Presentation on theme: "Maryland Agency Disclosure Charles A. Kasky, Esq., RCE Vice President of Legal Affairs Maryland Association of REALTORS ®"— Presentation transcript:
Maryland Agency Disclosure Charles A. Kasky, Esq., RCE Vice President of Legal Affairs Maryland Association of REALTORS ®
Agency Law – Real Estate Basic to defining the rights and obligations of agents and brokers Duty of Loyalty Sub-Agency is still relevant Vicarious Liability Agency vs. Contract
Maryland Law - Residential APPLIES TO: The sale or lease of real property improved by one, two, three or four single-family units Unimproved real property zoned for residential use by the local zoning authority of the county or municipality in which the real property is located Lease of more than 125 days
Two Questions Who Am I? Who Do I Represent? Does Everyone I Meet During the Transaction Know Who I Represent? Have Understanding Whom…Form
Fundamental Principles Consumer Protection The need to protect consumers from being taken advantage of Most Important When You are Their Agent…..Not!! Whenever This Happens - DISCLOSE
Who Am I? Presumed Buyer Agent No Written Agreement Buyer Agent Seller Agent Cooperating Agent Intra-company Agent / Dual Agent
“Presumed” Buyer Agency Licensee who assists a prospective buyer in locating residential real estate and is neither affiliated with nor acting as the listing real estate broker, is presumed to be acting as the buyer’s agent unless either the licensee or the buyer or lessee expressly declines
“Presumed” Buyer Agency At first meeting of licensee and buyer/lessee: Orally advise prospective buyer or lessee that licensee will act as buyer’s or lessee’s agent in locating residential real estate Agency exists unless buyer or lessee declines
“Presumed” Buyer Agency Licensee acting as buyer’s or lessee’s agent with no written agreement shall comply with agency disclosure requirements and has duties as required by law. Same duties as owed by all licensees
“Presumed” Buyer Agency At First Meeting Provide the prospective buyer or lessee with a copy of the disclosure form required by law Buyer Signs?
“Presumed” Buyer Agency Property not listed with agent’s company Property listed with agent’s company Seller’s Agent Intra-company agent?
“Presumed” Buyer Agency At First Contact w/ Seller or Agent “Presumed” buyer’s agent shall orally disclose that fact to the seller/lessor or agent at first contact I.E., non face-to-face contact
“Presumed” Buyer Agency Termination Either The buyer, lessee, or licensee expressly states a wish to terminate the presumed buyer agency relationship; or The licensee and either the buyer or the lessee enter into a brokerage agreement. Before presenting offer or negotiating purchase of property, “presumed” agency must be terminated
Dual Agency Consent for Dual Agency Form Can be signed at time of disclosure, however, if party has previously signed a Consent for Dual Agency form, the party must affirm consent for the sale of a particular property to a particular buyer (the lines provided on the form)
Dual Agency Intra-Company Agent Single agent dual agency prohibited Must be Salesperson or Assoc. Broker Intra-company agent provides same services as exclusive agent, including advising client as to price and negotiation strategy
Dual Agency Broker or designee is dual agent – buyer and seller agents are intra-company agents Intra-company agents MUST keep confidential information CONFIDENTIAL except to the dual agent Can Teams do Dual Agency?
Dual Agency A licensee may withdraw from representing a client who refuses to consent to a disclosed dual agency Does not limit the agent who terminated dual agency from continuing to represent client in other non-dual agency transactions
Agency Disclosure Form Disclosure must occur not later than the first scheduled face-to-face contact with the seller or lessor or the buyer or lessee Must be signed by agent or party Self-Certification Open House!
Disclosure Form Listing/Seller’s Agent → Seller/Client Buyer’s Agent → Buyer/Client No Cooperating Agent Seller’s Agent → Buyer Cooperating Agent → Buyer Notice: Not to Seller/Agent! Buyer’s Agent → Seller or Seller’s Agent Includes FSBO and Open House
Disclosure Form If no face-to-face contact, Buyer’s agent includes form in offer for Seller’s signature, disclosing s/he represents Buyer