Early this week, Jiro has launched a new “Tour Agreement,” a non-exclusive agreement for buyers and agents to use for home tours. The real estate giant was prompted to do this by the following conditions: National Association of Realtors (NAR) A brokerage fee litigation settlement agreement requires an agent to enter into a written agreement with a client to work with the client as a buyer broker. This contract must be signed before the agent takes the buyer to tour the home.
While many in the industry are intrigued by Zillow’s new pilot program; virginia real estate agent We are taking a tougher position.
in Note “Having analyzed this ‘Tour Agreement’ form, Virginia Realtors believes it does not comply with the requirements of Virginia law,” Virginia Realtors wrote in an article published Friday.
The trade group also advised its members to discuss their business practices and the contracts and forms they use with their brokers to ensure compliance with state law.
The notice also states that members should check with their insurance carrier for exclusions and omissions before using a policy that does not include coverage, such as a Zillow tour contract.
“It has been reported that some E&O insurance policies do not provide coverage if no compensation is paid,” the notice states.
Laura M. Murray, general counsel for Virginia Realtors, said Zillow’s tour agreement does not include all the terms of a buyer agency agreement required by Virginia law. Two such clauses highlighted by Mr. Murray are: “When a buyer and a broker enter into an agreement that is a non-agency relationship (such as an independent contractor relationship), the agreement provides that the real estate licensee is an independent contractor. All contracts between consumers and brokers, acting as agents and “not as agents,” must include the name and contact information of the supervising broker, the person who has a legal obligation to comply with the law. “It must be done.”
“While non-agency, non-exclusive agreements are legal in Virginia, such agreements must contain certain information to comply with the law. “The ‘tour contract’ that was submitted does not contain all the necessary information,” Murray wrote in an email.
Zillow noted that this tour deal is only available in certain metropolitan areas because it is part of a pilot program, and none currently exist in Virginia.
“We are piloting tour agreements in select markets consistent with local rules. As with all Zillow products, we are working on a market-by-market basis as availability expands. and we plan to make versions available in additional states,” a Zillow spokesperson said in an email.
Murray Realtors and Virginia Realtors pointed out that state regulations in other states, including Maryland, could similarly conflict with Zillow’s tour agreement.
