Buyer Agency in Maryland

DID YOU KNOW THAT IN THE STATE OF MARYLAND A REAL ESTATE AGENT MUST REPRESENT EITHER A BUYER OR A SELLER?

THE REAL ESTATE AGENT CAN NOT REPRESENT BOTH; THE AGENT MUST REPRESENT ONE OR THE OTHER, BUYER OR SELLER, BUT NOT BOTH.

IF YOU GO DIRECTLY TO A LISTING AGENT, THEN YOU ARE GOING TO THE AGENT WHO IS REPRESENTING THE SELLER.

THE LISTING AGENT MUST TREAT YOU FAIRLY AND CAN ASSIST YOU IN PREPARING A CONTRACT, BUT CAN NOT REPRESENT YOU. THIS IS NOT DUAL AGENCY!!

AGENTS ARE AFFILIATED WITH BROKERS. THE BROKERS CAN REPRESENT BOTH BUYER AND SELLER. HOWEVER WHEN THIS HAPPENS, THE BROKER APPOINTS AN AGENT TO REPRESENT THE SELLER AND ANOTHER AGENT TO REPRESENT THE BUYER. THESE AGENTS ARE CALLED INTRA-COMPANY AGENTS. THIS IS CONSIDERED DUAL AGENCY.

CAN YOU GET A BETTER DEAL WHEN YOU GO DIRECTLY TO THE LISTING AGENT? WILL THE AGENT CUT THEIR COMMISSION BECAUSE THERE IS NO OTHER AGENT TO PAY?

FIRST THE LISTING AGREEMENT IS A CONTRACT BETWEEN THE SELLER AND THE LISTING BROKER. THE TOTAL COMMISSION TO BE PAID BY THE SELLER IS TO THE LISTING BROKER AND TO NO OTHER BROKERS OR AGENTS.

THE LISTING BROKER WILL OFFER FROM THEIR COMMISSION A PORTION TO OTHER BROKERS AS AN INCENTIVE TO HAVE THE OTHER BROKERS' AGENTS SHOW THE PROPERTY.

WHETHER OR NOT ANOTHER BROKER IS INVOLVED IN THE SALE, THE SELLER'S TOTAL COMMISSION IS THE SAME.

THERE ARE SITUATIONS WHERE THE LISTING BROKER HAS AGREED TO A LOWER COMMISSION IF THERE IS NO OTHER BROKER INVOLVED, BUT THESE ARE RARE AND MUST BE DISCLOSED.

IF YOU GO DIRECTLY TO THE SELLER'S AGENT, THEN YOU WILL NOT HAVE SOMEONE ADVISING YOU ON PRICE, CONTRACT TERMS, PROPERTY CONDITION, AND SUCH.

Contact Ron Trzcinski at 410-935-5844 for more information.