FAQ: Open Houses - Maryland Real Estate Commission Rules
|
FREQUENTLY ASKED QUESTIONS ---
OPEN HOUSES IN MARYLAND The Maryland Real Estate Commission is pleased to present this set of Frequently Asked Questions regarding agency and open houses. These FAQs represent the majority of inquiries we receive about how to conduct an open house without running into problems with other agents or with the buyers and sellers they represent. If you have questions that aren't addressed in these FAQs, please contact us.
Q. If a licensee affiliated with the listing broker meets a prospective buyer at a seller's open house, and the buyer is not interested in that property, may the licensee tell the prospective buyer that he or she can help the buyer find a property and give the buyer the licensee's contact information?
A. A licensee, while conducting an open house, and during any follow-up with the consumer after the open house, must communicate clearly to the consumer that the licensee is representing only the seller and may not discuss other homes (except as to how the subject property compares favorably with other homes). Only if the licensee has done everything possible to interest the consumer in purchasing the property, and the consumer clearly states that he or she has no interest in purchasing the property, may a licensee offer to exchange contact information and to assist the consumer at a time after the open house, for the express purpose of representing the consumer as buyer's agent in locating and negotiating the purchase of another property and/or acting as a seller's agent for the listing of the consumer's home.
Q. Given the guidance above, may a seller give permission for a licensee to discuss other potential properties at an open house?
A. No. The requirement that the licensee work to protect and promote the interests of the seller is a responsibility imposed under the real estate law and regulations. The fact that a seller may give permission to a licensee to ignore or waive the protection does not relieve a licensee of obligations and responsibilities imposed upon him or her by the law. While conducting the open house, the licensee has a fiduciary duty to the seller and the legal obligation to promote and protect the interests of the seller for whom he or she is conducting the open house.
Q. May a licensee advertise multiple open houses together in the same advertisement? How about including information about other listings on the information sheet about the open house?
A. A licensee may advertise multiple open houses together in the same advertisement with the prior consent of all owners.
The information sheet is intended to assist in marketing that particular property. Information about other listings should be included only if that information promotes or assists the interests of the seller for whom the licensee is conducting the open house.
Q. Is a licensee required to provide the "Understanding Whom Real Estate Agents Represent" form to every prospective buyer who enters an open house?
A. No. The form does not have to be provided to every prospective buyer who enters the open house.
This issue was discussed in the Commission's Newsletter of Fall 2009. There the Commission stated: If a prospective buyer starts to look around, but does not ask any questions or engage the licensee in conversation, the licensee does not need to provide the Agency Disclosure form. If the prospective buyer begins to ask the licensee questions or disclose possibly confidential information, however, the licensee must then provide him or her with the form before continuing the discussion.
Q. If a licensee holds an open house for the listing agent, meets a prospective buyer, and later becomes the buyer's agent, may the licensee represent the buyer in the purchase of the house at which they met when it was open?
A. Yes, but only if the licensee does not disclose to the buyer any confidential information regarding the seller. Before commencing representation of the buyer, the licensee must ensure that the seller and buyer have each signed the Consent to Dual Agency form, and that the broker (or the broker's designee) as the dual agent has designated the licensee as the intra-company agent representing the buyer in the transaction.
Q. If a licensee has an existing buyer agency relationship, holds the open house for the listing agent, and discovers it's a perfect house for the licensee's buyer client, can he or she still represent his or her current client?
A. Given that the licensee was not the listing agent, and does not disclose to the buyer any confidential information regarding the seller, the licensee may represent his or her current client in the purchase as long as the seller and buyer consent in writing to dual agency. In addition, the broker (or the broker's designee) as dual agent designates the listing agent as intra-company agent acting on behalf of the seller and the licensee as the intra-company agent acting on behalf of his or her buyer.
Some agents still appear to be confused about the rules for open houses in Maryland. Hopefully, this post will clarify some questions.
 U.S. National Arboretum, Spring Flowers IMG_9045
Photograph by Roy Kelley using a Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs
|
Comments(42)