What is the correct answer to: Under agency law in Virginia, dual agency is:

The correct answer is legal with consent of all parties. Under the Virginia Real Estate Board regulations (18 VAC 135-20-310) and the Virginia Agency Disclosure statute (§ 54.1-2139), dual agency is permissible only when all parties — both the buyer and the seller — provide their informed written consent. The law mandates that the agent disclose the dual agency relationship and obtain agreement before proceeding, ensuring transparency and protecting both principals from undisclosed conflicts of interest.

What background knowledge is needed for this Agency question?

Virginia codified its agency disclosure requirements in the Agency Disclosure Act found in § 54.1-2130 et seq. of the Virginia Code, which was substantially updated in the 1990s as the real estate industry shifted away from the traditional model where all agents were presumed to represent the seller. The legislature introduced mandatory written disclosure to combat widespread consumer confusion about who an agent actually represented. Over time, the rules were refined to specifically address dual and designated agency, reflecting the modern complexity of real estate brokerage relationships.

What is a good way to remember the answer to this Agency question?

Think of dual agency as a 'double handshake deal' — both hands must shake at the same time, meaning BOTH parties must say yes simultaneously before the deal is valid. Visualize an agent standing between two people with both arms extended, and neither hand can be shaken until both people reach out together. The word 'ALL' in the correct answer is your trigger: in Virginia, dual agency always requires ALL parties. Remember that for dual agency to be legal in Virginia, ALL parties must give written Consent. The acronym ALL C can help you recall this requirement during the exam.

What exam tip applies to this Agency question?

On the Virginia exam, any answer choice that limits consent to fewer than all parties involved in a dual agency scenario is automatically incorrect; the exam consistently tests whether candidates know that Virginia requires unanimous informed written consent. Watch for distractor answers that mention the broker or just one party, as these are designed to catch students who confuse authority with consent.

How does this Agency concept apply in real world practice?

Imagine a Richmond, Virginia listing agent who has been working with the Smith family to sell their home for $450,000 when a buyer she is also representing as a buyer's agent expresses strong interest in the property. Before she can show the home in her dual capacity or facilitate any negotiations, she must sit down with both the Smiths and the buyer, provide a written dual agency disclosure, explain that she can no longer advocate exclusively for either party, and obtain signatures from all parties confirming their consent. Only after all signatures are secured can the transaction legally proceed with her in a dual agency role.

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Under agency law in Virginia, dual agency is:

Correct Answer

D) legal with consent of all parties

Legal only with all parties' written consent.

Answer Options

illegal

legal with consent of one party

legal with consent of the broker

legal with consent of all parties

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Related Concepts

Scope of Authority

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

Seller Agent Duties

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

Single Agency

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

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Agency Questions

Under agency law in Virginia, dual agency is:

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