What Does the New Agency Law Mean to You?

On July 1, 2012 Virginia changed our laws on Real Estate Agency. They changed the law to inform the consumer about the services that the Realtor provides, and what the relationship is between the Realtor and the consumer.

The law also protects the Realtor by ensuring that they are giving full disclosure to the folks they are working with and that everything is clear and in writing.

The law discourages the opportunity of dual agency and that agents who do participate in dual agency are disclosing the pitfalls to their consumers.

As Real Estate Agency we were always able to have a Brokerage Agreement signed between the consumer and Realtor.  Some agents required this from their buyers and some did not.  I was one who did not request this of my buyers, but I did explain my duties to them and the practice of dual agency.  Because of the many law suits that have come about over Dual Agency, I had decided some years ago that it would not be a way that I would work with my clients.

In the new Law that took affect July 1, 2012 ALL Brokerage Agreements must be in writing in Virginia.  Disclosure when acting as a dual agent must be clear and more comprehensive and all residential real estate agents MUST take a three-hour course on these changes. 

How this will affect our relationships with buyers I do not know yet.  For the most part, you and your client decide what works best for those concerned.  Just the other day a consumer called me and wanted to see JUST one house.  He had to sign the Broker Agreement with me to just see that one house, on that day, PERIOD.  He didn't like the house and hopefully we will go see others houses, but he will have to sign another Agreement with me at that time.  

I do hope that this new law with instill loyalty to the Realtor by the consumer.  If the consumer is educated as to what we do for them without pay, and realize that this is a job to us and we do our best to work for them in helping them find the property that best suits their needs, it will be great.  So many times I feel consumers hop from Realtor to Realtor not understand the value of our services. In the Agreement, services provided will be listed, fees, if any, and how they are to be paid, and the duration of the agreement will be agreed upon.  

So if you are a consumer looking to work with a Real Estate Agent, be advised that you are now required by law to sign a Broker Agreement with them.