Virginia Real Estate License Law Practice Exam – Prep, Practice Test & Study Guide

The correct statement is that agents must represent only one party in a transaction unless otherwise agreed upon. This aligns with the principles of agency law, which dictate that an agent has a fiduciary duty to their client. This duty includes loyalty, meaning that the agent must prioritize their client’s interests above all else.

When an agent represents a buyer, their primary obligation is to act in the buyer's best interests throughout the transaction. If the same agent were to also represent the seller, it could create a conflict of interest, as the agent would have to balance the interests of both parties. In Virginia real estate law, dual agency is permissible only if both parties are fully informed and consent to this arrangement in writing. This requirement for disclosure is essential in maintaining transparency and trust in the relationship between the agent and the clients.

Understanding this principle is critical for those in the real estate field, as it protects both the agents’ clients and the integrity of the transaction, ensuring that all parties have a clear understanding of their representation and interests involved in the deal.