Baltimore magazine will publish their fourth annual “Top Agents” list in the August 2024 “Best of Baltimore” issue following a months-long survey in partnership with Maryland Association of Realtors and Greater Baltimore Board of Realtors.
Don’t miss this chance to align your business with the area’s top producers.
For advertising information contact: Stephanie Shapiro, Vice President of Sales at sstephanie@baltimoremagazine.net. www.baltimoremagazine.com
Chris Hill PRESIDENT
Century 21 New Millennium 23063 Three Notch Road California, MD 20619
301.862.2169
chris@thechrishillteam.com
Denise Lewis SECRETARY
Brook-Owen Real Estate 41 E. Main Street Westminster, MD 21157 410-871-1110
denise@denisehasthekeys.com
Yolanda Muckle
IMMEDIATE FORMER PRESIDENT
Long & Foster Real Estate
9300 Lottsford Rd., Suite 500
Largo, MD 20774
301.249.1600
yolanda.muckle@lnf.com
Cheryl Abrams Davis PRESIDENT-ELECT
RE/MAX United Real Estate 14340 Old Marlboro Pike Upper Marlboro, MD 20772
301-702-4200 cherylabrams@remax.net
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
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.
Know Your Worth
On Thursday, March 14, 2024, I had one version of this column ready to go. Then news of the proposed National Association of REALTORS® (NAR) settlement was announced, so I threw out that version and I’m writing this one, instead.
I’m sure you were as rocked by the news as I was, that NAR had reached a proposed settlement that would end the litigation brought about by home sellers in other states. As announcements go, this had all the delicacy of a 5 AM fire alarm. And, yes, as the bell was clanging in my head, competing thoughts had entered my mind: the world of real estate is changing, and yet in many ways it has not.
For starters, Maryland is one of only 17 states that legally require a written Buyer Brokerage Agreement. Since 2016, Maryland law has required their use, which has benefited consumers throughout the State and has brought transparency to the real estate transaction. Whereas most of our colleagues across the nation are scrambling to get a buyer agreement in place, we have been ahead of the game for more than eight years. Other states will have to catch up to where Maryland is now by creating the necessary forms, while also getting these agreements signed before moving forward with a client.
So, what has changed? Public perception. Following the announcement, all major news headlines pointed to how much a consumer should pay a Buyer
Know what you bring to every transaction, because while the media has proven itself very adept at talking about commissions, they collectively haven’t—and won’t—tell the true role of a Buyer Agent in the transaction.
Agent. As you would expect, such reporting has empowered consumers. Before gasping, keep in mind what the Association has always taught to assure transparency: commissions are negotiable. The big difference is that this message has now been broadcast a thousandfold. The reality is that Buyer Agents will face stiffer competition as consumers “price shop” for their services. How do you keep ahead?
Know your worth. Know your value. Know what you bring to every transaction, because while the media has proven itself very adept at talking about commissions, they collectively haven’t—and won’t—tell the true role of a Buyer Agent in the transaction.
Now more than ever, this is your story to share with every client. Be proud of your knowledge of communities and neighborhoods, financing, finding homes that match the client’s preferences, making sure the seller follows through with actions they need to take on their end, and your track record of matching buyers with their dream homes.
Share your value. Share your story. Common sense dictates that a buyer making a decision involving
hundreds of thousands of dollars should have professional representation. Your job is to educate your clients on your important role. The consumer may be thinking “price,” which is understandable. How will you pivot to demonstrate your value?
There remains a lot to unpack on all of this, obviously. As your President, I can tell you that Maryland REALTORS® is fully engaged on this issue, working tirelessly to help our members as they navigate the proposed settlement.
You got this. We got this. ■
Chris Hill Is Maryland REALTORS®’ 2024 President.
Step Up. Lead. Make a Difference.
BY CHERYL ABRAMS DAVIS
When I left my corporate job in 2006 to make real estate my full-time career, there were many aspects of our business that I didn’t know or understand, so I made the decision to get involved by signing up to be on a committee.
I thought about my professional skillset and how my experience could help me provide input for the committee that I chose. I went to the Association’s website to look at the list of committees and volunteer. Since then, I’ve been serving on committees at the local, state, and national levels.
People always ask me, “Why do you volunteer? Don’t you have enough to keep you busy?” Here are some of my leading reasons why I believe that volunteering is important and why I ask you, as your next President, to answer the call and volunteer.
You contribute to the well-being of our REALTOR® community, and it makes a real difference. When you see the result of a committee’s collaborative efforts—the creation of a new form, initiative, project, or even impacting future legislation— you’ll feel a sense of pride and belonging.
You meet some of the most incredibly talented REALTORS®. These relationships help you grow personally and professionally. You’ll be in rooms (and Zooms!) with
people whose paths you most likely wouldn’t have otherwise crossed.
You gain a better understanding and appreciation of our industry, and a broader perspective because of new skills and experiences.
You play a role in the solutions that help move this association and industry forward.
You hone your current skills and learn new skills to expand your professional profile.
While you get a lot out of volunteering, here’s what your Association receives:
■ Ideas, skillsets, experiences, and perspectives that enrich the Association, aid in problem-solving, and are applicable to the programs and projects, as outlined by each committee and our Strategic Plan.
■ An expansion of reach to others in the industry. In your role of committee member, you also serve as an Association ambassador.
■ An engaged REALTOR® community that helps to raise awareness and builds support for the issues and causes that are close to the REALTOR® community.
Volunteers are the core of our Leadership Team. As the future unfolds, we’ll need new volunteers to rise to leadership roles in our organization. Could that be you?
The volunteers, serving on Maryland REALTORS®’ active committees, are creating a stronger, more responsive organization— especially important today. We need your help. Follow the QR Code below to apply now.
Thank you for your helping to shape our industry!
Maryland REALTORS® Standing Committees
Below are quick overviews of each standing committee. To get a better understanding of each committee, use the QR Code below.
Outreach
■ Communications/Public Relations: oversees and advises on the communications strategies of Maryland REALTORS® and all its channels: digital, website, print, video, webinar, social, and event.
■ Community Involvement: responsible for the administration of Maryland REALTORS®’ Community Service Award and the William J. Neary Community Action and REALTOR® Excellence Award, while also making recommendations on the Association’s philanthropic and community efforts.
■ Conference & Events Program Advisory Committee: provides input and development of Association events, including the Annual Conference.
■ DEI Advisory Group: works to create an authentic, vibrant, and inclusive industry culture through education, engagement, leadership recruitment, and community outreach.
■ Housing Opportunity Committee: encourages members and local associations to encourage housing opportunity and affordability in their work; advises on content for the consumer site, MarylandHomeownership. com
Business Development
■ Commercial Alliance: provides a forum for commercial practitioners; develops the annual Commercial Symposium, INNOVATE.
