Agency
Under Virginia law, a real estate agent who has actual knowledge of a material defect but fails to disclose it to a buyer may be held liable for:
ANothing if the buyer had an inspection
BFraud by concealment✓ Correct
COnly a VREB citation
DA minor breach of duty
Explanation
An agent who knows of a material defect and conceals it from a buyer may be liable for fraud by concealment — an intentional withholding of material information that causes damage to the buyer.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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