Marcus is a Maryland licensee representing buyer David in a home purchase. David instructs Marcus not to submit any offers above $350,000 under any circumstances. Marcus believes a competing offer may push the price to $360,000, which David could afford. What is Marcus's obligation under Maryland fiduciary duty law?
Correct Answer
B) Inform David of the competing offer situation and follow David's lawful instructions
Maryland agency law imposes both a duty of obedience and a duty of loyalty. The duty of obedience requires Marcus to follow David's lawful instructions, while the duty of loyalty requires him to act in David's best interest. Marcus must inform David of the competing offer situation so David can make an informed decision, but ultimately must follow David's lawful instruction not to exceed $350,000 unless David changes that instruction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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