> What is a Form 41?

What is a Form 41?

  • The Form 41, also known as the Buyer Brokerage Services Agreement, is the contract used by a buyer and broker to officially “hire” each other. The contract lays out terms such as how long the agreement shall remain in effect, terms of compensation, whether the broker is required to pay a referral fee to another brokerage, etc.

 

  • The form itself has been around for decades; it was originally used by a relatively small portion of the real estate industry to tie buyers up with a contractual obligation to work with (and therefore pay) the broker if a home was purchased.

 

  • As of January 1, 2024, a buyer and real estate broker are required to sign a Form 41 “… before, or as soon as reasonably practical after, … rendering real estate brokerage services” (RCW 18.86.020 2.a). This language is vague and leaves room for interpretation. For example, the National Association of Realtors require their members sign a 41 with the prospective home buyer before the Realtor can even show them a home.

 

  • We, at Designed Realty, are not NAR members and are not bound by this rule. Our basic rule of thumb is that a Form 41 should be signed as soon as possible, but it absolutely MUST be signed prior to writing and submitting an offer to purchase a home.