■ Global Business: Explores global business opportunities and relationships for members; offers the Certified International Property Specialist designation program to interested members.
Education/CE
■ Leadership Academy Advisory Group: creates, implements, and develops the Leadership Academy program.
■ REALTOR® Institute GRI Advisory Group: administers courses for the GRI designation, recommending instructors, subjects, scheduling formats, and promotion.
Governance
■ Finance: formulates and makes recommendations about financial planning and budgeting for the Association.
■ Real Property: advises Leadership with regard to real property owned by the Association.
Legal/Arbitration
■ Grievance: examines complaints of unethical conduct and requests for arbitration.
■ Professional Standards: champions professionalism and develops programs on NAR’s Code of Ethics and Standards of Practice.
■ Statewide Forms: reviews all Association statewide contracts and addenda regarding the sale of property to determine changes, additions, or deletions due to legislative action and/or industry practice.
Legislative
■ Issues Mobilization: evaluates issues funding requests presented by Maryland REALTORS® or local REALTOR® associations to determine whether they will effectively promote REALTOR® policy.
■ Legislative: assesses the impact of bills facing the real estate industry based on the Maryland REALTORS® policy and legislative agenda and determines whether the Association will support or oppose those bills.
■ Public Policy: develops and recommends Maryland REALTORS®’ policy on issues impacting the practice of real estate, homeownership, housing supply, and affordability, in both the legislative and regulatory arenas. ■
Cheryl Abrams Davis is the 2024 President-Elect for Maryland REALTORS®.
Announcing: Pride in Practice 2024!
BY SUSAN YASHINSKIE
If you’re looking for an engaging, educational, and fun event (while also earning some CE credits), join us on June 11, 2024 for the 2024 Pride in Practice event, taking place at the American Visionary Art Museum in Baltimore. This event is dedicated to advancing the Association’s and its members’ efforts to engage and educate our diverse membership in the world of Diversity, Equity, and Inclusion.
This year’s program is designed to educate and elevate the high standards of professional conduct with all members by raising awareness of the issues faced by LGBTQ+ homebuyers and renters. Interactive sessions include:
■ The Town Hall Experience –Work with others to test your real estate knowledge by developing solutions to real-life scenarios then test your answers with a panel of experts.
■ Bias Override – Learn about the mind science of identity, study how implicit bias can result in fair housing violations and engage in interactive exercises to enhance communication skills and business relationships with clients of all backgrounds and earn continuing education credits.
In addition to the educational opportunities, we hope you will take advantage of the amazing museum space. Plan to join us for an exclusive networking event, featuring DE-Ice Cream!, with lots of photo opportunities in the Visionary Village.
Register today and take advantage of the program, networking opportunities, continuing education classes, and more! Follow the QR Code to register today!
Unlock a World of Opportunity
From April 2021 to March 2022, foreign buyers spent $59 BILLION on residential properties in the United States. Global real estate opportunities are everywhere. People move to the U.S. from other countries. Foreignborn individuals residing in the U.S. move to new areas, or purchase their first home. No matter which market you are serving, NAR’s Certified International Property Specialist (CIPS) designation will provide you with the knowledge, research, network, and tools to globalize and expand your business.
Susan Yashinskie is the Director of Professional Development and Member Engagement for Maryland REALTORS®.
The dates for the Spring CIPS Institute (virtual/hybrid) are May 15, 17, 20 –22. Want to find out more? Follow the QR Code, below.
Expanding Maryland’s Housing Stock A Roadmap to Meeting Housing Targets
BY SALIM FURTH AND EMILY HAMILTON, MERCATUS CENTER AT GEORGE MASON UNIVERSITY
This article, which appeared online at the Mercatus Center at George Mason University, has been republished with permission by the Mercatus Center.
Governor Wes Moore’s administration has adopted a goal to increase the housing supply in Maryland by 96,000 housing units.1 This would constitute a 4 percent increase in the state’s housing stock—a target that is modest relative to the demand for housing in Maryland, and at the same time ambitious relative to Maryland’s baseline policy context. This policy brief tries to map out a realistic path to achieve this goal:
■ We argue that good zoning policies deliver over decades.
■ We imagine the types and locations of housing that would be enough to meet thegovernor’s goal.
■ We warn against the false choice between abundance and affordability.
Reference Points
Maryland has about 2.5 million housing units. Local governments in the state report issuing about 18,000 building permits per year. 2 The state likely loses about 9,000 units per year to demolition, disaster, and deterioration. 3 The net growth rate of the housing stock, 0.36 percent per year, is one-half to two-thirds of what the state needs to retain its share of the US population. 4
Any estimate of housing need is a moving target, because markets are dynamic. States that provide abundant housing attract migrants—people not previously counted as “needing housing.” Taking dynamic migration and other sources of demand into account, economists estimate that the rent elasticity of demand is about negative two-thirds. 5 That means that every 3 percent increase in a metro area’s housing stock reduces rent by 2 percent, all else equal. That’s a longterm estimate; in the short term, new lease rents can fall more sharply.
Although metro area estimates do not translate perfectly to the state level, the rent elasticity of demand suggests that a 4 percent increase in the housing stock is just a beginning—slowing the growth of rents and prices by a few percentage points would be welcome, but not transformational.
Good Institutions Create a Stream of Housing
Although economists find it easier to think in terms of static comparisons, cities change—slowly. A large, sudden reduction in regulation creates a slow, steady stream of new housing. The gradual nature of this change is partially due to physical reasons: construction requires investment in skilled workers and equipment. It only makes sense to invest in skills or machinery if longterm, steady work is expected. But change is gradual
also because housing markets absorb new supply slowly. When thousands of new units are delivered in a short period, many sit vacant, losing money, as the market gradually adjusts to fill them. 6
One example of the persistent effects of regulation on housing construction is in Arlington County, Virginia. Metro corridors were designated for transit-oriented development back in the 1970s. Even though Arlington is one of the smallest counties in the US, developers there have been thumping out an average of 925 apartments per year in the last 45 years. We at Mercatus witnessed the gradual nature of this change: a large parcel, enviably located near the Clarendon Metro
station, used as a taxicab company’s parking lot until 2021, has finally been developed, and new apartments are available for leasing as of this writing. 7
We can point to other examples across the country. California’s accessory dwelling unit (ADU) reforms (contained in at least eight bills over several years) undammed a steady stream of investment. New data show that ADU production has grown each year, nearing 25,000 applications and 18,000 completions in 2022. In Houston, minimum lot size reforms have delivered on average 1,900 townhouses per year for 25 years but with strong business-cycle variation. 8 Duplex zoning in Palisades Park, New Jersey, has resulted in the
TABLE 1: A POLICY PATHWAY TO 10,000 ADDITIONAL BUILDING PERMITS PER YEAR
500 homes per year
2,555 homes per year
1,500 homes per year
Accessory dwelling units. Given Maryland’s housing stock and prices, we guess that a high quality ADU law would deliver units at about half of California’s rate.
