Which activity requires a brokerage relationship before it can be legally performed?

In Virginia, a brokerage relationship is necessary when showing a property to a potential buyer because it establishes the legal and professional obligation between the agent and the client. This relationship ensures that the agent is acting in the best interests of the client while adhering to fiduciary duties, such as loyalty, full disclosure, and care.

When an agent shows a property, they represent the interests of the buyer and may provide essential information, guidance, and support regarding the property and the buying process. This interaction goes beyond mere casual conversation; it involves an understanding of the buyer’s needs and preferences, positioning the agent to help with significant decisions. By having a formal brokerage relationship in place, both parties can ensure that there is a mutual understanding of roles, responsibilities, and expectations.

In contrast, activities like advertising a property or holding an open house may not require a formal brokerage relationship. While showing a property involves personal interaction with potential buyers and gives rise to fiduciary duties, simply advertising or conducting an open house can be performed without a direct agent-client relationship, as these activities can often be done to generate interest without representing specific clients. Assisting in contract drafting typically requires not only a brokerage relationship but also a real estate license and possibly additional legal expertise, depending on the complexity