On June 12, 2012, VAR hosted a live webinar to walk members through the 2012 changes to VA real estate agency law. This is the presentation we used. For the full story on the 2012 changes, check out http://www.VARealtor.com/Agency to access articles, videos, and more.

1. AGENCY LAW CHANGES:
WHAT DO THEY MEAN FOR YOU AND
YOUR AGENTS?

2.  Audience members will not have speaking
capabilities on this call
 However, we encourage all attendees to
submit questions through the question
BEFORE field on the Go To Meeting control panel
WE BEGIN  There will be a Q&A portion at the end of
the presentation
 All questions submitted through the Go To
Meeting control panel are private; they
cannot be seen by other audience
members

3. WHAT WE’LL COVER
• the upcoming changes to the current agency law;
• a review of the standard disclosure forms and other
supplemental forms that will be available later this
month;
• an outline of resources that will be made available to
brokers and agents to inform and help them adapt to
the changes;
• a few FAQs we’ve already been hearing around the
state; and
• a Q&A period for additional questions you may have

4. AGENCY
Changes to Virginia agency law take effect July 1,
2012.
In the coming months, VAR will provide a variety
of resources to help you adapt to the revisions,
including videos, webcasts, articles, new forms,
and classes.

5. 1. INFORM THE CONSUMER.
The law is to make sure consumers are fully
informed about the real estate services
they’ll receive and the nature of the
relationship with the licensee.
WHY
THE CHANGE TO
2. MITIGATE REALTOR ® LIABILITY.
The law is designed to protect licensees by
making sure full disclosure is provided and
the nature of brokerage relationship is
reduced to writing. It’s to eliminate much
THE LAW? of the consumer confusion that can come
back and bite the licensee.
3. DISCOURAGE OPPORTUNISITIC
DUAL AGENCY.
The law is intended to make sure that
licensees who practice dual agency are fully
informing consumers about the risky nature
of that relationship.

6. AGENCY LAW
CHANGES
1. GET IT All licensees must have written brokerage
agreements with consumers they
IN represent. These agreements must, at a
minimum:
WRITING  Provide a list of services that the agent
will provide;
 Provide a schedule of fees that will be
associated with service, and when
payable; and
 Provide a definite termination date.

7. INDEPENDENT CONTRACTOR
means a real estate licensee who:
• enters into a brokerage relationship based upon a brokerage agreement that
specifically states that the licensee is acting as an independent contractor
and not as an agent;
• has obligations agreed to by the parties in the brokerage agreement;
• is required to
• maintain client confidentiality;
• exercise ordinary care;
• account for a client’s money and property;
• disclose material facts to client regarding the property
and/or the transaction, and disclose material adverse
facts/defective drywall to prospective purchasers and
tenants;
• treat all parties honestly; and
• disclose the brokerage relationship to all parties; but
•does not have any other duties of a standard agent under Sections 54.1-2131
through 54.1-2135 (marketing, negotiating, etc.)

8. AGENCY LAW
CHANGES
2.
ENHANCED
Dual agents and representatives must
DISCLOSURES provide enhanced disclosure of limitations
on what dual agents can and cannot do
FOR DUAL for parties to a transaction.
AGENCY There are exceptions for situations where
existing clients come together in a
common transaction, and for independent
contractors.

9. AGENCY LAW
CHANGES
3.
M ANDATOR Licensees must take a three-hour course on
Y AGENCY the provisions of the agency statute and
the changes made in the legislation.
COURSE You may exempt yourself from this only if
you agree in writing that you will not
practice residential standard agency
during your license term.

10. AGENCY COURSE TIMING
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, beginning right now. In fact, if
your license expires in July 2012, you will need the course very quickly.
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.