Middle housing near transit. Governor Moore has proposed allowing up to four units per lot within one mile of rail stations, provided one unit is affordable. In unpublished work, the American Enterprise Institute’s Housing Center estimates that this policy would enable up to 1,040 new units per year.11 However, they estimate that the policy would be five times as effective in the absence of the affordability mandate. Creative resistance in some counties and adaptation needed from the construction industry make us more cautious— we adopt half the AEI estimates.
TOD in Prince George’s, Baltimore, and Montgomery Counties. Of these, only Montgomery County has consistently dense development around transit stations (and thus less room for growth above baseline). Transit-oriented development (TOD) rules on par with Arlington’s could deliver growth for generations. But prices are not very high in the first two counties, so it would be slow.
500 homes per year
200 homes per year
200 homes per year
MARC line TOD. Commuter rail stations in Jessup, Savage, and Laurel are adjacent to low-value industrial districts. They may be the easiest places in the state to invite transformational growth. Some is occurring at baseline. Strict affordability requirements, however, would kneecap TOD zoning.
Rehabilitation. Significant rehab efforts have already begun at baseline, but we can imagine funding or tax policies that keep more Baltimore rowhouses and Cumberland duplexes from falling out of service.
Zoning for sewers. Septic systems create nitrogen pollution in the Chesapeake Bay.12 A creative solution is to allow any residential lot owner with a septic system to pay to extend sewers to his property. In exchange, the lot owner receives a denser level of zoning, keyed to allow townhouses or a cluster of single-family homes on what was previously an acreage. With no benchmark, we cannot do better than provide a conservative guess of the impact of the policy.
200 homes per year
4,345 homes per year
God’s and the state’s backyards. The Moore administration has proposed density bonuses for affordable housing on state campuses and non-profit owned land, an approach often called “Yes in God’s Backyard.” Such land may attract low-income housing tax credits that would have been spent elsewhere, making it hard to measure the contribution relative to baseline. Again, we have no benchmark to adopt a conservative guess.
Greenfield development. There are few successful scenarios where greenfield development, scattered around the state, is not the lion’s share of growth. One square mile, developed at a modest six units per gross acre, yields 3,840 homes. Almost all housing growth in less-urban counties will come in greenfields. Some share of this growth can come via densifying baseline greenfield growth.
replacement of about 1.2 percent of all single family homes with duplexes each year for decades. Since 1960, the population there has doubled and the property tax rate has fallen, unlike in neighboring towns. 9 In the state next door, after a creative downtown upzoning plan, New Rochelle, New York, awoke from permitting less than 100 units per year to over 800. 10
In each case, decisive reform did not lead to a one-time surge in development. Instead, reforms raised the baseline rate for years—even generations. Permissive regulations are part of the institutional mix, along with a building industry attuned to local markets, that enables a steady flow of housing units.
A Path to 96,000
How Deep Can the Market Reach?
With these principles in mind, what is a realistic path to Governor Moore’s 96,000-unit goal? We convert this to annual thinking: 10,000 permits per year—over and above Maryland’s 18,000 baseline—as a 10-year path to 96,000, with a cherry on top. What mix of policies could reasonably get us there? We outline one pathway in table 1.
It is challenging to predict the outcomes of even the best-designed reforms. And while we make no pretense of rigor in this section, we have tried to be honest, realistic, and grounded in experience. For all these housing supply reforms, we are thinking of realistic but high-quality versions of the relevant policies. For each of them, a totally ineffective version also exists.
What stands out starkly in the table above is that there is little prospect for achieving the governor’s goal with affordable infill strategies only. This policy brief does not contemplate the kind of big policy changes that would unlock dense, high-quality growth in greenfield areas—but we cannot chart a path to success without a large contribution from densifying and extending the state’s greenfield growth.
Maryland’s housing policy debate risks derailment by the false choice between abundance and affordability. Without assistance, the poorest people end up living in conditions below modern standards—in housing that is crowded, inaccessible, or unsafe, or even in tents. Policymakers should direct subsidies at those most in need, allowing those with moderate means to house themselves. And policymakers should welcome marketrate housing on its own terms—as a product that can even serve Marylanders with incomes well below the median.
As figure 1 shows, housing affordability problems are concentrated among the quarter of the state’s households earning less than $48,000. However, this group is crowded out of many affordability programs by people earning as much as 60 percent area median income (AMI)—which is $73,000 in the Baltimore metro area, a level at which the median Maryland household spends just 24 percent of its income on housing costs.
Indeed, for people with moderate incomes, even new construction can be attainable. For example, in Montgomery County, the typical renter household living in a unit built since 2010 has a total monthly housing cost of $2,050, affordable to a household earning 54 percent of AMI.
Some Maryland localities have turned to local inclusionary zoning (IZ) mandates in an attempt to improve housing affordability. 13 The Moore administration proposes to expand IZ, but on a voluntary basis. Usually, these programs produce little housing and set it aside for households earning as much as 60 percent of AMI, sometimes more, thus failing to serve the least-well-off households.
The IZ approach to affordability is precisely attuned to do little to ease housing unaffordability for those with low incomes while also making housing scarcer at all levels of the income distribution. A more robust approach is two-fold: (1) let builders get to work on market-rate housing, which pays for itself and opens up the filtering process, 14 and (2) supplement the incomes of those in the greatest need.
Conclusion
As this policy brief has argued, Maryland builders will find housing construction opportunities in diverse places, including transit stations, established neighborhoods, and unimproved land. All of those will be needed to meet Governor Moore’s goal. However, each also needs policy intervention at the county or state level to legalize construction of different styles and densities. And none is likely to grow at scale if legalization is encumbered with unfunded affordability mandates. ■
Notes
Salim Furth and Emily Hamilton are Senior Research Fellows at the Mercatus Center at George Mason University.
1. Josh Kurtz, “State Leaders Promise Vigorous Housing Agenda but Tenant Advocates Sweat the Details,” Maryland Matters, December 22, 2023.
2. Sid Kapur, “Maryland,” (database based on US Census Building Permits Survey), (accessed January 22, 2024), https://housingdata.app/states/ Maryland.
3. This assumes Maryland’s housing stock follows the US average. “Changes in the US Housing Stock and Rental Market Dynamics,” US Department of Housing and Urban Development’s Office of Policy Development and Research, PD&R Edge, September 28, 2020.
4. The US population is likely to grow about 0.5 percent per year this decade, but the number of households will grow faster due to aging, low birthrates, and rising affluence.
5. David Albouy, Gabriel Ehrlich, and Yingyi Liu, “Housing Demand, Cost-of-Living Inequality, and the Affordability Crisis,” (National Bureau of Economic Research Working Paper #22816, November 2016).
