State of Maryland Real Estate
Commission Agency Relationship Disclosure:
Understanding Whom Real
Estate Agents Represent
There
are four different types of real estate agency relationships in
1.
Seller’s Agent
A
seller’s agent is a licensed real estate broker, associate broker, or
salesperson who is affiliated with the listing broker for a property or who is
the listing broker for the property. The
seller’s agent exclusively represents the seller (or landlord) but may also
assist the buyer in purchasing property.
The seller pays the agent’s feel
2.
Cooperating Agent
A
cooperating agent is a licensed real estate broker, associate broker, or
salesperson who is not affiliated with the listing broker for a property. The cooperating agent assists the buyer in
finding a property to purchase, but represents, and is paid by, the seller.
3.
Buyer’s Agent
A
buyer’s agent is a licensed real estate broker, associate broker, or
salesperson. The buyer’s agent
exclusively represents the buyer (or tenant), but may also assist a
seller. The agent’s fee can be paid by
either the buyer or the seller as specified in a written agreement.
·
A buyer’s agent evaluates the property, prepares an offer, and
negotiates in the best interest of the buyer.
·
Before a buyer’s agent can represent the buyer, the buyer and the
buyer’s agent must sign a written agreement.
4.
Dual Agent
The
broker who represents both the seller and the prospective buyer of a property
is the dual agent. Dual agency arises
when:
i.
The seller’s agent and the buyer’s agent work for the same real estate
firm;
ii.
The buyer is interested in a property listed by that firm;
iii.
Both the buyer and seller have consented tot he dual agency by signing
the “Consent For Dual Agency” form; and
iv.
The broker designates one agent to act on behalf of the seller and one
agent to act on behalf of the buyer.
The
seller pays both agents’ fees unless otherwise provided in a written agreement.
A
dual agent does not represent the interests of either the buyer or seller
exclusively. If you want an agent to
represent exclusively, do not sign the “Consent for Dual Agency” form.
·
Because dual agents are in the same firm, there may
be a conflict of interest between the parties because the interests of the
parties may be different or adverse.
·
Dual agents do not owe undivided loyalty to either
the buyer or seller.
·
The possibility of a dual agency will not arise if a
buyer’s agent works for a real estate firm that exclusively represents
buyers. That type of buyer’s agent can
represent the buyer for all property without any conflict of interest. Furthermore, a dual agency will not arise if
a seller’s agent works for a firm that exclusively represents sellers or if
either party refuses to sign the “Consent for Dual Agency” form. If all parties do not agree to the dual
agency, the seller will continue to be represented by the seller’s agent under
the terms of the listing agreement. The
buyer may choose to be assisted by the seller’s agent, another agent from that
firm who will also represent the interests of the seller, a cooperating agent
or to be represented by a buyer’s agent from another brokerage.
Remember these important points when choosing a real estate
agent:
ü
Written Agreement and Compensation: All agreements with real estate agents should
be in writing and should explain the duties and obligations of the agent. The agreement should explain how the agent
will be paid and any fee-sharing agreements with other agents.
ü
Duties Of An Agent: Real estate agents muse exercise reasonable
care and diligence and maintain confidentiality of clients. All agents must treat all parties fairly, not
discriminate in the offering of properties, promptly present each written offer
or counteroffer to the other party, and answer questions truthfully.
ü
Disclosure of Material Facts: Real Estate agents must disclose all material
facts that are known or should be known relating to a property. An agent’s duty to maintain confidentiality
does not apply to the disclosure of material facts.
ü
Legal and Tax Questions: A real estate agent is qualified to advise
only on real estate matters. If you need
legal or tax advice, consult a licensed attorney or accountant.
ü
Complaints About An
Agent: Any complaints about an agent may
be filed with the Real Estate Commission at
ü
We, the _______Buyers
_______ Sellers acknowledge receipt of a copy of this disclosure and
that
Advantage Real Estate, Robert B. McArtor are
working as
q Seller’s
Agent
q Cooperating
Agent
q Buyer’s
Agent
q Dual Agent
(See “Consent for Dual Agency” form)
______________________________________ ________
Signature Date
______________________________________ __________
Signature Date