WA Real Estate Investor Law: Compliance Requirements Begin January 1

REIA outlines what real estate investors need to know as the WA statewide law takes effect January 1, including new disclosure and compliance requirements

BELLEVUE, WA, UNITED STATES, December 31, 2025 /EINPresswire.com/ -- FOR IMMEDIATE RELEASE. Earlier this month, the Real Estate Investors Association of Washington (REIA) alerted investors to significant legal changes affecting real estate transactions statewide and in Seattle. With the statewide law taking effect January 1, REIA is now emphasizing what real estate investors need to understand about compliance, timing, and risk before entering new off-market transactions in 2026.

The statewide law, the Solicited Real Property-Owner Protection Act (SHB 1081), is not directed at wholesaling specifically, but it does apply broadly to off-market real estate transactions. The law requires very specific disclosures and waiting periods as a means of avoiding potentially costly penalties under Washington’s Consumer Protection Act (CPA, RCW 19.86).

“The statewide law Solicited Real Property-Owner Protection Act is not aimed at stopping investor activity,” said Shirley Henderson, REIA President and Co-Founder. “However, it is directed at off-market deals and introduces specific disclosure and timing requirements that investors must follow to avoid very costly penalties.”

What Real Estate Investors Need to Know

The statewide law introduces new disclosure and waiting-period requirements for off-market real estate transactions. Non-compliance may result in exposure under Washington’s Consumer Protection Act (RCW 19.86), including treble damages, attorney fees, and injunctive relief. Investors should expect that compliance will require additional time in transaction planning, documentation, and execution. Seattle investors remain subject to separate requirements under City of Seattle Council Bill 121039, also known as the Seattle Homebuyer Protection Ordinance, which has been in effect since October 20, 2025.

Example of Potential Risk

If a seller later claims they received no required disclosures and believes they sold their property for $50,000 less than its fair market value, a court could find a Consumer Protection Act violation. That $50,000 claim could be trebled to $150,000, with the investor potentially responsible for the seller’s legal costs in addition to their own. When attorney fees and other remedies are added, total exposure could easily exceed $250,000, along with the added risk of a court order prohibiting the investor from conducting future real estate transactions in Washington.

“There is a continual need to reinvent in real estate investing,” said Shirley Henderson, President and Co-Founder of REIA. “Laws change. Markets change. Beyond education, networking, and resources, one of REIA’s core duties is to help investors understand how new laws affect their business and how to operate within them responsibly.”

REIA Education and Member Support

REIA is building a compliance-focused infrastructure to support investors as the statewide law takes effect. This includes attorney-led education addressing the new law and its practical impact, a member-only compliance checklist released following the attorney session, and the development of compliance infrastructure and lawful, compliant transaction frameworks under the statewide law designed to simplify transactions, reduce time to close, and mitigate related risk. REIA will also provide education on compliant deal-sourcing approaches that do not involve solicitation, along with small-group discussion through REIA Master Mind Group meetings and ongoing peer discussion through the REIA Forum. Detailed compliance guidance will be released following REIA’s upcoming attorney presentation in January, with member registration opening in advance and public access following shortly thereafter.

About REIA 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 business resources, offering more than 70 live and virtual events each year. REIA excels at connecting people and advancing goals by helping real estate investors stay informed, adapt, and succeed. To learn more about REIA, or real estate investing, visit www.REIAwa.com or email info@REIAwa.com. Visit the REIA Newsroom for the latest.
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Media Contact:
Shirley Henderson, President and Co-Founder
Real Estate Investors Association of Washington
info@REIAwa.com

Shirley Henderson
Real Estate Investors Association of Washington
info@REIAwa.com
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