Licensee Dana represents both the buyer and the seller in a residential transaction in Virginia. During negotiations, the buyer privately tells Dana that he is willing to pay up to $520,000 even though his initial offer is $490,000. Under Virginia's dual agency disclosure rules, what is Dana's obligation regarding this information?
Correct Answer
A) Dana may not disclose the buyer's maximum price to the seller without the buyer's permission
Under Va. Code § 54.1-2139(D), in a dual agency relationship, the licensee may not disclose to one client the confidential motivations or financial information of the other client without that client's permission. The buyer's maximum willingness to pay is confidential information, and Dana is prohibited from disclosing it to the seller even though both are clients.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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