Agent Carla has been working with buyer clients for three months, showing them homes and providing market analysis. Her brokerage has never had a listing that interested them—until today, when a new listing comes in that perfectly matches the buyers' criteria. The buyers want to make an offer. Carla's broker suggests she act as a dual agent. Carla obtained verbal agreement from both parties at a meeting last week, but has not yet obtained written consent. Can the transaction proceed as a dual agency?
Correct Answer
C) No, because Maryland requires written consent to dual agency before the dual agency situation arises, and verbal consent is insufficient
Maryland law is explicit: consent to dual agency must be in WRITING and must be obtained BEFORE the dual agency situation arises. Verbal consent, no matter when given, does not satisfy Maryland's requirement. The fact that both parties verbally agreed at a meeting does not cure the absence of written consent. The transaction cannot lawfully proceed as a dual agency until proper written consent is executed by both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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