Agency (alternative)
Under Maryland law, a listing broker may share commission with a cooperating broker from another brokerage who represents the buyer. This is:
AProhibited unless MREC approves each transaction
BPermitted through the MLS cooperative compensation agreement✓ Correct
COnly allowed if both brokers work for the same brokerage
DIllegal under anti-trust law
Explanation
Maryland listing brokers routinely offer and pay cooperative compensation to buyer's agents through MLS arrangements, which is a standard and permissible practice in real estate transactions.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Math Concepts
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