Virginia licensee Nora represents buyer client Leo. Leo instructs Nora not to disclose to the seller that he is a licensed real estate agent in another state, believing it might cause the seller to negotiate harder. Under Virginia fiduciary and license law, what is Nora's correct course of action?
Correct Answer
A) Disclose Leo's licensee status to the seller because Virginia law requires licensees to disclose their status in all real estate transactions
Under Virginia law, a real estate licensee — including an out-of-state licensee — must disclose their licensed status when purchasing or selling real property. Va. Code § 54.1-2138 and VREB regulations require licensees to disclose their status as a licensed real estate professional in any transaction in which they have a personal interest. Nora cannot follow Leo's instruction to conceal his licensee status because this would require her to facilitate a violation of Virginia's disclosure requirements. The duty of obedience does not extend to unlawful instructions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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