Ellen and Sadie signed an agreement to list Sadie's condo for sale. After the contract was signed, Sadie's father, Grant, offered to pay Ellen's commission as a housewarming present. Sadie's mom and stepdad, Linda and Rick, also chipped in. Who is Ellen's client?
Comprehensive and Detailed
Regardless of who pays the commission, the client is the person named in the agency agreement---in this case, Sadie, the property owner.
The Maryland Real Estate Brokers Act defines the client as the party with whom the broker or salesperson has an agency relationship, not necessarily the one providing compensation.
Third-party payments do not alter the contractual relationship or fiduciary duties.
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Law of Agency'' Module
Md. Business Occupations and Professions Article 17-530 -- Agency Relationship and Duties.
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