A licensed Maryland salesperson represents a buyer who submits an offer on a property listed by a different agent in the same brokerage. The buyer's agent and the listing agent work for the same broker. The buyer has not yet signed any agency disclosure documents. Before proceeding with the offer, which of the following actions is most consistent with Maryland law?
Correct Answer
A) The broker may designate the two agents as intra-company agents and obtain written consent from both the buyer and seller
Maryland law specifically authorizes intra-company agency (Md. Code Ann., Bus. Occ. & Prof. § 17-530), which occurs when two different licensees within the same brokerage represent the buyer and seller in the same transaction. In this situation, the broker may designate each agent to represent their respective client, provided written informed consent is obtained from both the buyer and the seller. This is distinct from dual agency, where a single agent represents both parties. The disclosure and consent must be obtained in writing before the intra-company agency relationship is established.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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.
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