Maryland real estate

Salesperson fees

$110 original fee, $20 Guarantee Fund, total original fees $110, Renewal or exchange fee $90 Name change $25 Transfer to another broker $25 Reinstatement of license/late fee $150 Reactivate license $50

Events that end Presumed buyer representation

- Licensee or prospect rejects presumed relationship - buyers want to begin negotiations or draw up an offer with another firm - prospective buyer wants to be shown a property with agents firm - buyer enter into a written representation agreement with licensee

Consent to Dual Agency

- a firm can only show client-buyers those properties listed with the firm whose seller owners have already signed the dual consent form. Even though if already given it must be reaffirmed by sellers with their signatures in the space provided on the consent form when an offer is being made. Similarly the client purchaser must also reaffirm the dual agency consent form. And the form must be specific to the property, it is only good for the stated property. -Maryland law states Broker must appoint 2 persons as ICAs unless multi office branch manager

Other powers and duties of the Commission

- issues, renews, suspends, or revokes licenses - orders investigations and holds hearings - after hearings reprimands and/or fines licensees who are guilty - forwards licensees fees it collects to the comptroller who distributes funds to the State Real Estate Commission Fund -collects fines and forwards them to the General Fund. - Submits an annual report of its activities to the Secretary - certifies on request of with fee by person for the licensing status and qualifications of any person subject to this request. -approves the CONTENT of educational courses for licensing and the continuing education - Adopts regulation and code of Ethics to implement Title 17 - Convenes hearing panels of three board members at least one must be a consumer and one must be a professional member licensee from among the commissioners - Maintains and Administers Guaranty Fund to reimburse members of the public as much as $50,000 for actual losses caused by licensees and their employees.

Purpose of hearing board

- may order a final and public hearing on a complaint - reviews complaints and decides if they have a reasonable basis for disciplinary actions -reviews claims against the guarantee fund - meets publicly to hear licensee's responses on complaints - then decides punitive actions if necessary

Claims against Guarantee Fund

- must be in writing _ state the amount lost - state facts on which the claim is based - be accompanied by evidence and or documentation Claims must be filed within 3 years

Pocket cards

- name of licensee - designated broker's name the licensee is affiliated with - date the license will expire - registration number of licensee Although not explicitly stated in the brokers act, licensee are expected to carry their pocket card with them when they engage in real estate. Affiliates sign their card.

Returning licenses

- on the request of a real estate salesperson or broker - on the death of an affiliate - after a hearing before the commission whether suspended or revoked

Claims not covered by the Guarantee Fund

- purchase in a limited partnership that invests in real estate - joint venture for investment in real estate - commercial paper secured by real estate - spouse of the alleged - not for disputes between brokers and or salespersons

3 types of broker companies

- single agency ( do not perform dual agency) - dual agency - Hybrid Agency (will perform both dual and single agency)

Nonresidential property

-5 or more single family units - zoned for commercial, industrial, or nonresidential -zoned for but unimproved multi family property. Not single condominiums not agriculture

Representation Agreements

-Must be in writing and signed by all parties -State consideration in dollar amount or as a percentage of sales price - state when consideration is earned - state when consideration is paid -state a definite termination date - cannot include automatic extensions - must define duties and authority of agent -Need to include responsibilities of principal -requires copies to be distributed to all signers - needs to include permission for the agent to perform ministerial acts.

Qualifications for salesperson license

-be of good character and reputation -18 years old - successfully complete a basic 60 hour course in real estate-including 3 block hours of real estate ethics- Approved by the commission -pass the required examination - obtain written commitment for a licensed real estate broker to accept the applicant as a salesperson

Persons who must conform to the brokers act but are not required to hold brokerage license

-financial institutions for foreclosure - lawyers who do not regularly engage in the real estate business - homebuilders - agents of a licensed real estate broker property manager - persons who negotiate the sale, lease or transfer of business when the sale does not include any interest in real property other than the lease of the property - Owners who subdivide and sell not more than six lots of their own unimproved property in one calendar year. If they or their family have owned the property for more than 10 years there is no limit.

