We recently sent an all-member email and included an article in our May 3rd e-News; however, we wanted to make sure that you, as a broker, were aware of this issue as well.

A well-known property portal has recently announced it will have a “touring agreement” to be used with buyers who have been acquired through their lead generation service. The “touring agreement” is in response to the NAR Proposed Settlement which requires agents and buyers to have a written agreement before “touring” a home.

Upon analysis of this “touring agreement” form, Virginia REALTORS® does not believe it is in compliance with the requirements of Virginia law.

We have encouraged members to discuss their business practices and any agreements that they are going to use with you, the broker.

Virginia law requires that any independent contractor agreement (non-agency relationship, which is called for in the “touring agreement”) specifically state that the real estate agent is acting as an independent contractor and not as an agent. Additionally, Virginia law requires that all brokerage agreements include the name and contact information of the supervising broker. Neither of these appear on the “touring agreement” that has been publicly released.

Further, the “touring agreement” may include provisions that violate your firm policies or E&O insurance carrier policies. We have heard reports that some E&O policies will not provide coverage in any instances where there is no compensation paid.

If you have questions, please contact the Virginia REALTORS® Legal Hotline.