Virginia License Law
Under Virginia license law, a licensee who has a financial interest in a property being sold must:
AResign from the transaction
BDisclose their financial interest to all parties✓ Correct
CObtain VREB approval before proceeding
DCharge a reduced commission to offset their interest
Explanation
Virginia law requires a licensee who has a financial interest in a property transaction to disclose that interest to all parties. Failure to disclose is a violation of license law and fiduciary duty.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
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