Oilheat. Know
Energy Efficiency –a key selling feature
Overcoming Objections in Real Estate:
Oil-Heated Homes
Sought-after speaker Susan Janett guarantees to rev up your team in just 15 minutes with smart solutions to sell more oil-heated listings.
Topics she’ll cover:
What drives heating oil prices?
How to address aboveground and underground tank issues.
Indicators there may be a buried tank
The three tell-tale signs an aboveground tank is at risk.
How to get your customers heating equipment rebates.
And so much more!
To schedule Susan to speak in-office or virtually, contact JNoll@OilheatPros.com
Susan Janett
� Program Director
� Licensed NJ Realtor for 30+ Years
� Nationally Accredited CE Instructor
� Speaker/Educator/Trainer
When you prepare an oil-heated listing to show, you’ll want to highlight every possible selling feature of that home, including its energy efficiency. Here’s what you should find out about the home that you’re getting ready to list:
Smart thermostat? Homeowners who have smart thermostats are able to moderate their energy use and reduce waste when they aren’t at home. If your client doesn’t have one installed, they should — it adds a whole new dimension to the efficiency of a home.
Service contracts? If your client has a service contract with their heating oil company, that’s a major selling feature. Heating oil systems that are regularly maintained operate at peak efficiency, leading to savings year over year. And, local heating oil dealers often transfer service contracts from one homeowner to the next. Buyers respond very favorably when they find out the heating system in their new home is already covered.
Other recent home upgrades? Home upgrades have a direct impact on the overall energy efficiency of a home. For example, if old windows are replaced with airtight windows, air leakage will be reduced. This keeps more heat inside the home, leading to increased energy efficiency. Find out if your client has made any recent home improvements to determine just how energy efficient the home really is.
For more tips and information about highlighting energy efficiency during the sales process or for suggestions on how to improve the energy efficiency in your clients’ homes, visit OilheatPROS.com/md-de.
Cheryl Abrams Davis PRESIDENT
RE/MAX United Real Estate
14340 Old Marlboro Pike
Upper Marlboro, MD 20772
301.702.4200
cherylabrams@remax.net
Melanie Gamble SECRETARY
212 Degrees Realty, LLC
9701 Apollo Dr., # 301 Upper Marlboro, MD 301.343.8538 melanie@melaniegamble.com
Chris Hill
IMMEDIATE FORMER PRESIDENT
Century 21 New Millennium
23063 Three Notch Road
California, MD 20619
301.862.2169 chris@thechrishillteam.com
Denise Lewis PRESIDENT-ELECT
Brook-Owen Real Estate
41 E. Main Street Westminster, MD 21157
410.871.1110 denise@denisehasthekeys.com
Chris Jett TREASURER
Shore 4U Real Estate 23 Fountain Drive W 2nd Ocean City, MD 21842
443.523.2360 chris@shore4u.com
Chuck Kasky, RCE CHIEF EXECUTIVE OFFICER
Maryland REALTORS® 200 Harry S Truman Pkwy. Suite 200 Annapolis, MD 21401
800.638.6425
chuck.kasky@mdrealtor.org
Maryland REALTORS ®
200 Harry S Truman Parkway | Suite 200 Annapolis, MD 21401-7348
443.716.3500 | www.mdrealtor.org
Leadership Team
Cheryl Abrams Davis | President
Denise Lewis | President-Elect
Chris Jett | Treasurer
Melanie Gamble | Secretary
Chris Hill | Immediate Former President
Chuck Kasky, RCE | Chief Executive Officer Editor
Daniel Patrell | dan.patrell@mdrealtor.org
Advisory Committee
Kristin Skeweris | Chair
Donald Frederick | Vice Chair
Advertising Arlene Braithwaite | 410.772.0820
Publication Design
Marketing.com, 952 Frederick Street, Hagerstown, MD 21741
800.638.3508 | marketing.com
The opinions expressed by nonstaff contributors may not reflect the official opinion of Maryland REALTORS® and/or policies derived from leadership and staff.
Mission Statement
Maryland REALTORS® exists to support all segments of its membership and their specialties. Maryland REALTORS®, through collective efforts with local boards/associations and the National Association of REALTORS®:
■ Develops and delivers programs, services and related products that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners;
■ Assists members in ethically and professionally serving the public;
■ Promotes and preserves the right to own, transfer and use real property; and
■ Protects the right of members to conduct business within a framework of fair and reasonable laws and government regulations.
In principle and in practice, Maryland REALTORS® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual.
Taking Stock and Setting Our Sights for 2025
Let’s face it, 2024 was a year of uncertainty that caused possibilities for some and disappointment for others. Whether you’re deeply seasoned, a novice or somewhere in between, we continue to make the dream of real property ownership—whether it’s a home or commercial space— come to fruition for homebuyers, sellers, landlords, tenants, and business owners.
We made some big strides in 2024 under the leadership of our Immediate Former President Chris Hill, our officers, CEO Chuck Kasky, and Maryland REALTORS® staff. Some of our successes include:
■ Getting the term “middle housing” codified into law
■ We pivoted to create new forms and training for our 30,000 members to prepare them for the new realities that stemmed from the NAR settlement agreement
■ Supporting financial literacy initiatives to encourage high school students to plan for homeownership
■ Speaking directly to consumers, demystifying the homebuying and selling process, while also discussing the value of a REALTOR®
...we continue to make the dream of real property ownership—whether it’s a home or commercial space—come to fruition...
Imagine the possibilities for 2025! Already, your leadership team and the Association are hard at work for this coming year:
■ Continued advocacy engagement—check out Lisa May’s Legislative Preview, starting on page 8
■ Focused messaging about how REALTORS® contribute to the social good
■ Affordable housing initiatives and partnerships
■ Sustainability in real estate
■ Member resources, tools, and preparedness
■ Project REALTOR® NxtGen
What’s going to be different in your world? Will it be the same old thing with the same results? Or will this be the year that changes the trajectory of your business?
2025 is right around the corner. As you prepare for the upcoming year make sure to:
■ Invest in your mental and physical well-being
■ Develop and/or review your strategic business and financial plan
■ Develop and/or tweak your business systems
■ Delegate tasks and take time to create a work-life balance
■ Level up and obtain a designation or specialty
■ Celebrate your wins and learn from your mistakes!
There’s a lot to read about in this issue of the magazine. In addition to our Legislative Preview, we take a deep dive into the Federal Reserve and interest rates, and we review our Affinity Partnerships, businesses that provide our members exclusive discounts on services they need, from UPS and Avis, to RentSpree and Pearl Insurance.
On behalf of Maryland REALTORS®, we wish you and your families a lovely holiday season and an aweinspiring 2025! ■
Cheryl Abrams Davis Is Maryland REALTORS®’ 2025 President.
