Chapter 2 of 1525% of exam

Agency Relationships in Maryland

Maryland requires a specific written agency disclosure and uses designated (intra-company) agents to handle in-house dual representation. This chapter covers the disclosure, dual agency, and team advertising rules.

The Agency Disclosure

Maryland licensees must provide the disclosure titled 'Understanding Whom Real Estate Agents Represent' at the first scheduled face-to-face contact with a consumer. It explains seller agency, buyer agency, and dual agency so consumers understand who represents them before sharing negotiating information. The disclosure is informational and does not by itself create an agency relationship.

Dual Agency and Designated Agents

When one brokerage represents both the buyer and the seller, Maryland allows dual agency only with the written consent of both parties. The broker typically appoints separate intra-company (designated) agents to represent each party individually within the firm, while the broker acts as the dual agent who must not disclose confidential information such as price limits between the sides.

Teams and Advertising

Maryland permits teams operating under a brokerage, but the broker remains responsible for supervising the team's licensed activity, advertising, and trust handling. A team is not a separate license and cannot operate independently. Team advertising must make clear the team works under the licensed broker so it does not mislead consumers into thinking it is an independent brokerage.

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