In Virginia, which type of agency relationship allows a single brokerage firm to represent both the buyer and the seller in the same transaction by assigning a different licensee to each party?
Correct Answer
A) Designated agency
Virginia law specifically recognizes designated agency (Va. Code § 54.1-2130), in which a supervising broker designates one licensee within the firm to represent the buyer and a different licensee to represent the seller. This allows each designated agent to provide full fiduciary duties to their respective client, unlike dual agency where duties to both parties are limited.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
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