Under Virginia law, a licensee acting as a 'limited service agent' has agreed in writing to provide only specific services to the client. If the limited service agreement does not include the duty to present offers, and the buyer submits an offer directly to the seller, which statement best describes the Virginia framework for this situation?
Correct Answer
B) The arrangement is permissible if the limited service agreement is in writing and the client has been informed of the services not being provided
Virginia law recognizes limited service agency arrangements under Va. Code § 54.1-2130 et seq. A licensee may enter into a written agreement that limits the scope of services provided, including the duty to present offers, as long as the client has been clearly informed in writing of which services will and will not be provided. This allows sellers to engage in limited service or flat-fee listing arrangements where they handle certain tasks themselves, including receiving offers directly.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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