We Went Back to the Beach, and We Have Pictures to Prove It
Maryland REALTORS® returned to Ocean City, not only for its Annual Conference, Back to the Beach, but for our Installation & Awards ceremony, which also heralded our new leadership team, with
Cheryl Abrams Davis as our 2025 president. We are sharing just a small handful of pictures from each event. You can see even more, and download and share pictures you really like (pictures including you?)
Back to the Beach
from the Maryland REALTORS® Flickr account. Follow the QR code to view all are pictures from these two events. ■
Installation & Awards Ceremony
The Federal Reserve and Mortgage Rates What Realtors Need to Know
BY RYAN PAQUIN
The economic rollercoaster since the COVID-19 pandemic has reshaped the financial landscape, leaving its mark on inflation, interest rates, and housing markets.
In response to soaring inflation triggered by the economy’s reopening, the Federal Reserve (the Fed) raised the Fed Funds Rate from a near-zero range in early 2022 to 5.25%-5.50% by mid-2023. Conventional 30-year fixed mortgage rates followed suit, climbing from an average of 3.50% to a staggering 7.80% in October 2023.
Although the Fed began reducing rates in late 2024, average mortgage rates have remained stubbornly high—a puzzling outcome for many. For Maryland’s REALTORS®, understanding the Fed’s influence on mortgage rates is crucial for advising clients and navigating market changes.
The Role of the Federal Reserve
The Federal Reserve is the central bank of the United States, tasked with two primary goals:
1. Maximizing Employment
2. Stabilizing Consumer Prices (Inflation)
Additionally, the Fed oversees bank regulation, financial research, and other critical tasks that shape the economy. It operates through a system of twelve regional banks and a Board of Governors, which collectively monitors economic conditions and sets monetary policy.
One of the Fed’s most powerful tools is the Fed Funds Rate, the interest rate banks charge one another for overnight loans of reserve balances. While technical, this rate indirectly impacts consumer financial products,
including mortgage rates, through its influence on lending, borrowing, and investment behaviors.
How the Fed Funds Rate Affects Mortgage Rates
Banks play a significant role in the mortgage market as major purchasers of mortgage-backed securities (MBS). These securities pool mortgages into investments that banks buy to earn returns. For banks, the Fed Funds Rate is a baseline cost of borrowing. They aim to earn a profit by maintaining a spread between their borrowing costs and the returns on assets, like mortgages.
One frequently used government bond benchmark to which mortgage lenders often peg their interest rates is the 10-year Treasury bond yield. Typically, MBS sellers must offer higher yields because repayment is not 100% guaranteed as it is with government bonds.
The Role of Market Expectations
The Fed’s influence extends far beyond short-term bank borrowing costs. Investors closely follow Fed policies because they shape expectations about future interest rates. These expectations drive how much investors are willing to pay for mortgage assets today. For example:
■ If investors believe rates will decline, they’ll pay a premium for mortgages with higher current yields. This pushes mortgage rates down.
■ Conversely, if investors anticipate rising rates, they’ll require a discount, leading to higher mortgage rates.
Since mortgages are long-term assets, investors focus more on future rate projections than on today’s rates.
Why Mortgage Rates Didn’t Drop in Late 2024
When the Fed cut the Fed Funds Rate by 0.50% in September 2024, many expected mortgage rates to decline. However, the bond market had already priced in this rate cut based on earlier signals from the Fed. Mortgage rates, instead, responded to Fed Chair Jerome Powell’s comments about future policy.
Powell’s cautious tone about further cuts led investors to revise their long-term rate expectations, resulting in higher mortgage rates despite the short-term Fed Funds Rate reduction.
This phenomenon underscores a key point: the mortgage market doesn’t react solely to the Fed’s immediate actions but to how those actions influence the outlook for long-term rates.
For Maryland’s REALTORS®,
understanding the Fed’s influence on mortgage rates is crucial for advising clients and navigating market changes.
What REALTORS® Should Take Away
The Federal Reserve wields immense influence over the mortgage market, but its impact isn’t always immediate or straightforward. REALTORS® should keep the following in mind:
1. Fed Actions Set the Tone
The Fed’s policies provide a framework for where rates may go, but markets adjust based on future expectations.
2. Market Sentiment Matters
Investors react to what they think will happen next. The Fed’s statements and economic data can influence mortgage rates as much as, or more than, its rate decisions.
3. Stay Informed
Understanding how monetary policy influences rates can help REALTORS® guide clients and anticipate market trends.
For REALTORS®, staying attuned to the Fed’s actions and their broader implications can be a valuable tool in navigating a challenging market. By understanding the intricate dance between Fed policy and mortgage rates, you can provide informed advice to buyers, sellers, and investors in the Maryland housing market. ■ Ryan Paquin is a dedicated mortgage consultant and Branch Manager at First Home Mortgage in Crofton, Maryland. He has assisted over 4,000 families in home financing.
Balancing Act
Can Maryland Manage Budget Woes, Fund Its Priorities, and Deliver on Housing?
BY LISA MAY, DIRECTOR OF ADVOCACY AND PUBLIC POLICY
If you’re looking for an upside in Maryland’s budget picture, it’s this: our projected revenue shortfalls haven’t gotten any worse.
Of course, they haven’t gotten noticeably better, either. This tension over Maryland’s budget, and whether to raise taxes or cut spending, is expected to influence virtually all other legislative initiatives in 2025. This includes housing.
To Tax or Not to Tax
Last year’s General Assembly session featured a pointed standoff between the House and Senate on the issue of taxation. House members introduced a host of measures to address Maryland’s projected $1 billion budget shortfall in 2026, which is expected to grow to over $3 billion by 2028. Meanwhile, the Senate held firm on a “wait and see” approach to revenue and deficit projections, which was backed by Governor Wes Moore.
Heading into 2025, not much has changed, either in our state’s budget outlook or the positions of the Governor and General Assembly. Both Senate President Bill Ferguson and Governor Moore have reiterated their skepticism on tax increases, saying a “high bar” would need to be cleared to gain their support. Meanwhile, Maryland’s economy has yet to show the level of growth that would cause House members to abandon their pursuit of new revenues.
Two of those 2024 tax bills that may make an appearance again this session are of particular interest to REALTORS®.
First is the infamous sales tax on services bill. Last year’s HB 1515 would have imposed a 5% sales tax on all professional services, including real estate, mortgage lending, settlement services. This would have resulted in an additional $4 billion in taxes on Maryland businesses.
REALTORS® defeated this issue based not only on its impacts to our members’ businesses, but also on the detrimental effects this would have on housing construction and affordability.
The second bill is known as the Fair Share for Maryland Act (HB 1007/SB 766 of 2024). Most of the headlines on this bill surround the provision for worldwide combined reporting for corporate income and income tax increases on top earners. However, the act also lowers the Maryland estate tax exclusion from the current $5 million down to $2 million. It also would impose an additional 1% tax on net capital gains, which could include primary residences sold for $1.5 million or more.
