Dual agency in Maryland is prohibited by default: a broker may represent both the buyer and the seller in the same transaction only after obtaining written informed consent from both parties and assigning two separate licensed agents from the brokerage to handle each side. The governing law is Section 17-530.1 of the Business Occupations and Professions Article, and brokers who ignore its requirements face monetary penalties, license suspension, or revocation.1Maryland General Assembly. Maryland Code Business Occupations and Professions 17-530.1
When Dual Agency Is Allowed
The statute starts from a flat prohibition. No licensed broker, associate broker, or salesperson may act as a dual agent except under the specific conditions in Section 17-530.1. Dual agency is not a default that agents can slide into; it requires deliberate steps and documented consent before the broker can represent both sides.1Maryland General Assembly. Maryland Code Business Occupations and Professions 17-530.1
Only the licensed real estate broker, or a branch office manager designated under Section 17-518(d), can serve as the dual agent. A rank-and-file salesperson cannot declare themselves the dual agent on their own. Whoever occupies that role carries responsibility for the entire arrangement and must ensure every procedural requirement is met before the deal moves forward.
The Two Intra-Company Agents
Once dual agency is established, the broker cannot handle both sides personally. Maryland law requires the dual agent to assign two separate licensed professionals from within the brokerage: one intra-company agent for the seller (or lessor) and another for the buyer (or lessee). Both must be licensed associate brokers or salespersons affiliated with the brokerage.1Maryland General Assembly. Maryland Code Business Occupations and Professions 17-530.1
A point many agents miss: the dual agent and the intra-company agent cannot be the same person. The statute explicitly bars the dual agent from also serving as an intra-company agent in the same transaction. The separation is structural, meant to keep confidential information from flowing between the two sides.
Intra-company agents are not watered-down representatives. They must provide the same services they would in a standard, non-dual-agency transaction, including advice on price and negotiation strategy. A buyer client working with an intra-company agent should receive the same caliber of representation as any exclusive buyer client, provided the dual agency framework has been established correctly.
What Cannot Be Shared Between Sides
The confidentiality rules are where most compliance trouble starts. The dual agent broker cannot disclose confidential information to either the buyer or seller, or to either party’s intra-company agent, in the same transaction. Intra-company agents face a parallel restriction: they may share confidential information with the dual agent but not with anyone else, unless the statute or another provision of the title requires it.1Maryland General Assembly. Maryland Code Business Occupations and Professions 17-530.1
The statute spells out four specific prohibited disclosures:
- A dual agent cannot reveal why a seller needs to sell or why a buyer needs to buy. Motivation and urgency are off limits.
- Unless the seller authorizes it, neither the dual agent nor an intra-company agent may tell a buyer that the seller would accept less than the listing price, or suggest in the buyer’s presence that the seller accept a lower price.
- Unless the buyer authorizes it, neither the dual agent nor an intra-company agent may tell a seller that the buyer would pay more than the offered price, or suggest in the seller’s presence that the buyer raise the offer.
- If certain facts are confidential, the dual agent cannot disclose information that would lead the seller to sell.
The written consent itself must also inform both parties that the dual agent does not owe undivided loyalty to either side and that a conflict of interest may exist because the buyer’s and seller’s interests can differ.
The Consent Form and Property-Specific Affirmation
Written informed consent means more than a signature at the bottom of a form. The document has to explain what dual agency involves and what the parties are giving up. The Maryland Department of Labor publishes the official Consent for Dual Agency form, which serves as the standard disclosure document.2Maryland Department of Labor. Consent for Dual Agency
The consent form must notify both parties that the broker represents both sides, that the broker does not owe undivided loyalty, that motivation and urgency cannot be disclosed, and that price flexibility cannot be revealed without authorization.
Timing is the trap. If a buyer previously signed a Consent for Dual Agency form, the buyer must separately affirm consent for the purchase of a specific property before any offer is presented to the seller. A seller who previously signed must affirm consent for the sale to a specific buyer before accepting an offer.2Maryland Department of Labor. Consent for Dual Agency The written consent must include an affirmation identifying the property and the buyer once a written contract for sale or lease is signed. A blanket form signed months earlier is not enough on its own.
Financial Bonus Disclosure
If the brokerage offers any financial bonuses to affiliated licensees for the sale or lease of property listed with that brokerage, the broker must disclose that fact in writing to every party in the transaction.1Maryland General Assembly. Maryland Code Business Occupations and Professions 17-530.1 The requirement is often overlooked because it sits apart from the consent form itself, but it applies anytime an in-house incentive structure could affect how agents steer a deal.
If a Party Says No
Either side can refuse dual agency. If the buyer or seller declines, the brokerage must withdraw its agency agreement for that property with the buyer, the seller, or both. A seller whose agreement is terminated can handle the sale without an agent or find representation through a different brokerage. A buyer whose agreement is terminated can sign with a different broker or proceed as a non-represented customer, assisted by the seller’s agent or another agent in the company rather than represented as a client.
Brokers cannot pressure either party into consenting. When someone refuses, the brokerage adjusts its representation structure; it does not keep both sides on anyway.
Penalties for Getting It Wrong
The Maryland Real Estate Commission can deny, reprimand, suspend, or revoke a license under Section 17-322 for conduct including willful misrepresentation, negligent failure to disclose material facts, or fraudulent use of a license.3Maryland General Assembly. Maryland Code Business Occupations and Professions 17-322 The Commission can also impose monetary penalties of up to $5,000 per violation, calibrated to the seriousness of the conduct, the harm caused, the licensee’s good faith, and any prior violations.
Repeat offenders face escalating fines under Section 17-613: up to $5,000 for a first violation, $15,000 for a second, and $25,000 for a third or subsequent violation of any provision of the title.4Maryland General Assembly. Maryland Code Business Occupations and Professions 17-613 The Commission must provide notice and an opportunity for a hearing before any final disciplinary action.
Regulatory penalties are not the only risk. A buyer or seller who suffers financial loss because a broker failed to follow disclosure requirements or leaked confidential information during a dual agency arrangement can pursue damages through the courts. Signed consent forms with property-specific affirmations, bonus disclosures where applicable, and records showing that intra-company agents were properly assigned are the clearest protection against both regulatory action and civil claims.