Agent Sylvia is a licensee at Metro Realty in Maryland. She receives a call from a friend, Bob, who asks her to help him sell his condo. Sylvia has not yet provided any disclosure form. She tells Bob verbally that she will represent him as his seller's agent. Bob then asks Sylvia if she can also help his nephew Carl, who wants to buy a home—possibly including Bob's condo. Sylvia is considering representing both. Under Maryland law, what is the MOST accurate statement about Sylvia's situation?
Correct Answer
A) Sylvia may represent both Bob and Carl in the same transaction as a dual agent, provided she discloses the relationship to both parties in writing before the dual agency arises and obtains written consent
Maryland law expressly authorizes dual agency with written informed consent from both parties obtained before the dual agency situation arises. The fact that Bob and Carl are related does not create a legal exception to or exemption from the written consent requirement—it also does not automatically prohibit dual agency. Sylvia must provide the Disclosure of Brokerage Relationship form to both parties and obtain written dual agency consent before proceeding with both representations in the same transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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.
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