As new taxes and fees are debated in the General Assembly, REALTORS ® will need to be vigilant that these proposals do not damage the progress made on housing supply or stifle Maryland’s economic recovery.
Housing: But Wait, There’s More
With the passage of the Housing Expansion and Affordability Act (HB 538) last year, it would be tempting for the General Assembly to declare victory on the issue of housing supply and turn their attention to other pressing matters. That won’t be the case, and years of REALTOR® advocacy had a lot to do with that.
Maryland REALTORS® originally sought legislation back in 2022 to remove local restrictions on Accessory Dwelling Units (ADUs). At the time, state level involvement in local land use and housing policy was far more limited, and the bill’s failure in that session was a direct result.
We have quite a different landscape today. Incremental progress was made in 2023, when legislation establishing an ADU Task Force was approved. That Task Force issued their recommendations over the summer, which would allow one ADU, by-right, on a single-family residential property, while preventing local governments
As new taxes and fees are debated in the General Assembly,
will need to be vigilant that these proposals do not damage the progress made on housing supply or stifle Maryland’s economic recovery.
and homeowner’s associations from enacting overly burdensome requirements in the areas of parking, impact fees, lot requirements, and utility connections.
While it has been frustrating for REALTORS® to watch this process play out over several years, only to come up with virtually the same ADU provisions we initially proposed in 2022, we can now leverage the Task Force’s consensus findings into our push for common sense ADU legislation statewide.
REALTORS® are also looking to make a difference on housing by promoting and preserving homeownership options. This includes supporting expansion of Maryland’s Homeowner’s and Renter’s Property Tax Credit programs, which offset the costs of rising property tax bills for low-income residents. These programs have maintained the same asset and income limitations for the past 15 years while property values have doubled, and the state’s minimum wage has increased. Fewer and fewer residents are able to qualify because asset caps are not adjusted for inflation.
We will also engage on proposals from the Department of Housing and Community Development (DHCD) to provide additional support and resources for first-time homebuyers. It is certainly an area for focus, both here in Maryland and across the country.
According to NAR’s recently released 2024 Profile of Home Buyers and Sellers, the share of first-time buyers declined last year from 32% down to 24%, reaching its lowest level in 40 years.
There are a host of other pro-housing proposals being floated around the Capitol, including substantial changes to Adequate Public Facilities Ordinance guidelines and setting targets for local housing production. What remains to be seen is the appetite for the General Assembly to once again face off with local governments over land use and the limitations imposed on new spending in light of our budget situation.
Play it Again
If the following issues sound familiar, there’s a reason for that. REALTORS® supported two pieces of legislation last session that fell short of passage in 2024, but that we will revive in 2025.
The first of these is a bill to address condo and HOA resale fees and timeframes. One of the top complaints
to our Legal Hotline is excessive fees charged by Associations to obtain resale information. In some instances, these result in hundreds of dollars in additional costs to consumers. At a minimum, associations and their packet providers should be limited to the fees currently outlined in statute. In addition, we are seeking to shorten delivery timeframes and standardize deadlines across the separate Condo and HOA statutes.
HB 1408, a bill to address real estate “wholesaling” practices, fell just short of passage in the final days of the session. However, assignment of real estate contracts continues to be an area of concern within Maryland due to the potential pitfalls for consumers. REALTORS® have worked with a group of stakeholders and with members of the General Assembly to reach consensus on this issue and better position it for passage in 2025. If successful, Maryland would be among the growing list of states that have required disclosures from real estate wholesalers so that consumers have full transparency during a wholesale transaction.
Getting Down to Business
We are entering the first legislative session since the announcement of the NAR settlement and associated changes to real estate brokerage practices. Maryland, as you know, was not as impacted as other states when it came to issues like written buyer agreements and clear disclosure of compensation amounts, but that doesn’t mean there won’t be adjustments in this area of law.
One area Maryland REALTORS® is exploring is the creation of a transactional brokerage relationship option between real estate licensees and their clients. Both Colorado and Kansas allow clients to engage real estate licensees to facilitate a property sale without exclusively representing either party. In passing this option, Colorado legislators stated that the public benefits from a system where they may “engage any such real estate broker on terms and under conditions that the public and the real estate broker find acceptable. This includes engaging a broker as a single agent or transaction-broker.”
For our purposes, this would allow more sophisticated buyers and sellers to still rely upon a real estate professional’s knowledge without needing all the services due under current agency relationships. It would be a shift in
Maryland brokerage law, and one that may take several years to achieve, but REALTORS® will start that process in the new year.
Another piece of legislation arising partially from NAR changes is a bill on real estate instruction and Fair Housing education requirements. NAR’s announcement of a 2-hour fair housing training mandate for REALTORS® would result in Maryland members needing instruction in excess of the state’s 1.5-hour requirement. Our proposal would increase the Fair Housing instruction requirement to match NAR’s 2-hour course and reduce the elective credit requirement by 0.5 hours, to maintain the same overall education standards of 15 hours of instruction per renewal cycle. In addition, we will recommend that licensees who designate themselves as exclusively commercial practitioners complete coursework on Americans with Disabilities Act (ADA) compliance for license renewal.
Also included in that bill will be a clarification on how real estate education providers are certified and how certain courses are approved by the Maryland Real Estate Commission (MREC). As we experience higher levels of turnover in both the industry and in staffing of real estate education organizations, the ability to approve qualified instructors must become more nimble and timely. Our proposal would reiterate that the statutory and regulatory duty of approving real estate schools falls to MREC, but once approved those schools are responsible for evaluating and approving qualified instructors for individual classes. Also, schools and instructors, through the application and approval process, would design agency and supervision courses.
Year after year, legislation is introduced to add new real estate notices and disclosures to the contract of sale. This results in a longer and more confusing process for buyers to sort through when attempting to learn more about the property they wish to purchase. One solution that Maryland REALTORS® is exploring is the creation of a property disclosure portal using state mapping data. If successful, prospective purchasers could visit one state website to learn whether the property is subject to various easements, located in critical areas or floodplains, or in proximity to military installations or dewatering zones. In essence this would create a one stop shop for these and any future disclosures the General Assembly may hope to enact.
Become an Advocate
There’s a terrific opportunity for you to play an active role in promoting these and other policy issues. Join your Advocacy team for the 2025 Maryland REALTORS® Lobby Day on Wednesday, February 12 .
This annual event draws over 200 REALTORS® to our state capitol complex in Annapolis. Attendees will hear a briefing on the key housing issues of the session from your Maryland REALTORS® Leadership and association lobbyists. In addition, the results of the latest Maryland State of Housing poll will be revealed, which quantifies the latest data on the housing needs of current and future residents.
