If a licensee has a dual agency relationship, what is required regarding disclosure?

In a dual agency relationship in Maryland, a licensee is representing both the buyer and the seller in a real estate transaction. The requirement for disclosure is rooted in the need for transparency and informed consent from both parties involved. Therefore, providing disclosure in writing ensures that both the buyer and the seller have a clear and tangible acknowledgment of the dual agency relationship and its implications.

Written disclosure is important because it helps protect the interests of both parties by ensuring they are aware of the potential conflicts of interest that can arise when one agent is representing both sides of a transaction. This written communication serves as a formal record that both parties have been informed and have agreed to the dual agency arrangement, which can help prevent future disputes or misunderstandings.

While verbal agreements can occur, the clarity and formality of a written disclosure offer greater legal protections and comply with Maryland's regulations on real estate practices. In this way, the requirement for a written disclosure helps to uphold the principles of fair dealing and transparency in real estate transactions.