Understanding Dual Agency in Maryland
In Maryland, a single agent cannot represent both parties ( Buyer and Seller) - it's illegal. However, "Dual Agency" is permitted, but it is defined differently than in most other states.
In Maryland "Dual Agency" applies to the status of the "Broker". Dual Agency can only occur when a listing agent and a buyer's agent, who both work for the same broker, become involved in a single transaction together. The Broker becomes the "dual agent". The seller is still represented by the same seller's agent, and the purchaser is still represented by the same buyer's agent. Although neither of the agent's relationships with their clients change, in a dual agency arrangement, they are now formally classified as "Intra-Company Agents".
At Re/Max Realty Centre Inc., Betty Buffington is the Broker. If Ann Joliet, a licensed Realtor, lists your home, she would be your "Seller's Agent". If a buyer's agent working for Betty Buffington, presented a contract on Ann's listing, both agents would now be classified as "Intra-Company agents. Betty would become a the Dual Agent, since both agents are working under her Broker's license.
In a transaction when a Dual Agency situation occurs, each agent still represents their client in the same capacity as in any other transaction.
"Dual Agency" must be disclosed to both buyer and seller and a special disclosure form accepting the "Dual Agency" arrangement must be approved and signed by all parties.