Armed with this information, our REALTOR® members will set out to meet with their Delegates, Senators and staff about our legislative priorities and the housing issues facing their districts. It’s a day of grassroots lobbying like only the real estate industry can provide.
Registration for Lobby Day will open in early January. This event has sold out in recent years, so make your plans to join us now. Check the Maryland REALTOR® Report and our website for additional information, as it develops. We hope to see you there!
Finally, instances of real estate fraud continue to plague our markets. Last session, legislators made attempts to address various seller impersonation schemes, often involving vacant land parcels. While REALTORS® shared their concerns on the seriousness of the issue, some of the proposals from 2024 were not truly workable solutions. We have held subsequent meetings with stakeholders on what, if anything, is the legislative fix to this problem.
Another area of real estate fraud is found in the reemergence of squatters. Owners listing their homes for rent or sale have been vulnerable to squatters occupying their property, and claiming to have a valid lease, with differing responses from local law enforcement. Addressing squatters is always a challenge in states with strong tenant protections, like Maryland, but solutions have been in advanced in other tenant-friendly states like New York which could prove instructive for the General Assembly. ■
Because we C.A.R.E.
Meet the Maryland REALTORS® Staff, which delivers Connections, Advocacy, Resources, and Expertise for its members
BY JACKY MUECK
Connections. Advocacy. Resources. Expertise. (CARE)
More than four simple words, these are the foundational pillars of Maryland REALTORS®’ Strategic Plan. Follow the QR Code above to learn more about the Strategic Plan that guides the Association’s work.
Maryland REALTORS®’ dedicated staff refers to these four pillars continuously in work for the Association. Our events, webinars, classes, forms, legislative actions—everything we do points back to CARE.
Our staff does a lot to keep our members prepared with accurate and up-to-date information and resources, and we love what we do. We asked staff members to share with us their favorite parts of their positions in the association, what keeps them motivated, or what some of their favorite memories are from the association.
CEO
Our CEO, Chuck Kasky, leads the association and our staff while engaging with members, other associations,
and affiliates through webinars, panels, your local events, and more.
Chuck Kasky
“Supporting our members with forms, training, and guidance to get through the practice changes required by the NAR settlement agreement has been one of our most important initiatives for as long as this association has been in existence.”
Operations
Our Operations Department keeps things running smoothly in the office to help us serve you best. They keep everything behind the scenes moving,
from membership achievement to committee selection and organization.
April Sheesley, Director
“I enjoy working alongside of our members on the Awards Committees to determine recipients of each award. It is a pleasure to recognize our outstanding members during the annual installation with their colleagues, friends, and family in attendance.”
Joanne Gleason, Administrative/ HR Generalist
“My motivation comes from the feeling that my work at Maryland REALTORS® makes a difference by having a positive impact and showing a strong commitment to our members.”
Kristina Kemokai-Harris, Receptionist/ Administrator
“I love being able to share the knowledge that I have, to serve our members daily. Being able to help them and providing solutions keeps me motivated.”
Legal
Legal creates and updates our forms and runs the Legal Hotline, giving you the tools and expertise you need to learn and work in an ever-shifting industry as new laws and guidelines go into effect.
Kimberly Link, Director
“My favorite part of my job is working with the association’s committees. This teamwork allows us to create impactful programs and initiatives that directly benefit our members by addressing their needs and enhancing their experience. Members gain access to valuable resources, networking opportunities, and a supportive community.”
Diamond Smith, Associate Counsel
“My favorite memory of working with Members happened this past year at the 2024 Innovate Commercial Symposium. The Members on the committee experienced a lot of different twists throughout the planning process, and yet they were able to adapt and provide thoughtful solutions at every turn. It resulted in a great event that brought a wider network of professionals together.”
Taylor Kitzmiller, Associate Counsel
“As the Staff Executive for the Statewide Forms Committee, I was directly involved in the revision and creation of forms that complied with the NAR settlement. We held brokerage meetings, webinars, videos series, etc., to ensure that our members were properly educated on the use of the forms following the NAR settlement.”
Cleopatra Pappas, Senior Associate Counsel
“After 20 years of experience ‘in the field’ as General Counsel/Manager and also as an active Agent/Associate Broker with a Harford County brokerage, what motivates me the most in helping serve our members is providing practical guidance on the legal matters that challenge them every day, that they can utilize immediately. The real estate business is becoming increasingly legally complex, and members crave understandable and feasible guidelines to best assist their clients.”
Professional Development and Member Engagement
Our PDME Department is where you go for continuing education classes, certifications, and designations, from Leadership Academy to Housing Opportunity Certification. They also uphold the REALTOR® Code of Ethics for our members and continue work on our Diversity, Equity, and Inclusion initiatives.
Susan Yashinskie, Director
“I had the privilege of working on this year’s presidential initiative on financial literacy. It was such a fun project devoted to advancing homeownership educational opportunities in high schools. We developed supporting videos and educational materials, culminating in an event at Camden Yards for 50 local high school financial teachers.”
Sandi Frazer, Professional Standards Administrator
“My favorite memory has to be the annual conference. It’s when we all come together with members to put on an amazing conference.”
Dyana Quinzi, Administrative Assistant
“I truly love my job! My coworkers love to help each other succeed, and our members benefit in big ways! We were able to offer ABR and GRI twice this past year, as well as offering all required CE courses at our annual conference twice, not to mention CIPS and MRPM! The amount of education we offer wouldn’t be possible without our whole team working together.”
Advocacy
Advocacy works to make your voice heard in Annapolis, working with legislators and members to protect private property rights in Maryland while fighting housing issues, like supply and zoning.
Lisa May, Director
“This year we passed a statewide housing supply bill, which even just a few years ago seemed would never happen. Attending the Governor’s bill signing for that legislation, along with then-President Chris Hill, our advocacy staff, and other housing advocates, was very fulfilling.”
Christa McGee, Grassroots and Policy Advocate
“My role with Maryland REALTORS® has allowed me the opportunity to connect local legislative committee chairs and government affairs directors with their counterparts in other associations throughout the state when navigating an issue, saving them time and moving us all forward.”
Jacky Mueck, Advocacy and Communications Administrator
“I’ve really enjoyed being able to work on the Maryland REALTORS® website and our consumer site, MarylandHomeownership.com, to share valuable resources and information with our members and consumers. I was also so moved by all the members who showed up for Lobby Day this year to advocate for housing supply issues and I’m so excited to organize the event again in February!”
Strategic Communications
Our Strategic Communications department works hard to put on events from our Regional Roundtables to our Annual Conference. They make the resources that keep Maryland REALTORS® prepared and knowledgeable, from scam alerts to consumer toolkits. The department’s outreach efforts include media relations, website, magazine, webinars, newsletters, video, social media, and events.
