What does dual agency in Maryland require from the agent?

Dual agency in Maryland occurs when an agent represents both the buyer and the seller in the same transaction. This situation requires the agent to maintain a delicate balance of loyalty to both clients. The correct answer emphasizes that full disclosure and consent from both parties are essential in this scenario.

This means that the agent must inform both the buyer and the seller about the dual agency relationship and obtain their consent to proceed in this manner. This obligation is critical in ensuring that both parties are aware of the potential conflicts of interest that might arise, as the agent is required to manage the expectations and best interests of both clients equally.

In terms of other choices, representation of only one party would negate the concept of dual agency. Negotiating terms with third parties does not specifically pertain to the nature of dual agency obligations, as it speaks more to agent interactions outside the dual relationship. Lastly, the idea of a separate agreement for each party implies distinct representation, which is not compatible with the principle of dual agency. Thus, the requirement for full disclosure and consent from both parties is not only correct but also fundamental to legal and ethical dual agency practices in Maryland.