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24 Cards in this Set
- Front
- Back
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Virginia agency relationship |
Virginia real estate agents may provide brokerage services in a residential transaction as standard agents, independent contractors, or limited service agents. |
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Standard agents |
A standard agent in Virginia is a licensee who acts for or represents a client in an agency relationship subject to all agency duties and disclosures imposed by the Virginia law and regulations, as well as any additional duties that the licensee and client agree to in the brokerage agreement. |
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Limited service agents |
A limited service agent is a licensee who agrees to represent a client, with the exception of one or more of the duties which are not listed as an exception in the brokerage agreement, and upon entering the agency relationship, she must provide the client with copies of any and all disclosures required by federal, state, or local law. |
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Independent contractors |
An independent contractor is a licensee not subject to the agency duties imposed by Virginia law and regulations, but who is subject to certain disclosures and limitations on the brokerage relationship. An independent contractor is only subject to duties the licensee and the client specifically agree upon in the brokerage agreement. |
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Virginia agency commencement |
Virginia real estate agency relationships begin when the client engages the licensee. Brokers may only establish a limited Service Agency with clients by stating the type of relationship in The Brokerage agreement and obtaining the clients written consent. |
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Virginia agency termination |
Virginia real estate agency relationships terminate when completed or the earlier of a mutually agreed-upon expiration date, a mutually agreed upon termination at any time, a default by party, or if the agent wishes to terminate after a client refuses to consent to a disclosed dual representation. |
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Clients, Brokerage relationships |
Before creating a brokerage relationship, licensees must disclose the type of agency or representation proposed, the method of compensation, and whether a broker will share compensation with another broker that represents another party in the same transaction. |
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Limited Service Agency, brokerage relationships |
The Limited service agent must disclose the following in The Brokerage agreement that the licensee is acting as a limited service agent, a list of the specific services that the licensee will provide to the client, and a list of the specific duties required of a standard agent that the limited service agent will not provide to the client. These initial disclosures must be conspicuous, printed and either bold lettering or all capitals, and must be underlined or in a separate box. The Virginia legislature suggests specific language to properly disclose a limited Service Agency. |
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Independent contractor, brokerage relationships |
Must disclose in The brokerage agreement that the licensee is acting as an independent contractor and not as an agent, and must include a list of the specific services that the licensee will provide to the client. |
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Non clients / customers, brokerage relationships |
Before discussing property with an unrepresented non client, licensees must disclose whom they represent that has an interest in the property at issue. Only discussions which are substantive conversations about a specific property trigger disclosure to the non-client / customer in residential transactions.
Only non clients that are not represented by another licensee trigger the disclosure.
Disclosures maybe oral when triggered, but must be written before any specific real estate assistants is provided. A licensee must make written disclosures to an unrepresented landlord / tenant in all lease applications, or in the lease itself. In addition, if a licensees relationship to a client / customer changes, the licensee must disclose the fact in writing to all clients and customers already involved in the specific contemplated transaction.
The written disclosure may be given and a standard format described in Virginia law or it may be provided alongside other disclosures, so long as it is conspicuous. |
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Dual agency / representation |
Dual agency is when one broker owner or one firm represents both parties and same transaction. In Virginia, this is permissible if properly disclosed and agreed upon in writing.
Disclosure must indicate that the licensee cannot reveal any personal or financial information received from one party to the other party during The Brokerage relationship, and that the licensee cannot reveal any other information that a party requests to remain as confidential during The Brokerage relationship to the other party.
Disclosure must be written and may be given in a standard format described by Virginia law or provided alongside other disclosures, so long as it is conspicuous.
Clients must consent to dual agency / representation and acknowledge disclosure with their signatures. Licensees May terminate an existing brokerage relationship if the client refuses to consent to dual agency / representation. |
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Designated agency / representation |
Designated agency is when one broker owner or one firm represents both parties in the same transaction, but a separate licensee from that firm is assigned it to represent each party in the transaction. And Virginia, this is permissible if properly disclosed and agreed upon in writing.
Same as dual agency / representation, listed above. However, licensees can reveal any information to their supervising or principal broker.
Same as dual agency / representation, listed previously.
Clients must consent to designated agency / representation and acknowledge disclosure with their signatures. Licensees May terminate an existing brokerage relationship if the client refuses to consent to designated agency / representation. |
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Licensees interest |
Licensees must disclose that they are licensed real estate agents if they have an interest in a transaction, regardless of whether there are any advertisements for the property.
Licensees must make disclosure if the licensee, his family member, his firm, or his business owns a property that is being offered or is attempting to purchase the subject property.
Disclosures must be written and must be made to the purchaser, seller, lessor, or lessee upon having substantive discussions about specific property. |
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Material facts |
Licensees must disclose all known material adverse facts about the subject property's physical condition to both clients and customers.
