Maryland Agency Law Guide for the Real Estate Exam

Maryland Agency Law Guide

Agency law questions appear on both the national and state sections of the Maryland real estate exam. Maryland has specific rules around buyer agency disclosure, the Intra-Company Agent designation, and brokerage agreements that differ from other states. These distinctions are specifically tested.

Maryland Agency Relationships

Seller's Agent (Listing Agent) — Represents the seller exclusively. Owes fiduciary duties: loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.

Buyer's Agent — Represents the buyer exclusively. Maryland requires written disclosure of buyer agency at first substantial contact.

Dual Agent — Represents both buyer and seller in the same transaction with written informed consent of both parties. A dual agent cannot fully advocate for either party.

Intra-Company Agent — Maryland's unique designation for when two agents within the same brokerage represent the buyer and seller in the same transaction. Each agent acts as a designated agent for their respective client. This avoids full dual agency. The broker becomes a dual agent, but the individual agents remain advocates for their respective clients.

Non-Agent (Facilitator) — Similar to other states, Maryland allows a licensee to assist a buyer or seller without forming an agency relationship, with appropriate disclosure.

Key Maryland-Specific Rules

Written Buyer Agency Disclosure at First Substantial Contact. Maryland requires a written disclosure of agency at the first substantial contact with a buyer. "First substantial contact" means the first real conversation where real estate services are provided — typically before any property is shown. This is a frequently tested Maryland-specific rule.

Brokerage Agreements Must Be in Writing. Maryland law requires all brokerage agreements (both listing agreements and buyer representation agreements) to be in writing.

Intra-Company Agent Rules. When two agents in the same firm represent opposite parties, both must be designated as Intra-Company Agents. The broker becomes a dual agent. Both clients must consent in writing.

Fiduciary Duties

For any agency relationship, the agent owes: - Loyalty — Put the client's interests first - Obedience — Follow lawful instructions - Disclosure — Share all material facts known - Confidentiality — Don't share client secrets without authorization - Accounting — Handle client funds properly - Reasonable care — Use professional competence

When acting as a dual agent, full loyalty and disclosure of confidential information to either party is not possible — which is why informed consent is required.

Common Exam Mistakes

Confusing disclosure timing. Maryland requires agency disclosure at first substantial contact — not at the time of showing or offer. Candidates who memorize "before showing" miss this.

Forgetting written requirements. Oral brokerage agreements are not enforceable in Maryland.

Missing the Intra-Company Agent distinction. An exam question will describe two agents from the same firm representing opposite parties and ask what they're called. The answer is Intra-Company Agents.

Practice Maryland Agency Questions

[CARealestate.com/states/maryland](https://carealestate.com/states/maryland) has agency law practice questions covering disclosure timing, Intra-Company Agent rules, and dual agency. 5 free questions — no signup needed.