Under Maryland agency law, a licensee acting as a buyer's agent owes specific duties to the buyer client. Which of the following actions would NOT violate the buyer's agent's fiduciary duties to the buyer?
Correct Answer
B) Informing the buyer that the property is located within the Chesapeake Bay Critical Area, which restricts development
Informing the buyer that the property is located within the Chesapeake Bay Critical Area is a fulfillment of the buyer's agent's fiduciary duty of disclosure. Maryland requires licensees to disclose material facts that affect the property's use and value, and Critical Area status — which imposes significant land use restrictions within 1,000 feet of the Chesapeake Bay or its tributaries — is precisely the kind of material fact a buyer's agent must disclose. This action protects, rather than harms, the buyer's interests.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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