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AgencyDual_agencyMEDIUM

Broker Linda operates a small brokerage in Richmond, Virginia. She personally holds a listing for a property on Oak Street. A buyer who has no agent walks into her office and asks Linda to help him purchase the Oak Street property. Linda explains the situation and both parties sign a written dual agency consent agreement. Which statement best describes Linda's permissible conduct as a dual agent in this transaction?

Correct Answer

C) Linda may assist both parties with paperwork and provide factual information without advocating for either side

As a dual agent under Virginia law, Linda's role is fundamentally limited. She may assist both parties with the mechanical aspects of the transaction — completing forms, providing factual information about the property, and facilitating communication — but she cannot advocate for one party's interests over the other's. She cannot advise either party on negotiating strategy, price, or terms in a way that benefits one at the expense of the other. This limitation is a core feature of dual agency under Va. Code § 54.1-2139.

Answer Options
A
Linda may advise the buyer to offer below the asking price to secure a better deal
B
Linda may advise the seller to reject the buyer's offer and wait for a higher one
C
Linda may assist both parties with paperwork and provide factual information without advocating for either side
D
Linda may negotiate aggressively on behalf of the seller since the listing agreement was signed first

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Related Topics & Key Terms

Key Terms:

dual_agencylimited_representationbroker_dutiesadvocacyscenario

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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