24 April I am the broker for a small company and I still take listings. April 24, 2017By Cindy Sellers Agency 0 For this analysis, we assume both buyer and seller have executed written brokerage agreements and signed the Consent for Dual Agency form published by the Maryland Real Estate Commission. A real estate company needs at least three licensees to participate in dual agency. Only a broker or branch office manager designated by the broker may act as a dual agent and the dual agency provisions of the Maryland Real Estate Brokers Act must be complied with. Once the dual agency form is executed, the broker or the broker’s designee becomes the dual agent. The dual agent assigns one real estate agent from the company to represent the seller. This person is the seller’s intra-company agent. The dual agent assigns another agent from the company to represent the buyer. This agent is the buyer’s intra-company agent. The intra-company agents must provide the same services to their clients as an exclusive seller’s or buyer’s agent, including advising their clients as to price and negotiation strategy. If either the buyer or seller refuses to consent in writing to the dual agency, the broker may withdraw from representing the client who refuses to consent. The withdrawal may not prejudice the ability of the licensee to continue to represent the other client in the transaction nor to limit the licensee from representing the client who refused to consent to dual agency in transactions not involving dual agency. A broker who is also the listing agent may not act as the intra-company agent for the seller. As mentioned above, assuming both parties have signed the Consent to Dual Agency form, the broker or designee is the “dual agent” in the transaction. The designee must be a manager who already has supervisory responsibilities. That person then assigns one licensee affiliated with the firm to be the intra-company agent for the seller and assigns another licensee at the firm to be the intra-company agent for the buyer. Because you are the broker, even if you designate the branch manager to act as the dual agent, that person may not appoint you to be an intra-company agent. That said, there are 2 ways to make dual agency work in this situation. The first is for the broker to assign the listing to another agent in the office, take on the role of the dual agent and assign the other agent as the intra-company agent representing the seller. As a practical matter this may not be ideal, especially if the broker, because of some particular expertise, is the reason the firm obtained the listing in the first place. The second way to make it work is to avoid dual agency for this property. As noted above, if the buyer refuses to consent to dual agency for this property, your company may withdraw your representation of the buyer, continue to represent the seller, and offer to assist the (now unrepresented) buyer as the seller’s agent. You must be careful to perform only “ministerial acts” on behalf of the buyer. Finally, dual agents and intra-company agents must keep confidential information about a client’s bargaining position or motivations unless the client gives written consent to disclose the information. However, like all agents, a dual agent and an intra-company agent must disclose any material facts about a property to the other party. Related Posts My broker has informed me that under no circumstances may I contact the owners of property following my departure from the company and that any listing I have will remain with my current broker. My broker has informed me that under no circumstances may I contact the owners of property following my departure from the company and that any listing I have will remain with my current broker. Is my broker right? I am the broker of record for a small real estate firm and the only individual who is licensed with me is my wife. Under Maryland agency law, are my wife and I permitted to act as Intra-Company agents under dual agency in the sale of our company’s listings? How many people does it take to provide dual agency? Is it illegal and/or unethical for an agent to refuse to show another company’s listing to a buyer client based on the compensation being offered to the agent by the listing company? Is it illegal and/or unethical for an agent to refuse to show another company’s listing to a buyer client based on the compensation being offered to the agent by the listing company? Is it legal for an REO seller to require the buyer to use a specific title company? Is it legal for an REO seller to require the buyer to use a specific title company? The Buyer doesn't want to lose the house; however, they don't want to use the seller/REO's title company. What options does a broker have when there is dispute over the deposit? What options does a broker have when there is dispute over the deposit? A licensed Illinois real estate broker has developed an interactive website that generates buyer and seller leads. The company enters into a referral agreement with a licensed broker in Maryland to participate in the program. Upon a closing the company collects a referral fee paid from the Maryland broker to the Illinois broker per the referral agreement. The Illinois broker is not licensed in Maryland, are there any restrictions regarding payment of the referral fee from the Maryland broker to the Illinois broker? Comments are closed.