Virginia licensee Robert is acting as a disclosed dual agent in a transaction where he represents both the seller, Carol, and the buyer, Eric. Eric asks Robert to advise him on the lowest price Carol would likely accept. How does Robert's fiduciary duty change in a disclosed dual agency situation under Virginia law?
Correct Answer
C) Robert cannot advise Eric on Carol's likely minimum price because dual agency limits the agent's ability to advocate for either party
Under Virginia law, when a licensee acts as a disclosed dual agent with written informed consent from both parties, the agent's fiduciary duties to each party are necessarily limited. Va. Code § 54.1-2133 provides that a dual agent cannot advocate for one party's interests against the other or disclose confidential negotiating information of one party to the other. Robert cannot advise Eric on Carol's likely minimum acceptable price because doing so would breach his duty of confidentiality and loyalty to Carol.
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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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