Licensees must disclose all known material facts about the transaction to the client only. |
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Record-keeping |
Principal broker must keep records of all agency / representation disclosures for three years from the date of execution. |
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MLS participation |
A different jingle all, no licensee representing a buyer or tenant shall be deemed to have a brokerage relationship with a seller, landlord or other licensee solely by reason of using a common source information company. However, and MLS may require a license used to disclose the nature of brokerage relationships with clients, including whether the licensee is acting as 1 and independent contractor 2 a limited service agent or 3 a standard agent as provided in The Brokerage agreement. The MLS may also make such information publicly available. |
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Virginia licensee duties |
Virginia real estate licensees have mandatory duties to both clients and customers. The nature of the duties depends on whether the licensee is acting in the residential transaction as a standard agent, a limited service agent, or independent contractor, and the type of person the licensee represents.
Standard agency is the most common brokerage relationship in Virginia. In addition to the required duties, the standard agent can agree to additional obligations which can be set forth in The Brokerage agreement.
Limited service agent so the same duties to clients and customers at standard agents, except the brokerage agreement can specifically eliminate one or more of the standard agents mandatory duties in the promoting interest of the client category. For example, The Brokerage agreement for seller representation could state that the agents involvement would be limited to listing the property for sale on the multiple listing service. The rest of the standard duties to promote the sellers interest would be listed as exclusions.
Engaging an agent to merely list the property on the MLS, and then have no further involvement with the transaction, is the most common use of The Limited Service Agency in Virginia. For this reason, the law requires that upon entering into a brokerage agreement, The Limited service agent must provide the client with copies of all disclosures required by federal, state, local law. This requirement will include written disclosure to the client of one the client's right and obligation under the Virginia residential property disclosure Act 2 if the property is a condominium, the client's rights and obligations to deliver to the purchasers, or to receive as purchaser, the required condominium resale certificate, and 3 if the property is subject to the Property Owners Association act, the rights and obligations of the clients delivered to the purchaser, or to receive as purchaser, the required Association disclosure packet. Independent contractors do not owe any of the mandatory duties in the promoting the interest of clients category. However they do owe a few of the duties that standard in limited agent so two clients, including the duties to maintain confidentiality, exercise ordinary care, account for the clients money and property, disclose material facts, and comply with fair housing laws. They do owe the same duties that the standard agents in limited service agent so to customers, and they must give disclosure of their brokerage relationship with unrepresented non clients. The independent contractor brokerage agreement most specifically state that the licensee is acting as an independent contractor and not as an agent, and that they will only perform the services which are specifically set forth in the agreement. Independent contractor brokerage relationships are not common in Virginia. |
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Client / sellers |
Standard agents representing seller clients show The Following duties to the seller client in a residential transaction.
Standard agent representing a seller client must perform in accordance with the terms of The Brokerage agreement.
Standard agent representing a seller client must conduct marketing activities on behalf of the seller in accordance with the brokerage agreement. In so doing, the licensee shall seek a sale at the price and terms agreed upon in The Brokerage agreement, or at price and terms which are acceptable to the seller, however, the licensee shall not be obligated to seek additional offers to purchase while the property is already subject to a contract of sale, unless agreed upon as part of The Brokerage agreement or as the contract of sale so provides. Agents must have cysts and Drafting and negotiating offers, counter-offers, amendments, and addenda to the real estate contract, and must establish strategies to accomplish the sellers objectives. Agents must receive and present all written offers and counter-offers in a timely manner, even when the property is already subject to a contract of sale. Agents must also provide reasonable assistance to the seller in order to satisfy the settlement of the purchase contract.
Standard agents representing the seller client must maintain the confidentiality of all personal and financial information received from the seller client during The Brokerage relationship, as well as any other information requested to be confidential, unless otherwise provided by law or if the seller consents in writing to the release of such information.
Standard agent representing a seller client must exercise judgement similar to what a reasonable person would do under like circumstances.
Standard agent representing a seller client must account in a timely manner for all money and property received for which the seller has or may have an interest.
Standard agents representing a seller client must comply with the law.
Standard agent representing a seller client must disclose all actually known material facts in relation to the property or concerning the transaction.
Prior to entering into brokerage relationship with a seller client, a standard agent must advise the prospective client of 1 The type of brokerage relationship proposed by the broker, and 2 the Brokers compensation and 3 whether the broker will share compensation with another broker whose client is the other party in the transaction. |
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Customer / buyer |
Standard agent representing seller clients owe the following duties to buyer customers in a residential transaction:
Standard agents representing seller clients must treat all prospective buyers honestly and shall not knowingly provide false information.
