Maryland recognizes which brokerage relationships?
Audio Lesson
Duration: 2:33
Question & Answer
Review the question and all answer choices
Only seller agency
Option A is incorrect because Maryland recognizes more than just seller agency. The state law explicitly allows for buyer representation and other agency relationships, making this option too narrow and incomplete.
Seller representative, buyer representative, dual agent, and intra-company agent
Transaction broker only
Option C is incorrect because Maryland recognizes multiple brokerage relationships, not just transaction broker relationships. While a transaction broker might be used in certain circumstances, it's not the only recognized relationship.
Facilitator only
Option D is incorrect because Maryland does not limit brokerage relationships to facilitator only. A facilitator role might exist in some states, but Maryland recognizes multiple agency relationships including representation relationships.
Why is this correct?
Answer B is correct because Maryland law specifically recognizes and allows for seller representative, buyer representative, dual agent, and intra-company agency relationships. These are the four legally recognized brokerage relationships in the state.
Deep Analysis
AI-powered in-depth explanation of this concept
Understanding agency relationships is fundamental to real estate practice because it defines the legal and ethical obligations between agents and their clients. In Maryland, as in most states, agency relationships determine how agents must act, what information they can share, and to whom they owe fiduciary duties. This question tests knowledge of Maryland's specific agency framework. The correct answer includes four distinct relationships: seller representative (agent works solely for seller), buyer representative (agent works solely for buyer), dual agent (agent works for both buyer and seller with consent), and intra-company agent (within a brokerage, different agents represent each party). The question is challenging because it requires knowing Maryland's specific recognition of these relationships rather than assuming what might be common in other states. This connects to broader concepts of fiduciary duties, disclosure requirements, and potential conflicts of interest that agents must navigate in every transaction.
Knowledge Background
Essential context and foundational knowledge
Agency relationships in real estate are governed by state laws and regulations. Maryland, like most states, has specific statutes that define how brokers and agents can represent clients. These relationships establish fiduciary duties including loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. The recognition of multiple agency types reflects the evolution of real estate practice from a traditional seller's market to one where buyers increasingly seek representation. Understanding these relationships is crucial for proper disclosure, avoiding conflicts of interest, and maintaining ethical standards in all real estate transactions.
SBDI - Seller, Buyer, Dual, Intra-company
Remember Maryland's recognized agency relationships with the acronym SBDI. Think of it as 'Selling By Doing It' to recall all four types: Seller representative, Buyer representative, Dual agent, and Intra-company agent.
When asked about agency relationships, remember that most states recognize multiple types. Look for options that include both buyer and seller representation, and be aware of terms like 'dual agent' and 'intra-company agent' which are specific to certain states' frameworks.
Real World Application
How this concept applies in actual real estate practice
A buyer walks into a real estate office that has listings for a property they're interested in. The broker explains their options: they can work with the listing agent as a customer (transaction broker), have the broker assign a different agent in their office to represent them as a buyer representative, or work with a completely different brokerage for buyer representation. The buyer chooses to have an intra-company agent from the same brokerage represent them. This scenario demonstrates how Maryland's recognition of multiple agency relationships allows flexibility in representation while maintaining proper disclosures and consents.
More Agency Law Episodes
Continue learning with related audio lessons
In Washington, dual agency requires:
2:35 • 0 plays
Missouri requires agency disclosure:
2:11 • 0 plays
Connecticut real estate licensees are regulated by the:
2:35 • 0 plays
A broker provides services to both a buyer and a seller in a transaction without disclosing their dual agency status. This is an example of:
2:27 • 0 plays
North Carolina does NOT recognize which type of agency?
3:06 • 0 plays
Ready to Ace Your Real Estate Exam?
Access 2,499+ free podcast episodes covering all 11 exam topics.