Chapter 1
Virginia Real Estate Law & Agency
Course: Virginia Real Estate Exam Prep
Subject: Virginia State Salesperson Exam Prep
Chapter: Virginia Real Estate Law Agency
Understanding "Standard" vs. "Client" Relationships:Virginia law creates a clear, two-tier system of duties based on whether a formal representation agreement exists.
- Standard Agent (Customer Relationship): This is the default and automatic status when a licensee works with a consumer but has not entered into a written representation agreement (e.g., a buyer agency agreement or exclusive listing agreement). In this role, you are a facilitator. Your legal duties to the customer are limited to:Honesty and fair dealing.Reasonable care and skill.Disclosure of material facts about the property.You owe NO fiduciary duties. You cannot give advice that favors the customer over other parties. For example, you cannot suggest an offering price or negotiation strategy.
- Honesty and fair dealing.
- Reasonable care and skill.
- Disclosure of material facts about the property.
- You owe NO fiduciary duties. You cannot give advice that favors the customer over other parties. For example, you cannot suggest an offering price or negotiation strategy.
- Client Relationship (Seller's or Buyer's Agent): This is created by a written agreement. Only then do the full fiduciary duties (L.O.R.D. C.A.) attach. This is when you become an advocate.