Premier Properties, a Virginia brokerage, has established a designated agency arrangement for a transaction in which agent Delia represents the seller and agent Kwame represents the buyer, both working under broker Fontaine. Under Virginia law, all of the following duties apply to Delia as the seller's designated agent EXCEPT:
Correct Answer
A) Disclosing to the buyer all material adverse facts about the property that are known to Delia
Under Virginia Code § 54.1-2131 and § 54.1-2130, a designated agent representing the seller owes full fiduciary-level duties to the seller, including loyalty, confidentiality, disclosure of material facts to the seller, and promotion of the seller's best interests. However, the duty to disclose all material adverse facts about the property to the BUYER is a duty owed by the agent to the buyer's side of the transaction — not an affirmative duty owed by the seller's designated agent. While Virginia law does prohibit active misrepresentation and requires disclosure of known material defects under the Residential Property Disclosure Act, the seller's designated agent's primary disclosure duty runs to the seller, not to the opposing party. Disclosing the seller's confidential information (such as motivations or bottom-line price) to the buyer would actually breach the seller's designated agent's duty of confidentiality.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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