Under Maryland law, intra-company agency occurs when which of the following situations exists within a real estate brokerage?
Correct Answer
B) Two different licensees affiliated with the same brokerage each represent a different party in the same transaction
Under Maryland law, intra-company agency (also called designated agency in some contexts) arises when two different licensees affiliated with the same brokerage firm represent the buyer and the seller respectively in the same transaction. This is distinct from dual agency, where one licensee represents both parties. Maryland's statutory framework for intra-company agency is codified under the Maryland Real Estate Brokers Act and MREC regulations, which specifically authorize this arrangement provided written informed consent is obtained from both parties.
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Related Topics & Key Terms
Key Terms:
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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