seattle area, brokers at Paragon have successfully closed more than 1,850
transactions for our clients for a grand total of more than $4.2 billion in sales.
We continue, daily, to increase these sales numbers and grow our overall client
satisfaction.
26
When we first opened in 1995, our brokers made a strategic decision to focus on
the greater Seattle area. We have continued to focus on the urban areas of the I-5 years
corridor in Washington state for the past twenty-four years. Today, our brokers are
consummate experts in King, Pierce, and Snohomish counties, where the booming
apartment market has so much to offer investors.
The apartment industry is fluid and ever-changing. Paragon brokers stay one step
ahead of the competition by sharing market information with each other. This
represents a unique way of doing business in the apartment building industry and
our supportive environment at Paragon has been very beneficial for our clients. Our
brokers are always in touch with market trends, each neighborhood’s personality, 39,866
and the overall financial picture for apartment buildings in Washington state.
units sold
When our expert knowledge of greater Seattle is combined with our targeted
marketing strategies, our contract negotiating skills, our vast network of reliable
vendors, and our twenty years of experience, it is easy to see why we are the
leaders in the Puget Sound investment property market.
$4.2 Billion
in total sales
APRIL 2022Exclusive Agency Sale Listing Agreement
This Agreement is made by and between________________________(“Seller”) and _______________________________(“Firm”). Seller
hereby grants to Firm the exclusive and irrevocable right to sell and to receipt for deposit in connection therewith Seller’s commercial
real estate legally described as set forth on attached Exhibit A and commonly described as_________________________________ , City
of __________________ , _______________ County, Washington (the “Property”).
1. DURATION OF AGREEMENT. This Agreement shall commence on _____________________, 20______ and shall expire at 11:59
p.m. on _________________________, 20______.
2. PRICE AND TERMS. Seller agrees to list the Property at a price of $______________________ and shall consider offers that
include the following terms:
Possession: _________________________________
Terms: _____________________________________
3. DEFINITIONS. As used in this Agreement, (a) “CBA” shall mean the Commercial Brokers Association; and (b) “sell” shall mean
sell, contract to sell, enter into a contract to sell, exchange, lease for over 5 years, and/or enter into an option to purchase
the Property. The phrases “this Agreement” and “during the term hereof” include separate, written extensions or renewals of this
Agreement.
4. AGENCY/DUAL AGENCY. Seller authorizes Firm to appoint _______________________________as Seller’s Listing Broker. This
Agreement creates an agency relationship with Listing Broker and any of Firm’s brokers who supervise Listing Broker’s
performance as Seller’s agent (“Supervising Broker”). No other brokers affiliated with Firm are agents of Seller, except to the
extent that Firm, in its discretion, appoints other brokers to act on Seller’s behalf as and when needed.
If the Property is sold to a buyer represented by one of Firm’s brokers other than Listing Broker (“Buyer’s Broker”), Seller |
consents to any Supervising Broker who also supervises Buyer’s Broker acting as a dual agent. If the Property is sold to a buyer
who Listing Broker also represents, Seller consents to Listing Broker and Supervising Broker acting as dual agents. Seller has
received from Listing Broker the pamphlet entitled “The Law of Real Estate Agency.”
If any of Firm’s brokers act as a dual agent, Firm shall be entitled to the entire commission payable under this Agreement plus
any additional compensation Firm may have negotiated with the buyer.
5. PROPERTY OWNERSHIP AND INFORMATION. Seller warrants that Seller has the right to sell the Property on the terms set
forth in this Agreement and agrees to furnish and pay for a buyer’s policy of title insurance showing marketable title to the
Property. Seller also warrants that the Property information on the Property Information pages of this Agreement is correct.Seller understands that Firm and other members of CBA will make representations to prospective buyers based solely on the
Property information in this Agreement and agrees to indemnify and hold Firm and other members of CBA harmless in the event
the foregoing warranties are incorrect. Seller acknowledges that following closing, the amount of the purchase price and any
other terms of the sale of the Property shall not be deemed confidential information, and Seller authorizes disclosure of the
same. Seller acknowledges receipt of a copy of this Agreement, with the Property Information pages of this Agreement fully filled
in.
6. CLOSING COSTS. In addition to purchasing a buyer’s policy of title insurance, Seller agrees to pay one-half of any escrow fees.
