ask nvar
Agency FAQ Practical tips about Virginia’s new agency law By Sarah Louppe Petcher, NVAR General Counsel, Blake Hegeman, VAR Legal Counsel and Mike Lafayette, RAR General Counsel
Q: When does the new law take effect? A: Changes to Virginia agency law take effect July 1,
days? Absolutely not! However, the buyer may be willing to sign an agreement for a few days, or for a specific property while getting to know the agent. If after a trial period, both the agent and the buyer decide that the relationship will be a good one, then the agent may propose a long-term Buyer Broker Agreement.
Q:
Agents should also point out that they are required by law to have the agreement in writing. A consumer education form is being developed to help agents in this situation.
2012. In the coming months, a variety of resources will be provided to help you adapt to the revisions, including videos, webcasts, articles, new forms and classes. I heard that I will need a written Buyer Broker agreement for every transaction. Is that true?
A: All licensees will need to have written agency and brokerage agreements with clients they represent. These agreements must, at a minimum: • • •
Provide a list of services that the agent will deliver; Provide a schedule of fees that will be associated with services offered, and when those fees are payable; and Provide a definite termination date.
Q: What do I do if the buyer wants to be represented by an agent but refuses to sign a Buyer Broker Agreement? A: The new requirement that all Buyer Brokerage Agreements be in writing does not specify the duration of the agreements. For example, suppose a buyer is looking for a house and knows that he or she wants representation, but is not sure from whom. Does that buyer want to sign a Buyer Brokerage Agreement tied to a specific agent for 180
Q: What if I represent a seller and an interested
buyer wants me to write the offer but does not want representation? Will I have to have a Buyer Broker Agreement with the buyer?
A: No. The new law does not force buyers to be
represented by an agent. In this scenario, if assistance is limited to ministerial tasks such as filling in the blanks on a contract, then no agreement is required. However, if the buyer does want to be represented by an agent, then an agreement must be in writing.
Q: I heard that the law dramatically changes the way dual agency works in Virginia. Is that true?
A: No. The disclosure requirements for dual agency have not changed. What has changed is the Dual Agency Disclosure Form. Dual agents will now provide, and have signed by the clients, a new form expressly describing the limitations on what dual agents can do for parties to a transaction. Please note that the new disclosure requirements apply only to residential transactions and that enhanced disclosure only applies when an existing client and new client of the firm are represented by the firm in a dual agency relationship. Q: When do I have to take the three-hour class to learn about these changes?
A: Agents must take a three-hour course on the provisions of the agency statute and the changes made in the legislation. This means that if your current license expires after July 1, 2012, you may take the three-hour agency course at any time. In fact, if your license expires in July 2012, you will need the course soon. However, if your license expires in February through June of 2012, you should wait to take the course until after you have renewed your license. You may take the course now, but you will need to take it again – for credit – in your next license cycle. 16 http://go.nvar.com/1203
May :: June 2012
NVAR Realtor® update