Washington Wholesaling Laws: The Solicited Real Property Act and RCW 18.85

Wholesaling is legal in Washington, and Washington has no wholesaling-specific statute. But a 2025 law changed how off-market deals work. For transactions executed on or after January 1, 2026, the Solicited Real Property Act (chapter 61.40 RCW) gives a homeowner you solicit off-market the right to an appraisal at your expense and the right to cancel the purchase contract. For wholesalers, whose business model is buying off-market, this is the most important rule in the state.

This guide covers that law, the broker licensing rules in RCW 18.85, the Distressed Property Conveyances Act, and a checklist for Washington deals. For the national picture, see our state-by-state wholesaling legal guide.

The Solicited Real Property Act: RCW 61.40.010

SHB 1081 was signed in 2025 as chapter 77, Laws of 2025, with an effective date of July 27, 2025 (app.leg.wa.gov). Its rights apply to transactions executed on or after January 1, 2026. The codified text is at RCW 61.40.010.

When it applies

It applies to transactions "in which a potential buyer or someone representing a 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." Public advertising, mail, texts, emails, and door knocking aimed at owners of unlisted properties are the kinds of contact the statute lists.

What the seller gets

• An appraisal right. The seller has the right to an appraisal by a Washington-licensed appraiser, and that right must be expressly included in the purchase contract. The owner selects the appraiser, "and the potential buyer is responsible for the expense of the appraisal." The appraisal must be ordered within three business days after the contract is signed.
• A cancellation right. A seller who gets an appraisal may cancel within four business days after receiving it. A seller who does not get one may cancel within ten business days after the contract is signed. Cancellation is without penalty or further obligation.
• Disclosure in the contract. The contract "must state clearly in at least size 10-point boldface type" the appraisal and cancellation rights, and the seller must affirmatively acknowledge them in writing.

Exemptions and enforcement

The section "does not apply to a buyer or seller represented by a real estate broker licensed in accordance with chapter 18.85 RCW." A 2026 amendment (HB 2624, chapter 198, Laws of 2026) added exemptions for certain public entities, tribes, and nonprofit land conservancies. A violation is an unfair or deceptive act under the Consumer Protection Act, RCW 19.86, which carries civil penalties of "not more than $7,500 for each violation" (RCW 19.86.140).

What it means for your timeline

A seller you solicited can walk away for up to ten business days after signing, or longer if they order an appraisal. Plan your marketing and any assignment around that window, tell end buyers about it, and budget for the appraisal cost on every solicited deal.

The Licensing Framework: RCW 18.85

What counts as brokerage. RCW 18.85.011 defines real estate brokerage services as services "offered or rendered directly or indirectly to another, or on behalf of another for compensation or the promise or expectation of compensation," including "Listing, selling, purchasing, exchanging, optioning… real estate, or any real property interest therein," "Negotiating or offering to negotiate," and "Advertising or holding oneself out to the public."

The own-account exemption. RCW 18.85.151(1) exempts "Any person who purchases or disposes of property and/or a business opportunity for that individual's own account, or that of a group of which the person is a member." We found no Department of Licensing guidance on whether assigning a purchase contract for a fee is a disposition for your own account.

License required and penalties. Under RCW 18.85.331, "It is unlawful for any person to act as a real estate broker, managing broker, or real estate firm without first obtaining a license," and an unlicensed person cannot sue to collect compensation. Acting as a broker without a license is a gross misdemeanor (RCW 18.85.411). The Department of Licensing can also issue cease-and-desist orders and impose a civil fine "not exceeding one thousand dollars for each day" of unlicensed practice (RCW 18.235.150).

The regulator is the Washington State Department of Licensing, with the Real Estate Commission.