Dan Patrell, Senior Director
“It is an absolute joy to watch in real time how our communication efforts proactively impact our members, the media, and consumers. We collaborate with the entire staff to make sure that what we put out is valued, trusted, and reliable.”
Angel Brandt, Program & Events Manager
“As the Programs & Events Manager, I get to plan the events Maryland REALTORS® hosts for its members. The members benefit from the events because they are informational, offer opportunities for continuing education, and the members enjoy the opportunity to socialize with each other and staff.”
Kelli Beard, Content Specialist
“My favorite part of my job is designing/creating print materials, social posts, and other marketing assets. I love that these materials can help our members be a resource for their clients and allow them to demonstrate their expertise and professionalism. Communicating effectively with members in turn helps to champion what we stand and who we serve.”
IT
IT is essential to every organization, and our IT department keeps Maryland REALTORS® running smoothly with everything we need to best serve you, our members.
Michael Cunningham, Director
“Though most of my job involves supporting the staff, I always look forward to teaching opportunities with members. I love being in front of a classroom when members first grasp a concept and you can see the change in their eyes. “
Accounting
Accounting does the important work of making sure money goes where it needs to, from paying our instructors to printing and shipping magazines.
Patti Schmitt, Vice President
“My goal each year is to ensure our departments have the funds to implement the member programs.”
Kimberly Knopp, Assistant Controller
“I would say my favorite memories come from conference. It allows me the opportunity to match names with faces of people that I’ve talked to in the past and worked with on RPAC.”
Victor Pessima, Membership Administrator
“My favorite part of my job is maintaining Maryland REALTORS® membership database system. Members get relevant information on request, answers to their membership inquiries, and the timely processing of their Maryland REALTORS® membership application.”
Deja Grider, Junior Accountant
“Motivation comes from self, and I feel pleased when I help our members with financial relief. Even a small act of kindness can make a big difference in someone’s life.” ■
Jacky Mueck is Advocacy and Communications Administrator for Maryland REALTORS®.
Unlock the Full Value of Your Membership
While it may an overused expression, it remains true: at Maryland REALTORS®, membership has its privileges. Only our members can work with and access exclusive savings from our Affinity Partners, businesses that have passed onto our members savings that others can’t access.
Working with friends at Gallagher, members can enjoy savings from a host of “big name” providers. From shipping to email, insurance to office supplies, you can save big on personal and professional solutions.
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To reserve with Avis, visit avis.com/ mdrealtor or call 1-800-331-1212 and use discount code D423529 to get started.
To book with Budget, visit budget.com/mdrealtor or call 1-800-527-0700 and use discount code D836629 to get started.
Let UPS® Help Make You Unstoppable
Your UPS Savings Program has the tools to help you send and receive packages even faster with huge shipping discounts.
Member savings include:
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■ 42% off Ground Commercial/ Residential
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■ 40% off Imports
■ 75% off less-then-truckload (LTL) services
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Shipping can be very costly and complicated. You can depend on UPS to get great deals on all shipment types while ensuring your packages reach their destinations.
Sign up for a new UPS account, or re-enroll if you already have one, and start saving at savewithups.com/mdrealtor
Work Your Best from Anywhere with ODP Business Solutions™
Whether working from home, an office or a bit of both, you can save up to 75% on the Best Value List of preferred products with free next-business-day delivery or in-store and curbside pickup. 2,3
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Don’t waste valuable time and energy running to different stores to find the lowest prices. ODP Business Solutions can meet you wherever you are, with great deals and everything you need in one place—saving you time and money!
Visit odpbusiness.com/marylandrealtors to register or log in today. Also, get your printable Store Discount Program Card to save big every time you shop at an Office Depot® or OfficeMax® location.
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That’s right, you can save up to half on the everyday public web price of Lenovo’s product line, which includes:
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Here’s the Fine Print
Members also receive free ground shipping on all web orders and can take advantage of monthly limitedtime special offers.
Huge discounts on premium tech devices like this don’t come around often, but as a Maryland REALTORS member, they are accessible anytime you need an upgrade. No more surfing the web and waiting for the right deals; look no further than Lenovo!
For more information and easy ordering, call 1-800-426-7235 or visit lenovo.com/mdrealtormembers today.
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Use Engine to save up to 60% on publicly available rates. You can book in less than three minutes with their customized hotel reservation and management solutions built with simplicity, service and savings in mind.
Travel is already stressful enough. Engine gives members solutions for the biggest travel headaches, offering smooth trip planning and management, total visibility throughout the process and low prices. Do yourself a favor and take advantage of this special access; you won’t want to go back to the old way of booking travel again.
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Comprehensive Protection Against Cyber Risks
Cyber Liability & Data Breach
Insurance from 360 Coverage Pros provides small businesses and independent contractors protection against the financial burden of a cyberattack aftermath.
Get coverage from an “A” rated insurance carrier for a broad
1 The savings of up to 35% applies to Avis Pay Now rates and Budget Pay Now rates is applicable only to the time and mileage charges of the rental. All taxes, fees (including but not limited Air Conditioning Excise Recovery Fee, Concession Recovery Fee, Vehicle License Recovery Fee, Energy Recovery Fee, Tire Management Fee, and Frequent Travel Program Fee) and surcharges (including but not limited to Customer Facility Charge and Environmental Fee Recovery Charge) are extra. Offer is available for U.S. and Canadian residents only for rentals at participating locations in the U.S. and Canada. Offer does not apply to car group X. Offer may not be used in conjunction with any other AWD number, promotion or offer. Weekly rates require a minimum five day rental period. Weekend rate available Thursday noon; car must be returned by Monday 11:59 p.m., or higher rate will apply. A Saturday night keep and an advance reservation may be required. Offer is subject to vehicle availability at the time of rental and may not be available on some rates at some times, including some online rates at Avis.com. Car rental return restrictions may apply. Offer subject to change without notice. Holiday and other blackout periods may apply. Renter must meet Avis and Budget age, driver and credit requirements. Minimum age may vary by location. An additional daily surcharge may apply for renters under 25 years old.
2 Free Delivery: Minimum purchase required after discounts and before taxes. Orders outside our local delivery area and most furniture, oversized, bulk items, cases of bottled water and other beverages and special-order items do not qualify. Non-qualifying orders incur a delivery charge (minimum charge of $9.99). Many orders can be delivered next business day (between 8:30 AM and 5:00 PM) if placed online or via phone by 3:00 PM or via fax by 1:00 PM, local time (In most locations). Other restrictions apply.
3 Curbside pickup is available in most stores, subject to state and local regulations. Orders must be placed 1 hour before store closing. See odpbusiness.com, call 888.2.OFFICE or ask your Account Manager for details.
range of cyber-related damages, including:
■ Cyber hacking
■ Data breaches and lost information
■ Disclosure of private and confidential information
■ Defense and legal costs
■ Regulatory claims and penalties
■ Multimedia liability
■ Cybercrime and extortion
All policyholders also have access to a 24/7/365 breach response line.
