A Virginia broker, Howard, operates a mid-size brokerage and has established a written designated agency policy disclosed to all clients. Agent Lisa represents seller Mr. Webb, and agent Ben represents buyer Ms. Cho in the same in-house transaction. Howard, as the supervising broker, is aware of confidential information shared by both Mr. Webb and Ms. Cho with their respective agents. Under Virginia's designated agency framework, which of the following most accurately describes Howard's obligations regarding this confidential information?
Correct Answer
B) Howard must act as a firewall and may not share either party's confidential information with the other party's designated agent
Under Virginia's designated agency framework, the supervising broker occupies the dual agency position at the brokerage level while the individual designated agents represent their respective clients exclusively. To preserve the integrity of each client's representation, the broker must act as a firewall — refraining from sharing confidential information received from one designated agent's client with the other designated agent or their client. This firewall obligation is essential to making designated agency function as intended under Va. Code § 54.1-2130 et seq. If Howard were to share confidential information across the firewall, it would undermine the very protection that designated agency is designed to provide.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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