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Q:  “I am the listing agent for a new construction home. I don’t personally have any ownership interest in the property, but I know my firm has an ownership stake in it, along with another LLC. Since I don’t personally have any ownership interest, do I still need to make a disclosure?”

A:  Yes, a disclosure to prospective purchasers would still be necessary. Virginia Code section 54.1-2138.2 says that when a licensee is involved in a transaction and the licensee knows, or should have known, that his firm has an ownership interest in the property at issue, the licensee must disclose the existence of that ownership interest to the other side of the transaction. The disclosure needs to be made upon having a substantive discussion about the specific property. In the scenario above, the listing agent’s firm has an ownership interest in the property being sold, so a disclosure of that interest to prospective purchasers is required.  

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