Maryland licensee Helen lists a property for seller Bob and includes dual agency consent in the listing agreement. Helen's colleague at the same brokerage, licensee Alex, later brings buyer Carol to make an offer. Carol signs the intra-company agency consent form. During negotiations, Carol tells Alex she needs to close within 30 days due to a job relocation and will accept fewer repairs to make the deal work. Bob later asks Helen if Carol is flexible on the closing timeline. Under Maryland intra-company agency law, how should Helen respond?
Correct Answer
A) Helen must not disclose Carol's confidential closing timeline pressure to Bob, as intra-company agents owe confidentiality duties to their respective clients
Under Maryland intra-company agency, each licensee represents their respective client and owes that client full fiduciary duties, including confidentiality. Carol's disclosure to Alex that she is under time pressure and willing to accept fewer repairs is confidential information that Alex received in his capacity as Carol's agent. Helen, as the seller's agent, may not receive or use this information to benefit Bob. The intra-company agency structure in Maryland is specifically designed to preserve each client's confidentiality by having separate licensees, and sharing confidential information between the two licensees to benefit one party is a violation of the statute. See Md. Code Ann., Bus. Occ. & Prof. § 17-530.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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