Sarah, a Maryland licensee at Chesapeake Realty, has been working with a buyer named Tom for several weeks. Today, Tom wants to make an offer on a home listed by Sarah's colleague, David, who is also affiliated with Chesapeake Realty. Sarah represents Tom and David represents the seller. What type of agency relationship has arisen?
Correct Answer
B) Intra-company agency, because two licensees in the same firm represent opposite parties
Under Maryland law, when two different licensees affiliated with the same brokerage represent the buyer and seller in the same transaction, this is specifically defined as intra-company agency. Md. Code Ann., Bus. Occ. & Prof. § 17-530 distinguishes this from dual agency (one licensee representing both parties) and requires written consent from both parties before proceeding.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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