A Virginia seller, Mr. Holt, is represented by agent Rachel at Summit Realty. During an open house, buyer Evan — who has no agent — expresses strong interest in the property and asks Rachel to write an offer for him. Rachel explains that she represents the seller and describes the dual agency option. Evan and Mr. Holt both sign a written dual agency consent form. Which of the following duties does Rachel continue to owe to BOTH parties after the dual agency consent is signed?
Correct Answer
D) The duty of honesty and the duty to account for all funds received
Even in a dual agency arrangement, certain duties survive and apply equally to both parties. Under Virginia law, a dual agent must remain honest with both parties and must properly account for any funds received on their behalf. These duties — honesty/fair dealing and proper accounting — are not diminished by the dual agency consent. What is limited is the agent's duty of undivided loyalty and the ability to advocate one-sidedly. Va. Code § 54.1-2139 preserves these baseline obligations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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