A Washington broker asks a 2026 borrower to sign a waiver of the statutory fiduciary duties before starting work. Can the broker eliminate these statutory fiduciary duties by the proposed waiver?
Correct Answer
C) Ineffective: the duties are imposed by statute on the relationship
The statute states that a mortgage broker has a fiduciary relationship with the borrower and then defines what that duty means, so the duties attach to the relationship rather than depending on the parties agreement. Other choices: a waiver of a statutory duty owed to a protected party is not effective merely because it is signed; initialling and witnessing go to form rather than to power; and whether the borrower read it is beside the point. Source: RCW 19.146.095(1)
Why This Is the Correct Answer
The statute states that a mortgage broker has a fiduciary relationship with the borrower and then defines what that duty means, so the duties attach to the relationship rather than depending on the parties agreement. Other choices: a waiver of a statutory duty owed to a protected party is not effective merely because it is signed; initialling and witnessing go to form rather than to power; and whether the borrower read it is beside the point. Source: RCW 19.146.095(1)
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