Md. Code Regs. 09.11.02.02

Current through Register Vol. 51, No. 22, November 1, 2024

Section 09.11.02.02 - Relations to the Client

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.

Md. Code Regs. 09.11.02.02

Regulation .02A-C amended effective March 17, 1976 (3:6 Md. R. 358)
Regulation .02D amended effective June 23, 1972
Regulation .02D amended effective March 17, 1976 (3:6 Md. R. 358); May 1, 2000 (27:8 Md. R. 798)
Regulation .02E-I amended effective March 17, 1976 (3:6 Md. R. 358)
Regulation .02F, G amended effective January 8, 2001 (27:26 Md. R. 2357)
Regulation .02J adopted as an emergency provision effective January 6, 1994 (21:2 Md. R. 94); emergency status expired July 1, 1994; adopted permanently effective July 18, 1994 (21:14 Md. R. 1228)
Regulation .02 amended effective July 19, 2004 (31:14 Md. R. 1078)
Regulation .02D amended effective April 11, 2005 (32:7 Md. R. 678); March 19, 2012 (39:5 Md. R. 381); April 15, 2013 (40:7 Md. R. 610)
Regulation .02F, G amended effective January 8, 2001 (27:26 Md. R. 2357)
Regulation .02 amended effective 42:9 Md. R. 646, eff.6/1/2015