6. Andreas Mense, “Secondary Housing Supply,” (Geography and Environment Discussion Paper Series 40, Department of Geography and Environment, LSE, London, UK, 2023).
7. “Lease by 1/31 and Receive 6 Weeks Free,” Alexan Fitzroy Apartments (website), accessed January 2024, https://alexanfitzroyapartments.com/.
8. Salim Furth, “Resources for Reformers: Houston’s Minimum Lot Sizes,” Market Urbanism, January 11, 2024.
9. Edward Pinto, Tobias Peter, and Emily Hamilton, Light Touch Density: A Series of Policy Briefs on Zoning, Land Use, and a Solution to the Nation’s Housing Shortage, (Washington, DC: American Enterprise Institute Housing Center, January 2022).
10. Salim Furth and Philip Wharton, Case Study: New Rochelle: Zoning and Permitting Innovations Unlock Opportunity, (Better Cities Project, June 2021); Sid Kapur, “New Rochelle, NY,” (database based on US Census Building Permits Survey), (accessed January 22, 2024), https://housingdata.app/places/NY/New_Rochelle.
11. Unpublished memorandum, January 2024, based on Light-Touch Density Estimates, AEI Housing Center, https://heat.aeihousingcenter.org/ ltd-map.
12. Melanie Harrison et al., “Smart Growth and the Septic Tank: Wastewater Treatment and Growth Management in the Baltimore Region,” Land Use Policy 29, no. 3 (July 2012): 483–92; Ethan Hain et al., “Geospatial and Co-occurrence Analysis of Antibiotics, Hormones, and UV Filters in Chesapeake Bay (USA) to Confirm Inputs from Wastewater Treatments Plants, Septic Systems, and Animal Feeding,” Journal of Hazardous Materials 460, no. 15 (October 2023).
13. Most studies of IZ, including Hamilton’s own study of the Baltimore-Washington region, find that it raises median housing costs, indicating that it hurts many of the households who aren’t lucky enough to secure an income-restricted unit. Emily Hamilton, “Inclusionary Zoning Hurts More Than It Helps,” (Mercatus Policy Brief, Mercatus Center at George Mason University, Arlington, VA, February 2021); Emily Hamilton, “Inclusionary Zoning and Housing Market Outcomes,” Cityscape 23, no. 1 (2021): 161–94.
14. Michael Manville, Michael Lens, and Paavo Monkkonen, “Zoning and Affordability: A Reply to Rodríguez-Pose and Storper,” Urban Studies 59, no. 1 (August 2020): 36–58.
FAIR HOUSING ACT
When does a REALTOR® use the Equal Housing Opportunity logo?
The Fair Housing Act itself does not require the use of the Equal Housing Opportunity logo or slogan, “Equal Housing Opportunity,” in any ad. However, using the logo regularly is good evidence of the company’s commitment to fair housing compliance. The Equal Housing Opportunity logo is a picture of a small house with the words “Equal Housing Opportunity” directly beneath it. The small house picture cannot be used without the words “Equal Housing Opportunity” beneath it, but the words can be used without the small house pictured.
According to HUD guidelines, all advertising of residential real estate for sale or rent should contain an equal housing opportunity logotype, statement, or slogan as a means of educating the home-seeking public that the property is available to all persons, regardless of race, color, religion, sex, handicap, familial status, or national origin. The choice of logotype, statement, or slogan will depend on the type of media used and the size of the advertisement.
GET THE EQUAL HOUSING OPPORTUNITY LOGO:
Go to www.hud.gov Search... Equal Housing Logo
ADD THE EQUAL HOUSING OPPORTUNITY STATEMENT TO YOUR BUSINESS PLAN:
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, disability, familial status, or national origin.
Guidelines for Using the Equal Housing Opportunity Logo (in all ads of four column inches or larger) are available at: www.hud.gov/fairhousing
GET THE HUD FAIR HOUSING POSTER:
Go to www.hud.gov/fairhousing Search... Poster
Fair Housing regulations require the display of the HUD Fair Housing Poster at the brokerage office and at dwellings under construction
PROTECTED CLASSES AND THEIR DEFINITIONS
FEDERAL LOCAL/COUNTIES
COLOR: Pertaining to a person’s skin color.
FAMILIAL STATUS: Families in which one or more children under 18 lives with: a parent; a person who has legal custody of the child or children; or the designee of the parent or legal custodian, with the parent or custodian’s written permission. Familial status protection also applies to pregnant women and anyone securing legal custody of a child under 18.
NATIONAL ORIGIN: Refers to the geographic area in which a person was born, or from where their ancestors came.
PHYSICAL OR MENTAL DISABILITY: In reference to you or someone close to you who: has a physical or mental disability (such as hearing, mobility, and visual impairments, including use of a guide dog; drug addiction and alcoholism, mental illness, intellectual or developmental disability, HIV or AIDS, or cancer) that substantially limits one or more major life activities; has a record of such a disability; or is regarded as having such a disability.
RACE: Categories of physical characteristics and/or genetic groupings of human populations.
RELIGION: Participation with one of the world’s structured religions; one’s spiritual beliefs; inference of religion by place of worship.
SEX (i.e., gender): Sexual orientation or gender identity per Presidential Feb 11, 2021 Exec. Order - see respective definitions.
MARYLAND
Includes All Federal Protections Listed Above Plus:
MARITAL STATUS: The state of being single, married, separated, divorced, or widowed.
RACE: The State of Maryland has expanded the definition of “race” to include traits associated with race including hair texture, afro hairstyles, and protective hairstyles (including braids, twists, and other hairstyles).
SEXUAL ORIENTATION: A component of identity that includes a person’s sexual and emotional attraction to another person and the behavior and/or social affiliation that may result from this attraction.
GENDER IDENTITY: the gender-related identity, appearance, expression, or behavior of a person, regardless of the person’s assigned sex at birth, which may be demonstrated by:
1. Consistent and uniform assertion of the person’s gender identity.
2. Any other evidence that the gender identity is sincerely held as part of the person’s core identity.
SOURCE OF INCOME: Any lawful source of money that is paid to or for the benefit of a renter or buyer of housing and includes grants, loans, government assistance, alimony, child support, pensions, annuities, legal gifts, or investment earnings.
Includes all Federal and State protections listed and may include the following:
AGE: Generally referring to adults 18 yrs & over.
ANCESTRY: Line of descent.
CITIZENSHIP: a person’s actual or perceived immigration status.
CREED: A person’s beliefs; also, a summary of principles or opinions to which someone professes or adheres.
ETHNIC ORIGIN: Cultural upbringing, including ceremonies and traditions.
FAMILY RESPONSIBILITY:
Refers to decisions based on an assumption of a person’s care giving responsibilities, either childcare or care of another family member.
GENETICS: Traits that are determined by genes or genetic mutations.
