Realtor® Advocacy in Action: New Requirement for Buyer Brokerage Agreements
by Josh Veverka, Vice President Government Affairs
New Virginia laws take effect July 1, 2025. This series will look at highlights from the 2025 Virginia General Assembly session.
Legislation recently signed into law by Governor Glen Youngkin will require a brokerage agreement to be signed between a prospective buyer and a real estate licensee prior to showing a property to the prospective buyer.
The 2024 NAR settlement agreement requires NAR members to implement numerous practice changes. Included in these practice changes is the requirement that all Realtor® MLS participants working with a buyer enter into a written agreement before the agent tours any home with a buyer.
While Virginia has had written buyer brokerage agreements for many years, Virginia law previously included an exemption to allow the showing of properties to a prospective buyer before requiring a written agreement. This left Virginia law at odds with the NAR settlement and left Realtors® complying with the settlement at a potential disadvantage to non-Realtor® real estate licensees.
HB 1684, patroned by Delegate Briana Sewell, and SB 1309, patroned by Senator Jeremy McPike were introduced in the 2025 Virginia General Assembly session at the request of the Realtors® to implement these needed changes. Both bills passed with unanimous, bipartisan support and were signed into law on March 24 by the Governor. The new provisions will take effect on July 1, 2025.
These bills make key changes in Virginia code by repealing the exemption provisions in § 54.1-2132. Licensees engaged by buyers (subsection G) and § 54.1-2134. Licensees engaged by tenants (subsection F). By eliminating these exemptions, the requirement for written brokerage agreements between licensees and prospective buyers and tenants would need to be executed prior to showing properties.
A few specific exceptions to the law were maintained to ensure Realtors® and other licensees can continue practicing effectively.
Because licensees should be able to market their services and prepare information for prospective clients without a brokerage agreement, the new law does not require a brokerage agreement prior to preparing property-specific materials for a prospective client with the intent of obtaining a brokerage relationship.
Additionally, if a real estate licensee is already working with a seller or landlord under a brokerage agreement, they do not need to enter into a separate brokerage agreement with a prospective buyer or tenant just to show them the property or to hold an open house. The licensee is acting within the terms of their existing agreement with the seller or landlord, and the act of showing the property does not create a new brokerage relationship with the buyer or tenant.
Finally, to resolve any ambiguity, the bill defines “showing property” to include physically obtaining access and taking a prospective buyer or tenant to a property; providing a live, virtual tour to a prospective buyer or tenant who is not physically present; responding to questions or providing information about such property that is not of public record while at the property; or otherwise providing brokerage services while at the property.
With the enactment of HB 1684 and SB 1309, Virginia real estate law is now fully aligned with the 2024 NAR settlement agreement, ensuring a consistent and fair approach for all real estate professionals. These changes reinforce the importance of written brokerage agreements in fostering transparency and professionalism in real estate transactions while maintaining reasonable exceptions that allow licensees to effectively serve clients. As the new requirements take effect on July 1, 2025, Realtors® and other real estate professionals should familiarize themselves with these provisions to ensure compliance and continue providing exceptional service to buyers, sellers, tenants, and landlords alike.