SB 1309: Real estate brokers and salespersons; duties, licensees engaged by buyers. - Virginia

Senator McPike, Jeremy S. Substitute → Chaptered · 7 edits

MODERATE

This bill amends Virginia real estate law to clarify and expand definitions of agency relationships, requiring written brokerage agreements before showing property to buyers or tenants, and updating dual agency disclosure forms. The changes aim to increase transparency in real estate transactions and protect consumers by ensuring licensees clearly communicate their roles and obligations.

Scope change

The bill applies to all real estate licensees in Virginia engaged by sellers, buyers, landlords, or tenants in residential and commercial transactions.

REQUIREMENT

Requires licensees to enter into a written brokerage agreement before showing property to prospective buyers or tenants, with exceptions for property-specific marketing materials.

Updated definitions for 'independent contractor' and 'limited service agent' to specify which statutory obligations they must comply with versus those they are exempt from.

Revised dual agency disclosure forms to include specific language about limitations on disclosing confidential information and advising on property suitability or repairs.

Added designated agency provisions allowing brokers to assign different licensees to represent different clients in the same transaction while maintaining confidentiality between them.

Updated defective drywall disclosure requirements to include lead-free plumbing components in addition to drywall.

DEFINITION

Clarified that 'commercial real estate' excludes single-family residential units even when part of a larger building with multiple units.

TECHNICAL

Corrected formatting errors in subdivision numbering throughout the bill where duplicate numbers appeared (e.g., '2. 3.' instead of '3.').

General Laws and Technology Substitute → Senator McPike, Jeremy S. Substitute · 3 edits

MINOR

The bill text shows significant formatting and layout changes between two versions of Senate Bill 1309, but the substantive legal content appears identical. The changes include reorganization of headers, addition of page markers, and minor spacing adjustments rather than policy modifications.

TECHNICAL

Formatting and layout reorganization including header placement, page number additions, and spacing adjustments between sections

Line breaks and paragraph structure changes that do not alter the legal meaning of the provisions

Addition of document tracking numbers and amendment identifiers in different positions

Enrolled → General Laws and Technology Substitute · 5 edits

MODERATE

This bill amends Virginia real estate licensing laws to clarify duties between brokers, buyers, sellers, landlords, and tenants. It introduces new categories for 'limited service agents' and 'designated agents' while updating requirements for disclosure of dual agency and dual representation in both residential and commercial transactions. The changes aim to provide clearer guidelines on when licensees owe fiduciary duties versus independent contractor obligations.

Scope change

The bill expands the scope of regulated brokerage relationships by formally recognizing 'limited service agents' and 'designated agents' as distinct categories, while maintaining requirements for written brokerage agreements in most cases.

DEFINITION

Added definitions for 'limited service agent' and 'designated agent' to clarify when licensees owe reduced versus full fiduciary duties to clients.

Updated the definition of 'independent contractor' to specify which subsections of other articles still apply to these licensees.

REQUIREMENT

Updated disclosure requirements for dual agency and dual representation to include specific language and formatting standards for both residential and commercial transactions.

Modified the timing requirements for when brokerage agreements must be signed, particularly for licensees showing properties to prospective buyers and tenants.

Added requirements for limited service agents to provide specific disclosures about duties they will not perform to clients.

Introduced → Enrolled · 4 edits · Mar 24, 2025

MODERATE

This bill transitions from a draft introduction to an enrolled version, meaning it has passed all legislative stages and is ready for signature. The enrolled version expands the bill's scope from amending only § 54.1-2132 to amending multiple related sections (§§ 54.1-2130 through 54.1-2134, 54.1-2137, 54.1-2138.1, 54.1-2139, 54.1-2139.01, and 54.1-2139.1), and adds comprehensive definitions for key real estate terms like 'agency,' 'agent,' 'brokerage agreement,' 'client,' 'customer,' and 'independent contractor.'

Scope change

The bill now applies to a broader range of real estate brokerage relationships, including both residential and commercial transactions, and clarifies the distinction between agents and independent contractors in brokerage agreements.

SCOPE

Expanded from amending only § 54.1-2132 to amending multiple sections covering definitions and duties of real estate licensees.

DEFINITION

Added detailed definitions for 'agency,' 'agent,' 'brokerage agreement,' 'brokerage relationship,' 'brokerage services,' 'client,' 'commercial real estate,' 'customer,' 'designated agent,' 'dual agent,' and 'independent contractor.'

REQUIREMENT

Clarified obligations for licensees acting as independent contractors versus agents, specifying which statutory provisions apply to each relationship type.

TECHNICAL

Removed introductory procedural text from the introduced version (committee referral, patron information, session dates) as these are no longer needed in the enrolled version.

Real estate brokers and salespersons; duties, licensees engaged by buyers.

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