Broker Wendy operates a one-person brokerage in Virginia with no associate licensees. She lists a property for seller Mr. Davis and later enters into a buyer representation agreement with Ms. Ellis for the same property. Both Mr. Davis and Ms. Ellis sign written dual agency consent forms. During negotiations, Ms. Ellis tells Wendy she is desperate to buy this specific property and would pay up to $30,000 above the asking price if necessary. What must Wendy do with this information?
Correct Answer
C) Maintain Ms. Ellis's confidence and refrain from disclosing her maximum price or desperation to Mr. Davis
Even with valid written dual agency consent from both parties, Wendy's duty of confidentiality to Ms. Ellis survives and prohibits her from disclosing Ms. Ellis's maximum purchase price or emotional motivation to Mr. Davis. Under Va. Code § 54.1-2139, a dual agent must not disclose information received in confidence from one party to the other party. Ms. Ellis's willingness to pay $30,000 above asking price is precisely the type of confidential negotiating information that a dual agent must protect. Disclosing it would be a serious breach of duty and grounds for disciplinary action.
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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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