Did You Know? A bit about signing Buyer Representation Agreements

Question –

Does Virginia require a real estate agent to execute a representation agreement before showing a buyer a house?

The following is different than the lawsuits/settlements of October 2024.

Yes. Virginia Code § 54.1?2132 (entitled “Licensees engaged by buyers.”)

“A. A licensee engaged by a buyer shall:

1. Enter into a brokerage agreement with the prospective buyer prior to showing property to such prospective buyer;”

Does a buyer have to sign a representation agreement prior to seeing a home?

Well, no, the buyer does not, but the agent does. I think that’s called a Catch-22.

Every agent has different business practices, but the Code of Virginia is supposed to apply equally to all agents.

What do I, Jim Duncan the real estate agent do?

I’ve worked with written buyer representation agreements for decades, well before the settlements, and before 2012.

Basically, before I give specific real estate guidance and advice, I, as a real estate agent (Realtor is a branding/marketing term, not a license type) need to have the brokerage relationship in writing.

• As a listing agent, I can — and should — show an unrepresented buyer my listing. (Please ask me if you’re thinking about selling your home)
• As a buyer‘s agent – I often do short-term buyer representation agreements; my buyer clients and I have to like and trust each other, so we do short-term agreements (ask me if you’re curious about these)

Similarly, for any brokerage relationship (whether buyer or seller) there is also Virginia Code § 54.1?2137 which states:

• Subsection B: “Except as otherwise provided in this article, a licensee shall enter into a brokerage agreement with a prospective client prior to providing brokerage services.”
• And Subsection A of §54.1?2132 and its historical citation confirm that the law amendment took effect in 2012.

Having a written representation agreement, regardless of the law, is a best practice — this defines my relationship to my client, and my client’s relationship to me.

* Note: I am not an attorney. I’m a real estate agent. I’m writing about this topic in my November 2025 Monthly Note. I suspect I’ll be more pointed and opinionated there.

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