MD Brokerage Relationship & Disclosure Flashcards
The voluntary offering of relevant information or material facts that are known or should have been known by a licensee
affirmative disclosure
A licensee who is working under a written agreement between the licensee’s broker and the buyers (licensees clients) in the purchase of the real estate. Buyer representation only occurs with a written buyer’s agreement because the presumed agency is no longer allowed
buyer’s agents
Individuals who have signed an employment agreement with a brokerage firm. They can now expect to be represented and are now owed fiduciary duties and client-level services
clients
Personal finances, bargaining strategy, and motivation must be kept confidential for all clients throughout the transaction. Confidentiality applies to an individual licensee’s clients and to the broker’s clients as well. Licensees must disclose material facts to everyone and not disclose their client’s confidential information to anyone.
confidential information
An individual who has not secured rights of representation can only be assisted by a licensee rather than represented. Customers are entitled to honesty, fairness, timely presentation of offers, and disclosure of material facts.
customers
A broker who represents not only the sellers but also the purchasers in the same property transaction. All parties must sign a completed Consent for Dual Agency form for this to be conducted lawfully. In Maryland, only a broker can function; as a dual agent; salespersons and associate brokers can be assigned to either party as ICAs.
dual agents.
Per representation requirements, a licensee will disclose existing brokerage relationships within the same medium that the first contact was made. For example: disclose that you represent the seller within the email response to the online inquiry requesting to see one of your listed properties.
first contact
When meeting with an unrepresented party, a licensee will use the UWREAR disclosure form to either disclose an existing brokerage relationship or explain options of representation
first face-to-face contact
When acting as an agent to the client, the licensee owes the following duties: care, obedience, loyalty, disclosure, accounting, and confidentiality. Asa fiduciary, an agent is to put a client’s interests first.
fiduciary duties
When a firm performs dual agency, ICAs must be appointed. A broker would appoint an ICA to represent the seller client and an ICA to represent the buyer client in the sale of a specific property.
intracompany agents (ICAs)
Functions performed by a licensee on behalf of their clients only involve the licensee’s expert judgment and negotiating skills. For example: preparing a CMA for your buyer-client at the time of preparing an offer or preparing a home inspection repair addendum. Only ministerial acts can be provided to someone other than your client.
Magisterial acts
Functions performed by a licensee that do not involve negotiation, discretion, or expert judgment by that licensee. For ex: unlocking the door to provide access for an agreed termite inspection to take place. They may be performed on behalf of both clients and customers. Magisterial acts can only be provided to a client because they require expertise and judgment.
Ministerial Acts
Prohibited in Maryland. Brokerage relationships are only created by written agreements.
presumed representation
A licensee who is affiliated with the listing broker for a property. A seller’s agent represents the sellers (the client) but may also assist a prospective buyer (a customer).
seller’s agents
Such a company does not participate in a dual agency because of its small size, its policies, or because it is an exclusive buyer or seller agency.
single-agency company
