MREC Principles of Real Estate Brokerage Relationships - PowerPoint Presentation

1. MREC Principles of Real Estate Brokerage Relationships and Disclosures1

2. INTRODUCTIONIn April 2019, Governor Hogan signed Chapter 381: State Real Estate Commission – Real Estate Brokerage Relationships, Continuing Education, and Disclosures into law.The new law amends the Real Estate Brokers Act – including, required content for pre-licensing & continuing education classes, prohibits licensees from disclosing confidential information obtained from prospective clients, and alters definitions of brokerage relationship and dual agency under Maryland law.2

3. HOW TO USE THIS PRESENTATIONIn light of these changes, the Maryland Real Estate Commission (MREC), has revised the required Maryland Disclosures, mandatory Agency Course, as well as Agency Training for Instructors and course materials.This Train-the-Trainer presentation has been developed to instruct new and returning Agency and Pre-Licensing instructors. The use of these slides is mandatory in the new Brokerage Relationships Course. These slides include mandatory course topics, multiple Brokerage Relationship practical examples and scenarios to stimulate class discussion. Instructors may vary the order of the slides, but all slides must be covered and distributed to course participants.3

4. HOW TO USE FAQs IN CLASSROOM DISCUSSIONClassroom discussion brings an interactive element to learning which helps adult students develop skills that cannot be attained in a traditional lecture format. Active student participation can enhance the students’ enjoyment of the class, retention of factual knowledge, interpersonal communication skills, and most importantly, analytical and critical thinking skills.Each section of the course now includes, Frequently Asked Questions (FAQs) materials which have been developed by MREC to provide additional approved content for Real Estate Brokerage Relationships & Disclosures class discussions. Instructors may cover in greater detail the FAQs most appropriate for their audience; however, FAQs may not be modified altered or amended in any way and must be used in conjunction with the provided MREC disclaimer.4

5. BROKERAGE RELATIONSHIPS COURSE OBJECTIVES231456Reinforce Proper Use & Completion of Brokerage AgreementsExplain the move from agency to brokerage relationshipsDiscuss & Analyze Practical Client & Customer ScenariosIntroduce New Brokerage Relationship Disclosure & Other Revised FormsEducate Licensees on How to Identify & Properly Act When Presented with Dual Agency SituationsReview Duties of Licensees to Clients & Customers5

6. MARYLAND BROKERAGE RELATIONSHIP LAWAPPLIES 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.6

7. BROKERAGE AGREEMENT REQUIREMENTSBe in WritingState the amount of compensation to be paid to broker & whether broker is authorized to receive the compensation from a person other than the clientExplain events or conditions that entitle the broker to compensationHave a definite termination date that is effective automatically without notice from the clientContain provision for cancellation of brokerage relationship by either the client or the brokerState whether the broker is authorized to cooperate with other brokers & share compensation with the other brokers and the amount of the compensation1234567

8. TERMINATION OF BROKERAGE RELATIONSHIPA brokerage relationship commences at the time that a client enters into a brokerage agreement and shall continue until:The completion of performance in accordance with the brokerage agreementThe earlier of:A date of expiration agreed on by parties in the AgreementA termination of Brokerage Relationship (mutual or unilateral)A default by any party under terms of the AgreementA termination caused by a client who refuses to consent to dual agencyOR8

9. BROKERAGE AGREEMENT FAQs9

10. BROKERAGE AGREEMENT FAQQ: What does it mean to have a client? How do I know who is my client?A: A client is a person who has entered into a brokerage agreement with a broker under a brokerage relationship. In order for a party or parties to be your client, he/she/they must have signed a brokerage agreement or listing contract with your brokerage.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.10

11. BROKERAGE AGREEMENT FAQQ: Now that there is no presumed brokerage relationship, when do I need to get the buyer brokerage agreement signed?A: Before you provide any real estate brokerage services you must have a written and signed brokerage agreement in place. Sample activities which would require a valid brokerage agreement in place include writing an offer as a buyer’s agent.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.11

