What must happen for dual agency to be legal in Maryland?

For dual agency to be legal in Maryland, both clients must give written consent. Dual agency occurs when a real estate agent represents both the buyer and the seller in a transaction. Due to the potential conflicts of interest inherent in representing both parties, Maryland law requires that both clients are fully informed and agree to this arrangement.

Written consent is critical because it ensures that both parties understand the implications of dual agency, including the limited capacity of the agent to advocate for one party over the other. This safeguard is intended to protect the interests of all parties involved in the transaction, highlighting the importance of transparency and mutual agreement in real estate dealings.

The other options do not fulfill the legal requirements for dual agency in Maryland. A verbal agreement would not provide the necessary documentation or clarity. The involvement of a third-party mediator is not mandated under Maryland law for dual agency arrangements. Lastly, it is insufficient for only the buyer to consent in writing; both the buyer and the seller must provide their written consent for dual agency to be valid.