Real Estate Agency In DC
Explainers and resources to help you understand the roles, agreements and choices available for your transaction.
Listing Agreements And Terms
Understanding the types of real estate agency for DC home sellers and basic provisions of the 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.
Key Components
Jurisdiction
Type of agreement
Length of agreement
Listing price
Compensation
Private Exclusive, public MLS or hybrid
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
Clear Cooperation And Office Exclusive Listings
“Clear Cooperation” refers to a real estate industry policy that mandates listing a property on the Multiple Listing Service (MLS) within one business day of publicly marketing it.
“Office Exclusive Listing” is an exception where a seller allows a brokerage to market a property within their own brokerage. It is not listed on the MLS for wider access, but must still be entered into the MLS system. Bright MLS, the DVM’s area multiple listing service, provides that the following forms must be completed for Office Exclusive Listings:
Bright MLS Office Exclusive Entry Form: This form is required for all Office Exclusive listings.
Bright MLS Client Disclosure Form: This form is required for all clients starting August 14, 2024
The listing must be submitted to Bright within two calendar days of the executed listing agreement.
The listing broker or agent can still cooperate with other brokers who present a buyer.
The core requirement of the MLS Clear Cooperation Policy has not been eliminated, despite ongoing industry debate and legal challenges.
Public Marketing Definition
Public marketing still includes yard signs, public websites, flyers, digital email blasts, and multi-brokerage sharing networks.
Delayed Marketing Options
NAR introduced the Multiple Listing Options for Sellers policy, which allows local MLS platforms to offer a “delayed marketing exempt” category, and Bright MLS honors it. This permits withholding a listing from third-party syndication and IDX during a localized delay window, but the listing must still be filed with the MLS.
Office Exclusives
True office exclusives, where a listing is promoted strictly within a single brokerage without public exposure, remain exempt from immediate MLS submission, though multi-brokerage communication triggers Clear Cooperation.
Key Topics To Discuss
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:
Broker Compensation Fees
How is listing broker compensation negotiated?
Are sellers required to offer buyer broker compensation?
If sellers choose to compensate buyer brokers, in what amount and 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?
What services are included?
Are there any additional fees, such as a brokerage “additional commission” fee?
What types of listing agreements are offered by the agent’s afilliated brokerage?
Discuss listing termination/expiration and whether or not an early termination fee will be included
Marketing And Presentation Costs
Who pays costs of photography, floor plans and virtual tours? What’s included?
Who pays costs for staging?
Who pays costs of marketing?
Determining Listing Price
What factors contribute to the listing price of a home?
What type of price flux can be expected in the current market?
Revview the comps | CMA for the property
Showing Restrictions
Are there days and times the property will be unavailable?
Will showings be ‘go and show’ or require an appointment?
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; the Condominium Questionnaire (lenders), the Condominium Closing 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), and the Resale Certificate Package (commonly known as “condo documents,” this package may be generated electronically or printed. The fee to Sellers commonly ranges from $250.-$400. depending on the association and management company).
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?
Leases
If all or a portion of your property is leased, or the property is multifamily, discuss lease expiration date(s) and other terms
Provide lease copies
Discuss required tenancy documentation and contract addendums, TOPA.
Listing Status Options
Understanding the types of real estate agency for DC home sellers and basic provisions of the listing agreement.
ON MLS
Coming Soon
Entered for purposes of cooperation
No showings during a current, specified time-period
No agreement of sale in effect
Listing will be on-market soon
If the lister receives an offer while property is in this status, it must be presented to the Seller
Active
Showings allowed
The listing on-market, no written offer accepted
DOM starts at “1”
CDOM count based on previous activity
Active Under Contract
Listing has an accepted contract
Seller is allowing showings and accepting backup offers
DOM/CDOM does not accumulate.
Pending
Listing has an accepted contract
Seller not accepting additional showings or backup offers
DOM/CDOM does not accumulate
Closed
Settlement has concluded
DOM/CDOM has stopped and reset
Tempoff
Seller temporarily suspended showings
Listing contract between broker and Seller remains in effect
DOM/CDOM is paused and will not reset on or after the 61st day.