12. BROKERAGE AGREEMENT FAQQ: What is compensation?A: Compensation is a negotiated amount that is expressed as either a percentage of the sale price, a flat amount or a combination of a flat amount and a percent of the compensation.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.12

13. BROKERAGE AGREEMENT FAQQ: Is it OK for me to send my signed brokerage agreement as part of my client’s purchase offer?A: No. Under no circumstances should your brokerage agreement be distributed to the listing side as part of the offer to purchase.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.13

14. DUTIES OWED BY A LICENSEE TO CLIENT AND NON-CLIENT (1 of 4)A licensee shall:132Act in accordance with the terms of the Brokerage AgreementPromote the interests of the clientExercise reasonable care and diligence14

15. DUTIES OWED BY A LICENSEE TO CLIENT AND NON-CLIENT (2 of 4)PROMOTION OF CLIENT INTEREST EXAMPLES:Seeking a sale or lease of real estate at a price or rent specified in the Brokerage Agreement or at a price or rent acceptable to the clientSeeking a sale or lease of real estate on terms specified in the Brokerage Agreement or on terms acceptable to the clientUnless otherwise specified in the Brokerage Agreement presenting in a timely manner all written offers or counteroffers to and from the client, even if the real estate is subject to an existing contract of sale or lease3 a3 c3 b15

16. DUTIES OWED BY A LICENSEE TO CLIENT AND NON-CLIENT (3 of 4)A licensee shall:Treat all parties to the transaction honestly and fairly and answer all questions truthfully465Unless Client consents in writing, may not disclose Confidential InformationApplies to past or present client of licensee or broker16

17. (4 of 4)Comply with allRequirements of Real Estate Brokers Act, Title 17 and Code of Maryland Regulations (“COMAR”) https://www.dllr.state.md.us/license/law/mreclaw.shtmlApplicable federal, state and local fair housing laws and regulationsOther applicable laws and regulationsDUTIES OWED BY A LICENSEE TO CLIENT AND NON-CLIENT A licensee shall:798In a timely manner account for all trust money receivedDisclose to the client all material facts as required by law17

18. MATERIAL FACTSA material fact in real estate is any information which would impact:Material facts are not the same in each transaction, nor for each client or customer.The amount that the seller would accept, or a buyer would offer for a property.A seller’s or buyer’s decision to sell or purchase a property.The desired terms of the sale for the buyer or the seller.It is critical that the licensee pay close attention to the events of the transaction to ascertain what is and is not a material fact in order to make the appropriate disclosures to all parties. When in doubt, seek guidance from your broker, office manager, or team leader.Material facts are not the same in each transaction, nor for each client or customer.18

19. CLIENT & CUSTOMER FAQs19

20. CLIENT & CUSTOMER FAQQ: I am writing an offer on behalf of a buyer client that has never seen the home. I, too, have never seen the home. Do I need to view the home prior to writing the offer?A: You are at risk of being accused of failure to provide reasonable care. This is especially true for homes where showing access is an option. While pictures provide a good deal of information; there may be additional considerations or problems which you should raise with your client and which may impact the type of offer written/ addenda included. Even though the client has not seen the home, the licensee that prepares their offer should take the time to view the property. Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.20

21. CLIENT & CUSTOMER FAQQ: I have been contacted by an agent to send disclosures for my new listing. My assistant forgot to upload them. I have asked the agent to check with my assistant for disclosures or check the MLS in an hour for disclosures. Is this OK?A: No. As listing agent, you are responsible for providing the Maryland Residential Property Disclosure & Disclaimer upon request. Once the request is made of you, no additional follow-up should be required on the part of the Buyer’s agent to obtain the documents. It is your responsibility to deliver them directly to the Buyer agent. You are at risk of being accused of failure to provide reasonable care by delaying delivery of documents.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.21

22. CLIENT & CUSTOMER FAQQ: I am working desk or floor duty at a multi-office real estate brokerage firm. A client of another branch office has come in and asked me to make copies or scan a document to their agent. They hired the other agent, not me. I am not here to complete another agent’s job for free. Do I have to?A: Yes. At the time the brokerage agreement was signed, the client hired the broker to represent them in the purchase or sale of the home. As a licensee under this broker, it is an acceptable expectation that you would be able to perform administrative tasks on their behalf related to their listing or purchase; however, those tasks which require judgment and discretion should be reserved for the specific licensee handling their transaction.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.22

