Lesson 2: Intra-Company Agencies in Maryland

Intra-Company Agents

In a dual agency, a licensee is assigned to both the buyer and the seller. These are called “intra-company agents,” and work to represent the interests of their assigned party during the transaction. 

1. Brokers Can't Be Intra-Company Agents

In Maryland, only an associate broker or a salesperson who wished to work as an intra-company agent must be chosen by the dual agent. Brokers themselves can’t work as intra-company agents. 

Permissible Acts 

An intra-company agent can provide similar services as they provide to buyer/lessee or seller/lessor as an exclusive agent in non-dual agency transaction as long as the agent makes and have acquired proper disclosure and consent. A broker must provide a disclosure statement that notifies all the parties in the transaction, if the broker offers a financial bonus to a licensee which is acquinted with the broker for selling or leasing property listed with the broker. 

Intra-Company Agency Services 

Although the licensees in a dual agency are not necessarily the only ones working with a client, they provide essentially the same services. Intra-company agents provide their clients with the same services that they would provide to the buyer, seller, lessee, or lessor if they were operating in a non-dual-agency transaction as an exclusive agent.

Intra-Company Agency Confidentiality

An intra-company agent may NOT disclose any of the following information:

• Whether or not the buyer is willing to accept a higher price or less favorable terms

• Anything and everything their specifically client asks is kept confidential

• If and why their client is motivated to buy/sell wants to sell or buy quickly

• Their client’s negotiation strategy, or anything related to it

• Whether or not a seller is willing to accept a lower price or less favorable terms

Disclosure with Teams

When operating under a dual agency, the brokerage must notify (in writing) both the seller and the buyer that:

• Both agents are part of the same real estate team, and 

• The fact that the agents work together on the same team may mean that their agents have a greater financial interest in a particular outcome of the transaction.

Disclosing Dual Agencies

If a brokerage chooses to use a dual agency, the following rules apply:

• The brokerage can’t have a cause of action brought against them for disclosing the dual agency. 

• Using a dual agent doesn't force or merit termination of a brokerage-relationship agreement.

• The brokerage may cease representation of and services to a client who does not consent to the use of a disclosed dual agency, thereby terminating the brokerage relationship with that client. 

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Check for understanding!

What must a brokerage notify a potential client about in writing before proceeding with an “in-house” transaction?