Standard agents representing seller clients showed us close in writing to prospective buyers all material adverse facts which are actually known to the licensee about the physical condition of the property. The term physical condition of the property refers to the physical condition of the land and any improvements there on, and does not refer to 1 matters outside the boundaries of the land or relating to adjacent or other properties in proximity there too, 2 matters relating to governmental land use regulations, and 3 matters relating to highways or public streets. A licensee is not liable to a buyer for providing false information to the buyer if the false information was a. Provided to the licensee by the seller, B. Obtained from a governmental entity, or c. Obtained from a personal licensed, certified, or registered to provide Professional Services in the Commonwealth and the licensee did not have actual knowledge that the information was false or act and Reckless disregard of the truth. A standard agent may also reveal information required by law without liability.
Standard agent representing seller clients May assist actual or potential buyers with routine and Ministry of Acts which do not entail material advice or substantiv assistance. Alone, such acts do not create a brokerage relationship.
Standard agent representing seller clients must properly disclose their brokerage relationship to an unrepresented buyer. |
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Client / buyers |
Standard agents representing buyer clients owe the following duties to the buyer client in a residential transaction. Standard agent representing buyer clients must perform in accordance with the terms of The Brokerage agreement.
Standard agents representing buyer clients must promote the buyer's interest by seeking a property of a type acceptable to the buyer, and at acceptable price and terms, however, unless agreed upon as part of The Brokerage relationship, the licensee shall not be obligated to see other properties for the buyer while the buyer is a party to a sales contract. Agents must assist in drafting in negotiating offers, counter offers, and amendments, and addenda to the real estate contract, and must assist in establishing strategies to accomplish the buyers objectives. Agents must receive and present all written offers are counter offers in a timely manner, even when the buyer is already a party to a sales contract. Agents must also provide reasonable assistance to the buyer in order to satisfy the buyers contractual obligations and to facilitate settlement of the purchase contract. Standard agents representing buyer clients must maintain the confidentiality of all personal and financial information received from the buyer during the brokerage relationship, as well as any other information requested to be confidential, unless otherwise provided by law or the buyer consents on writing to the release of such information. Standard agents representing buyer clients must exercise judgment similar to what a reasonable person would do under like circumstances. Standard agents representing buyer clients must account in a timely manner for all money and property received for which the buyer has or may have an interest. Standard agents representing buyer clients must comply with the law. Standard agents representing buyer clients must disclose all actually known material facts in relation to the property or concerning the transaction. A standard agent engaged by a buyer does not breach any duty or obligation by showing properties in which the buyer is interested to other prospective buyers, by representing other buyers looking at the same or other properties, or by representing sellers relative to other properties. Prior to entering into a brokerage relationship with a buyer client, a standard agent must advise the prospective client of 1 the type of brokerage relationship proposed by the broker, and 2 the broker's compensation, and 3 whether the broker will share compensation with another broker whose client is the other party in the transaction. |
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Customer /seller |
Standard agents representing buyer clients owe the following duties to potential and actual seller customers in a residential transaction: Standard agents representing buyer clients must treat all prospective sellers honestly and shall not knowingly provide false information. In the case of a residential transaction, a standard agent engaged by a buyer must disclose to a seller whether or not the buyer intends to occupy the property as a principal residence. The buyers expression of intent in the sales contract shall satisfy this requirement. In addition, no cause of action shall arise against any licensee for making such disclosure, for any inaccuracy in such disclosure, or the nondisclosure of the buyer in this regard. Standard agents representing buyer clients may assist the seller or prospective seller by performing ministerial acts. Alone, such acts do not create a brokerage relationship. Standard agents representing buyer clients Must properly disclose their brokerage relationship to an unrepresented seller. |
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Client/landlord |
Standard agents who represent landlord clients owe the following duties to the landlord client in a residential transaction:
Standard agents representing landlord clients must perform in accordance with the terms of The Brokerage agreement.
Standard agent representing landlord clients must promote the interests of the landlord by conducting marketing activities on behalf of the landlord pursuant to The Brokerage agreement. In doing so, the licensee shall seek a tentative rent and terms agreed upon in The Brokerage agreement, or at rent in terms which are acceptable to the landlord, however, the licensee shall not be obligated to seek additional offers to lease while the property is already subject to a lease or letter of interest to lease if the tenant has not yet taken position, unless agreed as part of The Brokerage agreement, least, or letter of intent to lease so provides. Agents must assist and drafting negotiating leases in letters of intent to least. Agents must receive and wasn't all that leasing offers are counter offers in a timely manner, even when the property is already subject to a lease or letter of intent to lease. Agents must also provide a reasonable assistance to the landlord in order to finalize the lease agreement.
Standard agents representing a landlord client must maintain the confidentiality of all personal and financial information received from the landlord during The Brokerage relationship, as well as any other information requested to be confidential, unless otherwise provided by law or the landlord consent in writing to the release of such information.
Standard agent representing landlord clients must exercise judgment similar to what a reasonable person would do under like circumstances.
