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AgencyDual_agencyHARD

Under Maryland law, a dual agent owes specific duties to both the buyer and the seller. Which of the following is NOT a duty that a Maryland dual agent owes to both parties?

Correct Answer

A) The duty to aggressively negotiate the best possible price for each party simultaneously

Aggressively negotiating the best possible price for each party simultaneously is NOT a duty of a Maryland dual agent — and in fact is impossible. A dual agent cannot advocate aggressively for the buyer's lowest price while simultaneously advocating for the seller's highest price. Maryland dual agency law specifically limits the dual agent's advocacy role: the agent must facilitate the transaction and treat both parties fairly, but cannot act as a zealous advocate for either party's negotiating position. This is one of the most important limitations of dual agency.

Answer Options
A
The duty to aggressively negotiate the best possible price for each party simultaneously
B
The duty to maintain confidentiality of each party's sensitive negotiating information
C
The duty to disclose all known material facts about the property to both the buyer and the seller
D
The duty to account for all money and property received in the transaction

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Related Topics & Key Terms

Key Terms:

dual_agencyfiduciary_dutiesadvocacy_limitsreverse_question

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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