Washington Real Estate Forms: Understanding the Paperwork

Complete guide to Washington standard real estate forms including Form 21, Form 22A/B/C, Form 17, and other essential transaction documents.

Tags:washington, forms, contracts, legal, purchase-agreement, disclosure, contingencies
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You're about to make an offer on a house in Bellevue, and your agent hands you a stack of forms: Form 21, Form 22A, Form 22B, Form 17, and several others. Each one is multiple pages of legal language. What are all these forms, and what do they actually mean?

Washington State uses standardized forms created by the Northwest Multiple Listing Service (NWMLS) for most residential real estate transactions. Understanding these forms helps you know what you're signing and protects your interests throughout the buying process.

In this article, you'll learn:

  • The purpose of each major Washington real estate form
  • What Form 21 (Purchase and Sale Agreement) covers
  • How contingency addenda (Forms 22A, 22B, 22C) protect you
  • What sellers must disclose on Form 17
  • When additional forms are needed
  • How to read and understand the key sections

This article is for you if: You're preparing to make an offer, want to understand the forms before signing, or are currently in contract and need to reference what you agreed to.

Table of Contents

Why Washington Uses Standard Forms

Before standardized forms, every transaction used custom contracts written by attorneys. This created inconsistency across transactions, higher legal costs, more disputes over contract interpretation, and delays while attorneys negotiated language.

NWMLS standard forms solve this by providing legally vetted language, creating consistency across the state, reducing transaction costs, speeding up the process, and protecting both buyers and sellers.

While these are "standard" forms, they can be modified. Your agent may add custom terms or strike out sections that don't apply. Always read what you're signing.

Form 21: Purchase and Sale Agreement

This is the main contract. Everything else is an addendum to Form 21.

What Form 21 Covers

Page 1: The Basics

  • Property address and legal description
  • Purchase price
  • Earnest money amount
  • Closing date
  • Possession date
  • Buyer and seller names

Page 2-3: Terms and Conditions

  • Financing terms (if applicable)
  • Title insurance requirements
  • Prorations (taxes, HOA fees, utilities)
  • Risk of loss (what happens if property is damaged before closing)
  • Buyer's inspection rights
  • Seller's disclosure obligations

Page 4-5: Additional Terms

  • Fixtures and personal property included
  • Homeowners association information
  • Special assessments
  • Lead-based paint disclosure (pre-1978 homes)
  • Agency disclosure

Page 6: Signatures and Dates

  • Buyer and seller signatures
  • Acceptance date (when contract becomes binding)

Key Sections Explained

Purchase Price and Earnest Money (Section 1)

Example:

Purchase Price: $825,000
Earnest Money: $25,000 (3% of purchase price)
Deposited with: Chicago Title Company
Within: 2 business days of mutual acceptance

The earnest money shows you're serious. It's held in escrow and applied to your down payment at closing.

Closing and Possession (Section 2)

Example:

Closing Date: November 15, 2024
Possession Date: November 15, 2024 at 6:00 PM

Possession doesn't always equal closing. Sellers sometimes negotiate to stay a few days after closing (called a "rent-back").

Financing Terms (Section 3)

Example:

Loan Type: Conventional
Loan Amount: $660,000 (80% of purchase price)
Interest Rate: Not to exceed 7.5%
Loan Term: 30 years

This section is only filled out if you're financing. Cash buyers leave it blank.

Title Insurance (Section 4)

Example:

Buyer to receive: Standard ALTA Owner's Policy
Seller to provide: Preliminary Title Report within 5 days

This ensures you get clear title to the property.

Inspection Contingency (Section 5)

Example:

Buyer's inspection contingency period: 10 days from mutual acceptance
Buyer may inspect: Structure, systems, appliances, and property condition

This is your chance to discover problems and either negotiate repairs or walk away.

Seller's Disclosure (Section 6)

Example:

Seller to provide Form 17 (Seller Disclosure Statement): Within 5 days
Buyer's review period: 3 days from receipt

Sellers must disclose known defects. You have time to review and respond.

Fixtures and Personal Property (Section 7)

This lists what stays with the house:

  • Built-in appliances (dishwasher, range, oven)
  • Light fixtures
  • Window coverings
  • Garage door openers
  • Security systems

And what doesn't:

  • Refrigerator (unless specified)
  • Washer and dryer (unless specified)
  • Furniture
  • Artwork

If you want the refrigerator or washer/dryer, specifically list them in the "included" section.

