Virginia agent Derek represents seller Mrs. Chen under a listing agreement. A buyer, Mr. Park, approaches Derek directly without any agent. Derek provides Mr. Park with the required agency disclosure form, and Mr. Park acknowledges that Derek represents the seller only. Mr. Park submits an offer through Derek without signing any buyer representation agreement or dual agency consent. In this scenario, what is Derek's agency relationship with Mr. Park?
Correct Answer
A) Derek represents only Mrs. Chen, and Mr. Park is an unrepresented customer to whom Derek owes limited statutory duties
Under Virginia law, a licensee can assist an unrepresented party (a customer) with the mechanics of submitting an offer without creating an agency relationship with that party. When Derek provided the agency disclosure form and Mr. Park acknowledged that Derek represents only the seller, the relationship was clearly established. Mr. Park is a customer, not a client. Derek owes Mr. Park certain limited statutory duties — such as honesty and disclosure of material facts — but does not owe him fiduciary duties. No dual agency is created unless all parties consent in writing. Va. Code § 54.1-2130 et seq. and 18 VAC 135-20 govern this distinction.
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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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