What is the correct answer to: In Maryland, dual agency requires:

The correct answer is Written informed consent from both parties. Maryland's Real Estate Brokers Act, codified at Maryland Code, Business Occupations and Professions Article § 17-528, explicitly requires that a broker obtain written informed consent from both the buyer and the seller before acting as a dual agent. The consent must be given after the agent has disclosed the nature of dual agency and its consequences, ensuring that neither party is surprised or disadvantaged by the arrangement. Failure to obtain written informed consent from both parties constitutes a violation of Maryland licensing law and can result in disciplinary action, license suspension, or loss of commission.

What background knowledge is needed for this Agency question?

The regulation of dual agency in the United States evolved significantly in the 1990s and 2000s as consumer advocacy groups pushed for greater transparency in real estate transactions. Prior to mandatory disclosure laws, it was common for buyers to believe they had their own agent when in fact the agent also owed duties to the seller, leading to significant consumer harm. Maryland enacted its comprehensive disclosure requirements as part of broader reforms to its Real Estate Brokers Act, aligning with the National Association of Realtors' Code of Ethics and model state legislation. The shift from verbal to written consent requirements reflects the legal principle that significant waivers of rights — especially fiduciary duties — should be documented to be enforceable.

What is a good way to remember the answer to this Agency question?

Use the acronym 'BOTH WRITE' to remember that in Maryland dual agency, BOTH parties must sign in WRITING before the agent can proceed. Visualize a contract table with two chairs — one for the buyer, one for the seller — and both chairs must be filled with signed consent forms before the dual agent can sit at the head of the table. The word 'dual' itself means 'two,' reminding you that two signatures are always required. Remember that dual agency in Maryland requires WICC - Written Informed Consent from both buyer and seller. Think of 'wicking' as drawing the line where dual agency begins with proper documentation.

What exam tip applies to this Agency question?

Maryland agency questions almost always test the written consent requirement for dual agency, so if you see an answer option involving written informed consent from both parties, it is very likely correct for Maryland. Be careful not to confuse Maryland's requirements with states that allow verbal consent or that only require disclosure without formal consent. On the exam, 'informed' is a key qualifier — consent without full disclosure of the implications is not legally sufficient under Maryland law.

How does this Agency concept apply in real world practice?

Suppose a Maryland broker named Susan lists a home in Annapolis for the Johnsons and later shows that same home to the Garcias, who are also her buyer clients. When the Garcias decide to make an offer, Susan realizes she would be representing both sides of the transaction. Before proceeding, Susan must sit down separately with both the Johnsons and the Garcias, explain in detail that as a dual agent she cannot advocate exclusively for either party, disclose the limitations on her duties, and obtain a signed written consent form from each family. Only after both families have signed can Susan legally proceed as a dual agent in the transaction.

AgencyGeneralMEDIUM

In Maryland, dual agency requires:

Correct Answer

B) Written informed consent from both parties

Maryland requires written informed consent from both parties before dual agency can occur.

Answer Options

No consent

Written informed consent from both parties

Only seller consent

Verbal consent only

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Single Agency

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

Subagency

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

Transaction Brokerage

A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.

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In Maryland, dual agency requires:

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