Rents, insurance, taxes, interest and reserves on assumed encumbrances are to be prorated between Seller and buyer as of the
date of closing. A sale on real estate contract shall be on Form LPB45, currently distributed by title insurance companies.
7. COMMISSION. Firm shall be entitled to a commission if: (a) Firm sells or procures a buyer on the terms of this Agreement or on
other terms acceptable to Seller; (b) Seller sells the Property through any other real estate
Firm during the term of this Agreement; (c) Seller sells the Property within six months after the expiration or sooner termination
of this Agreement to a person or entity that submitted an offer to purchase the Property during the term of this Agreement or that
appears on any registration list provided by Firm pursuant to this Agreement or to an “Affiliate” of such a person or entity that
submitted an offer or that appears on the registration list; (d) the Property is made unmarketable by Seller’s voluntary act; or (e)
Seller withdraws the Property from sale, or otherwise prevents Firm from selling it.
The commission shall be calculated as follows:_________________________________________________________________
Firm shall submit any registration list to Seller within 15 days after the expiration or sooner termination of this Agreement and
shall only include on the registration list persons or entities to whose attention the Property was brought through the signs,
advertising or other action of Firm, or who received information secured directly or indirectly from or through Firm during the
term of this Agreement. Seller shall provide the registration list to any other brokers that assist the Seller with this Property.
“Affiliate” means, with respect to any person or entity that submitted an offer during the term of this Agreement or that appears
on the registration list, any buyer which has more than a 10% ownership or voting interest in such an entity or any buyer in which
more than 10% of the ownership or voting interests are owned or controlled by such a person or entity.
8. FIRM/MULTIPLE LISTING. Firm shall cause this listing to be published by CBA for distribution to all CBA members through
CBA’s listing distribution systems. Firm shall cooperate with all other members of CBA in working toward the sale of the
Property. Seller understands and agrees that all Property information contained in this Agreement or otherwise given to
CBA becomes the Property of CBA, is not confidential, and will be given to third parties, including prospective buyers, other
cooperating members of CBA who do not represent the Seller and, in some instances, may represent the buyer and other parties
granted access to CBA’s listing systems. Seller agrees that Firm may record this Agreement. Regardless of whether a
cooperating member is the broker of the buyer, the Seller, neither or both, the member shall be entitled to receive the selling
office’s share of the commission as designated by the listing office.IT IS UNDERSTOOD THAT CBA IS NOT A PARTY TO THIS AGREEMENT, AND ITS SOLE FUNCTION IS TO FURNISH THE
DESCRIPTIVE INFORMATION SET FORTH IN THIS LISTING TO ITS MEMBERS, WITHOUT VERIFICATION AND WITHOUT ASSUMING
ANY RESPONSIBILITY FOR SUCH INFORMATION OR IN RESPECT TO THIS AGREEMENT.
9. ATTORNEY’S FEES. In the event either party employs an attorney to enforce any terms of this Agreement and is successful, the
other party agrees to pay a reasonable attorney’s fee and any costs and expenses incurred. In the event of trial, venue shall be in
the county in which the Property is located, and the amount of the attorney’s fee shall be as fixed by the court.
10. ADDITIONAL TERMS. In addition to the Property Information pages of this Agreement and Exhibit A (legal description), the
following amendments or addenda (which are also attached hereto) are part of this Agreement:
SELLER
_________________________________ _________________________________
Owner/Authorized Signature Owner/Authorized Signature
Name: ________________________________ Name: ________________________________
Title:__________________________________ Title:__________________________________
Date:__________________________________ Date:__________________________________
FIRM
______________________________{______ , Firm (Company)
(Office)
By __________________________________
(Authorized Representative)
Date: _______________________________EXHIBIT A (Legal Description)
The Law of Real Estate Agency
This pamphlet describes your legal rights in dealing with a real estate firm or broker. Please read it carefully before signing any documents.
The following is only a brief summary of the attached law.
SEC. 1. DEFINITIONS. Defines the specific terms used in the law.
SEC. 2. RELATIONSHIPS BETWEEN BROKERS AND THE PUBLIC. Prescribes that a broker who works with a buyer or tenant represents that buyer or tenant
— unless the broker is the listing agent, a seller’s subagent, a dual agent, the seller personally or the parties agree otherwise. Also prescribes that in
a transaction involving two different brokers licensed to the same real estate firm, the firm’s designated broker and any managing broker responsible
for the supervision of both brokers, are dual agents and each broker solely represents his or her client — unless the parties agree in writing that both
brokers are dual agents.
