Agent Carlos in Virginia is representing buyer Yolanda under a signed buyer representation agreement. Yolanda identifies a home listed by a different agent, Michelle, at the same brokerage, Pinnacle Realty. Neither Carlos nor Michelle represents both parties individually. The broker at Pinnacle Realty has established a designated agency policy in the firm's agency disclosure. Which of the following best describes the agency relationship in this transaction?
Correct Answer
A) Carlos represents Yolanda and Michelle represents the seller as designated agents, with the brokerage acting as a dual agent
Under Virginia's designated agency framework (Va. Code § 54.1-2130 et seq.), when a brokerage has established a designated agency policy, individual agents within the same brokerage can represent opposing parties in the same transaction without creating individual dual agency. Carlos acts as Yolanda's designated agent, Michelle acts as the seller's designated agent, and the brokerage itself occupies the dual agency role at the firm level. Each designated agent can provide more focused representation to their respective client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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.
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