Understanding Whom Real Estate Agents Represent form

-presented no later than the first scheduled face to face -this form does NOT create a buyer-broker relationship for which compensation may be claimed, and does not end presumed buyer representation. - prospects are free to walk away even if you show them a home Buyers can expect client level service with freedom of a customer. - to end this a licensee can tell them "I do not perform presumed buyer representation.

Continuing education sales associate

15 clock hours, a clock hour is 50 minutes of actual instruction on a 60 minute course. Must renew license every 2 years from date you activate your license, required CEU's -Agency 3 hours -Fair Housing 1 1/2 hours - Ethics, Flipping, Predatory Lending 3 hours - Legislative 3 hours - Your choice 4 1/2 hours Total 15 hours

Persons not subject to the Brokers act when performing acts of RE Brokerage title 17

17102 - persons acting under a judgement or court order - public officers performing duties of their office - landlords or owners of any real estate, unless their primary business is providing real estate brokerage services - persons engaging in a single transaction selling or leasing real estate, or by power of attorney for the owner - auctioneers - persons acting as receivers, trustees, personal representatives, or guardians

Maryland Realestate commission consists of

9 members, 5 hold real estate license, and chosen from each region Eastern Shore, Baltimore Metro area, Baltimore city, southern Maryland, and western Maryland, 4 are consumer members, and have not been compensated by the commission in the last year and not a licensed realtor.

Real Estate Teams

A broker is never to be on a Team Must be made up of 2 or more individuals Must clearly advertise that it is part of a brokerage firm Team members must work from the same office where their license is retained When signing documents in the course of brokerage activities the individual must sign his name not in the name of the team. Trust funds must go into the brokers office procedures not the Teams account. Must keep accurate and updated lists of members by the leader.

If discharged from a broker

A broker must - mail to the licensee at the last known address notice -submit written notice to the Commission - return the license to the commission

Who presents whom real estate agents represent form

A licensee as a sellers agent, buyers agent, or as a cooperating agent shall disclose the fact in writing to adverse parties. - no later than the first scheduled face to face contact. -any transaction involving a cooperating agent it shall be the responsibility of the cooperating agent. - if does not involve a cooperating agent it shall be the obligation of the sellers agent to disclose to the buyer in writing. -all sellers represent form to buyers in writing. -when licenses represent buyers under a written agreement, they shall disclose that fact to the sellers agent. - when acting as a presumed buyers agent the fact may be made orally to the seller.

Ministerial acts

Actions of service , not requiring exercise of judgement or giving expert advice Ex meeting various well/septic inspectors, appraisers with keys when purchaser not available or their agent is not available

Sellers agent

Agent Represents the seller "client" and may assist a buyer who would be a "customer" and merely a salesperson

Maintenance of records

All licenses to keep copies of listings and other documents for at least 5 years.

Complaint

Anyone can file a complaint. Licensee has 20 days to respond. Letter is sent from Commission to the broker, broker must send back an explanation. A brokers failure to respond may be grounds for disciplinary actions. A copy of brokers letter is sent along with a copy of the executive directors letter to the complainant. If dismissed any member of the commission has 30 days to file an exception.

Transfer of Affiliation

Apply to commission for transfer from one broker to another, after obtaining from the new broker a commitment, also need a statement confirming termination from former broker or themselves. Advisable but not required by law the former broker be informed of the details of the transfer.

How the board members are appointed

Appointed by the governor with the advice of the Secretary of the DLLR and consent of the Senate.

Customer level service

Are assisted by salesperson The prospect refuses presumed status Or walks away Or treats them as customers when they are seeking to buy a property listed by the brokers firm.