SEC. 3. DUTIES OF A BROKER GENERALLY. Prescribes the duties that are owed by all brokers, regardless of who the broker represents. Requires disclosure
of the broker’s agency relationship in a specific transaction.
SEC. 4. DUTIES OF A SELLER’S AGENT. Prescribes the additional duties of a broker representing the seller or landlord only.
SEC. 5. DUTIES OF A BUYER’S AGENT. Prescribes the additional duties of a broker representing the buyer or tenant only.
SEC. 6. DUTIES OF A DUAL AGENT. Prescribes the additional duties of a broker representing both parties in the same transaction, and requires the written
consent of both parties to the broker acting as a dual agent.
SEC. 7. DURATION OF AGENCY RELATIONSHIP. Describes when an agency relationship begins and ends. Provides that the duties of accounting and
confidentiality continue after the termination of an agency relationship.
SEC. 8. COMPENSATION. Allows real estate firms to share compensation with cooperating real estate firms. States that payment of compensation does not
necessarily establish an agency relationship. Allows brokers to receive compensation from more than one party in a transaction with the parties’
consent.
SEC. 9. VICARIOUS LIABILITY. Eliminates the liability of a party for the conduct of the party’s agent or subagent, unless the principal participated in or
benefited from the conduct or the agent or subagent is insolvent. Also limits the liability of a broker for the conduct of a subagent.
SEC. 10. IMPUTED KNOWLEDGE AND NOTICE. Eliminates the common law rule that notice to or knowledge of an agent constitutes notice to or knowledge of
the principal.
SEC. 11. INTERPRETATION. This law establishes statutory duties which replace common law fiduciary duties owed by an agent to a principal.
SEC. 12. SHORT SALE. Prescribes an additional duty of a firm representing the seller of owner-occupied real property in a short sale.Page 2
SECTION 1: (a) Was acquired by the broker during the (11) “Principal” means a buyer or a seller who has
DEFINITIONS. course of an agency relationship with the entered into an agency relationship with a broker.
principal;
Unless the context clearly requires otherwise, the (12) “Real estate brokerage services” means the
definitions in this section apply throughout this (b) The principal reasonably expects to be rendering of services for which a real estate license
chapter. kept confidential; is required under chapter 18.85 RCW.
(1) “Agency relationship” means the agency (c) The principal has not disclosed or (13) “Real estate firm” or “firm” have the same
relationship created under this chapter or by written authorized to be disclosed to third parties; meaning as defined in chapter 18.85 RCW.
agreement between a real estate firm and a buyer
and/or seller relating to the performance of real (d) Would, if disclosed, operate to the (14) “Real estate transaction” or “transaction” means
estate brokerage services. detriment of the principal; and an actual or prospective transaction involving a
purchase, sale, option, or exchange of any interest in
(2) “Agent” means a broker who has entered into an (e) The principal personally would not be real property or a business opportunity, or a lease or
agency relationship with a buyer or seller. obligated to disclose to the other party. rental of real property. For purposes of this chapter,
a prospective transaction does not exist until a
(3) “Broker” means broker, managing broker, and (8) “Dual agent” means a broker who has entered written offer has been signed by at least one of the
designated broker, collectively, as defined in chapter into an agency relationship with both the buyer and parties.
18.85 RCW, unless the context requires the terms to seller in the same transaction.
be considered separately. (15) “Seller” means an actual or prospective seller in
(9) “Material fact” means information that a real estate transaction, or an actual or prospective
(4) “Business opportunity” means and includes a substantially adversely affects the value of the landlord in a real estate rental or lease transaction,
business, business opportunity, and goodwill of an property or a party’s ability to perform its obligations as applicable.
existing business, or any one or combination thereof in a real estate transaction, or operates to materially
when the transaction or business includes an impair or defeat the purpose of the transaction. (16) “Seller’s agent” means a broker who has
interest in real property. The fact or suspicion that the property, or any entered into an agency relationship with only the
neighboring property, is or was the site of a murder, seller in a real estate transaction, and includes
(5) “Buyer” means an actual or prospective suicide or other death, rape or other sex crime, subagents engaged by a seller’s agent.
purchaser in a real estate transaction, or an actual assault or other violent crime, robbery or burglary,
or prospective tenant in a real estate rental or lease illegal drug activity, gang-related activity, political or (17) “Subagent” means a broker who is engaged to
transaction, as applicable. religious activity, or other act, occurrence, or use not act on behalf of a principal by the principal’s agent
adversely affecting the physical condition of or title where the principal has authorized the broker in
(6) “Buyer’s agent” means a broker who has entered to the property is not a material fact. writing to appoint subagents.
into an agency relationship with only the buyer in
a real estate transaction, and includes sub-agents (10) “Owner-occupied real property” means real
engaged by a buyer’s agent. property consisting solely of a single-family
residence, a residential condominium unit, or a
(7) “Confidential information” means information residential cooperative unit that is the principal
from or concerning a principal of a broker that: residence of the borrower.Page 3
SECTION 2: broker has an agency relationship, unless all parties (e) To account in a timely manner for all
RELATIONSHIPS BETWEEN BROKERS AND THE agree in writing that the broker is a dual agent. money and property received from
PUBLIC. or on behalf of either party;
(3) A broker may work with a party in separate
(1) A broker who performs real estate brokerage transactions pursuant to different relationships,
services for a buyer is a buyer’s agent unless the: including, but not limited to, representing a party (f) To provide a pamphlet on the law of real
in one transaction and at the same time not estate agency in the form prescribed in RCW
(a) Broker’s firm has appointed the broker to representing that party in a different transaction 18.86.120 to all parties to whom the broker
represent the seller pursuant to a written involving that party, if the broker complies with this renders real estate brokerage services,
agency agreement between the firm and the chapter in establishing the relationships for each before the party signs an agency agreement
seller, in which case the broker is a seller’s transaction. with the broker, signs an offer in a real
agent; estate transaction handled by the broker,
consents to dual agency,or waives
(b) Broker has entered into a subagency SECTION 3: any rights, under RCW 18.86.020(1)(e),
agreement with the seller’s agent’s firm, in DUTIES OF A BROKER GENERALLY. 18.86.040(1)(e), 18.86.050(1)(e), or 18.86.060(2)
which case the broker is a seller’s agent; (e) or (f), whichever occurs earliest; and
(1) Regardless of whether a broker is an agent,
(c) Broker’s firm has appointed the broker to the broker owes to all parties to whom the broker
represent the seller pursuant to a written renders real estate brokerage services the following (g) To disclose in writing to all parties to
agency agreement between the firm and the duties, which may not be waived: whom the broker renders real estate
seller, and the broker’s firm has appointed brokerage services, before the party signs
the broker to represent the buyer pursuant (a) To exercise reasonable skill and care; an offer in a real estate transaction handled
to a written agency agreement between the by the broker, whether the broker
firm and the buyer, in which case the broker b) To deal honestly and in good faith; represents the buyer, the seller, both
is a dual agent; parties, or neither party. The
(c) To present all written offers, written disclosure shall be set forth in a
(d) Broker is the seller or one of the sellers; separate paragraph entitled “Agency
or notices and other written communications
to and from either party in a timely manner, Disclosure” in the agreement between the
(e) Parties agree otherwise in writing after regardless of whether the property is buyer and seller or in a separate writing
the broker has complied with RCW subject to an existing contract for sale or the entitled “Agency Disclosure.”
18.86.030(1)(f). buyer is already a party to an existing
contract to purchase; (2) Unless otherwise agreed, a broker owes no duty
(2) In a transaction in which different brokers to conduct an independent inspection of the property
affiliated with the same firm represent different (d) To disclose all existing material facts or to conduct an independent investigation of either
parties, the firm’s designated broker and any known by the broker and not apparent or party’s financial condition, and owes no duty to
managing broker responsible for the supervision of readily ascertainable to a party; provided independently verify the accuracy or completeness
both brokers, is a dual agent, and must obtain the that this subsection shall not be construed of any statement made by either party or by any
written consent of both parties as required under to imply any duty to investigate matters that source reasonably believed by the broker to be
RCW 18.86.060. In such case, each of the brokers the broker has not agreed to investigate; reliable.
shall solely represent the party with whom thePage 4
SECTION 4: (b) The representation of more than one seller by (i) seek additional properties to
DUTIES OF A SELLER’S AGENT. different brokers affiliated with the same firm in purchase while the buyer is a party
competing transactions involving the same firm does to an existing contract to purchase;
(1) Unless additional duties are agreed to in writing not in and of itself breach the duty of loyalty to the or
signed by a seller’s agent, the duties of a seller’s sellers or create a conflict of interest.
agent are limited to those set forth in RCW 18.86.030 (ii) show properties as to which
and the following, which may not be waived except there is no written agreement to pay
as expressly set forth in (e) of this subsection: SECTION 5: compensation to the buyer’s agent.
DUTIES OF A BUYER’S AGENT.
(a) To be loyal to the seller by taking no (2) ( a ) The showing of property in which a buyer is
action that is adverse or detrimental to the (1) Unless additional duties are agreed to in writing interested to other prospective buyers by a buyer’s
seller’s interest in a transaction; signed by a buyer’s agent, the duties of a buyer’s agent does not in and of itself breach the duty of
agent are limited to those set forth in RCW 18.86.030 loyalty to the buyer or create a conflict of interest.
(b) To timely disclose to the seller any and the following, which may not be waived except
conflicts of interest; as expressly set forth in (e) of this subsection: (b) The representation of more than one buyer by
different brokers affiliated with the same firm in
(c) To advise the seller to seek expert advice (a) To be loyal to the buyer by taking no competing transactions involving the same property
on matters relating to the transaction that action that is adverse or detrimental to the does not in and of itself breach the duty of loyalty to
are beyond the agent’s expertise; buyer’s interest in a transaction; the buyer or create a conflict of interest.
(d) Not to disclose any confidential (b) To timely disclose to the buyer any
information from or about the seller, except conflicts of interest; SECTION 6:
under subpoena or court order, even after DUTIES OF A DUAL AGENT.
termination of the agency relationship; and (c) To advise the buyer to seek expert advice
on matters relating to the transaction that (1) Notwithstanding any other provision of this
(e) Unless otherwise agreed to in writing are beyond the agent’s expertise; chapter, a broker may act as a dual agent only
after the seller’s agent has complied with with the written consent of both parties to the
RCW 18.86.030(1)(f), to make a good faith (d) Not to disclose any confidential transaction after the dual agent has complied with
and continuous effort to find a buyer for the information from or about the buyer, except RCW 18.86.030(1)(f), which consent must include a
property; except that a seller’s agent is not under subpoena or court order, even after statement of the terms of compensation.
obligated to seek additional offers to termination of the agency relationship; and
purchase the property while the property is (2) Unless additional duties are agreed to in writing
subject to an existing contract for sale. (e) Unless otherwise agreed to in writing signed by a dual agent, the duties of a dual agent
after the buyer’s agent has complied with are limited to those set forth in RCW 18.86.030 and
(2) (a) The showing of properties not owned by RCW 18.86.030(1)(f), to make a good faith and the following, which may not be waived except as
the seller to prospective buyers or the listing of continuous effort to find a property for the expressly set forth in (e) and (f) of this subsection:
competing properties for sale by a seller’s agent buyer; except that a buyer’s agent is not
does not in and of itself breach the duty of loyalty to obligated to:
the seller or create a conflict of interest.Page 5
(a) To take no action that is adverse or (ii) show properties as to which SECTION 7:
detrimental to either party’s interest there is no written agreement to pay DURATION OF AGENCY RELATIONSHIP.
in a transaction; compensation to the dual agent.
(1) The agency relationships set forth in this chapter
(b) To timely disclose to both parties any (3) (a) The showing of properties not owned by commence at the time that the broker undertakes to
conflicts of interest; the seller to prospective buyers or the listing of provide real estate brokerage services to a principal
competing properties for sale by a dual agent does and continue until the earliest of the following:
(c) To advise both parties to seek expert not in and of itself constitute action that is adverse
advice on matters relating to the transaction or detrimental to the seller or create a conflict of (a) Completion of performance by the
that are beyond the dual agent’s expertise; interest. broker;
(d) Not to disclose any confidential (b) The representation of more than one seller (b) Expiration of the term agreed upon by the
information from or about either by different brokers licensed to the same firm in parties;
party, except under subpoena or court competing transactions involving the same buyer
order, even after termination of the agency does not in and of itself constitute action that is (c) Termination of the relationship by mutual
relationship; adverse or detrimental to the sellers or create a agreement of the parties; or
conflict of interest.
