A Maryland purchase agreement is executed for a property in Frederick County. The buyer's agent is from the same brokerage as the seller's agent. The brokerage has a written intra-company agency policy. The buyer's agent has been showing the buyer properties for two weeks without obtaining written consent for intra-company agency. An offer is now being prepared. Under Maryland law, which statement most accurately describes the current situation?
Correct Answer
B) The situation is a violation because written consent for intra-company agency must be obtained before the agency relationship arises, not at the time of contract
Under Maryland law governing intra-company agency, Md. Code Ann., Bus. Occ. & Prof. § 17-530 et seq., written informed consent from both the buyer and seller must be obtained before the intra-company agency situation arises — not at the time the offer is written or the contract is executed. Because the buyer's agent began representing the buyer without obtaining consent, and a potential intra-company situation existed from the moment the buyer began working with an agent from the same brokerage listing properties, this is a procedural violation. The consent must be obtained at or before the first substantive contact that triggers the intra-company relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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