Distressed Sellers: The Distressed Property Conveyances Act

Chapter 61.34 RCW covers "distressed home consultants," including anyone who "Systematically contacts owners of property that… are in foreclosure or are in danger of foreclosure," and anyone who offers to cause a contract to purchase an interest in a distressed home to be executed or closed within twenty days of an advertised or docketed foreclosure sale, unless the homeowner is represented by an attorney or a licensed broker. When a purchaser lets the owner stay in the home or offers a buyback or a share of resale proceeds, the deal is a "distressed home conveyance," and the owner may cancel "until midnight of the fifth business day" after signing (RCW 61.34.100). A pattern of equity skimming is a class B felony (RCW 61.34.030), and violations are Consumer Protection Act violations (RCW 61.34.040).

Assignment vs Double Close in Washington

Assignment of contract: You transfer your rights as buyer to an end buyer, who closes with the seller. Under the Department of Revenue's rule, "The real estate excise tax does not apply to an assignment of a purchaser's interest in an earnest money agreement if neither the earnest money agreement nor its assignment results in a change of title to or ownership of the real property" (WAC 458-61A-104). If you solicited the seller off-market, the RCW 61.40 appraisal and cancellation rights are written into the contract you would be assigning, so your end buyer needs to know about them.

Double close: You buy at the first closing and resell at a second, holding title when you resell. Each closing is a separate sale, and you need funds for the first purchase. The RCW 61.40 rights apply to the first contract if you solicited that seller.

Protect the contract once it’s signed. Recording a memorandum of contract puts your equitable interest on public record, so it shows up in any title search before the seller can close with someone else. Jurably records memorandums of contract in Washington; it’s a filing service from the team behind Deal Run.

Closing Practice in Washington

Washington licenses escrow agents. Under RCW 18.44.021, it is unlawful to engage in business as an escrow agent without a license, with exemptions for entities such as banks and insurance companies, and for lawyers handling escrow in the practice of law. Confirm early that your escrow or title company will handle an assignment.

Washington Compliance Checklist

1. If you found the seller through off-market solicitation, put the RCW 61.40 appraisal and cancellation rights in the purchase contract in at least 10-point bold type, and get the seller's written acknowledgment.
2. Order the appraisal within three business days if the seller requests one, and pay for it.
3. Do not treat the deal as firm until the cancellation window closes, and tell end buyers about it.
4. Tell the seller in writing that you may assign the contract and may earn a fee.
5. Market only your own contract position. Never market or negotiate a property for another person for compensation without a license.
6. If the seller is in or near foreclosure, review RCW 61.34 with an attorney before you sign.
7. Confirm your escrow company will close an assignment.
8. Keep contracts, acknowledgments, appraisal records, and copies of all marketing in the deal file.

Frequently Asked Questions

Is wholesaling legal in Washington?

Yes. Washington has no law that prohibits wholesaling and no wholesaling-specific statute. Since January 1, 2026, the Solicited Real Property Act gives off-market sellers you solicit appraisal and cancellation rights, and the RCW 18.85 broker licensing law still applies.

What is the Solicited Real Property Act?

RCW 61.40.010, enacted by SHB 1081 in 2025. For transactions executed on or after January 1, 2026, when a buyer solicits an owner of an unlisted property, the owner gets the right to an appraisal at the buyer's expense and the right to cancel within four business days after receiving the appraisal, or within ten business days of signing if there is no appraisal. It does not apply when the buyer or seller is represented by a licensed broker.

Do I need a real estate license to wholesale in Washington?

RCW 18.85 exempts a person buying or disposing of property for their own account, and defines brokerage as services for another for compensation. We found no Department of Licensing guidance applying these rules to contract assignments. Get a Washington attorney's opinion on your process.

Is a contract assignment subject to Washington real estate excise tax?

Under WAC 458-61A-104, the excise tax does not apply to an assignment of a purchaser's interest in an earnest money agreement if neither the agreement nor its assignment changes title or ownership.

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Statutes and bill status were checked against official Washington sources on October 6, 2026. Laws change, and how any statute applies depends on your facts. Consult a licensed Washington real estate attorney before relying on this information for a transaction. Deal Run provides tools and information to help wholesalers operate more effectively. We are not a law firm and do not provide legal services.