3 minute read

Keeping Maryland’s REALTORS® Safe

BY CLEOPATRA PAPPAS, ESQ.

The real estate profession is dynamic and rewarding, but it also comes with unique safety challenges. REALTORS® must prioritize their well-being while maintaining professionalism and compliance with legal and ethical standards. This article explores three critical safety practices that have legal undercurrents: establishing exclusive buyer representation agreements, verifying client identification, and adhering to appointment timeframes.

1. Exclusive Buyer Representation Agreements: Safety and Compliance

The 2024 NAR settlement introduced new rules requiring written buyer representation agreements before showing properties. This change aligns with Maryland REALTORS®’ longstanding encouragement of written agency agreements prior to showing properties and the Maryland legal requirement that written agreements, which promote transparency and accountability and create the contractual relationship between clients and brokers/agents, are required prior to representing any party. Exclusive buyer representation agreements and having verification of a buyer’s identity not only clarify the agentclient relationship and fulfill the settlement requirements but also enhance safety by ensuring that agents work with known, committed clients.

These agreements provide REALTORS® with legal protections, as they outline the scope of services and compensation terms. They also reduce the likelihood of disputes or misunderstandings, which can escalate into unsafe situations. Maryland REALTORS® should leverage these agreements to safeguard their interests while complying with both state laws and NAR’s updated policies.

2. Verifying Client Identification: A Standard of Practice

Obtaining valid personal identification from clients upon signing an Exclusive Listing or Buyer Representation Agreement is a crucial safety measure. This practice not only helps REALTORS® verify the legitimacy of their clients but also creates a record that can be referenced if issues arise. Importantly, this standard must be applied consistently to all clients to avoid violating federal, state, and local fair housing laws.

The National Association of REALTORS® (NAR) Code of Ethics underscores the importance of fairness and transparency in all client interactions. Maryland law also supports this practice, as the Maryland Real Estate Commission (MREC) encourages REALTORS® to take reasonable precautions when meeting new clients. By establishing this standard for all clients, agents can protect themselves while fostering trust and professionalism.

3. Adhering to Appointment Timeframes: Protocol Driven Risk Management

Scheduling showings of properties is not just about professionalism and representing your clients; it’s a matter of safety. When showing properties, sticking to the agreed-upon timeframes minimizes risks associated with being in unfamiliar or vacant locations. Arriving early or staying late can expose agents to potential dangers, such as encountering unauthorized individuals or being alone in isolated areas. Additionally, accessing a property outside your requested and approved timeframe may be considered an ethical violation in addition to a legal violation because you are not authorized to enter a property except during the approved timeframe.

REALTORS® should follow the MREC’s safety guidelines, which emphasize the importance of notifying colleagues or family members about your schedule and location.

By respecting appointment timeframes, verifying client identification, and utilizing exclusive buyer representation agreements, REALTORS® can protect themselves while delivering exceptional service.

Cleopatra Pappas, Esq., serves as Senior Associate Counsel at Maryland REALTORS®

This article is from: