Key Takeaways
- Maine recognizes three types of brokerage relationships: seller agency, buyer agency, and transaction brokerage
- Transaction brokerage is a unique Maine option where the broker facilitates the transaction without representing either party
- Licensees must provide the Real Estate Brokerage Relationships form to all prospective clients/customers
- Written brokerage agreements are required before providing brokerage services
- Designated agency allows different agents within the same firm to represent buyer and seller
Maine Agency Relationships
Maine law defines the types of brokerage relationships that real estate licensees may have with consumers. Understanding these relationships is critical for the state exam.
Types of Brokerage Relationships in Maine
1. Seller Agency
A seller's agent represents the seller exclusively:
| Duty | Description |
|---|---|
| Loyalty | Undivided loyalty to the seller |
| Confidentiality | Protect seller's confidential information |
| Disclosure | Disclose all material facts to seller |
| Obedience | Follow seller's lawful instructions |
| Accounting | Account for all funds |
| Care | Exercise reasonable care and diligence |
2. Buyer Agency
A buyer's agent represents the buyer exclusively:
| Duty | Description |
|---|---|
| Loyalty | Undivided loyalty to the buyer |
| Confidentiality | Protect buyer's confidential information |
| Disclosure | Disclose all material facts to buyer |
| Obedience | Follow buyer's lawful instructions |
| Accounting | Account for all funds |
| Care | Exercise reasonable care and diligence |
3. Transaction Brokerage (Unique to Maine)
Transaction brokerage is a unique option in Maine where the licensee facilitates the transaction without representing either party:
| Feature | Description |
|---|---|
| No advocacy | Does not advocate for either party |
| Neutral | Remains neutral throughout transaction |
| Limited duties | Provides services without representation |
| Confidentiality | Maintains confidentiality for both parties |
Key Point: Transaction brokerage is different from dual agency. In transaction brokerage, the broker represents NEITHER party—in dual agency, the broker represents BOTH parties.
Transaction Broker Duties
When acting as a transaction broker, the licensee must:
Services Provided
| Service | Description |
|---|---|
| Present offers | Present all offers and counteroffers |
| Answer questions | Answer questions about the transaction process |
| Provide forms | Provide necessary forms and documents |
| Assist negotiations | Help with negotiation process (without advocacy) |
| Keep confidences | Maintain confidentiality for both parties |
What Transaction Brokers Cannot Do
| Limitation | Explanation |
|---|---|
| Advocate | Cannot advocate for one party over another |
| Advise on price | Cannot advise either party on pricing strategy |
| Disclose motivation | Cannot disclose either party's motivation |
| Negotiate against | Cannot negotiate against either party's interest |
Designated Agency
Maine allows designated agency (also called appointed agency):
How It Works
| Feature | Description |
|---|---|
| Same brokerage | Buyer's agent and seller's agent in same firm |
| Designated agents | Each agent represents one party exclusively |
| Broker role | Supervising broker remains neutral |
| Written consent | Required from both parties |
Designated Agency Requirements
- Written disclosure to both parties
- Written consent from both parties
- Confidentiality barriers between agents
- Supervising broker cannot share confidential information
Exam Tip: Designated agency is different from dual agency. In designated agency, each party has their own agent within the firm, whereas in dual agency one agent represents both parties.
What is unique about transaction brokerage in Maine?
In designated agency, what role does the supervising broker play?