Agent Lisa and Agent Tom both work for Chesapeake Realty, a licensed Maryland brokerage. Lisa has been representing seller David for three months, and Tom has just entered into a buyer representation agreement with Karen, who wants to make an offer on David's property. The broker of Chesapeake Realty wants to proceed with the transaction. Under Maryland law, which of the following statements correctly describes the consent requirement for this intra-company agency situation?
Correct Answer
A) Written consent from both David and Karen must be obtained before the intra-company agency relationship is established, using the MREC-mandated Consent for Dual Agency form
Under Maryland law, both dual agency and intra-company agency require written informed consent from all parties before the agency relationship is established. Maryland uses the MREC-mandated Consent for Dual Agency form, which covers both dual agency and intra-company agency scenarios. The consent must be obtained in writing before the intra-company agency situation arises — not at the time of contract or afterward. This is a critical Maryland-specific procedural requirement that distinguishes Maryland's framework from many other states.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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