(e) Unless otherwise agreed to in writing (d) Termination of the relationship by notice
after the dual agent has complied with RCW (4) (a) The showing of property in which a buyer from either party to the other. However,
18.86.030(1) (f), to make a good faith and is interested to other prospective buyers or the such a termination does not affect the
continuous effort to find a buyer for the presentation of additional offers to purchase contractual rights of either party.
property; except that a dual agent is not property while the property is subject to a
obligated to seek additional offers to transaction by a dual agent does not in and of itself (2) Except as otherwise agreed to in writing, a broker
purchase the property while the property is constitute action that is adverse or detrimental to owes no further duty after termination of the agency
subject to an existing contract for sale; and the buyer or create a conflict of interest. relationship, other than the duties of:
(f) Unless otherwise agreed to in writing (b) The representation of more than one buyer (a) Accounting for all moneys and property
after the dual agent has complied with RCW by different brokers licensed to the same firm in received during the relationship; and
18.86.030(1)(f), to make a good faith and competing transactions involving the same property
continuous effort to find a property for the does not in and of itself constitute action that is (b) Not disclosing confidential information.
buyer; except that a dual agent is not adverse or detrimental to the buyer or create a
obligated to: conflict of interest.
(i) seek additional properties to
purchase while the buyer is a party
to an existing contract to purchase;
orPage 6
SECTION 8: SECTION 9: (2) Unless otherwise agreed to in writing, a broker
COMPENSATION. VICARIOUS LIABILITY. does not have knowledge or notice of any facts
known by a subagent that are not actually known
(1) In any real estate transaction, a firm’s (1) A principal is not liable for an act, error, or by the broker. This subsection does not limit the
compensation may be paid by the seller, the buyer, a omission by an agent or subagent of the principal knowledge imputed to the designated broker or any
third party, or by sharing the compensation between arising out of an agency relationship: managing broker responsible for the supervision of
firms. the broker of any facts known by the broker.
(a) Unless the principal participated in or
(2) An agreement to pay or payment of compensation authorized the act, error, or omission; or
does not establish an agency relationship between SECTION 11:
the party who paid the compensation and the broker. (b) Except to the extent that: INTERPRETATION.
(3) A seller may agree that a seller’s agent’s firm (i) the principal benefited from the The duties under this chapter are statutory duties
may share with another firm the compensation paid act, error,or omission; and and not fiduciary duties. This chapter supersedes the
by the seller. fiduciary duties of an agent to a principal under the
(ii) the court determines that it is common law. The common law continues to apply to
(4) A buyer may agree that a buyer’s agent’s firm highly probable that the claimant the parties in all other respects. This chapter does
may share with another firm the compensation paid would be unable to enforce a not affect the duties of a broker while engaging in
by the buyer. judgment against the agent or the authorized or unauthorized practice of law as
subagent. determined by the courts of this state. This chapter
(5) A firm may be compensated by more than one shall be construed broadly.
party for real estate brokerage services in a real (2) A broker is not liable for an act, error, or
estate transaction, if those parties consent in writing omission of a subagent under this chapter, unless
at or before the time of signing an offer in the that broker participated in or authorized the act, SECTION 12:
transaction. error or omission. This subsection does not limit the SHORT SALE.
liability of a firm for an act, error, or omission by a
(6) A firm may receive compensation based on the broker licensed to the firm. When the seller of owner-occupied residential real
purchase price without breaching any duty to the property enters into a listing agreement with a
buyer or seller. real estate firm where the proceeds from the sale
SECTION 10: may be insufficient to cover the costs at closing,
(7) Nothing contained in this chapter negates the IMPUTED KNOWLEDGE AND NOTICE. it is the responsibility of the real estate firm to
requirement that an agreement authorizing or disclose to the seller in writing that the decision
employing a broker to sell or purchase real estate (1) Unless otherwise agreed to in writing, a principal by any beneficiary or mortgagee, or its assignees,
for compensation or a commission be in writing and does not have knowledge or notice of any facts to release its interest in the real property, for less
signed by the seller or buyer. known by an agent or subagent of the principal that than the amount the borrower owes, does not
are not actually known by the principal. automatically relieve the seller of the obligation to
pay any debt or costs remaining at closing, including
fees such as the real estate firm’s commission.
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