Top-rated insurance products and services are hard to find. Take advantage of this crucial, comprehensive coverage before facing a catastrophic incident that severely impacts your business and livelihood.
360 Coverage Pros makes it easy to get an instant quote and purchase your policy online. Visit 360coveragepros.com/mdrealtor
Even More Affinity Partners!
Check out these other Affinity Partners, which offer exclusive savings to Maryland REALTORS®’ members. Follow this QR Code to access them all. Because these are offers for members only, you need to log in to our website, before reviewing and accessing any Affinity Partner.
DO AudioTours
DO AudioTours is a MultiLanguage Artificial Intelligence audio/visual showcase experience that amplifies your real estate listing at a discount for Maryland REALTOR® members. This tool provides additional information for consumers and allows you to differentiate yourself through the
power of AI for real estate. This tool delivers an audio description plus closed captioning, multilanguage support and ADA-friendly components that bring a property to life.
FastPark
Enroll in our Free Relax for Rewards Program using the company name Maryland REALTORS®. Once enrolled using your company code and an email address, a Fast Park card will be issued. Guaranteed daily flat rates, earn points towards free parking, print receipts, review parking history, and request free parking.
to learn more and schedule a consultation today.
Don’t let these amazing benefits go unused. Start getting the full value from your Maryland REALTORS membership by clicking on this QR Code, which will take you to landing page to access these unique Affinity Partners. ■
Hurdlr
Hurdlr is an expense tracking system designed to save thousands every year. Did you know there are HUGE tax advantages for your business? Regardless of how much money you make, Hurdlr teaches you how to keep more of what you earn!
Invisawear
Stay safe while showing property with our smart jewelry and keychains with hidden safety technology inside. Maryland REALTORS® save 5% from our collection of bracelets, necklaces and keychains with promo code “MDREALTOR”!
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continued from page 18
Maryland REALTORS® Rx Program
Help lower your and your family’s prescription drug costs. Create and print your FREE Prescription Drug Card below and immediately receive savings of up to 80% (discounts average roughly 30%) at more than 68,000 national and regional pharmacies. This card can be used as your primary plan and/or it can be used on prescriptions not covered by your insurance plan.
NAR REALTOR® Benefits
NAR REALTOR Benefits® partners with select companies to create exclusive, customized offers that specifically help you save on solutions that boost your business and best serve your clients.
Pearl Insurance
We’ve been protecting real estate agents with our partner carrier, AXA XL, since 1979 and were among the first companies to offer errors and omissions (E&O) insurance. We are now supplementing our Plus program with essential cyber endorsements as well. Visit our website or call one of our E&O specialists at 855-4650200 for more information. If you’re ready to get the Plus today, get a quote online now!
REALTOR® License Plate
Show everyone that you’re a REALTOR®. This special plate will set you apart from everyone else as a Maryland REALTOR®. A license plate costs $35. For information or an application please contact Victor Pessima at 443-716-3500 or email your information to victor. pessima@mdrealtor.org. Please note: if you have a Maryland Assoc of REALTOR® plate and want to get a new updated Maryland REALTORS® plate, you will not be able to keep the same numbers.
REALTORS® Insurance Marketplace
REALTORS® Insurance Marketplace is an easy to use comparative shopping site designed to help NAR members obtain insurance by offering a wide roster of insurance plans and products. Offered under the REALTOR Benefits® Program, the Marketplace Health Insurance Exchange, featuring insurance plans from top-rated carriers nationwide that meet the mandates of the Affordable Care Act. Call us at any time 1-877-267-3752.
RentSpree
Take advantage of the highest-rated tenant screening service on the market, complete with rental application, credit report, background check, and eviction history. Free for agents with instant results.
TransUnion/ SmartMove
20% off TransUnion SmartMove QuickCheck Service. Visit https://mdrealtors. mysmartmove.com/ for more information about our services.
The Graduate REALTOR® Institute Designation
Be the first pick. Stand out from the crowd.
Your clients are more sophisticated than ever, requiring you to perform at a higher level of professionalism. By earning the Graduate, REALTOR® Institute Designation (GRI), you will lead the pack with real-world knowledge about new technologies, laws and marketing techniques that positively affect your bottom line.
Questions? Email:
GRI@MDRealtor.org
One Time Completion
Must complete Series 100 & 200 for a t otal of 72 hours, no renewal required.
Continuing Education
Each six-hour course offers advanced g uidance for the modern REALTOR® and most provide continuing education credits.
Online Classes
Each GRI series is offered virtually twice a y ear through Maryland REALTORS®. Sessions run from 9:00am to 3:45pm.
Think Before You Click: Email Scams
BY MICHAEL CUNNINGHAM , DIRECTOR OF IT
Scammers are evolving, and we can no longer depend on fraudulent emails having typos or misspellings to alert us to their nature. Attacks are increasingly performed by criminal organizations using advanced tactics to get us to share sensitive information.
What Scammers Want
We can better identify a fraudulent email by understanding the criminal’s goals and remaining vigilant when taking action that could help them achieve those aims. Email scams attempt to:
1. Steal Personal and Financial Information
Phishing emails try to capture sensitive details like usernames, passwords, and banking information. This information is later used for identity theft or fraud. Be wary of links or attachments that ask for log-in credentials or sensitive information.
2. Install Malware or Ransomware
Scammers may embed links or attachments that, once clicked, install malware on our devices to steal data, monitor keystrokes, or lock files for ransom. Avoid downloading software or enabling macros from attachments.
3. Extort Money
Criminals impersonate friends or business associates to convince us to send money. In real estate, scammers often pose as title companies or escrow officers, claiming urgent last-minute payment changes. Their goal is to obtain quick, untraceable payments, often through wire transfers or prepaid cards.
Identify & Avoid Scams
A few simple things can help us identify many of the common scams.
1. Check the Sender’s Email Address
Scammers may fake the sender’s name but it’s far harder to mimic the actual email address. Hover over or click on the sender’s name to reveal the true address. Suspicious spellings or structures could also signal a scam.
2. Be Cautious with Links and Attachments
As a REALTOR®, we must be cautious with links and attachments in emails, particularly if they’re unexpected or from unknown contacts. Scammers target real estate professionals by including malicious links or files that, once clicked or downloaded, can install malware on your device or direct you to websites that
steal sensitive information. Given the high volume of documents we deal with, it’s critical for us to stay vigilant and verify all unfamiliar attachments or links before opening them.
3. Watch for Urgent Language
Many scams rely on urgent language, calling for immediate action. In real estate, they may impersonate a title company or escrow officer, claiming there’s a lastminute change in payment instructions or additional fees required to finalize a property transaction. Be wary of any demand for unplanned fees or sudden payment changes.
Handling Scam Emails
If you have doubts about an email, pause and verify before acting. Contact the sender directly by phone (using a number not found in the email) or text to confirm they sent the message.
If it turns out to be fraudulent, don’t reply, click any links, or open attachments—this can signal to scammers that your email is active, increasing the risk of further attacks. Instead, mark the email as spam or phishing through your provider to help block malicious senders and protect your fellow REALTORS®. ■
Thanks for Visiting Us at “Back to the Beach!”
BY GREGORY HARE
As 2024 draws to a close, we want to thank those who visited our booth at this year’s Maryland REALTORS® Annual Conference! Your commitment and partnership make homeownership a reality for Marylanders every year!
The Maryland Mortgage Program (MMP) has been helping Marylanders achieve their dreams of homeownership for over 40 years. As we look to 2025, we’re here to support your clients in overcoming barriers like down payment challenges, student debt, and interest rates with specially tailored programs designed to make owning a home possible. Let’s partner together to open doors in 2025!
Below are some of the most advantageous MMP partnership products:
■ 1st Time Advantage 5% DPA Loan: This product comes with down payment and closing cost assistance equal to 5% of the first mortgage while still maintaining a competitive interest rate on the first mortgage. Borrowers must be first-time homebuyers.
■ HomeStart: This product is for borrowers with income at or below 50% Area Median Income (AMI). It comes with a 0% interest, 30 year deferred down payment loan equal to 6% of the first mortgage
■ Flex 3% DPA Loan: This product comes with a loan equal to 3% of the first mortgage. Can be a repeat or first-time homebuyer.
Follow us on social to stay up to date: facebook.com/ marylandmmp/ instagram.com/ marylandmmp/ x.com/ marylandmmp
Let’s make the new year one filled with new homes, and new beginnings! ■
Gregory Hare is the Assistant Secretary, Maryland Department of Housing and Community Development. mmp.maryland.gov, singlefamilyhousing.
dhcd@maryland.gov, 1-800-756-0119
Sound Investments?
BY LISA MAY
At the time of this writing, ballots were still being cast in the Presidential election. While there are many policy differences between the competing campaigns, there was surprising agreement on one issue: that institutional investors in real estate are a prime cause of our nation’s housing shortage. What do we mean by that term? And what impact do these investors have on the housing market?
To hear news stories, policymakers, or online commenters tell it, institutional investors are shady, multinational hedge funds buying up all the available housing inventory and leaving our country with a permanent class of renters. Therefore, to protect individual purchasers, legislators should take action to limit institutional investors’ ability to buy and hold residential properties. Simple.
The reality is, of course, more nuanced, and that makes policy solutions far more complicated.
At present, there is no set standard for what level or manner of
property ownership qualifies as “institutional.” Simply purchasing properties under an LLC or other corporate structure doesn’t differentiate between small and large investors.
Legislators at the state and federal levels have proposed definitions. Ownership of 25, 50, 100, or 120 properties in a single state, or 1,000 properties nationwide, have all been used as proxies for institutional level investment. Others have placed the number at a total property value exceeding $12 million or owning more than 3% of any county’s parcels. While these limits are unlikely to impact true “mom and pop” investors, they have the potential to sweep up more than just hedge funds.
Further, conversations surrounding this practice tend to conflate the subsection of institutional investors with all investors. Legislation to address institutional investors in Maryland relied upon statistics from a November 2023 Baltimore Sun article as evidence that curbs were needed. However, that article
At present, there is no set standard for what level or manner of property ownership qualifies as ‘institutional.’
stated that one-third of properties were purchased by investors—not institutional investors—but all types of investors.
It is an important distinction to make. Investors play a vital role in providing rental housing options for those who are not able to buy their own homes. Many times, they are also the only option for returning vacant, blighted, and other damaged properties back to productive use.
So how do we quantify the number of institutional purchases and distinguish them from more traditional forms of real estate investment?
Some agencies and economists are attempting to do just that. A 2022 NAR report on institutional
continued on page 26
Now What?
BY CHUCK KASKY
We survived August 14. The sun rose, and as I write this, we are in the middle of some glorious fall weather. Of course, all these beautiful days have left us in a drought, but we always take the bad with the good, right? We still have lots of questions, and Maryland REALTORS® will continue to modify the forms as we hear from you about how it’s going and what we can do to help.
Operating at a high level, we are now asking ourselves “Now what?” As you may know, I’m averse to making bold predictions in this uncertain environment, but to be prepared for the future, we must at least gather information, make some educated guesses, and put contingency plans in place to address the most probable outcomes.
I’ve put these into three categories: 1) how it’s going right here in Maryland; 2) what the future of NAR and “organized real estate” looks like; and 3) what can we expect in the market for residential real estate in the near term.
I’m taking the last issue first, because the short answer is “Nobody knows.” There are just too many variables, not the least of which is the outcome of the 2024 elections. The potential policy implications on things like inflation and interest rates are just too enormous to discuss in this format, but we will have more to say about the housing market later.
I can, however, report on what we’re hearing from members about implementing the practice changes brought about by the NAR settlement. Maryland REALTORS® supported our members by creating new forms to facilitate the new landscape around buyer broker compensation and provided hundreds of hours of educational opportunities to prepare for the new reality. Maryland REALTORS® communications, legal, and professional development teams worked tirelessly and collaboratively to develop the new forms (and a huge shout out to the Statewide Forms Committee).
We always understood that this would be an iterative process and changes to the forms and our programming will adjust as we get feedback from our members. Please contact us, as many of you already have, to let us know what’s happening in your market and what the pain points are. For example, we need to better understand and distinguish between cooperative compensation, where the listing broker directly compensates the buyer’s broker and seller concessions, which can also be used to compensate the buyer’s broker.
Let me pause to specifically address cooperative compensation. NAR has stated unequivocally that this practice, which has served us well for decades, is allowed under the settlement agreement. Maryland REALTORS® has made the policy decision to continue to facilitate use of it with the understanding that the market may ultimately decide its future. We believe it would have been premature to eliminate cooperative compensation as an option for our members and consumers at this early stage of our adjustment to the new reality. That said, and as you may know, some states and local associations did eliminate cooperative compensation from their brokerage agreements. If you operate in those markets and in markets that still facilitate it, please contact our Legal Hotline for guidance on how to navigate those transactions.
And what about the future of organized real estate? We know that members here and across the country are questioning the need for and value in REALTOR® associations at the local, state, and national levels. With the removal of compensation from the MLS, many are also questioning the future of that service.
Although headlines about changes in data and compensation rules may bring some uncertainty about the MLS’s place in the industry, the plethora and importance of services that it brings to the market ensures its continuity. Being able to
express the stability these services will continue to provide to markets should be a priority for every professional involved in communicating the value of an organized real estate industry.
