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Subcommittee approves substitute clarifying when written brokerage agreements are required
Summary
A subcommittee substitute to House Bill 16‑84 was approved and the bill reported out (recorded "by a vote of 62" in the transcript). The substitute clarifies that licensees working with buyers and tenants must have a written agreement before providing certain brokerage services, while sellers' agents may show properties on the seller's behalf.
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The Timber Laws Housing Subcommittee adopted a substitute for House Bill 16‑84 and reported the bill out of subcommittee. The transcript records the bill report "by a vote of 62." The substitute reverses the original bill’s negative phrasing and makes affirmative that licensees working with buyers and tenants must have a written brokerage agreement prior to showing property when the licensee provides defined brokerage services.
Sponsor Delegate Sewell told the panel the substitute "simply just notes" that the bill defines which brokerage services require a written agreement and specifically defines "showing the property." The substitute also clarifies that a licensee representing a seller or landlord may show properties to prospective buyers or tenants on behalf of the seller without signing a representation agreement with that buyer or tenant.
Erin Corman of the Virginia Realtors testified in support. Committee members and staff discussed the substitute’s wording and the bill was reported out under the substitute language.
The transcript does not include additional line‑by‑line amendments beyond the substitute; supporters said the change responds to questions raised nationally about brokerage agreements and settlement practices.
