Broker Adams operates a real estate firm in Virginia. The firm has a policy of practicing designated agency for all in-house transactions. Seller Martinez signs a listing agreement with the firm. Buyer Okafor, represented by agent Sullivan (also under Adams), wants to make an offer on Martinez's home. Broker Adams realizes there is no other available agent to designate for Martinez and decides to personally represent both parties as a dual agent. Under Virginia law, which of the following is MOST accurate?
Correct Answer
A) Broker Adams may proceed as a dual agent only after obtaining written informed consent from both Martinez and Okafor.
Under Virginia law (Va. Code § 54.1-2130), dual agency is permissible when the licensee obtains written informed consent from all parties. Even if the firm's standard practice is designated agency, the law does not prohibit dual agency when proper disclosure and written consent are obtained. Broker Adams may personally represent both Martinez and Okafor as a disclosed dual agent, provided both parties provide written consent acknowledging the limitations of dual representation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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.
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