Agent Brenda represents seller Carl in listing his Annapolis home. Buyer Diana contacts Brenda directly and wants Brenda to help her purchase Carl's property. Brenda explains that she would become a dual agent. Diana verbally agrees to the arrangement before signing anything. Under Maryland law, is this dual agency consent valid?
Correct Answer
C) No, because Maryland law requires dual agency consent to be in writing on the MREC-mandated form before the dual agency begins
Maryland law requires that dual agency consent be obtained in writing using the MREC-mandated Consent for Dual Agency form, and this consent must be obtained BEFORE the dual agency relationship begins. Verbal consent, regardless of how clear or affirmative, does not satisfy Maryland's statutory written consent requirement. Brenda must obtain Diana's (and Carl's) signed written consent before proceeding as a dual agent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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.
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