Working With Multiple Agents - Virginia

[Ian Tudor]

I ran into an issue today and I wanted to get your opinion because I'm sure several of you have ran into the same issue.

Currently, I am searching for a house and I am working with multiple agents. Essentially, I am giving two agents a chance to prove themselves. In order to find a good agent, you will get a recommendation or you can find it through trial and error. I am currently using a combination of both. Most agents I have come across aren't compatible for investors.

Today, I contacted an agent, who asked if I was working with another agent. I said I was since I am going out this weekend to look at properties with one. He said that I have to sign a contract with this agent and be exclusive with them. Apparently a new ruling came out in 2012 that forces people to stay with an agent for a certain period of time depending on the contract.

Is this the industry standard or is this agent wanted complete control of the situation?

[Tanya S.]

Ian,

Virginia did pass a law about this that went into effect last July. You can read more about it here:

[http://www.washingtontimes.com/news/2012/jun/14/cover-story-untangling-the-buyers-agent-process/?page=all]

When I asked about it, my agent explained to me that the idea behind the enforcement of the agreement was that the state of VA wanted to prevent mortgage fraud. Deceitful buyers were closing on multiple properties at the same time by presenting their financial situations to different banks.

For example, say someone only has sufficient income to purchase one home. However, this person goes around to three different banks and gets pre-approved at each bank to buy one home with his/her current income. Instead of buying only one home, however, this person actually finds THREE different houses and closes on all three at the same time with three different banks.

Personally, I'm not sure how funneling everything through one real estate agent will completely stop this practice, especially if someone can sign a buyer's agreement for a period of just one day (as the above article suggests), but there you have it.

Good luck!