OCCUPATION: The principal lawful activity of one’s life, generally including students, welfare recipients and retired persons.
PERSONAL APPEARANCE:
The outward appearance of any person, irrespective of sex, with regard to hair style, facial hair, physical characteristics or manner of dress.
POLITICAL OPINION: The opinion of persons relating to government, the conduct of government, political parties, candidates for election or elected office-holders.
PRESENCE OF CHILDREN:
Households that include the temporary custody or permanent occupancy of persons under the age of 18 years.
VETERAN/MILITARY: A person who is a member of the U.S. Armed Forces, Reserves, or Maryland National Guard.
MARYLAND REALTORS® PROMOTES FAIR HOUSING
All counties in Maryland abide by Federal and State definitions of Protected Classes (Maryland follows all Federal Protected classes plus additional state classes. below): STATE:
FEDERAL : Color
Familial Status
National Origin Physical or Mental Disability Race
Religion
Sex (i.e., gender)
Status Sexual Orientation Gender Identity
of Income
PROTECTED CLASSES
Maryland counties and Baltimore City follow all Federal Protected classes plus additional state classes; the counties that follow these standards only are highlighted in red. Several counties and cities have additional Protected Classes, as described below. While Maryland REALTORS® makes every effort to keep this information up-to-date, counties and municipalities may change information at any time. Please check with your local jurisdiction to learn of any updates to fair housing in your area.
ALLEGANY
ANNE ARUNDEL
• Age
• Ancestry
• Citizenship/Immigration
• Creed
• Occupation
Annapolis
• Citizenship/Immigration
BALTIMORE COUNTY
• Age
• Creed
• Veteran/Military
BALTIMORE CITY
• Age
CAROLINE
• Age
CARROLL
CECIL
CHARLES
DORCHESTER
Cambridge
• Age
• Ancestry
• Creed
• Ancestry CALVERT
FREDERICK COUNTY
• Age
GARRETT
HARFORD
• Age
• Creed
• Occupation
• Personal Appearance
• Political Opinion
HOWARD
• Age
• Citizenship/Immigration
• Creed
• Occupation
• Personal Appearance
• Political Opinion
KENT
MONTGOMERY
• Age
• Ancestry
• Creed
• Family Responsibility
• Presence of Children
Rockville
• Age
• Ancestry
• Ethnic Origin
• Genetics
• Presence of Children
• Veteran/Military
PRINCE GEORGE’S
• Age
• Citizenship/Immigration
• Occupation
• Personal Appearance
• Political Opinion
College Park
• Genetics
QUEEN ANNE’S ST. MARY’S
SOMERSET
TALBOT
WASHINGTON
Hagerstown
• Age
WICOMICO
WORCESTER
UNDER THE FAIR HOUSING ACT, IT IS ILLEGAL TO:
Refuse to rent to you or sell you housing because of your race, national origin, or any of the other Federal protected classes
Tell you housing is unavailable when in fact it is available
Show you apartments or homes only in certain neighborhoods
Set different terms, conditions, or privileges for sale or rental of a dwelling
Provide different housing services or facilities
Advertise housing to preferred groups of people only
Fail to design and construct housing in an accessible manner
Deny you property insurance in a discriminatory manner
Conduct property appraisals in a discriminatory manner
Refuse to make reasonable accommodations for persons with a disability if the accommodation may be necessary to afford such person a reasonable and equal opportunity to use and enjoy a dwelling
Refuse to provide you with information regarding mortgage loans, deny you a mortgage loan, or impose different terms or conditions on a mortgage loan
If You Believe Your Rights Have Been Violated: Call the Maryland Commission on Civil Rights at (410) 767-8600 or to initiate an inquiry, visit: www.mccr.maryland.gov/Pages/Intake.aspx
Harass, coerce, intimidate, or interfere with anyone exercising or assisting someone else with their fair housing rights
FAIR HOUSING: BACK TO THE FUTURE
BY KATHLEEN DARTEZ, ESQ.
Over the past few years, there has been an incredible amount of discussion regarding fair housing. Many involved in these discussions fall squarely into one of two camps. One group believes that things have gone too far. They’re concerned about additional protected classes; unclear definitions; and confusion as to why Fair Housing is still discussed when such practices were made illegal years ago.
Another group believes that things haven’t gone far enough. Systemic racism still exists and continues to disproportionately impact minorities, particularly Black people; appraisal bias and discrimination by lenders continue today despite laws prohibiting such practices; and while we’re finally starting to talk in more meaningful ways about housing discrimination, we really aren’t taking meaningful action to eliminate such discrimination
Regardless of your personal opinions, as Maryland REALTORS® we are obligated by both the Maryland Real Estate Commission’s Code of Ethics and by the National Association of REALTORS® Code of Ethics to not only follow the law but to raise awareness, enhance our expertise, and hold ourselves and our colleagues accountable. Before addressing the future, let’s go back to basics.
1. The Fair Housing Act and the Fair Housing Amendments Act (collectively, the “FHA”) make it illegal to discriminate against individuals based on race, color, religion, sex, national origin, familial status or disability. In addition to the Federal protected classes, Maryland prohibits discrimination on the basis of marital status, sexual orientation, gender identity, and source of income. Maryland has expanded the definition of “race” to include traits associated with race including hair texture, afro hairstyles, and protective hairstyles (including braids, twists, and other hairstyles).
Many jurisdictions in Maryland have additional protected classes, and each of us must familiarize ourselves with those legal requirements for every area we serve.
2. Discrimination doesn’t have to be overt or intentional to be in violation of the FHA. Unintentional discrimination (called “disparate impact” discrimination) occurs when an action, policy, or practice adversely affects members of a protected class, even if there was no intention to discriminate and the action, policy, or practice is otherwise unjustified by a legitimate rationale. An example of disparate impact discrimination may be found if a landlord has a policy not to lease to anybody with a criminal record. In 2016, HUD published guidance suggesting that such policies could be a form of disparate impact discrimination. HUD’s guidance was based upon the widespread racial and ethnic differences in the U.S. criminal justice system and data showing that Black and Hispanic people are arrested, convicted, and incarcerated at disproportionately higher rates than whites compared to their share of the general population. HUD’s guidance and NAR’s supporting guidance state that barriers to housing based on criminal records are likely to have a disproportionate impact on minority applicants. Follow the QR Code to learn more.
3. Under the FHA, a disability is a physical or mental impairment that substantially limits one or more major life activities. While some impairments may seem invisible, others can be readily observed. Observable impairments include blindness or low vision, deafness or being hard of hearing, mobility limitations, and other types of impairments with observable symptoms or
effects, such as intellectual impairments (including some types of autism), neurological impairments (e.g., stroke, Parkinson’s disease, cerebral palsy, epilepsy, or brain injury), mental illness, or other diseases or conditions that affect major life activities or bodily functions. The housing provider should not request documentation where the disability is readily observable. Certain impairments, especially including impairments that may form the basis for a request for an emotional support animal, may not be observable. In those instances, a housing provider may request information regarding both the disability and the disability-related need for the animal. Housing providers are not entitled to know an individual’s diagnosis.
