Understanding Agency in Virginia Real Estate: Who Represents You?
Buying or selling a home involves a lot of decisions. One of the most important may also be one of the least understood:
Who represents you?
In Virginia real estate, the term "agency" describes a relationship in which a real estate licensee acts for or represents a client. Understanding that relationship can help you know who is advising you, whose interests they represent, and what you can expect throughout your transaction.
Let's break down some of the most common types of agency relationships you may encounter when buying or selling a home in Virginia.
What Is Buyer Agency?
When a real estate agent represents a buyer, that agent works on behalf of the buyer within the terms of their brokerage relationship.
A buyer's agent can help the buyer understand the market, evaluate properties, prepare an offer, navigate negotiations, work through inspections and other contingencies, and move through the many details between contract and closing.
Most importantly, the buyer knows who is representing their interests throughout the process.
What Is Seller Agency?
A seller's or listing agent represents the seller.
That representation can include helping establish a pricing and marketing strategy, preparing the property for the market, promoting the home, communicating with prospective buyers and their agents, evaluating offers, negotiating terms, and helping the seller navigate the transaction through closing.
Again, the important distinction is clear: the listing agent represents the seller.
What Is Dual Agency?
Dual agency occurs when the same real estate licensee has a brokerage relationship with both the seller and the buyer in the same transaction.
Dual agency is legal in Virginia, but it requires disclosure and the written consent of the parties as required by Virginia law.
What many consumers may not realize is that dual agency can also change the role the agent is able to play.
Virginia's residential dual-agency disclosure identifies limitations on the advice a dual agent can provide in certain dual-agency situations. For example, after dual agency begins, the licensee may not be able to advise either party on terms to offer or accept, advise a buyer regarding the suitability or condition of the property beyond required disclosures, recommend repairs to make or request, or advise either party in a dispute related to the transaction.
That's an important distinction for buyers and sellers to understand before deciding how they would like to be represented.
Why the Denise Ramey Team Chooses Not to Practice Dual Agency
Although dual agency is permitted in Virginia, the Denise Ramey Team has chosen not to practice it.
This isn't about criticizing agents or brokerages that handle transactions differently. It's about the standard we have chosen for our team and our clients.
We believe that when you're making a decision as significant as buying or selling a home, having an agent focused on representing your interests provides clarity throughout the transaction.
Real estate transactions can involve pricing decisions, offer terms, inspections, repairs, negotiations and unexpected issues. We want our clients to know who is representing them and where their agent's responsibility lies.
For us, that clarity matters.
What Is Designated Agency?
Designated agency is different from having the same individual agent represent both the buyer and seller.
In a designated agency situation, a principal or supervising broker assigns different affiliated licensees to represent different clients in the same residential transaction. Each designated agent represents their assigned client. Under Virginia law, the principal or supervising broker overseeing the transaction is considered a dual agent or representative, and specific disclosure and consent requirements apply.
This structure allows the individual buyer and seller to have different agents representing them even though those agents may be affiliated with the same brokerage.
What Should Buyers and Sellers Ask?
Before entering into a brokerage relationship, don't be afraid to ask questions.
Who will represent me?
Who does the other agent represent?
What happens if I want to buy a home listed by my agent or their brokerage?
What happens if a buyer represented by my agent or brokerage wants to purchase my home?
Could dual or designated agency arise?
And, most importantly, how would that affect the advice and representation I receive?
Agency doesn't need to be intimidating, but it does need to be understood.
At the Denise Ramey Team, we believe informed clients make better decisions. We're always happy to explain how representation works and answer your questions before you buy or sell.
Ready to see what is on the market? Start with Charlottesville homes for sale, including these listings on the market now:
2050 Owensville Rd, Charlottesville (22901) | 4 bd, 3 ba, 2,257 sq ft
113 Mapleshire Ct, Waynesboro (22980) | 3 bd, 3 ba, 1,871 sq ft
1245 Still Meadow Ave, Charlottesville (22901) | 6 bd, 4 ba, 4,250 sq ft
See every current listing in Denise Ramey's portfolio of properties for sale.
Have questions about buying or selling a home in Charlottesville, Crozet, Albemarle County or Central Virginia? Let's talk.
This information is provided for general educational purposes and is not intended as legal advice. Agency relationships and disclosure requirements can vary depending on the circumstances of a transaction. Ask your real estate professional or attorney about your specific situation.
