R
eal Estate Investors Association of Washington (REIA) has warned investors that Washington’s new statewide law, the Solicited Real Property‑Owner Protection Act (SHB 1081), will take effect on January 1, 2026. The act imposes strict disclosure and waiting‑period requirements on all off‑market real‑estate transactions, aiming to prevent violations of the state’s Consumer Protection Act (CPA, RCW 19.86). Non‑compliance can trigger treble damages, attorney fees, and injunctive relief, potentially costing investors more than $250,000 and even barring future deals in the state.
The law does not target wholesaling per se, but it applies broadly to off‑market deals. “It’s not about stopping investor activity,” says REIA President and Co‑Founder Shirley Henderson, “but it does require specific disclosures and timing that investors must follow to avoid costly penalties.” Seattle investors face an additional layer of regulation under City Council Bill 121039, the Seattle Homebuyer Protection Ordinance, which has been in force since October 20, 2025.
A typical risk scenario: if a seller claims they received no required disclosure and that the sale price was $50,000 below fair market value, a court could award the seller $150,000 (treble damages) plus the investor’s legal costs. Adding attorney fees and other remedies could push total exposure beyond $250,000, and a court order might prohibit the investor from conducting future transactions in Washington.
REIA is building a compliance‑focused infrastructure to help members navigate the new law. Upcoming attorney‑led education sessions will cover practical impacts, followed by a member‑only compliance checklist. REIA is also developing transaction frameworks that streamline deals, reduce closing time, and mitigate risk. Members will receive guidance on compliant deal‑sourcing methods that avoid solicitation, participate in small‑group Master Mind meetings, and engage in ongoing peer discussion through the REIA Forum. Detailed compliance guidance will be released after the January attorney presentation; registration opens early, with public access soon after.
REIA of Washington unites investors of all experience levels through education, advocacy, networking, technology, and business resources. With more than 70 live and virtual events annually, REIA helps investors stay informed, adapt to changing laws and markets, and succeed. For more information, visit www.REIAwa.com or email [email protected].
Shirley Henderson, President and Co‑Founder
Real Estate Investors Association of Washington
[email protected]
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