If a licensee shows properties without an agreement, how might this affect their legal obligations?

In a situation where a licensee shows properties but does so without a formal agreement, the legal obligations can be quite nuanced. If the licensee is only obligated to the seller, this implies that the seller has a legal representation through the licensee despite the absence of a written agreement. In Maryland, when a licensee represents the seller, they have a fiduciary duty to act in the seller's best interests, including marketing the property and securing the highest price possible.

It is important to consider that, although there may not be a formal agreement in place, once a licensee begins to show properties to potential buyers, they establish some level of relationship with both parties. However, without a buyer's representation agreement, the licensee typically does not owe the same fiduciary duties to the buyer as they would to the seller. This can lead to complexities where the licensee may provide information to the buyer but without formal representation, their main obligations remain directed towards the seller.

This explanation highlights the circumstances under which the licensee's obligations can vary, reinforcing that the relationship typically leans toward representing the seller unless otherwise stated through a formal agreement with the buyer.