Sarah is a licensed real estate salesperson in Virginia working under Broker Thompson. A buyer named Marcus contacts Sarah directly and asks her to help him find a home. Sarah agrees to work with Marcus but has not yet signed any written agreement. Under Virginia law, what is the agency status of Sarah's relationship with Marcus at this point?
Correct Answer
D) Sarah's agency status is not yet established; Virginia requires a written brokerage agreement to create an agency relationship.
Under Virginia law (Va. Code § 54.1-2130 and 18 VAC 135-20-310), an agency relationship between a licensee and a client must be established through a written brokerage agreement. Without such a written agreement, no formal agency relationship exists, and Sarah's duties to Marcus are limited to those owed to a customer rather than a client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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