Maryland licensee Helen has been representing buyer Ethan for three months. During that time, Ethan told Helen he has a criminal record and is concerned it might affect his ability to rent the property later. The transaction closes successfully. Six months after closing, a neighbor asks Helen if she knows anything about Ethan's background. Under Maryland fiduciary duty law, how should Helen respond?
Correct Answer
D) Helen must keep Ethan's confidential information protected because the duty of confidentiality survives termination of the agency relationship
Under Maryland agency law, the fiduciary duty of confidentiality is one of the few duties that survives the termination of the agency relationship. Even though the transaction closed six months ago, Helen is still obligated to protect confidential information that Ethan shared with her during the representation. Disclosing Ethan's criminal record concerns to a neighbor would violate this ongoing duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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