If a sub-agent represents the seller and the buyer has no agency agreement with the licensee, what must the buyer be informed of?

If a sub-agent represents the seller and the buyer has no agency agreement with the licensee, what must the buyer be informed of?

• A. The sub-agent's representation of the seller
• B. The buyer's own representation
• C. No disclosure required
• D. The property is not for sale

Answer: (A)

In Maryland, when a licensee acts as a sub-agent for the seller, anyone buying without their own agency agreement with that licensee is considered a customer, not a client. The buyer must be informed that the licensee is representing the seller through the sub-agent arrangement. This disclosure makes clear whose interests the licensee is protecting and that the buyer does not have an agent working for them unless they choose to enter into a buyer-agent agreement. If the buyer wants representation, they should pursue a buyer agency agreement with a licensee.

In Maryland, when a licensee acts as a sub-agent for the seller, anyone buying without their own agency agreement with that licensee is considered a customer, not a client. The buyer must be informed that the licensee is representing the seller through the sub-agent arrangement. This disclosure makes clear whose interests the licensee is protecting and that the buyer does not have an agent working for them unless they choose to enter into a buyer-agent agreement. If the buyer wants representation, they should pursue a buyer agency agreement with a licensee.