23. DUTY OF CONFIDENTIALITY OWED BY LICENSEE TO POTENTIAL CLIENTSA licensee may not disclose confidential information obtained from a prospective client in anticipation of forming a brokerage relationship, unless the prospective client consents in writing to the disclosure23

24. CONFIDENTIAL INFORMATIONAny facts:That led the seller to sell, the buyer to buy, the lessee to lease or the lessor to lease; orThat relate to the negotiating strategy of a client24

25. A LICENSEE DOES NOT BREACH DUTY OR OBLIGATION TO CLIENT BY:123Showing other available properties to prospective buyers or lesseesRepresenting other clients who have or are looking for similar properties for sale or leaseRepresenting other sellers or lessors who have similar properties to those sought by the buyer or lessee;456Showing the buyer other available properties.Unless otherwise specified in the Brokerage Agreement, a licensee is not required to seek additional offers while the property is subject to an existing contract or leaseIf Client consents, perform Ministerial Acts on behalf of another person25

26. MINISTERIAL ACTPerformed on behalf of a client before and after the execution of a contract of sale or leaseAssists another (unrepresented) person to complete or fulfill a contract of sale or lease with the client of the licensee.Does not involve discretion or the exercise of the licensee’s own judgment.26

27. CONFIDENTIAL INFORMATION FAQs27

28. CONFIDENTIAL INFORMATION FAQQ: You do a listing presentation. You do NOT get the listing. However, during the listing presentation you learn that the sellers are divorcing, are very motivated to sell, and have no loan on the home. The next week you have a buyer client that shows an interest in the property. Can you disclose what you learned during the course of your listing presentation?A: No.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.28

29. CONFIDENTIAL INFORMATION FAQQ: You are standing at the copier in your office, you hear a listing agent speaking about the dire circumstances of a seller. Is it alright to pass this information onto a buyer that you are representing?A: No. This would be releasing confidential information about a current or past client of the broker. Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.29

30. CONFIDENTIAL INFORMATION FAQQ: You are a buyer’s agent representing two buyers searching for homes in the same price range and the same area. Both buyers decide to make an offer on the same property. Can you prepare both offers?A: No. There is a conflict of interest. Should you encounter this circumstance, speak with your broker, office manager, or team leader about how best to handle the situation.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.30

31. CONFIDENTIAL INFORMATION FAQQ: Confidentiality – does it ever end?A: Only if the party consents in writing to the disclosure. This includes clients, past clients, and prospective sellers that have interviewed a licensee for a potential listing agent.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.31

32. Informing the public whom you represent:THENBROKERAGE RELATIONSHIP DISCLOSUREUpon first contact licensees must disclose which transaction party they represent.If first contact is not face-to-faceSeller’s agent - Disclose that you represent SellerBuyer’s agent - Disclose that you represent BuyerDisclose through the same medium in which contact occurred – phone, email, text, etc.At first face-to-face contact, use Understanding Whom the Real Estate Agent RepresentsDisclosure must occur not later than the first scheduled face-to-face contact with the seller or lessor or the buyer or lessee32

33. BROKERAGE RELATIONSHIP DISCLOSURE FORM(UNDERSTANDING WHOM THE REAL ESTATE AGENT REPRESENTS)No form required to be signed by client with whom you have entered into a brokerage agreementIf you are a Subagent (Seller’s Agent):Seller’s Agent → BuyerIf you are a Seller’s Agent and there is no Subagent or Buyer’s AgentSeller’s Agent → BuyerIf you are a Buyer’s Agent and there is no Seller’s Agent (e.g., FSBO)Buyer’s Agent → SellerProvide a copy to the parties and keep a copy in the file for yourself.33

