Agency and Brokerage Relationships in Maryland
Required disclosures and written agreements
Maryland requires the 'Understanding Whom Real Estate Agents Represent' disclosure at the first scheduled meeting to discuss a specific property, or before any written agreement, whichever comes first. Brokerage relationships must be defined in writing: a listing agreement for sellers, a buyer-broker agreement for buyers. Without a written agreement, a buyer working with an agent may not have the agency relationship they assume.
Types of agency
Seller agency, buyer agency, and dual agency. In Maryland dual agency is permitted only with the informed written consent of both parties; absent that consent the licensee must decline the double representation. Designated agency (different licensees within one brokerage representing each side) is also recognized. A licensee may act as a neutral/intrastate broker only in limited circumstances.
Fiduciary duties
Remember OLD CAR: Obedience to lawful instructions, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care and skill. Add honesty, plus disclosure of known latent defects, which Maryland imposes regardless of agency type.
Traps
(1) A buyer who calls the listing agent believes they are represented - they are not without a written buyer-broker agreement; that agent owes honesty but not loyalty or confidentiality. (2) Who pays the commission does not determine agency; seller-paid buyer-agent compensation is common and lawful. (3) In dual agency, confidential information from either side may not be used against the other. (4) The agency disclosure must be documented in writing, not merely spoken.
Rule of thumb: no writing, no agency - and no written consent, no dual agency.