Summary Actions

Are hearings taken to protect the public quickly against imminent loss

Client level service

Are represented by broker under a written agreement as a buyers agent Representing them as apresumed agent Or for sellers representing them as listing agents

General agents

Are sales persons and associate brokers

Telephone numbers

Associate brokers and salespersons may not use their individual telephone numbers or email addresses in advertising unless the telephone number of their broker or branch manager also appears.

Hearings and notices

At least 10 days before hearings notice is personally served to the individual whom the complaint is against. The individuals may have attorneys, however they must show up to the hearing. If they do not show the commission will determine the matter without them.

Trust Money

Broker must promptly deposit within 7 business days after the acceptance of a contract of sale by both parties. *Must be separate from the brokers own accounts *Solely for trust money

Commission issues three levels of license for individuals,

Broker, associate broker and salesperson

Management of Trust Money

Brokers are required to report the banks name and account numbers where trust money is kept. Deposits no later than 7 business days in a non interest bearing account. An escrow company can distribute the funds at closing. Changes in the account must be given to the commission within 10 days *At anytime prior to the completion of offer and counter offer negotiations a broker is not only free but obliged to return the deposit to the Offeror-buyer upon request.

Special Agents

Brokers are special agents to their clients

Notice to buyer

Brokers must include in each sales contract a written notice that buyers are protected by the Guarantee Fund in amount not exceeding $50,000

Confidential information

Can be troublesome and long lasting with presumed buyer representation. Since the agents fiduciary responsibility of confidentiality continues even if client dies. Unless given written consent of prospect or it becomes public knowledge.

Co-brokering

Can occur between a listing firm and outside firm either a cooperating firm, or buyer-broker firm.

Licensees fiduciary duties to clients

Care Obedience Loyalty Disclosure Accounting Confidentiality

COMAR

Code of Maryland Regulations Provides 4 types of hearings - Judicial -Applications for licensure -revocation or suspension of license - Claims against the Guarantee Fund Dismissal of a complaint by COMAR is final

Team names

Designate themselves as a collective team so they should use words such as, team or group. They CAN NOT use real estate, realty, brokerage in the name

Guaranty Fund

Exist to reimburse members of the public for actual losses at the hanDs of real estate licensees and their unlicensed employees. Maximum reimbursement $50,000.

Renewal

Extends license for another 2 year term, inactive license also require renewal if not it will expire

Deceased Broker

Family member has 6 months to close and terminate the business. The certificate of the deceased must be surrendered to the commission

CEU's at first renewal then at alternate subsequent renewals

For salesperson principles of "agency "are at alternate renewals For brokers and branch managers "broker supervision" Other approved courses in there place on off years,

Magisterial acts

Giving expert guidance and judgement

Teams and Dual Agency

Has a separate form which must be presented to the buyer and seller. Persons making the designation of ICA's shall not be the Team Leader or member of the team. Should be from broker or designee of broker.

Buyers agent

Has a written agreement to represent buyer as a client. Thus entitled to fees.

Presumed buyer agent

Has no written agreement to represent the prospect. Owes Fiduciary duties but no right to claim payment without a written buyer representation agreement. Client May refuse representation orally, then he would be a customer.

Licensees owe non-clients

Honesty and fair dealing Reasonable care Prompt presentation of all offers and counter offers Honesty, except those that are confidential Affirmative voluntary disclosure of material facts

Smaller claims

If the claims $5000 or less the Commission through a designated staff member may issue a proposed order either to pay or deny the claim without a hearing.

Office manager

In a multi office company an office manager if designated by the broker may appoint an ICA intracompany agent but may not serve as one

Executive Director

Is appointed by and serves the Secretary, this is a paid position and not a member of the Commission. This is a state employee who is covered by a Surety Bond, attends and participates in monthly meetings, and directs the day to day operations of the Commission. It supervises its office staff and field inspectors between monthly meetings.

Temporary license

Issued to family Member for 6 months Same family member last pass the state exam is not required to attend the 135 hour course prior to the six months expiring to continue as the broker, they must have three years experience. They then must take the 135 hour class within four years.

Residential agency law does not apply to

Leases of 125 days or less, basically 4 months and 5 days

Client

Legal term principal

Reissuance ( Reactivation )

License returns to active status and affiliates with a broker must also catch up on all CEUs. $150 fee

Exceptions to Continuing education

Licensee who practice law and have graduate degrees need only complete 7.5 hours in legislative, fair housing, and ethics Licensee who only practice nonresidential RE May substitute Americans with disabilities act for fair housing 1.5 hours but must still complete 15 hours Holders of reciprocal license does not need but must comply with their state.

Competitive market analysis

May also be called a " comparative market analysis" or " brokers price opinion" By ethics of the commission the analysis must state That it is not an appraisal, it is only intended for the purpose of assisting buyers and sellers, in deciding the listing and offering price.

Salesperson licensee

May exchange their licenses for other levels of license by complying with the procedures and paying the fees, affiliates may obtain additional licenses and become affiliated with additional brokers, giving notice of such multiple relationships to all their brokers, and paying fees

Broker licensee

May hold licenses as a real estate salesperson and associate broker, affiliated under another licensed real estate broker. Requires submission of additional paperwork. They may also have two or more additional broker licenses simultaneously.

CEU courses

Must be approved by the Commission and presented by Maryland Association of Realtors, or its board members, Real Estate Brokers of Baltimore City Inc., or similar professional organization, or by an educational institution approved by the state board of higher education.

CEU teachers

Must be qualified and experienced in real estAte

Requirements for real estate license board members on the commission

Must have held real estate license for 10 years and resided in the areas from which they are appointed for 5 years both immediately prior to their appointment.

Associate broker

Must have license for 3 years

Disclosure of licensee status

Must provide your interest in writing for any listing for yourself or immediate family or team member, whether property for sale or lease. Must make your true position known. Both Brokers act and COMAR require licensee when advertising to sell or buy property for themselves to reveal that they are a licensee, even own property.

Team advertising

Must show teams connection to the brokerage firm. By adding with, of between the team name and name of the brokerage firm. This is for all advertising, websites, radio, pencil,handout,business card,truck van,signs audible announcement.

How much stock or ownership control may an affiliate have in a company?

No more than 50% may be held directly or indirectly by salespersons or associate brokers otherwise they may be able to control the broker.

Payments by the Guarantee Fund

Not exceed $50,000 -losses only from the original transaction - may not include commissions owed - may not include attorney's fees incurred in seeking money from the fund

Notice of revocation or suspension

Notifies - Licensee - the real estate broker - Maryland - Association of Realtors - the local board or Association of Realtors

Broker how many per a office?

Only one individual broker is allowed per company no matter how many branch offices the company has.

How and when should it be revealed to prospects that they have presumed buyer representation.

Orally, at the initial interview between licensee and prospect

Judicial review

Parties who strongly disagrees with the final decision of the Commission may appeal to circuit court. A bond may be set not to exceed $50,000 and delay the suspension or revocation. Money is used for public who might suffer losses

Deadlines for testing and licensure

Pass the salesperson exam 1 year after education requirement Apply for salesperson license not more than 1 year after exams

False claims of completing CEU,s penalty

Penalty of $1,500 and pay reinstatement fee of $150

Maryland has reciprocal license with

Pennsylvania and Oklahoma

Unlicensed persons

Per Matylands Attorney GENERAL AND posted on the real estate commissions website states what unlicensed sales person *Those who simply do not have a license *Individuals who hold a license but not under that broker they are working for is considered to be unlicensed. *Licenses who are on inactive status, even if they have an active license in the firms referral company.

