Agency (alternative)
When a Maryland agent refers a client to a related home inspection company and receives a fee, RESPA requires:
ANo disclosure since the inspector is a third party
BDisclosure of the affiliated business relationship and fee to the client✓ Correct
CApproval from MREC (alternative)
DThe fee must be returned to the client
Explanation
RESPA's Affiliated Business Arrangement (AfBA) disclosure rules require agents to disclose affiliated relationships with settlement service providers and any fees received, allowing consumers to choose other providers.
Related Maryland Agency (alternative) Questions
- In Maryland, a buyer's agent who knows their buyer is willing to pay full price should:
- A Maryland broker who represents both parties in a single transaction as a dual agent must disclose this to:
- A Maryland sub-agent of the seller discovers during a showing that the buyer is planning to demolish the home and build a larger one. The sub-agent should:
- A Maryland real estate firm where one agent listed a property and another showed the same property to a buyer they represent — without in-house agency disclosure — may have violated:
- Under Maryland's transaction brokerage model (non-agency), the facilitator:
- The Maryland agency disclosure law is primarily intended to ensure that consumers:
- In Maryland, a listing agent who earns additional compensation from a buyer's lender for referring the buyer's business without disclosure is:
- In Maryland, which form of agency creates the highest potential for conflict of interest?
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