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Broker Chen's firm has a listing for a home in Annapolis. Buyer's agent Maria, who works for a different brokerage, brings her client to view the property. Which statement correctly describes the disclosure obligations in this situation?

Correct Answer

D) Maria must provide the brokerage relationship disclosure to her own client, and Broker Chen's disclosure obligation runs to the seller

In Maryland, each licensee's disclosure obligation runs to the party they represent or are working with. Maria, as the buyer's agent, must provide the Disclosure of Brokerage Relationship form to her own client (the buyer). Broker Chen's disclosure obligation was fulfilled when his brokerage entered into the listing agreement with the seller. Each agent discloses to their own client.

Answer Options
A
Both brokerages must provide separate disclosure forms to the buyer before the showing begins
B
No disclosure is required because the buyer is already represented by Maria's brokerage
C
Broker Chen must provide the brokerage relationship disclosure to Maria's client because his firm holds the listing
D
Maria must provide the brokerage relationship disclosure to her own client, and Broker Chen's disclosure obligation runs to the seller

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Related Topics & Key Terms

Key Terms:

brokerage_disclosurecooperating_agentdisclosure_obligationbuyer_agent

Related Concepts

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

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