HOA Information (Section 8)

Example:

Property is subject to HOA: Yes
HOA Name: Bellevue Heights Homeowners Association
Monthly HOA Fee: $425
Special Assessments: None known

If there's an HOA, you'll receive CC&Rs (covenants, conditions, and restrictions) and financial documents.

Contingencies (Section 9)

This section references the addenda (Forms 22A, 22B, 22C) that provide detailed contingency terms.

Signatures (Section 10)

Both buyer and seller must sign. The contract isn't binding until both parties have signed and acceptance is communicated.

Form 22A: Inspection Addendum

This addendum gives you the right to inspect the property and negotiate based on what you find.

Key Provisions

Inspection Period

Typically 10 days from mutual acceptance. During this time, you can hire professional inspectors, conduct any inspections you want, review all findings, and decide whether to proceed.

What You Can Inspect

  • General home inspection
  • Roof inspection
  • Sewer scope
  • Septic inspection
  • Pest inspection
  • Radon testing
  • Mold testing
  • Structural engineering
  • Anything else you want

Your Options After Inspection

Option 1: Accept property as-is

  • Waive inspection contingency
  • Proceed to closing
  • No repairs requested

Option 2: Request repairs or credits

  • Submit written request to seller
  • Seller can agree, counter, or refuse
  • Negotiate until you reach agreement

Option 3: Terminate contract

  • Must be within inspection period
  • Get earnest money back
  • No penalty

Example timeline:

  • Day 1: Mutual acceptance
  • Day 3: Schedule inspections
  • Day 7: Receive inspection reports
  • Day 9: Submit repair request to seller
  • Day 10: Inspection contingency deadline

Don't wait until day 10 to request repairs. Give yourself and the seller time to negotiate.

Common Inspection Requests

Reasonable requests (usually accepted):

  • Safety issues (electrical, structural)
  • Major system failures (HVAC, water heater)
  • Roof leaks or damage
  • Plumbing problems
  • Foundation issues

Unreasonable requests (usually rejected):

  • Cosmetic items (paint, carpet)
  • Minor wear and tear
  • Code upgrades (unless required for sale)
  • Improvements or upgrades

Example repair request:

Based on inspection report dated October 20, 2024:

1. Repair electrical panel with double-tapped breakers (safety issue)
2. Replace leaking water heater (estimated $1,500)
3. Repair roof leak above master bedroom (estimated $800)
4. Credit $500 for minor plumbing repairs

Total requested: $2,800 in repairs or equivalent credit

Form 22B: Financing Addendum

This addendum protects you if you can't get financing.

Key Provisions

Loan Contingency Period

Typically 17 days from mutual acceptance. During this time, apply for your loan, provide all required documentation, lender processes your application, and lender issues loan approval.

Your Obligations

  • Apply for loan within 5 days
  • Provide all requested documents promptly
  • Cooperate with lender's requirements
  • Make good faith effort to obtain financing

Seller's Rights

  • Can request proof you've applied for loan
  • Can request loan status updates
  • Can cancel contract if you don't cooperate

What Happens If Loan Is Denied

If you acted in good faith:

  • Terminate contract
  • Get earnest money back
  • No penalty

If you didn't act in good faith:

  • Seller may keep earnest money
  • You could be in breach of contract

Example timeline:

  • Day 1: Mutual acceptance
  • Day 3: Apply for loan
  • Day 5: Submit all documents to lender
  • Day 10: Lender orders appraisal
  • Day 15: Receive loan approval
  • Day 17: Financing contingency deadline

"Loan approval" means full underwriting approval, not just pre-approval. Make sure your lender can meet the deadline.

Loan Terms

The addendum specifies loan type (conventional, FHA, VA, jumbo), loan amount, maximum interest rate, loan term (15-year, 30-year), and points (if any).

Example:

Loan Type: Conventional
Loan Amount: $660,000
Maximum Interest Rate: 7.5%
Loan Term: 30 years
Points: 0

If you can't get a loan meeting these terms, you can terminate.

Set the maximum interest rate slightly above current rates (0.5-1% buffer) to protect yourself if rates increase during your contingency period.

Form 22C: Appraisal Addendum

This addendum addresses what happens if the appraisal comes in low.

