Agency Relationships, Fiduciary Duties, and Disclosures
Types of representation
Virginia's brokerage-relationship statutes require a broker to disclose, at the earliest practical time and in writing, whom the firm represents: the seller/landlord, the buyer/tenant, or both (dual agency). Dual agency and designated representation require the informed written consent of all parties. Limited-service (à la carte) representation must also be agreed in writing.
Fiduciary duties
Virginia enumerates the duties owed: loyalty, honesty, disclosure of material facts, confidentiality, reasonable care and diligence, obedience to lawful instructions, and accounting for money. Confidentiality survives termination of the brokerage agreement. Distinguish a customer (owed honesty and fair dealing) from a client (owed full fiduciary duties).
Traps
- Implied agency: casually helping a buyer at an open house can create a relationship-clarify early and in writing.
- Designated agency is not dual agency: each designated agent advocates for one side while the broker stays neutral.
- Confidentiality never shields known material property defects; the duty to disclose material facts overrides a client's wish for silence.
- Information learned in confidence (for example, a seller's bottom line) may not be revealed even after the agreement ends.
Worked example
A buyer's agent learns the buyer would pay $40,000 over list. The listing agent asks, "Can your buyer go higher?" The buyer's agent declines-loyalty and confidentiality forbid revealing that without consent-while still answering truthfully about material facts.