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 www.TheAgentTrainer.com

1. PowerOfRelationships
Matthew Rathbun, Broker
ABR/M, AHWD, CDPE, CRB, CRS, e-PRO, GREEN, GRI, SFR, SRS
Agency

2. What You re In For Today
Agency Relationship and Duties
Personal Service Agreements
Commission
Risk Management

3. Agent
Relationships and
Duties

4. Agency is A
Term of Art

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. 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. HONESTY
CONFIDENTIALITY
OBEDIENCE
LOYALTY
ACCOUNTING
DISCLOSURE
REASONABLE CARE
As in all relationships, we have some
stuff we have to do...

9. Personal
Service
Agreements

10. 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)

11. What Has To Be In Writing?
• Listing Agreements
• Buyer Agreements
• Landlord Agreements
• Tenant Representation
• Property Management
• Independent Contractor

12. Genesis
Expressed Agency
Implied Agency

13. What Type of Agreement Do You Have?
Exclusive
(Tamed)
Non-Exclusive
(Wild)

14. 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

15. The Forms

21. Buyer Agency
Agreements

31. So,
Whe
n Do
es
Tha
t Ge
t
Turn
ed I
n?

32. 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

33. 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

34. Terminating Relationships
• Revocation
• Renunciation
• Death of Principal / Agent
• Insanity
• Bankruptcy
• Illegal
• Destruction
• Expiration

35. Commissions

36. 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)

37. The Great Commission Divorce

38. Negotiating The Commission
•
•
•
•
•
MLS Dictates
MRIS Article IV, Section 15
Code of Ethics Considerations
Arbitration
Who Do You Work For?

39. 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)

40. Unbroken Chain of Events
resulting in a closed
transaction.
Procuring Cause

41. Risk
Management

42. Fair Housing
Considerations
• Have Written Policy
!
• Investigate, Take Action, Document
!
• Private Testing
!
• Document Training Annually
!
• Linguistic Profiling

43. Allowable Discrimination
Credit
History
Criminal
History
Rental
History
Work
History
Source of
Funds

44. • Defined
!
• Who Benefits
!
• Documentation
!
• Advertising Ability
!
• Insurance
!
• Agency Coverage
!
• Compensation
Pre-MLS
&
Pocket Listings

45. What Does Your Training
Say About You?

46. 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)

47. Conveying What You Know
• Imputed Knowledge
• Imputed Notice
• Material Facts Disclosure
• Latent Facts Disclosure

48. 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

49. Presenting ALL Offers

50. Company Transfers
• Who Has Coverage Under E and O?
!
• Who Has Agency Relationship?
!
• What Is The Agent’s Limitations?
!
• Who Get’s Paid?

51. 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
•

52. www.TheAgentTrainer.com
Facebook.com/mattrathbun
@mattrathbun
YouTube.com/MattRathbun1
Matthew@TheAgentTrainer.com
CE - 61522
PLE - 61271