Virginia licensee Fiona represents seller Dan. During the listing period, Fiona learns through personal research that the city has approved a major transit hub within two blocks of the property, which is not yet public knowledge. This information would likely significantly increase the property's value. Under Virginia fiduciary law, what must Fiona do with this information?
Correct Answer
A) Disclose the information to Dan so he can make an informed decision about pricing and timing
Fiona owes Dan the fiduciary duty of disclosure, which requires her to share all material facts she knows that could affect his interests and decisions. Va. Code § 54.1-2131 requires a seller's agent to disclose to the client all information that could affect the client's decision-making. The approved transit hub is highly material to Dan's pricing strategy and timing decisions — he may want to adjust the price upward or wait for the information to become public. Fiona must disclose it to Dan promptly.
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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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