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Q: I am the listing agent for a single-family home. The home borders a large tract of vacant land where a mixed-use development is planned. Do I need to disclose the planned development to buyers I do not represent? If I am a dual agent representing both the seller and the buyer, do I need to disclose the planned development to the buyer?

A: Virginia Code section 54.1-2131.B. states that listing agents “shall disclose to prospective buyers all material adverse facts pertaining to the physical condition of the property which are actually known by the licensee.” The physical condition of the property does not include “matters outside the boundaries of the land or relating to adjacent or other properties in proximity thereto.”

If the agent is representing only the seller, then the law does not require the agent to disclose the planned development because it is outside the boundaries of the listed property. On the other hand, if an agent is representing a buyer, the law requires the agent to promote the interests of the buyer. (VA Code § 54.1-2132.A.2.) The planned development would likely affect the buyer’s interests, and therefore, the agent would need to disclose this to the buyer.

Regarding a possible dual agency scenario, the agent must “first obtain[] the written consent of all parties to the transaction given after written disclosure of the consequences of such dual agency or dual representation.” (VA Code § 54.1-2139.A.) Here, a dual agent would need to disclose the planned development to the buyer, which could affect the interests of the seller. Therefore, before dual agency is initiated, the agent would need to provide written disclosure of the consequences of dual agency and obtain written consent from both parties.

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