Real Estate Agency In Washington DC
Section: Everyone Guides
Author: Susan Isaacs, Washington DC Real Estate Strategist
Real Estate Representation
Learn about real estate agency and agreements in the District of Columbia. Explainers and resources to help buyers and sellers understand the roles, agreements and choices available for their transactions.
Listing Your Home For Sale In DC
Listing Options
Types of real estate agency available to Washington DC home sellers and the basic provisions of the GCAAR listing agreement.
Open Listing: Owners can sell their home themselves under the terms of this non-exclusive agreement. Owners may have listings with more than one brokerage. Commission is paid to the agency who is the procuring cause for a ready, willing and able buyer who makes an offer on the property. Should the owners find the buyer themselves, no commission is due;
Exclusive Agency Listing: The broker will be the only brokerage representing the owner, but the owner may still sell the property themselves and avoid paying commission under the terms of that provision. The broker may cooperate with other brokerages to bring in a buyer and the listing commission is split between the two brokerages. Exceptions and deadlines may be included in the agreement;
Multiple Agencies Listing: When a seller uses more than one brokerage to list their home, the listing agreement used must be for the jurisdiction where the property is located;
Single Agent Buy & Sell Transaction: This is different than Dual Agency, where the agent represents both the buyer and seller of the same property. In this model, sellers of a home purchasing their next home also hire their listing agent as their buyer agent;
Designated Agent: Two agents affiliated with the same brokerage represent the property owner and the buyer of the property. Each agent is designated by the brokerage as the representative of one party only;
Dual Agency: Single agent representing both the property owner and the buyer of the same property.
The Listing Agreement
Types of real estate agency available to Washington DC home sellers and the basic provisions of the GCAAR listing agreement.
Key Components
Jurisdiction
Type of agreement
Length of agreement
Listing price
Compensation (various addendum forms used to define broker compensation)
Listing Status (Private Exclusive, public MLS or hybrid) (various addendum forms used to define exposure)
Keys, lockboxes & signage
Inclusions/Exclusions
Property condition statement
Property disclosure of material facts
Lead paint disclosures
Pest Inspection terms
Encumbrances/Liens/Title
Authority to disclose existing offers
Considerations
In addition to reviewing each section of the Agreement with your agent, you’ll want to discuss terms of the agreement. These are some of the points you might consider:
Agreement Types
What types of listing agreements are offered by the agent’s afilliated brokerage?
What services are included?
Broker Compensation
At what rate is listing broker compensation paid and how?
Are sellers required to offer buyer broker compensation?
If sellers choose to compensate buyer brokers, in what amount, and what form does compensation take?
How is cooperative compensation negotiated?
Will any cooperative compensation be built into the list price?
How is cooperative compensation legally communicated to buyers?
When and how are brokerages and their agents paid?
Are there any additional fees, such as a brokerage “additional commission” fee?
Is there an early termination fee included?
Marketing And Presentation
How will the property be marketed? (public MLS, private exclusive, hybrid)
Who pays costs of photography, floor plans and virtual tours? What’s included?
Who pays costs for staging?
Will open houses be held?
Will a sign be present on the property?
Will a lockbox be present on the property?
Determining The Listing Price
What factors contribute to the listing price of the home?
What’s the overall market like in DC? In my neighborhood? For my home type?
How does condition factor into the price?
What unique aspects of my home will add or detract from its market value?
What type of price flux can be expected in the current market?
Review the comps | CMA for the property. What are the three closest comparables?
Showing Restrictions
Are there days and times the property will be unavailable?
Will showings be ‘go and show’ or require an appointment?
Will all utilities remain on for the duration of the listing?
Is parking available for showings?
Managing Offers
How and when will offers be submitted?
If multiple offers are received, how will the review process be structured?
Condos And Cooperatives
Discuss condo association documents, fees & turnaround time. There are three separate sets of documents involved in a condominium resale;
Condominium Questionnaire (generated by lenders). There is a fee associated with this form which is charged back to the borrower, either upfront or as part of closing costs;
Condominium Closing Disclosure Statement (supplied to title). Some are free, some associations charge the seller up to $150. Many title companies include this fee in the Seller’s closing cost escrow, but some title attorneys and title companies may require it to be paid upfront);
Resale Certificate Package Commonly known as “condo documents,” this package may be generated electronically or printed. It is ordered from the condo association, typically via the management company. The fee to Sellers commonly ranges from $250.-$400. depending on the originating entity.
Discuss condo listing rules: Are there rules regarding open houses, signage, elevator use for staging and renovation materials/crew, etc.? It is up to the seller to divulge these to the agent at the time the listing is taken.
Exchanges
Who will act as the Intermediary?
What type of exchange will be used?
Has a replacement property been identified?
