Chris' Recipes

Bon Appetite!

Which Of The Following Is Not A Required Inclusion In A Maryland Buyer Representation Agreement

Written By: Chris - Oct• 15•21

The agreement to pay compensation to a buyer in the form of a commission rebate or to indemnify the seller either by cash payment or by a reduction in the commission rate must be made in writing in accordance with the Code of Ethics, COMAR 09.11.02.01H. The Real Estate Commission has also taken the position that financial payments from a licensee to one of the parties of the other party to the transaction should be disclosed, even if they do not need to be recorded on Form HUD-1. Incentives. Paragraph 17-322(b)(9) provides that a licensee may not offer a price or compete to influence a party in the sale of real property. This provision has been interpreted by the Attorney General`s Office as saying that when a licensee uses incentives to obtain an offer or a buyer`s or broker`s contract, or to motivate a buyer to purchase certain properties, those incentives must be offered to all consumers on the same basis. There can be no contest where a seller or buyer is offered the opportunity to receive a prize or cash payment. When an incentive offer is made, it must be accessible to all. The law orders the broker to keep the funds in an escrow account until one of the following four circumstances occurs: If the other party does not agree to sign a written authorization, you can ask the broker to file a case in court asking the judge to determine who is eligible for the deposit. The Commission also examined proposals from licensees offering a random draw among participants in an open day. As long as the only measure a consumer must take is to participate in the open day, the Commission does not consider that this is a competition to persuade a party to buy a property. The law would allow the licensee to offer incentives in terms of price, meaning the offer could be for a discount/payment as a percentage of the price. In this way, the offer would be the same for all those whose purchase or registration price is within a certain price range.

The Real Estate Commission and the Attorney General`s Office receive requests from time to time regarding the payment of discounts to a party to a transaction or the use of incentives to induce a consumer or licensee to deal with a particular real estate agent or broker. Several provisions of the Licence Act address these issues. It was also raised whether unlicensed persons who refer consumers to a licensee can be compensated in any way or participate in a prize draw. The Permits Act considers the act of removal as the provision of real estate brokerage services and therefore as an activity that requires a licence if it is compensation in any form whatsoever […].

Print Friendly, PDF & Email

You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.