Agent Donna listed a property for seller client Ed. During the listing period, buyer client Fran (represented by agent Gary from a completely separate brokerage) made an offer. The offer was accepted and the parties are now under contract. Two weeks later, Gary's license is suspended by MREC. Fran contacts Donna directly and asks Donna to help her navigate the remaining steps to closing. If Donna assists Fran without a new written agency agreement, which Maryland-specific agency problem is MOST likely to arise?
Correct Answer
D) Donna risks creating an undisclosed dual agency situation by assisting the buyer while remaining the seller's agent, without written dual agency consent from both Ed and Fran
Donna remains the seller's (Ed's) agent. If she begins substantively assisting Fran—a buyer—without a proper dual agency consent framework, she risks creating an undisclosed dual agency situation. Maryland law requires written informed consent from both parties before a dual agency situation arises. Assisting the buyer while representing the seller, without that written consent, violates Maryland's dual agency disclosure requirements and could expose Donna to disciplinary action by MREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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