Agent Flores represents buyer Tran under a signed buyer brokerage agreement in Virginia. While showing a property listed by another brokerage, Flores discovers — through her own research — that the property is located in a flood zone not disclosed in the listing. The seller's agent is unaware of this fact. Under Virginia law, which of the following BEST describes Flores's obligations?
Correct Answer
D) Flores must disclose the flood zone information to both Tran and the seller's agent, because all licensees owe all parties the duty to disclose known material facts affecting the property.
Under Va. Code § 54.1-2130 and § 54.1-2131, Virginia licensees owe two overlapping duties in this situation: (1) the fiduciary duty of disclosure to their client (Tran) — Flores must share all material information she discovers that affects Tran's interests; and (2) the general duty owed to all parties to disclose known material facts affecting the property. A flood zone designation is unquestionably a material fact. Flores must disclose it to Tran as her client, and she is also obligated to disclose it to the other party (through the seller's agent) because concealing a known material defect from any party violates Virginia law regardless of agency role.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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