If you’re starting the homebuying process in Maryland, one of the most important things to understand is whether you are working with a real estate professional as a consumer or a client. The difference affects what duties the agent owes you and whether they are legally representing your interests.
When am I a Consumer?
In Maryland, you are considered a consumer when you interact with a real estate agent but have not yet signed a brokerage agreement. But even without that agreement, you are still owed certain duties by real estate professionals. The agent must:
- Treat you honestly and fairly
- Disclose material facts about a property
- Follow state real estate laws
However, they do not represent you and are not required to advocate for your best interests in negotiations or pricing.
Potential homebuyers are typically consumers early in the home search when you begin to interview agents or request property information.
When am I a Client?
You become a client when you sign a written brokerage agreement with a real estate brokerage. For buyers, this relationship typically occurs through a buyer agency agreement, which establishes that the agent is working on your behalf during the home search and purchase process. This agency relationship is formed for others working with real estate professionals with other types of brokerage agreements.
Once you are a client, the agent has legal duties that include:
- Loyalty – acting in your best interests
- Confidentiality – protecting sensitive information like your budget or negotiation strategy
- Disclosure – sharing valuable information that could affect your decisions
- Reasonable care and diligence in representing you
It is important to note that Maryland law requires a written brokerage agreement before an agent can perform real estate brokerage services and activities on your behalf, including showing homes for sale. Learn more about written brokerage agreements in our article.
Why the Difference Matters
Understanding whether you are a consumer or a client helps clarify who the real estate professional is representing in a transaction. If you want advice on pricing and strategy, someone to negotiate on your behalf, and protection of your – and only your – interests during the transaction, you will need to establish a client relationship through a written agreement.
Before relying on advice from a real estate professional, ask whether you are working with them as a consumer or a client. Knowing the difference ensures you understand the level of representation and protection you have as you move through the Maryland homebuying process.
For more on different real estate representation types, download our buyer toolkit.