34. BROKERAGE RELATIONSHIP DISCLOSURE FORM(UNDERSTANDING WHOM THE REAL ESTATE AGENT REPRESENTS)Q: You are meeting with a Buyer that wishes to see a home listed with another brokerage. She has declined representation; but, still wishes to view homes. How do you proceed?A: The Buyer, is UNREPRESENTED. You will be a subagent of the seller and should give them the Understanding Whom form stating that you are the subagent of the Seller. You have met the requirements of the law. Whether the Buyer chooses to sign, will determine whether or not you have to fill out the certification.  Reminder: Provide a copy to the parties and keep a copy for yourself.34

35. Q: The Buyer refused to sign, what should I do?A: If the Buyer does not wish to sign, you must self-certify at the bottom. Proceed with the showing.Reminder: Provide a copy to the parties and keep a copy for yourself.BROKERAGE RELATIONSHIP DISCLOSURE FORM(UNDERSTANDING WHOM THE REAL ESTATE AGENT REPRESENTS)35

36. BROKERAGE RELATIONSHIP DISCLOSURE FORM(OPEN HOUSE DISCLOSURE)Open HouseComply by display of Notice published by MRECMust be printed on 8½” x 11” paper minimum, in color and conspicuously displayed.Division of Occupational and Professional LicensingMaryland Real Estate Commission36

37. BROKERAGE RELATIONSHIP DISCLOSURE FAQs37

38. BROKERAGE RELATIONSHIP DISCLOSURE FAQQ: Does Maryland law require all buyers and sellers to sign Understanding Whom Real Estate Agents Represent?A: No. The buyer or seller has the option to refuse signing the Understanding Whom form. In such cases, the licensee is required to sign the certification section - beneath the asterisks and below the buyer signature lines - to indicate that the disclosure has been made and that the buyer or seller was unable or unwilling to sign.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.38

39. BROKERAGE RELATIONSHIP DISCLOSURE FAQQ: I have received an internet lead. How do I properly indicate who I represent in my initial communications?A: When buyers complete online inquiry forms, frequently they are not aware whether they are reaching out to a buyer’s or seller’s agent. It is best to get the disclosure out of the way in the initial phone, email, or text communication. For example: Thank you for reaching out about buyer agent assistance with 123 Main Street. How can I assist you? If you are representing the seller: Thank you for reaching out for more information about 123 Main Street. I am the seller’s agent for this home. How can I assist you?Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.39

40. BROKERAGE RELATIONSHIP DISCLOSURE FAQQ: Is it required that we give the agency disclosure to attendees of an open house, even when they have a brokerage agreement with another broker?A: No, but you must have the MREC Open House Disclosure Sign printed on 8 ½ by 11 paper in color and conspicuously displayed.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.40

41. BROKERAGE RELATIONSHIP DISCLOSURE FAQQ: Folks arrive at my open house, I ask if they are represented by another agent, they say no, but subsequently I discover that they are under a brokerage agreement with another agent. What should I do?A: At the open house, your responsibility is to make sure you have the MREC Open House Disclosure Sign conspicuously displayed in color and abide by Maryland laws regarding the proper treatment of clients and customers. Should an issue arise where you believe a buyer has misrepresented their representation status, you should immediately contact your broker, office manager or team leader for further guidance.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.41

42. DUAL AGENCYDUALAGENCYBroker or DesigneeIntra-company AgentSellerIntra-company AgentBuyer42

43. DUAL AGENCYSingle agent dual agency prohibited in Maryland.Dual AgencySalesperson RyanSeller StephenClientBuyer KristineClientINCORRECT43

44. DUAL AGENCYA Broker must have 3 people minimum in the brokerage to engage in dual agency transactions.The Broker may never serve as an intra-company agent in a transaction.Dual AgencyBroker CelineSeller RodneyClientBuyer MichelleClientINCORRECT44

45. DUAL AGENCYRather than serve as a direct participant in the transaction, the Broker in a Dual Agency transaction designates the Salespersons or Associate Brokers who will be directly handling the brokerage’s Buyer and Seller client transaction.Buyer and Seller agents are assigned to act as intra-company agentsDual Agent cannot also be intra-company agentBroker or a Branch Office Manager may be designated by the Broker as their Dual Agent.Keep in mind:45