4. The FHA makes it illegal for a housing provider to refuse to make a reasonable accommodation, which is a change or adjustment in rules, polices, practices, or services to allow a person with a person with a physical or mental disability an equal opportunity to use and enjoy the dwelling, including public and common use spaces. Specifically, housing providers are obligated to permit, as a reasonable accommodation, the use of animals that work, provide assistance, or perform tasks that benefit persons with disabilities, or provide emotional support to alleviate a symptom of effect of a disability.
5. Under the FHA, a reasonable modification is a structural change made to existing premises, occupied or to be occupied by a person with a disability, in order to afford such person full enjoyment of the premises. Reasonable modifications can include structural changes to interiors and exteriors of dwellings and to common and public use areas. Under the FHA, prohibited discrimination includes a refusal to allow, at the expense of the person with a disability, reasonable modifications of existing premises occupied or to be occupied by that person if the modifications may be necessary to afford that person full enjoyment of the premises.
6. Although source of income is not a protected class at the Federal level, as of October 1, 2020, source of income is a protected class
throughout the State of Maryland. “Source of income” is defined as any lawful source of money paid directly or indirectly to or on behalf of a renter or buyer of housing. The statute provides a few examples of “source of income,” which includes income from, among other things, (i) a lawful profession, occupation, or job; (ii) any government or private assistance, grant, loan, or rental assistance program, including low-income housing assistance certificates and vouchers; (iii) a gift, inheritance, pension, annuity, alimony, child support, or any other consideration or benefit.
Both the Maryland Commission on Civil Rights and the Maryland Real Estate Commission have provided clear guidance on possible source of income discrimination in sales and rentals. While most of us understand that a landlord cannot reject an applicant solely because the applicant intends to use a housing choice voucher, we may not realize that the type of financing a buyer will use to purchase the home is also considered “source of income” under Maryland law.
Understanding Source of Income is important. For example, a REALTOR® cannot discriminate against a buyer wishing to use a VA loan. Another example: a REALTOR® cannot advertise a home for sale as only “accepting cash or conventional.” This too violates the Source of Income protection. Follow the QR Code to review MREC information on this protected class.
7. Using Discriminatory Language in Advertising –
The FHA prohibits indicating any “preference, limitation or discrimination” based on race, color, or other protected characteristics. HUD interprets the prohibition broadly, applying to print ads as well as spoken and online statements—including words, phrases, pictures, symbols, and other graphic images—that send the message that housing isn’t available to particular groups. In
addition, liability is based not on what you mean but on what you say and whether the communication would suggest an illegal preference to an “ordinary reader or listener.”
A best practice is to choose your words carefully and avoid any coded language, expressions, or buzzwords that may send subtle or not-so-subtle messages of exclusion. This could include not only direct references to protected classes but also seemingly neutral words like “restricted,” “exclusive,” or “private.”
In addition to words and phrases, pay attention to the images you use in your ads. Be careful about using human models, whether via video, photograph, drawing, or other graphic techniques, to express preferences for or against different groups. The classic example is a picture or video that uses all white models. Such an ad sends the message that Black people, Hispanic people, or Asian people aren’t welcome in your community.
A best practice when using models in your advertising is to make sure the models reasonably represent majority and minority groups in the metropolitan area, and, when appropriate, families with children. If used, models should also portray persons in an equal social setting and indicate to the general public that the housing is open to all without regard to race, color, religion, sexual orientation, gender identity, or any other protected class.
Now that we’ve reviewed these cornerstone fair housing principles, let’s take a look forward to identifying best practices and actions that we can take to create and maintain a more equitable system, which truly affords equal housing opportunity for all. While you should speak with your Broker to understand the policies and procedures unique to your brokerage, you should also consider the following best practices:
1. Fair Housing Challenge – if you haven’t done so already, complete NAR’s Fair Housing Challenge. The Challenge consists of three components: (i) completing NAR’s Fairhaven interactive fair housing simulation; (ii) obtaining NAR’s At Home With Diversity Certification; and (iii) either completing NAR’s Bias Override: Overcoming Barriers to Fair Housing class or watching the video.
Regardless of how long you’ve been licensed or how many Fair Housing classes you’ve taken, challenge yourself! Increasing your knowledge and professionalism will allow you to better serve your clients and will almost certainly benefit your bottom line.
2. Create and Consistently Use a Checklist – one of the basic principles of fair housing compliance is what you do for one, you do for all. Sometimes, our implicit biases may lead us to make exceptions for people who look like us, or to strictly adhere to policies for those who do not. A best practice is to develop a checklist and use it consistently to ensure that your business practices, the questions you ask your clients, and any documentation that you require are consistent for all of your clients and customers.
3. Focus on Communication – ask your clients questions to ascertain their needs and listen to their responses. If you watched the Long Island Divided video, you may have seen that agents often disregarded the clients’ requests and substituted their own judgment about which communities would be a good “fit” for the client, often basing that judgment on the client’s race or national origin. Ask subjective questions, listen to your client’s responses, and provide equal services based on their needs and wants.
4. Finally – ask questions! Don’t hesitate to speak to your Team Leader, Office Manager, or Broker if you aren’t sure how to respond to a situation. Contact the Maryland REALTORS® Legal Hotline (443 716 3502) if you need assistance or advice. Follow the Maryland Commission on Civil Rights on social media and attend their educational events. Contact your local board to see if they have any classes, events, or workshops planned. ■
Kathleen Dartez, Esq. , is the Director of Legal Affairs for Maryland REALTORS®’.
Celebrating Fair Housing Month
BY GREGORY HARE
April marks the 56th anniversary of the passage of the Fair Housing Act, the landmark civil rights law signed by President Lyndon B. Johnson on April 11, 1968, that made discrimination in housing transactions unlawful. This legislation prohibits discrimination in housing because of race, color, national origin, religion, sex (including gender identity and sexual orientation), disability, and familial status.
The Maryland Department of Housing and Community Development believes that shelter must be treated as a human right. We must create pathways for residents to build stability through homeownership. So let the State of Maryland help you create more homeowners through the Maryland Mortgage Program (MMP). MMP has been the state’s flagship homeownership program for over 40 years and for the past four years, has achieved about $1 billion annually in home loan reservations.
On average, the MMP program provides mortgages to 4,000 to 5,000 Marylanders and their families each year.
The biggest barriers to entry for potential homebuyers include insufficient funds for downpayment and closing costs, student debt, and high interest rates. MMP has specially designed products which assist in each of these categories.
