Broker Chen operates a Virginia real estate firm and has agreed to represent both the seller and the buyer in the same transaction as a dual agent. Salesperson Amy, affiliated with Broker Chen's firm, is the listing agent, and Salesperson Ben, also affiliated with Broker Chen's firm, is the buyer's agent. Broker Chen wants to use designated agency instead of dual agency for this transaction. Under Virginia law, which statement most accurately describes designated agency in this context?
Correct Answer
B) In designated agency, Amy represents only the seller and Ben represents only the buyer as designated agents, even though both are affiliated with the same broker, and the broker acts as a dual agent
Under Va. Code § 54.1-2130 et seq. and Virginia agency law, designated agency allows a broker to designate specific salespersons to represent each party exclusively within the same transaction. Amy, as designated agent, owes full fiduciary duties solely to the seller, and Ben owes full fiduciary duties solely to the buyer. However, the supervising broker — who has access to confidential information from both sides — is treated as a dual agent in this arrangement. This is a uniquely Virginia-recognized structure that distinguishes designated agency from traditional dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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