Maryland licensee Victor has a listing agreement with seller Gina that includes her written consent to dual agency. Victor later enters into a buyer agency agreement with buyer Sam, who wants to tour Gina's property. Victor provides Sam with the Consent for Dual Agency form, but Sam refuses to sign it. Victor still wants to show Sam the property. Under Maryland law, what is the most appropriate course of action for Victor?
Correct Answer
A) Victor may show Sam the property as a seller's agent only, after disclosing to Sam that he represents the seller
Because Sam refuses to consent to dual agency, Victor cannot act as a dual agent in this transaction. However, Victor may still show Sam the property in his capacity as the seller's agent (listing agent), provided he clearly discloses to Sam in writing that he represents the seller and not the buyer. In this scenario, Victor would owe fiduciary duties to Gina and only the statutory duties of honesty and disclosure of material facts to Sam as an unrepresented buyer. The buyer agency agreement with Sam would need to be addressed—likely terminated or modified—but Victor's primary path forward is as seller's agent with proper disclosure to Sam.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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