Withdrawn
Marketing ceased, Listing Agreement still in effect
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.
Off-MLS | Compass Coming Soon
A “Compass Coming Soon” listing is a property about to hit the market and being advertised on Compass with limited details to generate early interest. This is the pre-cursor to “Compass Private Exclusive.”
Compass Private Exclusive (PX)
Compass Private Exclusives are properties that are accessible to 34,000+ Compass agents and their buyer networks.
Private Exclusive listings are the first stage of the Compass 3-Phased Marketing Strategy designed to maximize demand and fine-tune positioning for the best possible sale outcomes.
Top 5 Off-Market Listing Questions Answered
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:
WHAT’S THE DIFFERENCE BETWEEN MLS COMING SOON AND COMPASS COMING SOON?
The Bright MLS rule does not allow showings under this status, while showings are encouraged on Compass Coming Soon.
HOW LONG SHOULD A LISTING BE ON OFF-MARKET CHANNELS BEFORE LISTING ON MLS?
This is determined on a cas-by-case basis. Reasons for listing off-market vary. Discuss this topic in relation to your circumstances with your agent. The minimum term recommended for office exclusive status is 7 days.
WHO CAN VIEW MY PX LISTING?
Compass agents
Buyers and sellers on the Compass network
WHAT ADVANTAGES ARE THERE TO LISTING OFF-MARKET?
Privacy
Pre-marketing builds interest in listings pre-MLS, before they are ready to be fully marketed publicly
Price Testing without published adjustment history
No Days On Market accumulation to penalize a listing
No restrictions on if, when, and how often, the listing can be shown
Exclusivity often translates to higher sales prices
WHAT DISADVANTAGES ARE THERE IN LISTING OFF-MARKET?
Off-market listings are not visible to the gerneral public and do not populate to third-party listing aggregators such as Zillow and Redfin. Limited exposure results in fewer viewings, which may affect traffic levels and interest in the listing.
Buyer Agency Agreements And Terms
What Is Buyer Agency?
Understanding real estate agency for DC home buyers and basic provisions of the buyer agency agreement.
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. Agents may require an agreement sooner, prior to performing any substantive work. An agency agreement converts a ‘customer’ to a ‘client’ and triggers duties and obligations by both the brokerage/agent and the buyer/seller.
Recent Changes
Along with changes to how broker compensation is offered and paid, the NAR settlement forced changes to the way buyers search hones and prioritize agreements with buyer agents.
NAR / MLS Mandates
Buyers must now choose an agent and agree upon representation and compensation terms in writing before any work can be performed for the buyer, including showing homes
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 determined
Compensation 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.
Written agreements apply to both in-person and live virtual home tours.
Agreements
Understanding real estate agency for DC home buyers and basic provisions of the buyer agency agreement.
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 Provisions
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:
What are the terms of the buyer broker agreement?
Explain the contractual obligation for exclusive representation by the broker and designated agent
What is a ‘protection period’?
How and when is broker compensation paid?
What is additional broker compensation?
How do I determine if a seller is offering cooperative compensation?
What if cooperative compensation is not sufficient to cover the percentage outlined in the buyer agency agreement?
Discuss types of representation, the pros and cons of each type
Define the length (term) of your agreement
Discuss locations of interest. Agents do not necessarily hold licenses throughout the DCMA. Know where agents are licensed and determine if this meets your needs
Discuss fees like brokerage “admin” and “technology” fees. Ask your agent to explain these provisions and their implications for your transaction.
Attending Open Houses and Virtual Tours
Buyers are welcome to attend open houses. Hosting agents (who represent the seller) may provide basic information about the property but not give advice or perform work without an agency agreement
Virtual tours fall under the category of ‘showings’ and a written agency agreement is required
Touring Agreements
Some third-party listing aggregators are promoting ‘touring agreements’ in lieu of agency agreements. There is debate as to whether ornot this violates the intent of the NAR settlement provisions. Read our on touring homes.
Off-Market Listing Access
When you work with a Compass agent, you will be provided access to the Compass ‘Private Exclusive ‘ and ‘Coming Soon’ network. Your Compass Collections will automatically receive off-market listings in that network.