Agent Petra represents buyer Quentin under a signed buyer representation agreement. Quentin wants to purchase a home listed by Petra's brokerage. The listing agent is Petra's colleague Rex. The broker obtains written intra-company agency consent from both Quentin and the seller on the MREC-mandated form. Rex then leaves the brokerage mid-transaction and takes the listing with him to a new firm. Quentin still wants to purchase the property. Under Maryland law, which statement best describes the resulting agency situation?
Correct Answer
B) Petra may now represent Quentin as a full buyer's agent without intra-company agency limitations, since Rex and the listing have left the brokerage
When Rex leaves Petra's brokerage and takes the listing to a new firm, the intra-company agency situation no longer exists. Intra-company agency requires that both licensees be affiliated with the same brokerage. Once Rex is at a different brokerage, Petra and Rex are now cooperating agents from separate firms, and Petra can represent Quentin as a full buyer's agent without the limitations of intra-company agency. The previously signed intra-company consent form is no longer operative because the factual basis for intra-company agency — both agents being in the same brokerage — no longer exists.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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