Under Virginia law, a licensee acting as a dual agent with proper written consent from both parties may do all of the following EXCEPT:
Correct Answer
C) Disclose the buyer's maximum purchase price to the seller to facilitate a faster closing
A dual agent is expressly prohibited from disclosing one party's confidential information — such as the buyer's maximum purchase price — to the other party. Under Va. Code § 54.1-2139, the duty of confidentiality survives the dual agency arrangement and applies equally to both parties. Disclosing the buyer's financial ceiling to the seller would give the seller an unfair negotiating advantage and constitutes a breach of the dual agent's duty to the buyer, regardless of the motivation (such as facilitating a faster closing).
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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