46. DUAL AGENCYIntra-company agent shall provide same services to client as agent in a transaction that does not involve dual agencyIncluding advising client as to price and negotiation strategyIntra-Company AgentIntra-company agents MUST keep confidential information CONFIDENTIAL, except to the Dual AgentBroker BobDual AgentAssociate Broker DwayneIntra-company Agent for SellerSalesperson EllenIntra-company Agent for BuyerCORRECT46

47. DUAL AGENCYMay be signed at time of disclosureIf party has previously signed the Consent for Dual Agency formSeller must affirm consent for the sale to a particular buyer Buyer must affirm consent for the purchase of a particular propertyAffirmation is accomplished on the lines provided on Page 2 of the formConsent For Dual Agency Form47

48. DUAL AGENCYIf party has previously signed a Consent for Dual Agency form (most likely)Seller must affirm consent for the sale to a particular buyer Buyer must affirm consent for the purchase of a particular propertyAffirmation is accomplished on the lines provided on Page 2 of the formConsent For Dual Agency Form48

49. DUAL AGENCYDual Agent may assign two members of a team as intra-company agents for Seller and Buyer in same transactionParties must be notified in writing prior to the contract being written, thatLicensees are part of same teamTeam could have financial interest in outcome of the transactionTeam Member/Leader may not be a dual agent in an intra-team transaction.Dual Agency Within Team49

50. DUAL AGENCYA licensee may withdraw from representing a client who refuses to consent to a disclosed dual agencyDoes not limit the agent who terminated dual agency from continuing to represent client in other non-dual agency transactionsIf a financial bonus is offered to an agent who sells property that is listed with his company, this fact must be disclosed in writing to each partyFinal Thoughts:50

51. DUAL AGENCY DISCLOSURE FAQs51

52. DUAL AGENCY FAQQ: What are the proper steps to take prior to showing a home listed with my brokerage to my buyer client?A: Prior to viewing the property in-question, it is the buyer agent’s responsibility to confirm that the seller has agreed to dual agency. In addition, it is the buyer agent’s responsibility to have a signed brokerage agreement in place as well as a signed MREC Consent for Dual Agency form with the upper portion of Page 2 completed and signed by the buyer.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.52

53. DUAL AGENCY FAQQ: Does Maryland law require all buyers and sellers to sign Understanding Whom Real Estate Agents Represent and Consent for Dual Agency forms.A: No. The buyer or seller has the option to refuse signing the Understanding Whom form. In such cases, the licensee is required to sign the certification section – beneath the asterisks and below the buyer signature lines – to indicate that the disclosure has been made and that the buyer or seller was unable or unwilling to sign.In cases, where the form was used to show home to an unrepresented prospective buyer or tenant, the listing agent should arrive at the appointment with two copies of the document. Two signed copies should be executed – one of which goes to the customer and the other should go in the agent’s listing file. It is also acceptable to send the document out for electronic signature in advance of the appointment. Documents should be filed in the client file and retained for a period of 5 years.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.53

54. DUAL AGENCY FAQQ: You are a buyer’s agent who is part of a team. Can you represent a purchaser regarding another member of the teams’ listing? Can you interact on behalf of the seller during the transaction?A: The broker – not the team leader -- may designate two members of a team as intra-company agents for the buyer and the seller in the same transaction. This can only occur if the parties have FIRST been advised in writing that the licensees are part of the same team and the team could have a financial interest in the outcome of the transaction. In addition, neither of the broker designees may be the team leader. The broker must ensure that both parties have acknowledged in writing receipt of a Notification of Dual Agency within a Team form PRIOR to designating two team members as intra-company agents in a transaction.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.54

55. DUAL AGENCY FAQQ: I am an intra-company agent representing the buyer in a transaction. All disclosures and forms required by law have been signed. The listing intra-company agent is going on vacation and will be gone when some inspections are scheduled. The listing agent has asked me to “handle” the inspections and negotiate directly with the seller while he is gone. Can I do this?A: No. The broker or a designee of the broker must assign another intra-company agent to represent the seller during the listing agent’s absence to negotiate on the seller’s behalf. It is the responsibility of the vacationing agent to take proactive steps and bring their absence to the attention of the broker or designee and request the assignment of another agent to provide coverage.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.55

