Agent Foster is a Virginia licensee who has been working with buyer Reynolds for three months under a signed buyer brokerage agreement. Reynolds finds a home he loves, but it is listed by Foster's own brokerage. The brokerage has only one other active agent, who is currently on medical leave. Broker Chen decides to designate Foster as Reynolds's agent and to personally handle the seller's representation. Under Virginia law, which statement BEST describes the legal status of Broker Chen's representation of the seller?
Correct Answer
A) Broker Chen is acting as a designated agent for the seller, with full fiduciary duties to the seller only.
Under Virginia law (Va. Code § 54.1-2130), a supervising broker may personally act as a designated agent for one party in a transaction while another licensee in the firm serves as the designated agent for the other party. By personally taking on the seller's representation, Broker Chen is functioning as the seller's designated agent and owes the seller full fiduciary duties. The designation of Foster to the buyer and Chen to the seller is a valid designated agency arrangement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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