NEW VIRGINIA AGENCY LAW REQUIREMENTS :: July 1, 2012 the New Virginia Agency Law becomes active.
Designed to protect buyers and sellers and no longer an option all Realtors® are required by Virginia State Law to have a Signed Brokerage agreement prior to providing ANY licensed real estate services. Licensed activity means doing anything for a consumer you represent that only someone holding a real estate license is permitted to do. Some examples (and this is obviously not a comprehensive list): Showing a property to a prospective client. Providing homes data and listings from the MLS for review. Giving any opinions or advice about a property’s condition or what repairs to make or ask for. Negotiating rent, purchase price, or other purchase or lease provisions.
Virginia Association of Realtors® (VAR) Agency Video – http://www.varealtor.com/agency
Virginia Association of Realtors® Consumer Publication – http://bit.ly/OCaZGI
WHO? Every Real Estate Professional engaging in licensed real estate activities with a consumer.
WHAT? A signed written Brokerage Agreement must be in place to protect the consumer and define fees, terms of service and responsibilities.
WHEN? It is the LAW starting July 1, 2012. Must be signed PRIOR to any licensed real estate activity.
WHERE? Commonwealth of Virginia. Other states have similar requirements.
WHY? A majority of law suits and complaints from consumers where related to not understanding who truly represented them. In addition it was unclear to the consumer what their Real Estate Agent was required to do based on this relationship.
Bradley Group Realtors Comments
- There will undoubtedly be Realtors that are not informed of the law or willing to ignore it. Would you want to work with anyone that either through lack of education or willingness breaks the law? This puts you directly in harms way.
- The misconception for most buyers is that this traps them or unfairly has them commit to a Realtor before knowing if this is the Realtor they wish to work with long term. (see our next comment).
- We love this finally being instituted for several reasons. First from a business standpoint we want a professional commitment between all parties well defined so there will be no confusion on fees (often paid by the seller) and terms of service. We can create a Brokerage Agreement for 1-day or even for showing 1-property.
- It must be signed before showing a single home so it will be clear up front if we are working for the buyer. It also must be signed prior to our searching the MLS and forwarding listings for review.
- Bradley Group Realtor’s will not show homes to consumers represented by other Realtors(r) or those refusing to sign the Brokerage Agreement. It is unlawful for us to do this and we will not risk our licensing due to someones discomfort with a required document. But we will spend as much time as you need explaining the short document and helping you have comfort with being represented by our brokerage.
