Maryland Real Estate Reform Act

PRIOR TO JANUARY 1, 1999

  • Agency disclosure form is to be explained and signed before any properties are shown. The form does not commit a buyer to working the agent.
  • Buyer agency does not begin until a buyer agency contract is signed. Until then the agent is representing the seller regardless of what the agent tells you.
  • When the agent shows you a property listed by any office of the company with which he or she is affiliated, the agent becomes a dual agent and cannot give you full service or loyalty. Procedures are not spelled out.

AS OF JANUARY 1, 1999

  • Agency disclosure form is still to be explained and signed before any properties are shown. The form does not commit a buyer to working the agent.
  • The agent is presumed to be acting as the buyer's agent unless the buyer expressly declines to have the agent act in his behalf.
  • This "presumed agency" ends when the agent shows you a property that is listed by any office of the company with which he or she is affiliated or on which he or she is the listing agent.
  • Before an agent may show you properties listed for sale by his or her broker (which usually means any office of the company with which he or she is affiliated), the agent must disclose to you that he or she represents the SELLER of the real estate.
  • At that point the agent's broker becomes a DUAL AGENT and will appoint a second intra-company agent to either work with you or the seller If the agent is the listing agent a second intra-company agent will be appointed to work with you. You will be asked to sign a written consent to dual agency. ONE AGENT CANNOT ACT AS A DUAL AGENT. Buyer Advocates warns you to read the Consent To Dual Agency form carefully. There are alternatives available to buyers. See the Buyer's Beware page.
  • Although an "intra-company agent" is supposed to provide the same services on in-house listings as he or she provides on listings outside of the firm, you are asked to sign the Consent for Dual Agency form acknowledging that you are working with an "intra-company agent" and that the broker is a dual agent.
  • A buyer is not obligated to continue working with this agent or to pay him or her while acting under "presumed buyer agency".
  • Before a "presumed buyer agent" can present a contract offer, the "presumed agency" must terminate and the buyer must enter into a written brokerage agreement. Buyer Advocates thinks you should see this agreement when you start looking for a home not after you are ready to write an offer.
  • If the broker offers a bonus for in-house sales, as is frequently the case, the broker is to disclose to both parties that the bonus is offered.