Key Takeaways
- West Virginia recognizes single agency (seller or buyer only) and dual agency with consent
- A single agent represents only the buyer OR the seller - never both simultaneously without consent
- Dual agency requires written consent from both parties before acting as dual agent
- Licensees owe fiduciary duties to their clients including loyalty, confidentiality, and full disclosure
- Licensees must disclose material facts and personal interests to all parties
West Virginia Agency Relationships
West Virginia law defines the types of agency relationships that real estate licensees may have with consumers.
Types of Agency Relationships
Single Agency
A single agent is a licensee who represents only one party in a transaction:
| Single Agent Role | Represents |
|---|---|
| Seller's agent | Seller only |
| Buyer's agent | Buyer only |
| Landlord's agent | Landlord only |
| Tenant's agent | Tenant only |
Single agent duties include:
- Loyalty - Undivided allegiance to the client
- Confidentiality - Protect client information
- Disclosure - Full disclosure of material facts to client
- Obedience - Follow lawful instructions
- Accounting - Account for all funds
- Reasonable care - Exercise skill and diligence
Dual Agency
Dual agency occurs when:
- One licensee represents both the buyer and seller in the same transaction, OR
- Two licensees in the same brokerage represent the buyer and seller in the same transaction
Requirements for Dual Agency
| Requirement | Description |
|---|---|
| Written consent | Both parties must consent in writing |
| Full disclosure | Both parties must understand the dual relationship |
| Confidentiality limits | Cannot share confidential info between parties |
| Neutral position | Must remain impartial to both parties |
Warning: Dual agency significantly limits what an agent can do for either party. Full written consent is required.
Fiduciary Duties
Duties to Clients
Licensees owe fiduciary duties to their clients:
| Duty | Description |
|---|---|
| Loyalty | Put client's interests first |
| Confidentiality | Protect confidential information |
| Disclosure | Reveal all material facts affecting client's interests |
| Obedience | Follow client's lawful instructions |
| Accounting | Properly handle all funds and documents |
| Reasonable Care | Act with skill and diligence |
Memory Aid: OLD CAR - Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care
Duties to ALL Parties
Regardless of representation, licensees owe certain duties to all parties:
| Duty | Description |
|---|---|
| Honesty | Be truthful in all dealings |
| Material facts | Disclose known material facts |
| Fair dealing | Treat all parties fairly |
| Account for funds | Properly handle all transaction funds |
Confidentiality
What is Confidential?
Confidential information typically includes:
- Motivation to buy or sell
- Price willingness (highest buyer will pay/lowest seller will accept)
- Financial information
- Personal circumstances affecting negotiation
Exceptions to Confidentiality
Confidential information may be disclosed if:
- Required by law
- Authorized in writing by the client
- Information becomes public knowledge
- Necessary to prevent harm
Personal Interest Disclosure
A licensee must disclose when:
- Acting on behalf of themselves
- Acting for immediate family members
- Having a personal interest in the property or transaction
Key Rule: Personal interest disclosure must be made to ALL parties in writing.
Compensation Disclosure
A licensee shall not accept compensation from more than one party without full written disclosure to all parties.
| Situation | Requirement |
|---|---|
| Receiving fee from one party | Standard - no special disclosure needed |
| Receiving fee from multiple parties | Must disclose to ALL parties in writing |
What type of agency exists when one licensee represents both the buyer and seller in the same transaction?
What does the acronym "OLD CAR" represent in agency relationships?
When must a licensee disclose they are receiving compensation from more than one party?