Key Provisions

Appraisal Contingency

The purchase is contingent on the property appraising for at least the purchase price.

If Appraisal Comes In Low

Option 1: Seller reduces price

  • Price reduced to appraised value
  • Buyer proceeds with original down payment percentage

Option 2: Buyer pays difference

  • Buyer brings additional cash to cover gap
  • Loan amount stays the same

Option 3: Meet in the middle

  • Seller reduces price by some amount
  • Buyer pays some of the gap

Option 4: Terminate contract

  • Buyer gets earnest money back
  • No penalty

Example:

Purchase Price: $825,000
Appraised Value: $800,000
Appraisal Gap: $25,000

Option 1: Seller reduces price to $800,000
Option 2: Buyer pays extra $25,000 cash
Option 3: Seller reduces to $812,500, buyer pays $12,500 extra
Option 4: Buyer terminates contract

Appraisal Gap Coverage

In competitive markets, buyers sometimes offer to cover appraisal gaps.

Example language:

Buyer agrees to pay up to $25,000 over appraised value if appraisal comes in below purchase price.

This makes your offer stronger but requires extra cash.

Only offer appraisal gap coverage if you have the cash and are confident in the property's value.

Form 17: Seller Disclosure Statement

Sellers must complete this form disclosing known defects and property history.

What Form 17 Covers

Section 1: Property Information

  • Year built
  • Square footage
  • Lot size
  • Zoning

Section 2: Title and Ownership

  • Liens or encumbrances
  • Boundary disputes
  • Easements
  • Shared driveways or walls

Section 3: Water and Sewer

  • Public or private water
  • Public sewer, septic, or other
  • Water quality issues
  • Sewer backups

Section 4: Structural

  • Foundation problems
  • Roof condition and age
  • Structural modifications
  • Settling or movement

Section 5: Systems

  • Heating and cooling
  • Electrical
  • Plumbing
  • Built-in appliances

Section 6: Environmental

  • Lead-based paint (pre-1978 homes)
  • Asbestos
  • Radon
  • Mold or moisture problems
  • Underground storage tanks

Section 7: Other

  • Homeowners association
  • Special assessments
  • Rental restrictions
  • Noise or nuisances
  • Neighborhood issues

How to Read Form 17

Sellers answer questions with:

  • Yes: Problem exists or existed
  • No: No problem known
  • Unknown: Seller doesn't know

Red flags:

  • Multiple "Yes" answers
  • Vague explanations
  • Recent repairs without details
  • Many "Unknown" answers (seller should know basic facts)

Example disclosure:

Q: Has the roof ever leaked?
A: Yes

Explanation: Small leak in 2022 above master bedroom. Repaired by ABC Roofing in March 2022. No leaks since repair. Invoice available.

This is a good disclosure. Problem identified, repaired, and documented.

Bad example:

Q: Has the roof ever leaked?
A: Unknown

Seller should know if their roof has leaked. "Unknown" suggests they're not being forthcoming.

What Sellers Don't Have to Disclose

  • Defects they don't know about
  • Cosmetic issues
  • Neighborhood characteristics (you can research these)
  • Previous occupants (unless relevant to property condition)
  • Stigmatized property issues (deaths, crimes) unless they affect property value

Sellers must disclose what they know. They can't claim "unknown" for obvious issues.

Additional Common Forms

Form 35: Buyer's Contingency Removal

When you're satisfied with inspections, financing, and appraisal, you sign this form to remove contingencies.

Example:

Buyer removes the following contingencies:
☑ Inspection (Form 22A)
☑ Financing (Form 22B)
☑ Appraisal (Form 22C)

Date: November 5, 2024

Once you remove contingencies, you can't get your earnest money back if you back out (except for title issues or seller breach).

Form 41: Amendment to Purchase and Sale Agreement

Use this to change any terms of the original contract.

Common amendments:

  • Extend closing date
  • Change purchase price
  • Modify possession date
  • Add or remove items

Example:

The parties agree to amend the Purchase and Sale Agreement dated October 15, 2024 as follows:

1. Closing Date changed from November 15, 2024 to November 22, 2024
2. All other terms remain unchanged

Buyer signature: _______________
Seller signature: _______________

Both parties must agree to any amendment.

Form 42A: Seller's Counteroffer

If the seller doesn't accept your offer as written, they'll counter with this form.

