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AgencyDual_agencyEASY

Agent Maria works for Chesapeake Realty and has been representing seller Tom for two months. A buyer, Linda, approaches Maria at an open house and expresses strong interest in Tom's property. Maria wants to represent both Tom and Linda in the transaction. Under Maryland law, when must Maria obtain written dual agency consent from both parties?

Correct Answer

B) Before the dual agency situation arises, prior to Maria representing both parties

Under Maryland law and MREC regulations, written consent to dual agency using the MREC-mandated Consent for Dual Agency form must be obtained BEFORE the dual agency situation arises — that is, before the licensee begins representing both the buyer and the seller simultaneously. This is one of the most heavily tested timing rules in Maryland agency law.

Answer Options
A
At the time the purchase contract is signed by both parties
B
Before the dual agency situation arises, prior to Maria representing both parties
C
Within three business days after Maria begins representing both parties
D
At the time Maria presents the buyer's offer to the seller

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Related Topics & Key Terms

Key Terms:

dual_agencyconsent_timingwritten_consentMREC_regulations

Related Concepts

An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.

The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.

A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.

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