Agent Lisa represents buyer Kevin in purchasing a home in Baltimore County, Maryland. Kevin tells Lisa he is pre-approved up to $500,000 but wants to offer $450,000 initially. Lisa's brother owns the property being considered. Under Maryland fiduciary duty law, what is Lisa's MOST important obligation in this situation?
Correct Answer
B) Disclose her personal interest in the transaction to Kevin in writing and obtain his informed consent to proceed
Under Maryland agency law, a licensee has a fiduciary duty of disclosure that requires revealing any personal interest in a transaction. Lisa's brother owning the property creates a direct conflict of interest that must be disclosed to Kevin in writing. Kevin must then provide informed consent before Lisa can continue to represent him. This disclosure requirement exists specifically to protect clients from undisclosed conflicts that could compromise the agent's loyalty.
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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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