Current through Register Vol. 51, No. 19, September 20, 2024
A. In
accepting employment as an agent, the licensee shall protect and promote the
interests of the client. This obligation of absolute fidelity to the client's
interest is primary, but it does not relieve the licensee from the statutory
obligations towards the other parties to the transaction.
B. In justice to those who place their
interests in the licensee's care, the licensee shall endeavor always to be
informed regarding laws, proposed legislation, governmental orders, and other
essential information and public policies which affect those
interests.
C. A licensee may not
accept compensation from more than one party to a transaction without the full
knowledge of all the parties.
D.
Disclosure Requirement for Licensees and Employees Buying, Selling, Leasing,
and Renting Property.
(1) A licensee seeking
to acquire an interest in real property must disclose the licensee's licensing
status in writing to the seller or lessor of the property no later than the
time that an offer is submitted.
(2) The disclosure requirement of §D(1)
of this regulation also applies when the licensee is acting on behalf of or
representing:
(a) A member of the licensee's
immediate family;
(b) An entity in
which the licensee has an ownership interest;
(c) An employee of the real estate brokerage
with which the licensee is affiliated; or
(d) An employee of a team or group of which
the licensee is a member.
(3) A licensee seeking to sell or lease real
property owned by the licensee must disclose that ownership interest in writing
at the time that the property is offered for sale or lease.
(4) The disclosure requirement of §D(3)
of this regulation also applies when the licensee is acting on behalf of or
representing:
(a) A member of the licensee's
immediate family;
(b) An entity in
which the licensee has an ownership interest;
(c) An employee of the real estate brokerage
with which the licensee is affiliated; or
(d) An employee of a team or group of which
the licensee is a member.
(5) Written notice required by §D(3) and
(4) of this regulation may be given through the multiple list service and
through any other written means effective in bringing the information to the
attention of prospective buyers or lessees.
(6) The licensee's immediate family shall
include the licensee's spouse or domestic partner, child, stepchild, child's
spouse, stepchild's spouse, parent, sibling, grandparent, or
grandchild.
E. When
acting as agent in the management of property, the licensee may not accept any
commission, rebate, or profit on expenditures made for an owner without the
owner's knowledge and consent.
F.
Competitive Market Analysis.
(1) A licensee
may prepare a competitive market analysis of a specific property for a client,
prospective client, or customer. The analysis shall include the following
statement printed conspicuously and without change on the first page:
COMPETITIVE MARKET ANALYSIS DISCLOSURE
This analysis is not an appraisal. It is intended only for
the purpose of assisting buyers or sellers or prospective buyers or sellers in
deciding the listing, offering, or sale price of the real property.
(2) If a licensee includes a
property in which the licensee has an interest as one of the comparables, that
fact shall be disclosed to the client, prospective client, or
customer.
G. The
licensee may not submit or advertise property without authority. In any
offering, the price quoted may not be other than that agreed upon with the
owners as the offering price.
H.
Presentation of Offers.
(1) A licensee shall
present all written offers or counteroffers received by the licensee to the
client, as required by Business Occupations and Professions Article, §17-532(c)(ii)(3),
Annotated Code of Maryland, in accordance with §H(2) of this regulation.
(2) Unless otherwise specified in
the brokerage agreement, all written offers or counteroffers shall be presented
to the client:
(a). In full; and
(b). In hard copy or electronic
format.
I.
Unexcused failure to ensure that a prospective purchaser has the real property
disclosure statement or disclaimer statement in hand before the submission of
an offer to purchase may be considered a violation of the licensee's obligation
to protect and promote the interests of the licensee's client when this failure
could result in a contract becoming void or voidable.
