Sarah and Marcus both work as licensed salespersons at Blue Ridge Realty, a Virginia brokerage. Sarah has been working with the Johnsons, who are selling their home in Roanoke, and Marcus has been working with the Garcias, who want to purchase a home. The Garcias make an offer on the Johnsons' property. The broker at Blue Ridge Realty designates Sarah to represent the Johnsons and Marcus to represent the Garcias for this transaction. Which of the following statements accurately describes the legal effect of this designated agency arrangement under Virginia law?
Correct Answer
B) The broker at Blue Ridge Realty is considered a dual agent, while Sarah and Marcus each act as single agents for their respective designated clients
Under Virginia Code § 54.1-2130 and VREB regulations, when a broker designates one licensee to represent the seller and another to represent the buyer within the same firm, the designated agents each function as single agents for their respective clients. However, the supervising broker occupies the position of a dual agent because the broker is the principal who technically represents both parties. This structure allows Sarah to advocate fully for the Johnsons and Marcus to advocate fully for the Garcias, even though both work under the same broker. All parties must receive written disclosure of this arrangement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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.
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