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Broker Ellen operates a Maryland brokerage. She has signed a listing agreement with seller Dan that includes written consent for dual agency. Licensee Greg, affiliated with Ellen's brokerage, is working with buyer Lisa. Lisa wants to make an offer on Dan's property. Greg provides Lisa with the Consent for Dual Agency form, which Lisa signs. Dan has already signed the consent. Which of the following best describes the resulting agency relationship?

Correct Answer

D) Intra-company agency, because two different licensees in the same firm represent the buyer and seller

This is an intra-company agency situation under Maryland law. Two different licensees—the listing agent (implied from the brokerage) and Greg—are affiliated with the same brokerage (Ellen's firm) and are representing opposite parties (Dan the seller and Lisa the buyer). Maryland statute specifically defines this as intra-company agency, not dual agency, even though the Consent for Dual Agency form is used for both situations. Both parties have signed written consent, satisfying the legal requirement under Md. Code Ann., Bus. Occ. & Prof. § 17-530.

Answer Options
A
Dual agency, because broker Ellen represents both parties through her affiliated licensees
B
Sub-agency, because Greg is cooperating with the listing agent under the same broker
C
No agency relationship exists until both parties sign the purchase contract
D
Intra-company agency, because two different licensees in the same firm represent the buyer and seller

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Related Topics & Key Terms

Key Terms:

intra_company_agencydual_agencydistinctionconsent_formscomplex_scenario

Related Concepts

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.

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.

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