State of Maryland

Real Estate Commission

Understanding Who Real Estate Agents Represent

Before you decide to sell or buy or rent a home you need to consider the following information:

AGENTS WHO REPRESENT THE SELLER

Seller’s/Landlord’s Agent:  A Seller’s/Landlord’s agent works for the real estate company that lists and markets the property for the sellers, or landlords, and exclusively represents the sellers or landlords.  That means that he or she may assist the buyer or tenant in purchasing or renting the property, but his or her duty of loyalty is only to the sellers or landlords.  The seller pays the Seller’s/Landlord’s & agent's fee as specified in a written listing agreement.

Cooperating Agent:   A cooperating agent works for a real estate company different from the company for which the Seller’s/Landlord’s agent works.  The cooperating agent can assist a buyer or tenant in purchasing or renting a property, but his or her duty of loyalty is only to the sellers or landlords.  The cooperating agent's fee is paid by the sellers or landlords through the Seller’s/Landlord’s agent's company.

AGENTS WHO REPRESENT THE BUYER

Buyer’s/Tenant’s Agent:   A Buyer or tenant may enter into a written contract with a real estate agent which provides that the agent will act on the Buyer’s/Tenant’s behalf in locating a property to buy or rent.  The agent is then known as the Buyer’s/Tenant’s agent.  That agent assists the buyer in evaluating properties and preparing offers, and negotiates in the best interests of the buyer or tenant.  The agent's fee is paid according to the written agreement between the agent and the buyer or tenant.  If you as a buyer or tenant wish to have an agent represent you exclusively, you must enter into a written Buyer Agency agreement.

DUAL AGENTS

The possibility of dual agency arises when the Buyer’s/Tenant’s agent and the Seller’s/Landlord’s agent both work for the same real estate company, and the buyer is interested in property listed by that company.

If both parties agree to dual agency by signing a Consent For Dual Agency form, then the real estate company will assign one agent to work with the seller or landlord and another agent to work with the buyer or tenant.

If either party does not agree to dual agency, then the seller or landlord continues to be represented by the Seller’s/Landlord’s agent under the terms of the listing agreement, and the buyer or tenant has several options.  The buyer or tenant may choose to enter into a written buyer agency agreement with an agent from a different company if he or she wants an agent to provide exclusive representation.  Alternatively, the buyer or tenant may choose not to be represented by an agent of his or her own but simply to receive assistance from the Seller’s/Landlord’s agent, from another agent in that company, or from a cooperating agent from another company.

Dual agents do not act exclusively in the interests of either the seller or buyer, or landlord or tenant, and therefore cannot give individual loyalty to either party.  There may be a conflict of interest because the interests of the seller and buyer may be different or adverse.

NO MATTER WHAT TYPE OF AGENT YOU CHOOSE TO WORK WITH, YOU HAVE THE FOLLOWING RIGHTS AND RESPONSIBILITIES IN SELLING OR BUYING OR RENTING PROPERTY:

• Real estate agents are obligated by law to treat all parties to a real estate transaction honestly and fairly.  They must exercise reasonable care and diligence and maintain the confidentiality of clients. They must not discriminate in the offering of properties; they must promptly present each written offer or counteroffer to the other party; and they must answer questions truthfully.
• Real estate agents must disclose all material facts that they know or should know relating to a property. An agent's duty to maintain confidentiality does not apply to the disclosure of material facts about a property.
• 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.
• You should not assume that a real estate agent is acting on your behalf unless you have contracted in writing with that person to represent you exclusively.
• You have the responsibility to protect your own interests.  You should carefully read all agreements to make sure they accurately reflect your understanding.  A real estate agent is qualified to advise you on real estate matters only.  If you need legal or tax advice, it is your responsibility to consult a licensed attorney or accountant.

Any complaints about a real estate agency may be filled with the real estate commission at 501 St. Paul Place, Baltimore, MD 21202.  (410) 333-6320.