11. NEW AGENCY DISCLOSURE FORMS
• DISCLOSURE OF DUAL AGENCY OR REPRESENTATION –
RESIDENTIAL
• DISCLOSURE OF DUAL AGENCY OR REPRESENTATION –
COMMERCIAL
• DISCLOSURE OF BROKERAGE RELATIONSHIP FOR
UNREPRESENTED PARTIES
• DISCLOSURE OF DESIGNATED AGENCY OR REPRESENTATION
In addition to these new required forms, we’ve also created
several additional resources to help you adapt to the changes:
• INDEPENDENT CONTRACTOR LISTING AGREEMENT
• EXCLUSIVE BUYER BROKER AGREEMENT (REDUCED IN SIZE)
• NON-EXCLUSIVE BUYER BROKER AGREEMENT (REDUCED IN SIZE)
• TWO CONSUMER INFORMATION PIECES:
• DISCLOSURE OF BROKERAGE RELATIONSHIP INFORMATION FORM
• CONSUMER INFORMATION REGARDING WRITTEN BUYER BROKER
AGREEMENTS

12. DISCLOSURES OF
DUAL AGENCY OR
REPRESENTATION
RESIDENTIAL
2 PAGES
WWW.VAREALTOR.COM/STANDARDFORMS

13. DISCLOSURES OF
DUAL AGENCY OR
REPRESENTATION
COMMERCIAL
1 PAGE
WWW.VAREALTOR.COM/STANDARDFORMS

14. DISCLOSURE OF
BROKERAGE
RELATIONSHIP
FOR UNREPRESENTED PARTIES
1 PAGE
WWW.VAREALTOR.COM/STANDARDFORMS

15. DISCLOSURE OF
DESIGNATED
AGENCY
OR REPRESENTATION
1 PAGE
WWW.VAREALTOR.COM/STANDARDFORMS

16. INDEPENDENT
CONTRACTOR
AGREEMENT
5 PAGES
WWW.VAREALTOR.COM/STANDARDFORMS

17. BUYER
BROKER AGREEMENT
AVAILABLE IN EXCLUSIVE
& NON-EXCLUSIVE
2 PAGES
WWW.VAREALTOR.COM/STANDARDFORMS

18. SHORT
BUYER
BROKER AGREEMENT
NON-EXCLUSIVE ONLY
1 PAGE
WWW.VAREALTOR.COM/STANDARDFORMS

19. YOUR
REALTOR’S
ROLE
2-PAGE PIECE DESIGNED TO OUTLINE
1.WHY CONSUMERS SHOULD USE A
REALTOR®
2.WHY A BROKERAGE AGREEMENT IS
NECESSARY
WWW.VAREALTOR.COM/REALTORSROLE

20. RESOURCES FOR
BROKERS & AGENTS
WEBSITE
MAGAZINE
EDUCATION
STANDARD FORMS
COURSE CALENDAR
VIDEOS
HOTLINE Q&A
WEBINARS

21. VAREALTOR.COM/
AGENCY

22. VAREALTOR.COM/
AGENCY
CLASS CALENDAR CURRENTLY SHOWS
MORE THAN 120 AGENCY COURSE
OFFERINGS ACROSS THE STATE
WWW.VAREALTOR.COM/AGENCY

23. COMMONWEALT
H MAGAZINE
APRIL: AGENCY PRIMER
JUNE: AGENCY CHANGE TUTORIAL
WWW.VAREALTOR.COM/COMMONWEAL
TH

24. DO I HAVE TO HAVE A Yes. But…
WRITTEN  It doesn’t have to be exclusive
AGREEMENT  It doesn’t have to be long-term
TO SHOW SOMEONE
A HOUSE THAT IS NOT  It doesn’t have to be for compensation
MY LISTING?  It doesn’t have to be an agency
relationship

25. WHEN
DO YOU NEED TO The big questions is:
DISCLOSE YOUR Is the consumer already represented?
BROKERAGE
RELATIONSHIP? If no:
 “Substantive” discussion
 Specific property
 Actual prospect who is not your client and
who is not represented by any other
licensee

26.  Pricing questions
 Motivation
WHAT IS  Repairs/property condition
SUBSTANTIVE ?

27. QUESTIONS & ANSWERS
ERIK A@VAREALTOR.COM