Virginia licensee Amy is representing buyer client James. During negotiations, the listing agent informs Amy that the seller is going through a divorce and is under court order to sell the property by a specific date. The listing agent shares this information informally. Amy knows this gives James significant negotiating leverage. Under Virginia agency law, what is Amy's obligation regarding this information?
Correct Answer
B) Disclose the seller's circumstances to James because the buyer's agent must share all material facts with the client
Under Virginia agency law, a buyer's agent owes the duty of disclosure to the client, which requires sharing all material facts the agent knows or should know that could affect the client's decision or negotiating position. Va. Code § 54.1-2132 requires the buyer's agent to disclose information that benefits the client. The seller's court-ordered deadline is a material fact that directly affects James's negotiating leverage, and Amy must disclose it to him promptly.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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