Add the appropriate Addendum(s) to the listing agreement and language to the listing when published
Leases
If all or a portion of your property is leased, or the property is multifamily, discuss lease expiration date(s) and other terms
How much notice will tenant require to show? Restrictions? Pet provisions?
Provide lease copies, tenancy documentation
Discuss TOPA
Add the appropriate terms and Addendum(s) to the listing agreement and language to the listing when published
Listing Status Definitions
Understanding the types of real estate agency for DC home sellers and basic provisions of the listing agreement.
MLS Status
COMING SOON: Pre-listing status on MLS. No showings permitted. Limited to *** days.
ACTIVE ON MLS: Listed and disseminated to third party aggregators. Showings allowed. No agreement of sale in effect.
ACTIVE UNDER CONTRACT: Listed on MLS, under contract with contingencies. Seller is allowing showings and accepting backup offers. If the lister receives an offer while property is in this status, it must be presented to the seller.
PENDING: Listed on MLS, under contract with no contingencies. Seller is not accepting additional showings or backup offers..
TEMPOFF: Seller temporarily suspended showings. Listing contract between broker and Seller remains in effect
CLOSED: Settlement has concluded and the property is no longer on the market.
COMP ONLY: Entered for comparable purposes .
WITHDRAWN: Marketing ceased, the Listing Agreement may still be in effect. The MLS DOM/CDOM will reset when a new listing is added after the previous listing has been in Withdrawn status for at least 61 days and no other listing for the same property has been created.
CANCELED: Seller and listing broker have terminated the Listing Agreement prior to its expiration date. DOM/CDOM has stopped and will reset on or after the 61st day.
EXPIRED: The expiration date on the Listing Agreement has passed and an extension has not been secured. DOM/CDOM has stopped and will reset when re-listed on or after the 61st day.
Compass Brokerage Status
PRIVATE EXCLUSIVE: Compass’ off-market status. Showings permitted. Part of Compass’ Three Phase Marketing Plan.
COMPASS COMING SOON: Compass’ pre-listing status. Showings permitted. Part of Compass’ Three Phase Marketing Plan.
The Buyer Agency Agreement
About buyer agency and key components of the GCAAR Buyer Agency agreement.
What Is Buyer Agency?
It is a real estate agency relationship between a a buyer principal and real estate brokerage, designating a licensed real estate agent to perform specified duties for the buyer.
The buyer agency agreement (BAA), is a contractual agreement between the buyer and brokerage designating the buyer’s chosen agent, dictating the provisions, terms and conditions of their working relationship and the agreement for broker compensation and fees.
Buyer Agency protects buyers and ensures that their agent works in their best interests, not the seller’s, providing the duties of loyalty, care, confidentiality and other fiduciary duties. Agents who are not acting as buyer agents are effectively subagents of the seller.
A written agreement between the buyer and brokerage must be signed prior to an agent performing work on behalf of a buyer, including touring of properties. An agency agreement converts a ‘customer’ to a ‘client’ and triggers duties and obligations by both the brokerage/agent and the buyer/seller.
Read More:
Why A Buyer Agent Matters
Types Of Buyer Agency
Single Agency: An agent from brokerage A represents the seller and another agent from brokerage B represents the buyer in a transaction
Single Agent Buy & Sell Transaction: The same brokerage and agent are hired to represent a party who is buying and selling property
Multiple Agents: As a buyer, you can choose to have one agent or multiple agents representing you in one jurisdiction, or more. For example, a buyer might hire one agent for representation in Virginia, another for representation in DC, and a third for representation in Maryland. Agents are licensed in different jurisdictions and not all agents are expert in all markets within the DCMA. A buyer could also hire multiple brokerages for representation within the same market. This arrangement can become a complex situation requiring extensive communication, coordination and disclosure. Overlapping neighborhood boundaries can become an issue, and scheduling showings/tours can become a logistical problem, especially if agents are affiliated with different brokerages. This can lead to disputes, ‘procuring cause’ claims, and violations of agreements that may result in agents taking action against one another and/or the buyer
Transaction Agents: These agents do not owe a fiduciary duty to either the buyer or the seller and do not represent either side. Instead, they facilitate a transaction by providing the paperwork for one or both sides and managing the transaction in the most basic manner, with duties specified in the agreement
DualAgency: “Dual Representation” occurs when Seller or Landlord has entered into a listing agreement with a licensee and the Buyer or Tenant has entered into a buyer brokerage agreement with the same licensee. When the parties agree to dual representation, the ability of the licensee and the brokerage firm to represent either party fully and exclusively is limited. The confidentiality of all clients must be maintained. Prior to entering into a contract in which the buyer and seller are represented by Dual Agency, this relationship must be disclosed/confirmed in writing.