We always encourage other local municipalities to reach out to our business economic development team to generate cutting edge new partnerships that promote homeownership in their area. ■
Gregory Hare is the Assistant Secretary, Maryland Department of Housing and Community Development. mmp.maryland.gov, singlefamilyhousing. dhcd@maryland.gov, 1-800-756-0119
Leaders: We Want You!
BY SUSAN YASHINSKIE
Maryland REALTORS® Leadership Academy is an exclusive leadership development program that will help you fine-tune your leadership skills so that you are READY and ABLE to serve your REALTOR® organization.
The mission of the Leadership Academy is to build strong leaders for tomorrow who are committed to ensuring that our industry and communities are prepared for the challenges that lie ahead. The Leadership Academy is a personal development program that will benefit you in all aspects of your life.
The Leadership Academy class schedule consists of seven sessions, held monthly at Maryland REALTORS®’ headquarters in Annapolis. You and your classmates will have the opportunity to develop, enhance, and hone your leadership skills and competencies in areas such as:
■ Refining your presentation skills and gaining media training.
■ Broadening your understanding of federal and state policy initiatives that strengthen the ability of consumers to own, buy and sell real estate.
■ Developing leadership skills that are applicable to your association and your career, while honing your personal style.
“The Leadership Academy was an amazing experience that continues to guide me in my work and volunteer leadership responsibilities,” said Joanie Hynes, 2024 Chair of the Leadership Academy Advisory Group. “Our class remains a tightknit group, providing support and encouragement in both professional and personal capacities. I am passionate about providing that opportunity to others. I encourage anyone with a desire to expand their knowledge to help lead our industry to apply today.”
How To Apply?
Here’s what you need to know:
■ Applicants must be licensed real estate salesperson, associate broker, broker, or affiliate member in good standing with Maryland REALTORS® and their local board/association.
■ The application must be filled completely, including a letter of endorsement from your local board/association. No applications will be accepted after the due date.
■ Applicants must be available to complete all session dates listed on the application.
■ Applicants must also show proof of completion or of current certification in: Commitment to Excellence, At Home With Diversity, and Bias Override.
■ Each eligible applicant will be interviewed by a panel of the Leadership Academy Advisory Group.
■ Candidates will be notified within a week of the interview process.
To view more information and to review the application, visit the QR code. ■
Susan Yashinskie is the Director of Professional Development and Member Engagement for Maryland REALTORS®.
Joanie Hynes, Leadership 2023 Graduate Hope Mims, and Former Maryland REALTORS® President Yolanda Muckle.
Capitalize on the Outcome
BY CHUCK KASKY
Teddy Roosevelt said: “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”
We are in a moment that tests our fortitude. With news of the proposed settlement between the National Association of REALTORS® (NAR) and the Plaintiffs in the antitrust cases, it’s clear that there will be significant changes to the fabric of our profession. At Maryland REALTORS® we will always strive to do the right thing, but we will never do nothing.
First, a quick update.
As part of the proposed settlement, which still needs to be approved in court and will likely be scrutinized by the Department of Justice, NAR agreed to put in place a new rule prohibiting offers of compensation on the MLS . Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS (for example, concessions for buyer closing costs). This change will go into effect in mid-July 2024, at the earliest.
The agreement would release NAR, over one million NAR members, all
state/territorial and local REALTOR® associations, all association-owned MLSs, (Bright MLS sand its local association shareholders are covered in the settlement) and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions. Also, written buyer representation agreements will be mandatory, which has been the law in Maryland since 2016.
In addition, NAR would pay $418 million over approximately four years.
So, how do we move forward?
While the proposed settlement provides some clarity about the future of real estate transactions, there are many unknowns. Maryland REALTORS® is moving quickly to disseminate timely and accurate information to our members and will provide guidance and resources well ahead of any implementation of the changes that are coming.
continued on page 23
How to Talk the Talk on Housing Issues
BY LISA MAY
Members of Maryland REALTORS® who attended our Lobby Day in February got a small taste of discussing housing issues with our state elected officials, but you don’t need to wait for our annual event to make an impact on housing in your community.
We know that REALTORS® are an important voice for the industry and for homebuyers, sellers, and owners outside of the General Assembly session. Your county and municipal officials will know that too, when you use the following tips to engage on local housing issues.
Keep it Simple
You know real estate like the back of your hand. Policymakers, on the other hand, do not. In fact, many may have never purchased a home. If they have, it may have been many decades ago when homes were more affordable and plentiful. In short, the chances of ignorance or misinformation are higher than you might think.
When you want to talk to government officials about housing, you will want to start from square one. Act as if that individual knows nothing at all about the real estate market, current inventory, the lending environment, or affordability. Start your conversation (or more likely, conversations) from that place to foster a mutual understanding of the issues.
Facts Are on Your Side
In a way, we are fortunate to be fighting for housing at this moment in time. It is hard to remember a time when so many scholars of all stripes were studying our nation’s housing system and proposing workable solutions. Which means, it is likely that you can find an argument that appeals to any official, be they left, right, or center.
To help in these conversations, Maryland REALTORS® provides the research for this task. In January, we conducted our 4th Annual State of Maryland Housing Survey (QR code below), which measures the views of state voters on housing supply and affordability. You
can view the full results or access our infographic on opendoorsmaryland.org . You can also use our monthly Maryland housing statistics, RPR reports, or other Maryland REALTORS® media to help your cause.
Personalize It
Facts and figures are an important part of making any policy case. That is why you will see an emphasis on the use of data, rather than mere anecdotes, to form solid legislative and regulatory proposals. However, if you really want to drive home your case, don’t be afraid to use both.
If you have a story that illustrates the data, use it. This takes your advocacy from impersonal numbers into human connections. Tell the housing shortage from the perspective of the schoolteacher, the
firefighter, or the retiree on social security. Explain the ins and outs of tenant measures as they impact a mom-and-pop landlord. Describe the experience of the business that left, didn’tt expand, or never considered opening in Maryland due to our regulatory environment or lack of housing options for their workforce. You will still make a sound case, but in a way that is memorable to policy makers.
Show Up, Speak Up
It is said that history is made by those who show up. The housing discussion is no different. If state and local officials only hear from those who oppose new housing options and who have a personal stake in the status quo, it is easy for them to assume that everyone they represent feels the same way.
REALTORS® can serve as an important counterpoint to NIMBY opposition. Just by sharing what you know and who you represent, and taking the time to show up, you can change the complexion of the housing conversation in your county or town.
The road to more housing opportunities will be fought and won conversation by conversation, vote by vote. The REALTOR® voice is a critical component to that effort. It is time for all of us to speak up in favor of the housing that Maryland needs. ■
CEO CORNER continued from page 21
First, we know we will need to update the Buyer Representation Agreement and Listing Agreement. References to cooperative compensation will need to be rewritten.
