Virginia Real Estate Agency Presentation 2013


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Agency is the backbone of the real estate industry. These relationships set the tone and out- line of how consumers will be work with their agent and what the agent’s responsibilities are. This course is constructed to reinforce the Virginia regulations pertaining to Agency and practical application of Procuring Cause. We’ll also explore agency disclosure options and tools to ensure compliance with regulations. Case Studies and student engagement makes this class interactive. For more information visit

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Virginia Real Estate Agency Presentation 2013

  1. 1. PowerOfRelationships Matthew Rathbun, Broker ABR/M, AHWD, CDPE, CRB, CRS, e-PRO, GREEN, GRI, SFR, SRS Agency
  2. 2. What You re In For Today Agency Relationship and Duties Personal Service Agreements Commission Risk Management
  3. 3. Agent Relationships and Duties
  4. 4. Agency is A Term of Art
  5. 5. So, You ve Decided To Get Married! Great, let’s find out how we got here... ...and how we keep this relationship safe
  6. 6. What YOU Say and Do Can Establishes Who THEY Are (The Rest Is Paperwork) Client Customer Independent Contractor Dual Agency Designated Agency Non-Client
  7. 7. HONESTY CONFIDENTIALITY OBEDIENCE LOYALTY ACCOUNTING DISCLOSURE REASONABLE CARE As in all relationships, we have some stuff we have to do...
  8. 8. Personal Service Agreements
  9. 9. Agency disclosure MUST be made in writing prior to substantial discussions about a specific property or service. [Yes, you MUST, SHALL, WILL, have a written agreement before showing property, giving advice or listing a property.] (DPOR memo August 2012)
  10. 10. What Has To Be In Writing? • Listing Agreements • Buyer Agreements • Landlord Agreements • Tenant Representation • Property Management • Independent Contractor
  11. 11. Genesis Expressed Agency Implied Agency
  12. 12. What Type of Agreement Do You Have? Exclusive (Tamed) Non-Exclusive (Wild)
  13. 13. Benefits Of The Agreement Outlines Mutual Responsibility Ensures You’ve Disclosed All That You Must Shows Evidence of Agreement and Disclosures Limits Role Defines Loyalty Required By Law
  14. 14. The Forms
  15. 15. Buyer Agency Agreements
  16. 16. So, Whe n Do es Tha t Ge t Turn ed I n?
  17. 17. Dual and Designated Agency Tolerated A licensee may act as a dual representative only with the written consent of all clients to the transaction. Such written consent and disclosure of the brokerage relationship as required by this article shall be presumed to have been given as against any client who signs a disclosure as provided in this section. 54.1-2139
  18. 18. Virginia s Dual Agency Disclosure 5 Required Elements • Licensee may have already provided guidance to one of the two parties. ! • Licensee cannot provide advice (including recommended repairs) to the buyer, or advice about suitability ! • Licensee cannot provide advice on disputes ! • Client’s inexperience is not a factor ! • Either party may engage another Realtor after ratification
  19. 19. Terminating Relationships • Revocation • Renunciation • Death of Principal / Agent • Insanity • Bankruptcy • Illegal • Destruction • Expiration
  20. 20. Commissions
  21. 21. Getting Paid • • • • • Paid ONLY to and through Brokers Agents may only receive money through their Broker Must reveal all monies received to the Principal Net Listings Not OK Receiving money on behalf of client without approval (18VAC135-20-280)
  22. 22. The Great Commission Divorce
  23. 23. Negotiating The Commission • • • • • MLS Dictates MRIS Article IV, Section 15 Code of Ethics Considerations Arbitration Who Do You Work For?
  24. 24. Changing the Commission Standard of Practice 3-2 revised ! Any change in compensation offered for cooperative services must be communicated to the other REALTOR® prior to the time that REALTOR® submits an offer to purchase/lease the property. (Amended 1/10)
  25. 25. Unbroken Chain of Events resulting in a closed transaction. Procuring Cause
  26. 26. Risk Management
  27. 27. Fair Housing Considerations • Have Written Policy ! • Investigate, Take Action, Document ! • Private Testing ! • Document Training Annually ! • Linguistic Profiling
  28. 28. Allowable Discrimination Credit History Criminal History Rental History Work History Source of Funds
  29. 29. • Defined ! • Who Benefits ! • Documentation ! • Advertising Ability ! • Insurance ! • Agency Coverage ! • Compensation Pre-MLS & Pocket Listings
  30. 30. What Does Your Training Say About You?
  31. 31. Taking The Client Along Standard of Practice 16-20 revised ! REALTORS®, prior to or after their relationship with their current firm is terminated, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude REALTORS® (principals) from e s ta b l i s hi n g a g re em e nt s w i t h t h e i r associated licensees governing assignability of exclusive agreements. (Amended 1/10)
  32. 32. Conveying What You Know • Imputed Knowledge • Imputed Notice • Material Facts Disclosure • Latent Facts Disclosure
  33. 33. Confidentiality of Offers 1:9 - Maintain Confidentiality ! 1:13 - Must Must Advise • Company Policy • Compensation Paid • Possibility of Dual Agency • Buyer’s Offer is not Confidential ! 1:15 - Realtors® must disclose the other offers and their authors with permission of the Seller
  34. 34. Presenting ALL Offers
  35. 35. Company Transfers • Who Has Coverage Under E and O? ! • Who Has Agency Relationship? ! • What Is The Agent’s Limitations? ! • Who Get’s Paid?
  36. 36. Limit To Liability • False information provided by Seller ! • Revealing information required by law ! • Misrepresentation made by sub-agent (unless broker / licensee should have known) ! Negligence or gross negligence or intentional acts of the Assisting Broker / Salesperson •
  37. 37. @mattrathbun CE - 61522 PLE - 61271