Agent Reyes is a Virginia licensee representing seller Hoffman under a listing agreement. During a showing to an unrepresented buyer, Walker, Agent Reyes learns that Walker is a cash buyer with no financing contingency and must close within 30 days due to a job relocation. Hoffman has told Reyes he is desperate to sell quickly. Under Virginia law, what is Agent Reyes's obligation regarding this information?
Correct Answer
A) Reyes must disclose Walker's cash position and timeline to Hoffman because Reyes owes Hoffman the fiduciary duty of disclosure.
Under Va. Code § 54.1-2132, a seller's agent owes the seller the fiduciary duty of disclosure, which requires the agent to disclose all information material to the seller's interests — including facts about the buyer that could affect the seller's negotiating position. Walker's cash status and urgent timeline are highly material to Hoffman's decision-making and negotiating strategy. Reyes must disclose this information to Hoffman.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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