56. QUESTIONS56

57. CLOSING57

58. ADDITIONAL FAQs58

59. Frequently Asked QuestionsQ: Can I exclude my current and future listings from the brokerage agreement? Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.A: Not without written informed consent. 59

60. Frequently Asked QuestionsQ: Your neighbor calls you and tells you that they were talking to a friend at work about selling their home. The friend came to see the house on the weekend and wants to make an offer. They ask you just “do the paperwork” for them for a negotiated fee. Can you do this? Can you do this for free? A: Pursuant to the Real Estate Brokerage Act you cannot provide real estate brokerage services without a written brokerage agreement. The fee would be decided by your broker and the party.Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.60

61. Frequently Asked QuestionsQ: You are a buyer’s agent for a property under contract with a listing agent that is slow to return calls, provide required paperwork, etc. You are contacted by the seller who has also been unable to reach the agent with questions regarding the closing and progress of the contract. Is it appropriate to discuss this with the seller? After all it is in my client’s best interest to get this home to closing. A. It is inappropriate to interact with the seller directly without the express permission of the broker who represents the seller. In such a circumstance, you should provide the seller with the contact information for the listing broker. In addition, you should follow-up with an email reporting the exchange directly to the listing broker with carbon copies to the listing agent, team leader and office manager (if applicable), and broker (if your management structure does not include a team leader or office manager).Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.61

62. Frequently Asked QuestionsQ: You are a listing agent on a home and receive an offer from a buyer’s agent. The buyer’s agent calls you and asks advice about what addenda need to be part of the offer and tells you that this is the first offer that they have prepared. Is it ok to assist the new agent in what the contract should include?  A: No. Tell them to go see their broker or office manager. If problems of this nature persist throughout the transaction, bring them to the attention of your team leader, office manager, or broker in order for the issues to be addressed at a more senior level. Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.62

63. Frequently Asked QuestionsQ: You are a buyer’s agent preparing an offer for a home listed by a limited services brokerage firm. The listing requires you to call the seller directly to present offers. Is it your responsibility to explain the contract offer to the seller? What do you do? A: No, it is not your responsibility to explain the contract. Present the offer and answer questions about the offer but give no advice. Refer them back to the listing broker. Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.63

64. Frequently Asked QuestionsQ: You are a listing agent. An investor calls to see the property, you make the appropriate disclosures. The investor wants to write an offer for 50% of the current asking price. Can you refuse to write the offer? A: No. You must prepare the offer and present to your seller.  Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.64

65. Frequently Asked QuestionsQ: What if someone asks you a specific question about a property as to whether someone was murdered or died or something that is public knowledge but not required to be disclosed, how do you answer a question about a stigmatized property? A: Suggest that they check the public records regarding the property.  (See Section 17-322.1 of the Real Estate Brokers Act) Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.65

66. Frequently Asked QuestionsQ: I am instituting a new marketing system to boost my listings. I will begin by contacting the owners of cancelled, expired, and withdrawn MLS listings about listing their homes. Can I do this? A: While cancelled and expired MLS listings typically indicate the end of a brokerage relationship between a seller and a broker, withdrawn listings do not. According to MLS rules as of July 2019, a listing in “Withdrawn” status indicates that the home has been removed from the market; however, a relationship still exists between the seller and the listing brokerage. Therefore, under COMAR is it not appropriate to solicit these sellers, unless you can confirm their representation status, as a source of business Disclaimer: While MREC has made every attempt to ensure the accuracy, completeness, and timeliness of this document, it makes no guarantee or warranty, either expressed or implied, concerning the accuracy, completeness, or timeliness of the content of this document. MREC assumes no responsibility for use of, or reliance on, this document by the public or licensees of the MREC. In no event, shall MREC be liable for any direct, indirect, incidental, special, exemplary, or consequential damages arising in any way from the use of this document.66