More on new real estate legislation

By Lauren Bunting Contributing Writer

(July 21, 2023) As a continuation to past two weeks’ articles, below are items from a report the Maryland Realtors issued on the recent legislative session on the real estate-related bills passed. Next week’s article will complete reporting on the legislation.

SB 579/HB 728 – Residential Property - Service Agreements – Prohibitions, effective June 1

Service agreements which bind a property owner to a future contract for the maintenance, purchase, or sale of residential property may not be in effect for longer than one year or be recorded as a lien against the property.

SB 443/HB 662 – Real Estate Brokers, Salespersons, and Associate Brokers - Continuing Education Courses, effective Oct. 1

The 15-hour continuing education requirement for a new licensee’s first renewal period will consist of required classes in contracts, disclosures, property management, advertising, deposits, professionalism, condominium and HOA laws, and real estate financing.

SB 651/HB 1235 – Real EstateReal Estate Brokerage Services and Termination of Residential Real Estate Contracts (The Anthony Moorman Act), effective Oct. 1

When a buyer properly terminates a real estate contract, the holder of the escrow funds shall return the buyer’s deposit within 30 days.

Sellers may object by filing for mediation or initiating court action within 10 days of receiving notice of the deposit release.

HB 1225 – Real Estate BrokersDisability or Death and Termination of Employment of a Broker, effective Oct. 1

Allows the owner of a real estate company to remove a terminated broker and petition the Real Estate Commission to reissue a certificate and pocket card to another broker.

HB 11/SB 483 – Private Well Safety Act, effective Oct. 1, 2024

Requires that properties with a private or domestic water supply undergo water quality testing as a condition of sale. Purchasers may waive the water quality testing requirements in writing, and test results are valid for three years.

HB 98/SB 403 – Condominiums

- Mandatory Insurance Coverage –Alterations, effective Oct. 1 reserved in the budget at $430,000. The Roads Division falls under the Department of Public Works.

Allows detached condominium units to obtain property insurance coverage as HOAs, with unit owners insuring their individual dwellings and the association insuring common areas.

Fencing

The commissioners unanimously approved bid documents for new fencing to be purchased and installed around the Roads Shop in Pocomoke. The Public Works Department requested the funds — about $54,000 — from available FY22 assigned funds. The fence will be the latest upgrade to the shop, aimed at making it more secure and habitable for its crew.

Track loader

The commissioners unanimously approved the leasing of a new compact track loader with a brush cutter at about $156,000, or $2,747.20 per month for five years. The loader will be added to the Solid Waste Division equipment fleet and will be used to maintain the vegetation at the central site landfill and all three closed sites in the county.

Wheel loader

The commissioners unanimously approved the leasing of a wheel loader for the Roads Division at $256,925 — or $4,112 a month for five years. According to a memo from Public Works Director Dallas Baker, purchasing the model they selected will save the county $10,661.28 annually, since it comes under budget. The new loader will replace a 50-yearold model that is now obsolete.

Buying process

The commissioners unanimously approved the modification of its methods for purchasing vehicles for FY24. Procurement officer Nicholas Rice said in a memo that the current process requires commissioner approval for each purchase, but ongoing problems with ordering fleet vehicles have deterred bids.

The pilot program for FY24 will use state contract pricing where practical and off-the-lot purchases will be prioritized. Commissioner approval will still be required for any purchases that exceeded budget constraints.