Agent Priya and Agent Marcus are both affiliated with Baltimore Metro Realty, a licensed Maryland brokerage. Priya represents seller Chen in the sale of a downtown condo, and Marcus has just signed a buyer representation agreement with Olivia, who wants to purchase Chen's condo. The broker has confirmed that both clients have signed the MREC Consent for Dual Agency form authorizing intra-company agency. Under Maryland law, all of the following statements about the duties owed by Priya and Marcus in this intra-company agency relationship are correct EXCEPT:
Correct Answer
C) Both Priya and Marcus are relieved of all fiduciary duties to their respective clients once the intra-company agency consent form is signed
Option C is the EXCEPT answer because it is false. Under Maryland law, intra-company agency does NOT relieve each designated licensee of fiduciary duties to their respective client. A key distinction between intra-company agency and dual agency in Maryland is that in intra-company agency, each licensee continues to owe full fiduciary duties — including loyalty, confidentiality, and promotion of the client's best interests — exclusively to their own client. The consent form authorizes the arrangement but does not diminish the individual licensees' obligations to their respective clients.
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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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