section 10 unit 3

The listing agent is responsible for you, but the seller is not.

broker agency

The agent provides buyer full representation.

buyer agent

The buyer is the agent's client.

buyer agent

You represent the buyer in a transaction, and another licensee from your firm represents the seller in the same transaction.

dual agency

A Maryland agent working with a buyer who refuses to sign a buyer representation agreement is considered a sub-agent.

fact

Generally, it is the seller and seller's agent who create sub-agency.

fact

Real estate firms can determine whether to permit sub-agency as an office policy or not.

fact

Because ICAs work for the same firm, they cannot provide the same level of service to their clients as an exclusive seller's or buyer's agent could.

false

Dual representation does not limit the broker's ability to represent either party fully and exclusively.

false

If a customer wants to enter into an agency agreement with you, they must sign the Consent for Dual Agency form. If they refuse to sign the form, you cannot represent them.

false

In a dual agency situation, ICAs are allowed to share confidential information about the parties who have consented to the arrangement.

false

A buyer's agent can also be a sub-agent.

fiction

Thinking about the fiduciary duties an agent owes a client, what duty becomes most challenging when a licensee is part of a dual agency situation?

loyalty

You represent the seller in a transaction and another licensee from your firm brought the buyer customer to the same transaction.

not a dual agency

Mike and Christina are licensees with IndyRealty. Zachary is selling his home and has enlisted Mike as his agent. Nathan is Christina's buyer client and is interested in seeing Zachary's home.

not a sub agency

Ralph is a licensee with Camp Realty group. He has a client, Debbie who is selling her house. He thinks Debbie's house is perfect for Stacy, a customer.

not a sub agency

Tim is represented by Kayla, an agent with Sarent Group Realty. Today, they are seeing Bonnie's house, which has been listed by her agent, Tiara, from the Truman Agency.

not a sub agency

You are working with a buyer customer. Today, you're showing him a property that offers sub-agency. Which two parties do you owe the duties of obedience and loyalty to?

seller, and listing agent

Pam is a licensee with SMS Agency and has just listed a property for her seller client, Bob. Dan is a licensee with DTWN Associates and has a buyer customer interested in seeing the property.

sun agency

The agent represents seller as sub-agent, buyer is a customer.

sun agency

The seller and seller's agent are vicariously liable for the sub-agent.

sun agency

If the buyer and seller want to be represented by a broker who is acting as their dual agent, then both parties must sign the Consent for Dual Agency form.

true

The broker has the right to fire a client who initially consented to dual agency but is refusing to confirm their consent as the parties are entering into the contract phase of a real estate transaction.

true

You work for a small firm in which a dual agency situation has presented itself. Your broker assigns you as the ICA for the buyer and herself as the ICA for the seller.

violation

You're scheduling showings for a buyer client and have arranged for him to see a property listed by one of the other agents at your firm. The seller has stated they do not agree to dual agency.

violation

You're showing a buyer client who has consented to dual agency a nice property that just hit the market—your parents' house! They've also agreed to dual agency, but you decide not to tell the buyer that the sellers are your parents (and also clients of the real estate firm where you work).

violation

Your firm represents both the landlord and the tenant in the same lease transaction but because the clients are not sellers and buyers neither ICA bothered to obtain consent from either party.

violation

What if instead of sub-agency, you are working under broker agency? Which two parties are liable in the flooded basement situation?

you and listing agent

A few months after moving, you receive a call from the buyer complaining about a lake in his basement. It seems when it rains enough, that trickling creek can cause the basement to flood. And, according to an expert he had out, this is not the first time this basement has flooded. The buyer says he's holding you personally liable for lying to him and that he'll take you to court to retrieve the costs of cleaning up the flooded basement and mitigating future damage. Which three parties are liable in this situation?

you, seller, and listing agent

Now that you have an inkling of what sub-agency is about, let's see if you can figure out who's who in a sub-agency relationship. So, what is a sub-agent?

A licensee who works for Firm A but who is engaged with Firm B to perform agency functions on behalf of Firm B's client.

To legally represent a client in a dual agency situation an as intra-company agent (ICA) in Maryland, you need something called informed consent. What exactly is informed consent as it relates to dual agency?

All parties fully understand the ramifications and purpose of dual agency and give their written consent to be represented by the ICA.

Maryland real estate law requires you to obtain your client's informed consent for dual agency. When must you obtain this consent?

At the time you enter into the listing/buyer agreement with the client

Which of the following is an example of sub-agency?

Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller.

Which of the following describes sub-agency?

Norm is a listing agent. He allows Stu, an agent from another firm, to present an offer from an unrepresented buyer.

As you know, you must obtain the client's informed consent for dual agency when entering into an agency agreement with them. At what point do you need to have them reaffirm their consent?

Prior to entering into a contract for a transaction that involves both parties being represented by the same brokerage

Sara, a licensee with Homestead Realty, has listed a house for Jon, her client. Regina has asked Carla, a licensee with Metro Realty, to show her Jonathan's house. Regina refuses to sign a buyer representation agreement.

Sub-agency

Kim is a sub-agent in a transaction involving a buyer customer, a seller, and a listing agent. Who is Kim a sub-agent for?

The listing agent and seller

To whom do sub-agents working with buyer customers owe their duties?

The sellers and the seller's agents