Licensee Rachel is working with buyer Mike in Maryland. Mike wants to purchase a property that Rachel herself owns. Rachel intends to act as Mike's buyer's agent in this transaction. Under Maryland law, what is Rachel's primary obligation before proceeding?
Correct Answer
D) Rachel must disclose in writing to Mike that she is the owner of the property before any offer is made
Under Maryland law, a licensee who has a personal interest in a property—including ownership—must disclose that interest in writing to the client before any offer is made. This is a fundamental duty of disclosure and honesty that applies to all Maryland licensees. Failing to disclose ownership would be a violation of Md. Code Ann., Bus. Occ. & Prof. § 17-322, which prohibits licensees from engaging in fraudulent or dishonest conduct, and MREC regulations on material disclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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.
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