Standard agents representing landlord clients must account in a timely manner for all money and property received for which the landlord has or may have an interest.
Standard agent representing landlord clients must comply with the law.
Standard agent representing landlord clients must disclose all actually known material facts related to the property or concerning the transaction.
A standard agent engaged by a landlord does not breach any Duty or obligation owed to the landlord by showing alternative properties to prospective tenants, or by representing other landlords who have other properties for lease.
Prior to entertaining into brokerage relationship with a landlord client, a standard agent must advise the prospective client of one the type of brokerage relationship proposed by the broker, to the Brokers compensation, and 3 whether the broker was cheer competition with another worker his client is the other party in the transaction.
Standard agent representing landlord clients must treat all prospective tenants honestly and shall not knowingly provide false information.
Standard agent representing landlord client shall disclose in writing to tenant customers all material adverse effects which are actually known to the licensee about the physical condition of the property. The term physical condition of the property refers to the physical condition of the land and any improvements there on, and does not refer to one matters outside the boundaries of the land or relating to adjacent or other properties in proximity there too, to matters relating to government to land use and regulations, and three matters relating to highways or public streets.
A licensee is not liable to a tenant for providing false information to the tenant if the false information was a. Provided to the licensee by the landlord, B. Obtained from a governmental entity, see. Obtained from a person license, certified, or registered to provide Professional Services and the Commonwealth and a licensee did not have actual knowledge that the information was false or act in Reckless disregard of the truth. A standard agent may also reveal information required by law without liability. Nothing in this subsection shall limit the right of a prospective tenant to the inspect the physical condition of the property.
Standard agent representing landlord clients May provide assistance to a tenant or potential tenant by performing ministerial acts. Alone, such acts do not creative brokerage relationship.
Standard agent representing landlord clients must properly disclose their brokerage relationship to an unrepresented tenant. |
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Client/tenant |
Standard agents who represent tenant clients owe the following duties to the landlord client in a residential transaction: Standard agents representing tenant clients must perform in accordance with the terms of The Brokerage agreement. Standard agent representing tenant clients must seek a lease at rent and terms which are acceptable to the tenant; however, the licensee shall not be obligated to seek other potential properties while the tenant is party to a lease or a letter of intent to lease if the tenant has not yet taken possession, unless agreed upon as part of the brokerage agreement, or as the lease or the letter of intent to lease so provides. Agents must assist in drafting and negotiating leases, letters of intent to lease, and rental applications. Agents must receive and present all written offers or counter offers, even when the tenant is already party to lease or a letter of intent to lease. Agents must also provide reasonable assistance to the tenant in order to finalize the lease agreement. Standard agents representing a tenant client must maintain the confidentiality of all personal and financial information received from the tenant during The Brokerage relationship, as well as any other information requested to be confidential, unless otherwise provided by law or the tenant consent in writing to the release of such information. Standard agent representing tenant clients must exercise judgment similar to what a reasonable person would do under like circumstances. Standard agents representing tenant clients must account in a timely manner for all money and property received for which the tenant has or may have an interest. Standard agent representing tenant clients must comply with the law. Standard agent representing tenant clients must disclose all actually known material facts related to the property or concerning the transaction. A standard agent engaged by a tenant does not breach any Duty or obligation owed to the tenant by showing alternative properties to prospective tenants, or by representing other tenants who have other properties for lease. Prior to entertaining into brokerage relationship with a tenant client, a standard agent must advise the prospective client of one the type of brokerage relationship proposed by the broker, to the Brokers compensation, and 3 whether the broker was cheer competition with another worker his client is the other party in the transaction. Standard agent representing tenant clients must treat all prospective tenants honestly and shall not knowingly provide false information. Standard agent representing tenant clients May provide assistance to a tenant or potential tenant by performing ministerial acts. Alone, such acts do not creative brokerage relationship. Standard agent representing tenant clients must properly disclose their brokerage relationship to an unrepresented landlord. |
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Virginia limits on licensee liability |
Virginia law deviates from common law agency liability as follows. Virginia law creates a presumption that clients are unaware of licensee misconduct and licensee misrepresentation. Under Virginia law, licensee are not liable for :paying along false information if provided by clients, a government entity, or a licensed professional ; revealing information as required by law ;or the misrepresentation me misconduct of any assisting broker. If a party to real estate transaction requests that a contract or other real estate document be translated into another language, the licensee may help them to find a translator or may refer them to an electronic translation service. In such case, the licensee will not otherwise become liable for any inaccuracies in the translation. In general, a licensee that assists an unrepresented customer or a customer represented by a limited service agent is only liable for wrongdoing if his conduct is grossly negligent or intentionally wrongful. Licensees who deal with the client of a limited service agent may also enter into a limited service agency with the client for additional services. Virginia law does not limit liability for fair housing related misconduct, or for a client or licensees personal misconduct. |
