QUESTION: If attorneys in D.C. act as their own buyer’s agent in a real estate sales transaction, are they then also entitled to the buyer’s agency fee, or is that fee only available to licensed D.C. real estate brokers and salespersons? ANSWER: Generally, only a licensed D.C. real estate broker or salesperson may collect a commission for real estate services. However, a D.C. attorney acting in the ordinary practice of their profession is exempt from the licensing law and thus may collect a commission. The text of the exemption, which is contained in DCMR 17-2624.3(a): is as follows: Persons acting in the following capacities are exempt from the licensing requirements of this chapter: (a) Receivers, referees, administrators, executors, guardians, conservators, trustees, or other persons appointed or acting under the judgment or order of any court while acting in that capacity, or attorneys-at-law in the ordinary practice of their profession. Therefore, an attorney licensed to practice law in D.C. who provides real estate services in the ordinary course of their profession may collect a commission for those services.
QUESTION: We have a client who is listing a property on behalf of a revocable trust (the principals have deceased). How is the seller best reflected in our listing agreement and on the subsequent sales contract, and how do we reflect the authorized agent to facilitate signatures on behalf of the trust? ANSWER: The seller will be the trust, so you should insert the name of the trust in the appropriate places. Who is authorized to sign on behalf of the trust, now that the principals/settlors have passed, will be determined by the trust. The trust should appoint successor trustees who will be authorized to act on behalf of the trust. You will need to obtain a copy of the trust. QUESTION: Can you please clarify the “First-time Homebuyer in Maryland” program? My client was a co-owner on a property prior to 2010. They are now purchasing a home as primary owner. They haven’t owned a property in three years. ANSWER: As set forth in the Montgomery County Jurisdictional Addendum (GCAAR Form #1312) a buyer is a first-time Maryland homebuyer if: (a) Buyer has never owned residential real property in Maryland that has been the individual’s principal residence; AND (b) The Property will be occupied as a principal residence; OR (a) The buyer is a Co-Maker or Guarantor of a mortgage or Deed of Trust to be secured by the Property AND the Co-Maker or Guarantor will NOT occupy the Property as a principal residence.
DISCLAIMER: The answers provided here are the opinion of the authors, are for informational purposes, and are only for GCAAR members. Neither Counselors Title, LLC, nor Pardo & Drazin, LLC, is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is – or will be – established as a result of this material. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.
CAPITAL AREA REALTOR ® — Spring 2020
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