Just as the services, policies, and definitions of our associations and MLSs have shifted over the past century, they will continue to change. The real estate industry is moving through some dynamic phases of technology, law, and practice. The way brokers advertise homes, interact with clients, get paid for their work and develop
new business will continue to change over time.
Industry leaders can and should face inevitable changes headon. Communicating the many strengths and the value we deliver to members that have endured through an ever-changing industry adds clarity and confidence for all participants in the real estate ecosystem. It strengthens the industry’s professionals and the services they provide to members and consumers.
Our members know that trust is a critical element. With something
as large and complex as the selling and buying of real estate, the professional guidance, representation and cooperation provided through REALTORS® and MLSs are essential. We promise that Maryland REALTORS® will continue to be here when you need us. ■
HOUSING ADVOCATE continued from page 24
investors found that they are a growing share of real estate purchases, with an average of 13.2% of homes nationwide purchased by these entities. Some states like Texas and Georgia far exceeded that total, as did several metropolitan areas. However, Maryland was at the bottom of the list, with approximately 10% of home purchases coming from large corporations.
Even then, those percentages are just the share of homes being purchased each year. The Government Accountability Office (GAO) report from earlier this year found that institutional investors owned 450,000 of the nation’s 14 million residential properties. In other words, a mere 3% of the total housing inventory. Even if all 450,000 of those units were made available to owner-occupant buyers, it would be just a fraction of the overall housing shortfall we are
experiencing. There’s also an open question on whether institutional investors are truly in competition with individual buyers, particularly when it comes to properties in need of serious repair.
That is not to say that fears over institutional ownership of properties aren’t without some merit. Large corporations tend to buy and hold properties longer than other types of investors, limiting housing turnover and generation of local economic activity associated with home sales. There is also evidence that institutional investors charge tenants higher rents and file for eviction more frequently than other investment property owners. Finally, concentrations of these homes exist within regions, cities, and neighborhoods far exceeding the percentages listed here. More than one study has shown that institutional investors actively choose oversaturation in a single
market for ease in acquisition, maintenance, and leasing. If economic conditions change or rental demand slows, that will impact the profits these corporations receive. They could seek to rapidly divest their holdings if promised shareholder returns don’t materialize, disrupting housing markets on a micro level.
All of this is to say that the issue of institutional investors is far more complicated than advertised and not an easy fix for housing woes. That won’t stop policymakers from trying, of course, but will require thoughtful and measured proposals if they are to be addressed. ■
Lisa May is the Director of Advocacy and Public Policy for Maryland REALTORS®.
Chuck Kasky is CEO of Maryland REALTORS®.
A Guide for Landlords: Understanding a Tenant’s Opportunity to Purchase
BY TAYLOR KITZMILLER, ESQ.
The Renters’ Rights and Stabilization Act (HB 693) outlines specific procedures that landlords must follow when they wish to sell a property occupied by tenants. Below is a step-bystep guide for landlords to help ensure compliance under three key scenarios:
Scenario 1: Selling the Property (Pre-Listing)
If the landlord intends to sell the property, they must follow these steps:
1. Provide Written Notice: Notify each tenant of the intent to sell, providing the
material terms (price, conditions, etc.) of the sale, using the NOTICE OF INTENT TO SELL AND TENANT’S EXCLUSIVE NEGOTIATION PERIOD form Appendix A. Follow this QR Code:
2. Submit Notice to Office of Tenant and Landlord Affairs: A copy of the notice must also be submitted to the Office of Tenant and
Landlord Affairs (“OTLA”) through the Right of First Refusal Portal.
3. 30-Day Negotiation Period: The tenant has 30 days to submit an offer to purchase the property under the terms outlined in the notice.
4. Counteroffer (if necessary): If the tenant’s offer does not meet the stated terms, the landlord must respond with a counteroffer. The tenant then has 5 days to accept or reject the counteroffer. The landlord should use the COUNTEROFFER form, Appendix B, to outline
the terms of the counteroffer. Follow this QR Code:
5. Proceed with Sale: If the tenant declines or does not respond within the 30-day period (or to a counteroffer within 5 days), the landlord is free to sell the property to a third party.
6. Report Outcome: Notify OTLA of whether the tenant exercised their rights.
Scenario 2: Offer After Failed Tenant Negotiation
If the landlord and tenant fail to reach an agreement and a subsequent offer is received from a third party at a price that is at least 10% less than the lowest price previously offered to the tenant:
1. Notify Tenant Again: The landlord must notify OTLA and the tenant of this new offer, giving the tenant another chance to purchase the property at the lower price, using the NOTICE OF INTENT TO SELL AND TENANT’S RIGHT OF FIRST REFUSAL, Appendix C, which can be found by following this QR Code:
2. 30-Day Right of First Refusal: The tenant has 30 days to submit an offer that matches the terms of the third-party offer.
3. Proceed with Sale: If the tenant declines or does not respond within the 30 days, the landlord can proceed with the sale to the third party. If the tenant delivers an offer at the same price as the thirdparty offer, the landlord must accept the offer.
4. Report Outcome: As before, the landlord must inform OTLA of whether the tenant exercised their rights.
Scenario 3: Unsolicited Offer to Purchase
If the landlord receives an unsolicited offer from a third party to purchase the property:
1. Notify Tenant: The landlord must provide notice to the tenant and OTLA about the offer using the NOTICE OF INTENT TO SELL AND TENANT’S RIGHT OF FIRST REFUSAL form (Appendix C).
2. 30-Day Right of First Refusal: The tenant has 30 days to match the thirdparty offer.
3. Proceed with Sale: If the tenant does not respond or declines to match the offer within 30 days, the sale to the third party can proceed. If the tenant delivers an offer at the same sales price, the landlord must accept the offer.
4. Report Outcome: Notify OTLA of the tenant’s
decision. OTLA has created the standardized notice forms (Appendices A, B, and C) that are applicable to each scenario mentioned above. All notices must be sent to the tenant by first-class mail with a certificate of mailing or tracked delivery service. Property owners should use the Right of First Refusal Portal on the Department of Housing and Community Development’s website to access the notices and confirm compliance with the provisions of the Renters’ Rights and Stabilization Act.
Additional Information
■ Exemptions to the tenant’s opportunity to purchase include properties with four or more units, transfers to family members or business entities owned by the landlord, and transfers as part of foreclosures, estate administrations, or court orders.
■ A “tenant” is an individual who has occupied a residential rental property for at least 6 months and who is a named lessee in the written lease.
■ Landlords who fail to follow these procedures can face fines up to $1,000 per violation ■
Taylor Kitzmiller, Esq. is Associate Counsel at Maryland REALTORS®.
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