(a) For transactions where the consumer hires a broker as a common law agent, and the broker agrees to become the consumer's common law agent, the common law of agency applies to the extent it is not inconsistent with applicable provisions of this chapter. (b) The duties of a licensee as a common law agent and corresponding liabilities of the client begin and terminate based upon the common law of agency. (c) Common law agency disclosure. — (1) All licensees in a common law agency relationship must disclose, in writing, whom they represent. This disclosure shall be made to all parties to a transaction who the licensee does not represent but with whom the licensee has substantive contact, such as prospective sellers, lessors, buyers and lessees. (2) This disclosure referenced in subsection (a) of this section shall be made at the first substantive contact between the licensee and the person the licensee does not represent. A listing broker who is not also the selling Broker and who has no substantive contact with the prospective buyer or lessee, need not make any agency disclosure to the prospective buyer or lessee. (3) The Commission may adopt rules and regulations to prescribe the form of disclosure to be used by licensees or minimum criteria for the form of disclosure. (4) Licensees shall not function in the capacity of a common law agent for transactions concerning a 1-to-4 family residential property unless they have established that relationship in writing and the policy of the broker is to represent only the seller or buyer as a single agent for each transaction and never as a dual agent.
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