Broker Harris operates a real estate firm in Virginia Beach. Her firm lists a home owned by the Garcias. Separately, agent Thompson — a licensee under Harris — has a signed buyer brokerage agreement with the Johnsons. The Johnsons want to make an offer on the Garcias' home. Broker Harris designates agent Thompson to represent the Johnsons and designates agent Lee to represent the Garcias. Under Virginia law, which statement about agent Thompson's duties is MOST accurate?
Correct Answer
D) Thompson owes full fiduciary duties to the Johnsons as their designated agent, separate from Lee's duties to the Garcias.
Under Virginia's designated agency framework (Va. Code § 54.1-2130), when a broker designates separate licensees to represent each party in an in-house transaction, each designated agent owes full fiduciary duties exclusively to their designated client. Thompson owes full loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting to the Johnsons — not limited duties as in dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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