Lesson 3: Terminating a Brokerage Relationship in Maryland

Termination of Brokerage Relationship 

Brokerage relations end depending on the situation. When a client enters a brokerage agreement with the broker and continues until the duties stated in the agreement is terminated or any of the following happens: 

• The client terminates the agreement because he does not permit to the designated/dual agency;
• Any of the parties defaults under the terms of the agreement; 
• If there are mutually agreement written terms in the agreement;
• The expiration date specified in the written brokerage agreement, or any amendments to the agreement.

Remaining Duties After the Termination of a Brokerage Relationship

After completing the duties defined in your brokerage agreement, you are no longer obligated to, nor owe any duties to your client with one exception: you must keep client confidentiality. In order to disclose confidential client information, that client must provide you with written consent, even after your professional relationship with them terminates. 

The Disclosure of Confidential Information

As an agent, you must never share certain information about past, present or potential clients without obtaining the clients’ prior consent in writing. Some examples of confidential information include:

1. That a potential buyer or lessee is willing to pay a higher amount than that proposed by the buyer or lessee, or that they are willing to accept less beneficial terms than those proposed in an offer,
2. Reasons why the seller wants to sell a property, why a buyer wants to buy a property, why a lessee wants to lease, etc.
3. A client’s negotiation strategy,
4. Facts that motivate a seller to sell, a buyer to buy, etc., including any urgency to close a deal quickly or lack thereof. 
5. That a potential seller or lessor is willing to accept a lower price/rent or accept less favorable terms than those agreed upon in the brokerage agreement.

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Check for understanding!

How do most brokerage agreements terminate?