Reinstatement after nonrenewal

Possible within 3 year period following the date of expiration. Requires that show proof of having met all applicable CEU's , paid all dues renewal fees and $150 reinstatement fee. Good character

Associate Broker and sales person license include from subtypes

Resident, non-resident and reciprocal

Commission has subtypes of each level

Resident, non-resident, reciprocal or temporary, for commercial,

Reinstatement

Revives license that expired for lack of renewal or restores license after suspension or revocation. Fee $150

Forms of organization

Salesperson and associate brokers may organize themselves into a limited liability company LLC or into professional service companies PSC's broker would pay commissions or the LLC, Brokers are not authorized to be part of the LLC

Initial assessment

Salesperson pays a one time fee of $20 to the guarantee fund if it falls below $250,000 the commission may assess all licensee. right now at 2 million

Real estate brokerage firm may be set up as

Several forms - Corporation, -LLC -partnership -Sole proprietorship

Team Supervision

Teams are supervised by their - leader must have 3 years of license - branch manager - broker All simultaneous

Real estate hearing board

The Commission establishes 2 or 3 panels made up of at least one real estate member and one consumer member from the commissions members. A chairperson for each panel is designated.

Penalties for violations of the brokers act

The Commission has Statutory authority to impose penalties not to exceed. - $5,000 for the first proven violation of any title 17 provision -$15,000 and/or 2 years imprisonment for the second violation - $25,000 and/or 3 years imprisonment for the third or subsequent violation.

Code of ethics 09.11.02 vs code of ethics of the National Association of Realtors

The Maryland Code of Ethics 09.11.02 addresses licensees relations with the client, the public, and other licensees, it is separate and distinct from the National Code and complements it and does not contradict it.

Licensee Sales Commision Disputes

The Real Estate Commission does NOT arbitrate disputes. Disputes May be submitted to association of REALTORS, or to the board of whom they are the same members, Maryland Association of REALTORS, or through other agencies

Reimbursement of the Guarantee Fund

The license will be suspended automatically if a payment from the fund is made, Licensee will need to pay full amount with interest of at least 10% right now at 12%. And make formal application for reinstatement Licensee individuals are jointly and severally liable.

How often does the commission meet?

They meet monthly, with a majority of the members (5) then under appointment constituting a quorum. Meetings are open to the public. Public may speak before the commission with 10 days written advance notice.

Maryland law does not permit or recognize transactional brokerage in which they do not represent anyone.

This means the licensee is not allowed to be a middle man, they must represent one side or the other. Buyer or seller

Duties and powers of the Commission

To administer and enforce the Brokers Act Has statutory authority -approve continuing education classes - adopt rules and regulations - Discipline Licensees - investigate complaints of unlicensed brokerage activity - investigate complaints about license behavior. - conduct hearings and administer oaths - issue subpoenas for attendance of witnesses or production of evidence - take depositions - seek injunctions

Inactive status

When on this status a salesperson is not allowed to provide brokerage services because they do not report to anyone. Their licenses and pocket card have been returned to the Commission. They cannot except any fees for services, may pay $50 to the Commission to deactivate license. And expires 3 years after it is place on inactive. When inactive you do not need to complete CEUs Note renewal is separate, and you must still complete CEU,s when renewing.

Intra company agents

With written consent from seller and buyer broker can have dual agency if able to designate 2 representative agents one for the seller and one for the buyer. Each will give client level service to their parties and the broker will not have direct involvement.

Cooperating Agent

Works for a real estate firm other than the one listing the property. But still represents the seller. Will assist merely the buyer as a customer in acquiring the property.

Chairperson of the commission

each year a chairperson is elected from the board to preside over their meetings. The chairperson is covered by a Surety Bond.

What are the terms of the board

terms are staggered 2 new 1st year, 2 new the 2nd year, 2 new the 3rd year and 3 new the 4th year, to ensure continuity begin on June 1st and end 4 years later, with reappointment or replacement. Members may be removed before the end of their term by the Govenor in cases of incompetence or misconduct.