Frequently Asked Questions

Legal Hotline FAQ

A blog of the most frequently asked questions to the Maryland REALTORS Legal Hotline.

Cindy Sellers
Cindy Sellers
Cindy Sellers's Blog

. Is a licensed real estate professional working with a seller in default under a valid listing agreement exempt from PHiFA?

Yes.Under §7-302(a)(6) of the Real Property Article, an exemption from PHiFA is provided in cases where the homeowner in default is represented by a licensed real estate professional, the property is listed on the local MLS, and the licensee otherwise does not violate any provision of the Real Estate Broker’s Act. Additionally, the law requires that the property be sold or transferred through a settlement. A “settlement” is defined as an “in-person, face-to-face meeting with the homeowner to complete the final documents incident to the sale or transfer of real property or the creation of an equitable interest in real property, conducted by a settlement agent, during which the homeowner must be presented with a completed copy of the HUD-1 settlement form.” [§7-301(L)] 

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