A Virginia brokerage firm has a written policy establishing designated agency as the firm's default agency model. Buyer Carlos and seller Nina are both represented by different salespersons in the same firm, and both have signed designated agency consent forms. During the transaction, Carlos privately tells his designated agent that he has received a competing job offer that might require him to cancel the purchase. Under designated agency rules, which of the following is CORRECT?
Correct Answer
C) Carlos's designated agent must keep this information confidential and may not share it with the seller's agent or the broker
Under Va. Code § 54.1-2139.1, in a designated agency arrangement, each designated agent owes full confidentiality to their respective client. Carlos's potential job offer and the possibility of cancellation is confidential motivational information. The designated agent may not share this with the seller's designated agent, the broker, or any other party without Carlos's consent. The designated agency model is specifically designed to provide this confidentiality protection within the same firm.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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