New limited service definition recommended

The Virginia Association of Realtors today released their first draft of a proposed legislative change to Virginia’s real estate agency law. The new law would allow real estate brokers to provide real estate services on an "a la carte" basis thereby allowing home buyers and sellers to choose the types and levels of real estate services they want rather than being forced to purchase a bundle of services for a relatively high commission rate.

The new legislation comes at a time when the debate over "mininmum service requirements" for real estate agents and brokers is being waged across the country. Several states, under pressure from Realtor Associations, have already passed legislation requiring real estate brokers to perform certain minimum brokerage acts such as receiving and negotiating the purchase contract on behalf of the home seller, providing real estate advice throughout the transaction and even attending the real estate closing. The effect of these requirements has been to pressure flat fee and discount brokerage models into having to alter their service offerings to provide bundled services and, of course, forcing consumers to pay more for professional real estate assistance.

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