Common counteroffers:

  • Higher purchase price
  • Different closing date
  • Remove or modify contingencies
  • Change included items

Example:

Seller counters Buyer's offer dated October 15, 2024 as follows:

1. Purchase Price: $835,000 (increased from $825,000)
2. Closing Date: November 30, 2024 (changed from November 15, 2024)
3. All other terms accepted as written

This counteroffer expires: October 16, 2024 at 5:00 PM

You can accept, reject, or counter the counteroffer.

Form 43: Mutual Release

If the transaction falls through, both parties sign this to release each other from the contract and determine earnest money disposition.

Example:

Buyer and Seller agree to terminate the Purchase and Sale Agreement dated October 15, 2024.

Earnest Money disposition:
☑ Return to Buyer
☐ Paid to Seller
☐ Split between parties

Buyer signature: _______________
Seller signature: _______________

Form 65: Agency Disclosure

Your agent must provide this form explaining who they represent.

Types of agency:

  • Buyer's agent: Represents you exclusively
  • Seller's agent: Represents seller exclusively
  • Dual agent: Represents both (rare, not recommended)

Make sure you understand who your agent represents. They owe fiduciary duties to their client.

HOA-Specific Forms

If the property has an HOA, you'll receive additional documents:

CC&Rs (Covenants, Conditions, and Restrictions)

  • Rules governing the property
  • Architectural guidelines
  • Use restrictions
  • Enforcement procedures

HOA Bylaws

  • How the HOA operates
  • Board structure
  • Meeting requirements
  • Voting procedures

HOA Financial Documents

  • Budget
  • Reserve study
  • Recent financial statements
  • Special assessment history

Resale Certificate

  • Current HOA fees
  • Outstanding assessments
  • Pending litigation
  • Insurance coverage

Review period: Typically 5-10 days to review HOA documents. You can terminate if you don't like what you see.

Lead-Based Paint Disclosure (Pre-1978 Homes)

Federal law requires sellers of homes built before 1978 to disclose known lead-based paint, provide EPA pamphlet, and give buyer 10 days to inspect for lead.

Your rights:

  • Can hire lead inspector
  • Can waive inspection period
  • Can terminate if lead is found

Most buyers waive the lead inspection period but should still be aware of potential lead hazards in older homes.

Reading and Understanding Forms

Before You Sign

1. Read everything

Don't just sign where your agent points. Read each form completely.

2. Ask questions

If you don't understand something, ask your agent to explain. That's what they're there for.

3. Check for blanks

Make sure all blanks are filled in or marked "N/A." Don't sign forms with blank spaces.

4. Verify numbers

Double-check purchase price, earnest money, closing date, and all financial terms.

5. Keep copies

Get copies of everything you sign. You'll need them for reference.

Red Flags

Watch out for:

  • Handwritten changes without initials
  • Crossed-out sections without initials
  • Blank spaces
  • Inconsistent dates
  • Missing signatures
  • Forms that don't match what you discussed

If you see these, stop and ask questions before signing.

Your Agent's Role

Your agent should explain each form before you sign, answer your questions, fill out forms accurately, ensure all required forms are included, and provide copies promptly.

Your agent should NOT pressure you to sign without reading, tell you "it's just standard" without explaining, fill in blanks after you sign, or discourage you from asking questions.

Summary: Key Takeaways

  • Washington uses NWMLS standard forms for most residential transactions
  • Form 21 (Purchase and Sale Agreement) is the main contract
  • Form 22A (Inspection), 22B (Financing), and 22C (Appraisal) are key contingency addenda
  • Form 17 (Seller Disclosure) reveals known property defects
  • Additional forms handle amendments, counteroffers, and releases
  • HOA properties require additional documentation
  • Always read forms completely before signing
  • Ask questions if anything is unclear
  • Keep copies of all signed documents
  • Your agent should explain each form, not just point where to sign

Next Steps

When you're ready to make an offer:

  1. Review this article to familiarize yourself with the forms
  2. Ask your agent to walk through each form before you sign
  3. Read everything even if your agent says "it's standard"
  4. Take your time - don't feel rushed to sign
  5. Keep organized - maintain a file of all signed documents
  6. Reference as needed throughout the transaction

Related articles:

Additional Resources

Disclaimer: This article provides general information about Washington real estate forms. It is not legal advice. Consult with a real estate attorney for specific legal questions about your transaction.

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