Earlier this week, Zillo Launched the new ‘Tour Agreement’, a non-exclusive contract for buyers and agents to use for home tours. The real estate giant was prompted to do so by: national association of realtors (nar) A commission lawsuit settlement agreement requires an agent to enter into a written agreement with a client to work with them as a buyer’s broker. This agreement must be signed before the agent can show the buyer the home.
While many in the industry are interested in Zillow’s new pilot program, Virginia real estate agents A tougher stance is being taken.
“After analyzing this ‘Tour Agreement’ form, Virginia Realtors determines that it does not meet the requirements of Virginia law,” Virginia Realtors wrote in a notice posted Friday.
The trade group also recommends members discuss business practices and any agreements and forms they will use with brokers to ensure they comply with state laws.
Additionally, the notice states that members should check with their insurance company for exclusions and omissions before using any agreement that does not include any compensation, such as the Zillow Travel Agreement.
“There have been reports that some E&O policies will not provide coverage without payment of compensation,” the notice said.
Laura M. Murray, general counsel for Virginia REALTORS, said Zillow’s circuit agreement does not contain all of the provisions required by Virginia law in a buyer’s representation agreement. Two such provisions highlighted by Murray include that when “a buyer and broker enter into an agreement that is not an agency relationship (such as an independent contractor relationship), the agreement must clearly state that the real estate licensee is acting as an independent contractor and is not Act as an agent” and all agreements between consumers and brokers “must contain the name and contact information of the supervising broker, the person who has the legal obligation to ensure compliance with the law.
“While non-agency, non-exclusive agreements are not a legal issue in Virginia, such agreements must contain specific information to comply with the law. The ‘circuit agreements’ we saw did not contain all the necessary information,” Murray wrote in an email.
Zillow notes that the touring agreement is part of a pilot program and therefore only available in certain metro areas, none of which are currently available in Virginia.
“We are piloting this travel protocol in select markets that comply with local rules. As we do with all Zillow products, we will work on a market-by-market basis as availability expands, with plans to make it available in other states. Version.
Murray and Virginia Realtors noted that state regulations in other states, including Maryland, could create similar conflicts with Zillow’s travel agreements.
