Which statement is true regarding dual agency disclosure and informed consent in Maryland?

The correct answer highlights an essential requirement within Maryland real estate practices concerning dual agency. In this context, written consent and disclosure are critical because they ensure that all parties involved understand the nature of the agency relationship and the inherent conflicts that may arise when an agent represents both the buyer and the seller in a transaction.

In Maryland, dual agency occurs when a single real estate agent or brokerage represents both the buyer and the seller, which can create potential conflicts of interest. To address these conflicts and protect the interests of both parties, Maryland law mandates that the agent fully disclose their dual agency status and obtain informed consent from both the buyer and the seller in writing.

This requirement for formal documentation not only helps maintain transparency but also reinforces the legal and ethical obligations of the agent to uphold their clients' interests. When clients provide written consent, they acknowledge their understanding of the dual agency arrangement, which is a critical safeguard in real estate transactions.

The other options do not align with the legal framework surrounding dual agency in Maryland. Dual agency is not restricted to seller/buyer transactions alone, and it is lawful when there is proper consent. Moreover, dual agency is legal in Maryland, provided the appropriate disclosures and consents are secured. The provision of written consent strengthens the legitimacy