Commencement and termination of duties.

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(a) Commencement of duties for a statutory agent. — The duties of confidentiality as required by § 2936(c) of this title begin upon first contact between a licensee and the customer. The other statutory duties between a licensee and client as required by this subchapter begin upon the earlier of:

(1) The first scheduled appointment;

(2) The first showing of a property;

(3) Making an offering; or

(4) Otherwise working for the client;

unless a CIS is signed indicating there is no agency relationship. For transactions exempt from providing the CIS, the duties of the agent commence when the parties form an agency relationship.

(b) Duties of a statutory agent after termination. — A licensee and brokerage organization owe no further duty or obligation to the customer or client after termination, expiration, completion or performance of the transaction or other termination of the brokerage relationship, except the duties of:

(1) Accounting in a timely manner for all money and property related to, and received during the relationship; and

(2) Treating as confidential the information provided by the customer or client during the course of the relationship that may reasonably be expected to have a negative impact on the customer or client's real estate activity unless:

a. The customer or client to whom the information pertains grants written consent;

b. Disclosure of the information, such as defects actually known by the licensee or previously disclosed by the seller on the seller's disclosure of real property condition report or radon disclosure or any other statutorily required form, is required by law;

c. The information is made public or becomes public by the words or conduct of the customer or client to whom the information pertains or from a source other than the licensee or brokerage organization; or

d. Disclosure is necessary to defend the licensee or brokerage organization against an action of wrongful conduct in an administrative or judicial proceeding or before a committee of a professional association.


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