Maryland licensee Victor represents buyer Nina. Before showing Nina any properties, Victor has Nina sign a buyer representation agreement but does NOT provide the MREC-required written Disclosure of Brokerage Relationship form at the first substantive contact. Nina later purchases a home through Victor. Which of the following BEST describes the legal consequence of Victor's failure to provide the required disclosure form?
Correct Answer
B) Victor may be subject to disciplinary action by MREC for violating the brokerage relationship disclosure requirement, but the transaction itself remains valid
Under Maryland law, the failure to provide the required written Disclosure of Brokerage Relationship form at the first substantive contact is a violation of the Maryland Real Estate Brokers Act and MREC regulations. This procedural violation exposes Victor to disciplinary action by MREC, including possible fines, suspension, or revocation of license. However, the failure to provide the disclosure form does not automatically void the buyer representation agreement or the purchase transaction. The transaction remains valid, but Victor faces regulatory consequences for the disclosure violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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