4.5 Agency Disclosure

The Company mandates that its Agents will comply with the requirements of each jurisdiction and the applicable Agency Disclosure Requirements for any state in which the Company and its Agents are licensed.

Brokerage agreements shall be in writing and shall:

1. Be the local association-drafted brokerage agreement addenda.
2. Be completed once the licensee engages a client in an act of real estate that the client could not perform independent of the licensee. Note:
   1. It is not necessary to have all open house attendees sign a Brokerage Agreement.
   2. However, if a customer wants to engage in a relationship beyond attending the open house, it would be necessary to sign the required disclosures.
3. Be submitted to the Company after client signs in order to obtain EVP’s signature, delivery of broker-signed copy to client and filing in Paperless Pipeline.
4. Have a definite termination date.
5. State the amount of the brokerage fees and how and when such fees are to be paid. (In the event the licensee fails to disclose any additional commission or brokerage fee charged by the Company, it will be the licensee’s responsibility to pay this fee.)
6. State the services to be rendered by the licensee.
7. Include such other terms of the brokerage relationship as have been agreed to by the client and the licensee. For example, in the case of brokerage agreements entered into in conjunction with the client's

consent to dual representation or designated representation, the licensee will have the additional disclosures signed and submitted to the Company.

Maryland only:

• Agency Disclosure - Open Houses require a sign to be displayed: https://www.dllr.state.md.us/forms/mrecopenhouse.pdf

• In Maryland, upon first meeting, buyers need to be made aware of agency relationships. The Buyer or Potential Seller needs to sign the “Understanding Whom Agent Represents.” A FSBO would need to sign if bringing a Buyer to see the house, and the opposite is true for Buyers seeing a listing with the Agent the first time if there is no Buyer Agency Agreement already signed.

• The sign is a must since it states that an Agent is not required to have an agency agreement signed at an Open House. Agents used to have to get Buyers to sign this form before talking about the house, now the Agent just needs to have this sign displayed in a conspicuous location, preferably where Buyers sign in.