REIA of Washington Alerts Real Estate Investors to Major Law Changes in Seattle and Statewide

REIA of Washington warns investors about new Seattle and Washington laws restricting off market real estate solicitations.

BELLEVUE, WA, UNITED STATES, December 13, 2025 /EINPresswire.com/ -- The Real Estate Investors Association of Washington (REIA) is issuing an urgent alert to all real estate investors, developers, builders, and brokers—including commercial brokers— regarding two major new laws that will profoundly impact how off market residential properties can be solicited and purchased throughout Washington State and the City of Seattle.

The statewide legislation, SHB 1081 (Solicitation Real Property Owner Protection, RCW 61.37, effective January 1, 2026), and the City of Seattle’s “Homebuyer Protection Ordinance” (Council Bill 121039, SMC 6.610, effective October 20, 2025) together redefine investor outreach practices. Both require written disclosures to property owners on unlisted properties and impose steep penalties for non compliance. Seattle’s ordinance begins fines at $7,500 per violation, while both the City and State laws carry additional Consumer Protection Act penalties.

While REIA has identified workarounds for the statewide law, no clear solutions exist for Seattle's ordinance, which broadly defines "solicitation" to include marketing efforts by investors, builders, brokers, and even commercial brokers. Our solution within Seattle will likely lie in future clarification or challenges to parts of the City Ordinance. Awareness of both laws remains extremely low among investors, with little public discussion despite the law’s significant effects on deal sourcing, marketing, and transactions and the increased appraisal and compliance costs along with the threat of associated fines and penalties.

Limited Notice, Far Reaching Impact

As a long-standing Real Estate Investors Association, REIA has been contacted in the past by lawmakers for input and has provided testimony and position papers toward that end. REIA was not contacted about SHB 1081 and no investors or related associations testified on behalf of investors, leaving real estate investors statewide wholly unrepresented, an effective disenfranchisement of a crucial part of the housing market, leading to laws that impose both mandatory administrative costs and substantial legal risks for a community largely unaware of the laws or their compliance requirements.

Commercial real estate brokers, many of whom have paused all marketing within the City of Seattle because of Seattle Counsil Bill 121039, complain that the Ordinance risks denying homeowners fair market access by restricting legitimate solicitations and off-market opportunities, something that could unfairly limit choices and leaves seller’s market freedom unprotected. Said REIA President and Co-Founder Shirley Henderson, “While these laws may protect homeowners to some extent, they also reduce market access for distressed and vacant properties that are too often blights on our communities.”

REIA of Washington Leads the Response

"These under-the-radar laws carry very real financial risks for real estate investors, developers, builders, and brokers—including commercial brokers—though many are unaware and operating at peril," said Shirley Henderson, REIA President and Co-Founder.

“REIA is, to our knowledge, the first and only investor association in the State to publicly address these laws by sounding the alarm and informing fellow real estate investors. We will host a top real estate attorney at a January 2026 meeting to detail analysis, compliance, risks, and strategies".

Additional Information

For the most up to date information, visit the REIA Newsroom frequently and subscribe to the REIA Mailing List on www.REIAwa.com. REIA members receive priority updates via email and dedicated site sections. REIA of Washington remains committed to supporting investors and ensuring that they can navigate new regulations effectively while continuing to revitalize neighborhoods and support housing development across the State.

Full background, links to the new laws, and updates are available at our Solicited Real Property page within our Legislative Updates pages at www.REIAwa.com.

About the Real Estate Investors Association of Washington

The Real Estate Investors Association of Washington (REIA of Washington) unites, supports, and empowers real estate investors of all experience levels through education, advocacy, networking, technology, and resources—offering more than 70 live and virtual events each year. REIA of Washington promotes responsible investing that revitalizes communities and strengthens housing throughout Washington State. To learn about REIA, or investing in real estate, visit www.REIAwa.com or email info@REIAwa.com.

Media Contact:

Shirley Henderson, President and Co-Founder
Real Estate Investors Association of Washington
info@REIAwa.com
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