Designated Agent: Agent who is designated by the broker to represent either the buyer or the seller in a dual agency transaction. “Designated Representation” occurs when the Seller or Landlord has entered into a listing agreement with a licensee and the Buyer or Tenant has entered into a buyer brokerage agreement with a different licensee affiliated with the same firm. Each of the licensees, known as Designated Representatives, represents fully the interest of his/her individual clients. The Supervising Broker is a Dual Representative of both the Buyer and Seller, and must not disclose information obtained in confidence to other parties in the transaction.
Notes on Designation:
If the Seller or Landlord does not consent to Designated Representation, the property may not be shown by any licensees affiliated with the brokerage firm that have entered into a representation agreement with a prospective Buyer or Tenant.
If the Buyer does not consent to Designated Agency, the Buyer may not be shown any properties listed by other licensees affiliated with the brokerage firm. Prior to entering into a contract in which the buyer and seller are represented by Designated Representatives, the relationship of both Designated Agents must be disclosed/confirmed in writing.
Key Components Of The Agency Agreement
Type of agreement: Discuss types of representation, the pros and cons of each
Jurisdiction: The geographical areas the agreement will cover (DC, MD, VA)
Length of agreement: Define the term of your agreement
Compensation: The amount of compensation the subject broker will receive. Additional documentation will be required if the seller contributes to buyer broker compensation
Fees: Discuss fees like brokerage “admin” “technology” or “additional commission” fees. Ask your agent to explain these provisions and their implications for your transaction
Protection Period: The term during which the subject broker must be paid if a sale results following termination or expiry of the agency agreement
Additional terms: Write-in
In addition to reviewing the entire agreement with your agent, you’ll want to negotiate certain terms:
Compensation
The buyer agreement must include four components concerning compensation:
A specific and conspicuous disclosure of the amount or rate of compensation
the agent will receive or how this amount will be determinedCompensation that is specific, not open-ended
A term that prohibits agents from receiving additional compensation for brokerage services from any source that exceeds the amount or rate agreed to in the buyer agency agreement (such as bonuses)
A conspicuous statement that agent fees and commissions are fully negotiable and not set by law.
Additional Forms
You’ll be asked to sign additional brokerage and jurisdictional disclosures forms such as a wire transfer advisory, associated businesses disclosure, dual and designated representation disclosure, and acknowledge a number of disclosures required in your jurisdiction, such as an inspection advisory, a pamphlet on lead-based paint, equal housing advisory, etc.
Working With A Buyer Agent
Scope of Work
What should a good buyer agent do? Here are a few of the duties you can expect:
Provide full fiduciary representation
Property Search: Provide feeds from multiple listing services (MLS) and private networks for homes matching criteria. Suggest options and interface with other agents to identify new opportunities. *When you work with a Compass agent, you will be provided access to the Compass ‘Private Exclusive ‘ and ‘Compass Coming Soon’ network. Your Compass Collections will automatically receive off-market listings in that network, which includes Compass International affiliated brokerages
Schedule Tours, Presentations, Individual Showings and Walk-throughs
Manage Communication: Schedule showings and tours, facilitate communication with agents, inspectors, lenders and title
Coordinate new construction tours and walk-throughs
Coordinate third-party services like home inspections
Comparative Market Analysis: Evaluate specific property values using the CMA method
Provide contract documents and esign tools
Conduct Strategic Offer Negotiations
Manage Deadlines: Track contingency periods and other deadlines, interfacing with listing agents, associations and management companies, lenders, inspectors, appraisers and title to ensure they are met.
Outside The Scope of Work
It is not a buyer agent’s duty to perform due diligence for the buyer. These tasks, such as reviewing condominium documents and budgets, performing permit and other property-related investigation, and interpreting legal, financial or inspection documents are the buyer’s responsibility. It is always recommended that buyers engage a professional with expertise in these areas, such as an attorney or CPA, and direct questions about inspection reports to the inspector.
Touring
Touring a home now requires a written agreement (since the 2024 NAR settlement)
Open Houses
Buyers are welcome to attend open houses. Hosting agents (who represent the seller) may provide basic information about the property to attendees, but not give advice or perform work such as providing detailed information about the property.
Buyers who have a buyer agency agreement in place but the agent isn’t accompanying should make it clear upon entry that they are represented by an agent, and name that agent. A best practice is to enter your name with the notation “represented by” and the agent’s name and contact information in lieu of your own if required to sign a registration form.
Virtual tours fall under the category of ‘showings’ and a written agency agreement is required to attend.
New construction sales offices are considered ‘open houses’ for the purposes of agency. Represented buyers should always be accompanied by their agents on a first visit, where registration will be required. Appearing without an agent may cause the developer to refuse to pay buyer broker compensation, which is generally factored into the price of the homes. It is a best practice to let your agent manage appointments and inquiries related to new construction rather than doing it yourself.
Ready to take the next step? Reach out to schedule a consultation with Susan Isaacs.