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Q: My buyers entered into a contract to purchase a home. After they entered into the contract, the listing agent asked them to sign an addendum acknowledging that the listing agent and the seller were family. My clients don’t want to sign the addendum. Could this be a way for them to get out of the contract? 

A: Agents are required to disclose if any member of their family is attempting to sell, purchase, or lease a property and the agent is involved in the transaction (Va. Code 54.1-2138.2). The agent should disclose this interest in writing “upon having substantive discussions about specific real property”. However, the code section does not provide a termination right for either party if the agent does not follow the law. While the agent could be subject to an ethics complaint or a DPOR violation, this wouldn’t likely give the buyer a way to terminate the contract. 

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