Salesperson Jordan represents seller Olivia under a listing agreement. Buyer Alex, who is unrepresented, contacts Jordan directly and submits an offer. Jordan provides the 'Working With Real Estate Agents' form to Alex, who signs it acknowledging that Jordan represents the seller. Alex then asks Jordan to help him evaluate whether the asking price is fair and to advise him on what offer price to submit. Under Virginia agency law, which of the following BEST describes Jordan's permissible actions?
Correct Answer
B) Jordan may only present factual information about the property and must refrain from advising Alex on offer strategy, as Jordan's duties run to the seller
Under Va. Code § 54.1-2132, a seller's agent owes the buyer honesty and must disclose material adverse facts, but does not owe the buyer negotiating advice or advocacy. Jordan's fiduciary duty runs exclusively to Olivia. Advising Alex on what offer price to submit would constitute advocating for the buyer's negotiating interests, which conflicts with Jordan's duty to obtain the best possible terms for the seller. Jordan may provide factual property information but must not cross into buyer advisory services without establishing a separate, properly disclosed agency relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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.
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