Washington Investors Face Strict New Property Marketing Rules and Heavy Fines
Seattle, Saturday, 13 December 2025.
New legislation in Seattle and Washington significantly restricts off-market property solicitation. Investors now face severe compliance risks, with Seattle enforcing penalties starting at $7,500 for a single violation.
Immediate Alert Issued to Washington Investors
On December 13, 2025, the Real Estate Investors Association of Washington (REIA) issued a formal alert regarding a series of legislative changes that fundamentally alter the operational landscape for property investors [1]. The association highlights that these laws, some of which are already in effect while others are impending, target off-market real estate solicitations [1]. REIA President and Co-Founder Shirley Henderson described these measures as “under-the-radar laws” that carry substantial financial risks for a wide range of industry participants, including developers, builders, and brokers [1]. The association notes that it was not contacted regarding the statewide legislation, SHB 1081, leaving investors unrepresented during the legislative process [1].
Seattle’s Active Ordinance and Penalties
The immediate concern for investors operating within city limits is Seattle’s “Homebuyer Protection Ordinance” (Council Bill 121039, SMC 6.610), which officially went into effect on October 20, 2025 [1]. This municipal code mandates specific written disclosures for off-market solicitations and enforces strict financial consequences for non-compliance [1]. Investors failing to adhere to these new standards face penalties starting at $7,500 per violation [1]. The severity of this ordinance has already prompted tangible market shifts, with reports indicating that some commercial real estate brokers have paused marketing activities within Seattle to avoid potential liability [1].
Statewide Expansion of Solicitation Restrictions
Beyond the Seattle municipal boundaries, the regulatory framework is set to tighten across Washington State with the implementation of SHB 1081, titled “Solicitation Real Property Owner Protection” (RCW 61.37) [1]. This state law is scheduled to become effective on January 1, 2026, less than three weeks from the date of the REIA’s alert [1]. Similar to the Seattle ordinance, SHB 1081 requires mandatory written disclosures but escalates enforcement by imposing penalties under the Consumer Protection Act [1]. The REIA claims to be the first investor association in the state to publicly address the ramifications of these statutes [1].
Economic Analysis and Market Access Concerns
While the stated intent of these laws is to protect property owners, industry leaders argue that the regulations may have unintended negative consequences for housing inventory [1]. Shirley Henderson noted that while the laws offer homeowner protections, they simultaneously “reduce market access for distressed and vacant properties that are too often blights on our communities” [1]. Commercial brokers have echoed these concerns, suggesting that the Seattle bill risks denying homeowners fair market access by chilling legitimate marketing efforts [1]. To address these complexities, the REIA plans to host a real estate attorney in January 2026 to provide a detailed analysis of compliance strategies and risks [1].