A Virginia buyer's agent, Diane, is representing Kevin in his search for a home. Kevin makes an offer on a property that Diane's own brokerage has listed. Diane explains the dual agency situation and both Kevin and the seller sign a written dual agency consent form. Which of the following best describes how Diane's fiduciary duties change once she becomes a dual agent?
Correct Answer
A) Diane's duty of loyalty and confidentiality to each party is limited so she cannot fully advocate for either side
Under Virginia law, when a licensee acts as a dual agent, certain fiduciary duties — particularly loyalty and the duty to advocate aggressively for one party — are necessarily limited. The dual agent cannot, for example, disclose one party's confidential negotiating position to the other, nor can the agent push for the highest price for the seller while simultaneously pushing for the lowest price for the buyer. Va. Code § 54.1-2139 acknowledges this inherent limitation on the agent's duties in dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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