Legal Case Study

Written Brokerage Agreements and Accurate Property Information 

This case examines a Virginia real estate salesperson who used an email authorization to market property but did not have a written brokerage agreement containing all of the terms required in Virginia. The case also addresses the importance of accurately identifying property ownership in MLS and ensuring that contracts correctly identify the parties involved in a transaction. 

The Situation: 

On June 19, 2007, Alice Anderson was issued a Virginia real estate salesperson’s license. Her license has been associated with Advanced Brokerage Co. since August 18, 2015. 

On January 21, 2018, Anderson sent an email requesting authorization from Sara Thurman, a principal of BusinessMarch, LLC, to market lots in a particular area. Thurman responded by email authorizing her to list the lots in the MLS. The email did not establish a definite termination date, specify brokerage fees and how or when they would be paid, or describe the services to be rendered beyond listing the lots in MLS. 

On December 8, 2023, Anderson listed a BusinessMarch, LLC property in the MLS. The listing identified Anderson as the listing agent and Advanced Brokerage Co. as the listing office but identified Hills Estate, Inc. as the owner even though BusinessMarch, LLC still owned the property. In January 2024, Hills Estate, Inc. purchased the property from BusinessMarch, LLC. 

 The Facts: 

Anderson stated that her arrangement with BusinessMarch, LLC was largely verbal and involved Hills Estate, Inc. purchasing two or three lots at a time for construction. The January 21, 2018 email was the only written agreement provided for the listing relationship. The Board found that the email did not contain the required terms of a brokerage agreement. Although the original email indicated that BusinessMarch, LLC would not pay a commission, BusinessMarch ultimately agreed in the January 2024 land contract to pay a commission at settlement, and Advanced Brokerage Co. paid Anderson the amount. The Board ultimately found no violation on the allegation that Anderson failed to perform in accordance with the brokerage agreement. 

The Result: 

The Virginia Real Estate Board found substantial evidence that Anderson violated § 54.1-2137.B of the Code of Virginia by failing to establish a written brokerage agreement containing the required terms. The Board also found that she violated 18 VAC 135-20-260.12.e by misrepresenting ownership of the property in the MLS. The Board imposed a $350 penalty for Count 1 and a $500 penalty for Count 3, for a total monetary penalty of $850. The Board also placed Anderson on probation for six months and required her to complete three classroom hours of Board-approved post-license education concerning Agency Law. The order was entered June 17, 2026, and the monetary penalty was required to be paid within 60 days.