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Agency Changes Webinar: June 12, 2012

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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.

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Agency Changes Webinar: June 12, 2012

  1. 1. AGENCY LAW CHANGES:WHAT DO THEY MEAN FOR YOU ANDYOUR AGENTS?
  2. 2.  Audience members will not have speaking capabilities on this call  However, we encourage all attendees to submit questions through the questionBEFORE field on the Go To Meeting control panelWE 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. 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. 4. AGENCYChanges to Virginia agency law take effect July 1,2012.In the coming months, VAR will provide a varietyof resources to help you adapt to the revisions,including videos, webcasts, articles, new forms,and classes.
  5. 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.WHYTHE 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 muchTHE 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. 6. AGENCY LAWCHANGES1. GET IT All licensees must have written brokerage agreements with consumers theyIN 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. 7. INDEPENDENT CONTRACTORmeans 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 54.1-2131through 54.1-2135 (marketing, negotiating, etc.)
  8. 8. AGENCY LAWCHANGES2.ENHANCED Dual agents and representatives mustDISCLOSURES provide enhanced disclosure of limitations on what dual agents can and cannot doFOR 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. 9. AGENCY LAWCHANGES3.M ANDATOR Licensees must take a three-hour course onY 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. 10. AGENCY COURSE TIMINGAgents must take a three-hour course on the provisions of the agency statuteand the changes made in the legislation.This means that if your current license expires after July 1, 2012 , you maytake the three-hour agency course at any time, beginning right now. In fact, ifyour license expires in July 2012, you will need the course very quickly.However, if your license expires in February through June of 2012 , youshould wait to take the course until after you have renewed your license. Youmay take the course now, but you will need to take it again (for credit) in yournext license cycle.
  11. 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 REPRESENTATIONIn addition to these new required forms, we’ve also createdseveral 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. 12. DISCLOSURES OFDUAL AGENCY ORREPRESENTATIONRESIDENTIAL2 PAGESWWW.VAREALTOR.COM/STANDARDFORMS
  13. 13. DISCLOSURES OFDUAL AGENCY ORREPRESENTATIONCOMMERCIAL1 PAGEWWW.VAREALTOR.COM/STANDARDFORMS
  14. 14. DISCLOSURE OFBROKERAGERELATIONSHIPFOR UNREPRESENTED PARTIES1 PAGEWWW.VAREALTOR.COM/STANDARDFORMS
  15. 15. DISCLOSURE OFDESIGNATEDAGENCYOR REPRESENTATION1 PAGEWWW.VAREALTOR.COM/STANDARDFORMS
  16. 16. INDEPENDENTCONTRACTORAGREEMENT5 PAGESWWW.VAREALTOR.COM/STANDARDFORMS
  17. 17. BUYERBROKER AGREEMENTAVAILABLE IN EXCLUSIVE& NON-EXCLUSIVE2 PAGESWWW.VAREALTOR.COM/STANDARDFORMS
  18. 18. SHORTBUYERBROKER AGREEMENTNON-EXCLUSIVE ONLY1 PAGEWWW.VAREALTOR.COM/STANDARDFORMS
  19. 19. YOURREALTOR’SROLE2-PAGE PIECE DESIGNED TO OUTLINE1.WHY CONSUMERS SHOULD USE AREALTOR®2.WHY A BROKERAGE AGREEMENT ISNECESSARYWWW.VAREALTOR.COM/REALTORSROLE
  20. 20. RESOURCES FORBROKERS & AGENTSWEBSITEMAGAZINEEDUCATIONSTANDARD FORMSCOURSE CALENDARVIDEOSHOTLINE Q&AWEBINARS
  21. 21. VAREALTOR.COM/AGENCY
  22. 22. VAREALTOR.COM/AGENCYCLASS CALENDAR CURRENTLY SHOWSMORE THAN 120 AGENCY COURSEOFFERINGS ACROSS THE STATEWWW.VAREALTOR.COM/AGENCY
  23. 23. COMMONWEALTH MAGAZINEAPRIL: AGENCY PRIMERJUNE: AGENCY CHANGE TUTORIALWWW.VAREALTOR.COM/COMMONWEALTH
  24. 24. DO I HAVE TO HAVE A Yes. But…WRITTEN  It doesn’t have to be exclusiveAGREEMENT  It doesn’t have to be long-termTO SHOW SOMEONEA HOUSE THAT IS NOT  It doesn’t have to be for compensationMY LISTING?  It doesn’t have to be an agency relationship
  25. 25. WHENDO YOU NEED TO The big questions is:DISCLOSE YOUR Is the consumer already represented?BROKERAGERELATIONSHIP? If no:  “Substantive” discussion  Specific property  Actual prospect who is not your client and who is not represented by any other licensee
  26. 26.  Pricing questions  MotivationWHAT IS  Repairs/property conditionSUBSTANTIVE ?
  27. 27. QUESTIONS & ANSWERS ERIK A@VAREALTOR.COM

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