Sandra is a Virginia licensee who has been working with buyer client David for three months. David has signed a buyer brokerage agreement with Sandra's firm. Sandra's own personal investment property comes on the market, and David expresses strong interest in purchasing it. Under Virginia fiduciary law, what must Sandra do before proceeding?
Correct Answer
B) Disclose in writing to David that she is the seller and obtain his informed consent to continue
Under Virginia agency law, the duty of loyalty prohibits an agent from engaging in self-dealing without full written disclosure and informed consent. When Sandra's own property is involved, she has a direct conflict of interest. Va. Code § 54.1-2131 requires the licensee to disclose the conflict in writing and obtain David's informed written consent before proceeding. This allows David to make an informed decision about whether to continue the relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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.
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