Agent Tom works at Blue Ridge Realty in Virginia and holds a buyer representation agreement with client Priya. Priya wants to submit an offer on a Blue Ridge Realty listing. Tom explains the dual agency situation to both Priya and the seller, and both sign written consent forms. During negotiations, the seller privately tells Tom that she will accept $15,000 less than the asking price. What must Tom do with this information?
Correct Answer
B) Keep the seller's minimum acceptable price confidential and refrain from sharing it with Priya
As a dual agent under Virginia law, Tom owes a duty of confidentiality to both parties. The seller's willingness to accept less than the asking price is confidential negotiating information that Tom cannot disclose to Priya. Va. Code § 54.1-2139 makes clear that a dual agent must not disclose confidential information received from one party to the other party without authorization. Sharing this information would breach Tom's duty to the seller and potentially expose him to disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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.
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