Lesson 3: Brokerage Relationships in Maryland

Fiduciary Duties of Agents

The licensee accepts a fiduciary duty to their client when they begin working with them. Throughout all of the listing and selling process, the seller’s agent has a responsibility to protect the seller’s interests and promote their cause.

Multiple Open House Advertising

For practical reasons, it may be effective to advertise open houses for multiple properties in one advertisement. This may be done, but only after receiving prior consent from the owners of each listed property.

Written Disclosure

When hosting an open house, disclosures required by the Maryland Real Estate Commission must be made available for all potential buyers. These MREC disclosures must be displayed in a prominent fashion while the open house is running.

Representing a Visitor

If the listing agent of a property is also representing a potential buyer, this falls into the category of dual agency. In that case, the licensee must make sure both the seller and the buyer sign a “Consent to Dual Agency” form and that the broker is aware of the transaction. 

Dual Agency Issues

As in all situations involving a dual agency, the seller and the buyer must be notified (in writing) of its existence, and consent to working with the dual agency (also in writing). Only in the event that this licensee obtains this consent can he or she represent both clients in the same transaction. 

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Check for understanding!

What situations might lead to a dual agency relationship from an open house?