Broker Lisa's firm has a listing agreement with seller David to sell his home in Richmond, Virginia. Buyer Carol contacts Lisa's firm and signs a buyer brokerage agreement with agent Kevin, who works under Lisa. Kevin then shows Carol David's home. Under Virginia law, how should this situation be handled?
Correct Answer
C) Kevin can be designated as Carol's agent and the listing agent can remain David's agent, creating a designated agency arrangement with proper disclosure.
Virginia law expressly permits designated agency (Va. Code § 54.1-2130). When a brokerage represents both a buyer and a seller in the same transaction, the supervising broker may designate one licensee to represent the buyer (Kevin) and another to represent the seller (the listing agent), provided proper written disclosure and consent are obtained. This preserves full fiduciary duties for each client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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