Also, NAR said the proposal would allow sellers and their listing agents to continue offering compensation for buyer broker services, but that those offers won’t appear in the MLS. We are working on an Addendum to the contract to facilitate that negotiation. To do so we need to better understand how this interacts with lenders’ cap on seller contributions to the buyer’s closing costs; we will be exploring that issue in depth.
Further, it’s not clear what happens when sellers offer compensation that’s lower than the amount a buyer and their agent have agreed to in their buyer representation agreement. That’s something we need to address.
We are also seeking clarity from NAR on matters like how to address the prohibition on VA buyers paying compensation to their brokers, and whether lenders will be open to including commissions in the mortgage. There are lots of moving parts to all this, but we are working diligently on your behalf.
As always, we will continue to deal with reality as it unfolds and adapt
Lisa May is the Director of Advocacy and Public Policy for Maryland REALTORS®.
as necessary. Please reach out to us with your thoughts, ideas, comments, or concerns. Remember to monitor our Resource page on our website, which will provide the latest information on the proposed settlement. The QR Code will take you there. ■
Chuck Kasky is CEO of Maryland REALTORS® and host of the Association’s podcast, “Get Real Estate,” which is available through any podcast app.
Don’t Do It – Period!
Q:I recently changed brokerages. My former broker had an office policy requiring the buyer’s agent to include a copy of the Buyer Agency Agreement with the offer being submitted to the Listing Agent. The broker said that this was the only way the Listing Agent would know that we represented the buyer and were entitled to a commission. My current broker insists that this is illegal, that we should not send a copy of the Buyer Agency agreement to the listing agent. Any guidance?
A: Your current broker is correct. The Exclusive Buyer-Tenant Residential Brokerage Agreement (the “Buyer Agency Agreement”) is a confidential document between the buyer and the broker The Buyer Agency Agreement should never be submitted to the listing agent.
If you have taken the Brokerage Relationships and Disclosures class recently, you may remember that the Maryland Real Estate Commission has given clear guidance on this. One of the FAQs in that class is:
Q: Is it OK for me to send my signed brokerage agreement as part of my client’s purchase offer?
A: No. Under no circumstances should your brokerage agreement be distributed to the listing side as part of the offer to purchase.
We have heard some brokers say that they must receive a copy of the Buyer Agency Agreement to
confirm that they actually represent the buyer. Again, this is contrary to guidance provided by the Maryland Real Estate Commission. The Commission has indicated that if you identify yourself as the Buyer Agent on the last page of the contract, the Listing Agent is entitled to rely upon that, and it is not appropriate for the Listing Agent to require the Buyer’s Agent to provide a copy of the Buyer Agency Agreement.
We were asked this question frequently in 2016, after the elimination of presumed buyer agency, and it’s still a question we see in 2024. It is our strong recommendation that any broker who requires their agents to send a copy of the Buyer Agency Agreement to the Listing Agent when submitting an offer should stop doing so immediately. The most obvious reason would be to be consistent with the Maryland Real Estate Commission’s guidance.
A second reason may not be as obvious but is equally, if not more, important. A brokerage that shares its compensation, fees, or other competitive terms with a competing brokerage potentially opens
itself up to an allegation that it has violated antitrust laws.
Price fixing is an agreement among competitors to raise, lower, or maintain prices or compensation levels. An antitrust violation may be found regardless of whether the “agreement” is written, verbal, or inferred from conduct. A plaintiff’s class action attorney could argue that brokerages sharing their compensation and fees with competing brokerages are, by that conduct, conspiring or colluding to establish a fixed or minimum level of compensation. It is possible that a judge or jury might agree.
It is impossible to eliminate all risks, personally or professionally. In recognition of that reality, it is critically important that we control or reduce the risks that we can. Implementing and enforcing a Broker Policy consistent with the Real Estate Commission’s guidance is one way to accomplish this. ■
Kathleen Dartez, Esq. , is the Director of Legal Affairs for Maryland REALTORS®’.
CALL FOR ENTRIES
Awards
Maryland REALTORS® takes great pride in awarding industry honors to outstanding REALTORS®. Recognition is a positive reward for a job well done. It is vital that we honor those individuals who have given outstanding service to the real estate industry and the local boards/associations. The awards will be presented during the Annual Installation and Awards Gala later this year at “Back to the Beach,” the 2024 Maryland REALTORS® Annual Conference
THE MARYLAND REALTORS® GOOD NEIGHBOR AWARD: Honors individual REALTOR® members who give unselfishly of their time to assist the communities in which they live. Individuals can apply directly to Maryland REALTORS® and there is no limit to the number of entries submitted by local boards/associations or firms for this award. All nominees submitted to local boards/associations must be submitted to Maryland REALTORS®
DEADLINE: July 8, 2024
THE COMMUNITY ACTION AND REALTOR® EXCELLENCE (CARE) AWARD: This award is given to local board/associations recognizing achievements in community service and charitable actions. The award is designed to raise the profile of REALTORS® and the REALTOR® organization by focusing on boards or associations that have demonstrated an extraordinary record through direct local board/association community service involvement and to include endeavors by REALTOR® members who are part of a local group, team, office or individually. The Award will be divided between a large board/ association (1,000+ members) and a small board/association (fewer than 1,000 members) beginning June 1, 2022 through July 1, 2023.
DEADLINE: July 8, 2024
THE
REALTOR® OF
THE
YEAR
(ROTY)
AWARD: One ROTY application is required to be submitted by each local board/ association to be entered in the Maryland REALTORS® competition. The winner of the state award will travel to National Association of REALTORS® (NAR) Annual Convention for consideration in the national award. This award is submitted directly by your localboard/association for consideration.
DEADLINE: CONTACT YOUR LOCAL ASSOCIATION
DEI LEADERSHIP AWARD:
This award is designed to recognize those who have made significant steps towards creating a more diverse and inclusive community through the implementation of initiatives and/or programs reflective of Maryland REALTORS®
DEADLINE: July 8, 2024
Other annual awards include the Lifetime Achievement Award, Omega Tau Rho Fraternity Award, President’s Award, Shining Star Award, and more.
on April 15, 2024.
May 13th and 20th, 2024 | 9:00 AM-4:30 PM
Join Maryland REALTORS® to take the first steps to earn your ABR designation. The courses are FREE to all Maryland REALTORS® members.
This two-day course will be held both in-person at the Maryland REALTORS® office in Annapolis, Maryland as well as virtually by zoom. You must complete both days. Sign Up Here
Understand and demonstrate your value proposition to today’s buyer.
Acquire the skills and resources to succeed as a buyer’s agent in a dynamic real estate market.
Understand the importance of using a Buyer Brokerage Agreement and acquire the skills and scripting necessary to assist in getting the agreement signed. Unlock Your Skills! Learn how to: Maryland REALTORS® Presents:
Complete ABR Designation Course Complete one of the ABR Elective Course Options
