Legal Resources Frequently Asked Questions

Yes, our current Exclusive Buyer/Tenant Residential Brokerage Agreement can be used as a “showing agreement.” A buyer and broker may agree to have the Exclusive Buyer/Tenant Residential Brokerage Agreement last for any duration of time less than a year and agree to any compensation amount. For example, a buyer and broker could agree to have their Exclusive Buyer/Tenant Residential Brokerage Agreement last for one day and agree that the broker will not be compensated for showing the home(s).

If asked about cooperative compensation, the listing agent must answer honestly with an affirmative “Yes” if they have been authorized by their seller to offer cooperative compensation.

If the seller authorizes an offer of compensation, the seller decides whether and when their agent can communicate the amount of compensation. If the listing agent is not authorized to disclose the amount of cooperative compensation, the buyer’s agent may send the Listing Broker’s Offer of Cooperative Compensation form to the listing agent with the requested amount of cooperative compensation.

The only time where the Buyer Request for Seller’s Compensation of Buyer’s Broker Addendum is needed is if the amount of offered cooperative compensation from the listing broker to the buyer broker is less than what the buyer agreed to pay their broker and the buyer wants the seller to cover that difference. If the amount of offered cooperative compensation is equal to or greater than the amount of compensation that the buyer agreed to pay their broker, then the parties would only need the Listing Broker’s Offer of Cooperative Compensation agreement.

Sellers can determine if their property is located within one mile of a NPL Superfund site by going to https://map22.epa.gov/cimc/superfund and entering the property location and adjusting the location radius to one mile.

If the property is within one mile of a NPL Superfund site, the seller must include an addendum to the contract that includes information on NPL Superfund sites. The addendum advises the buyer of their right to terminate the contract of sale within five days after executing the addendum.

You can also view our video and flyer on how to check your property for superfund disclosure requirements.

The Maryland Department of Housing and Community Development has published “Turning the Key: Unlocking Maryland’s Potential” which provides important answers to frequently asked questions including:

• Tenant Exclusive Negotiation Period/Right of First Refusal.
• Evictions, and
• Security Deposits.  

See RENTERS’ RIGHTS AND STABILIZATION ACT (HB 693) FREQUENTLY ASKED QUESTIONS

A fee or deposit intended to protect a landlord from damages caused to the property by a pet is considered a security deposit as defined by Maryland law. Effective October 1, 2024, a landlord may not collect more than one month’s rent as a security deposit. Therefore, any pet fee/deposit must be included in the total security deposit in an amount not to exceed one month’s rent.

The Maryland Real Estate Commission has published a checklist to assist you in creating advertisements that comply with Maryland law: mrecadchecklist.pdf.  

Revised October 2024. 

Generally, electronic media advertisements must contain all of the required disclosures on the top 25% of the main page. There is an exception called the “one-click rule” for electronic media where the app or platform has a limit of 280 characters or less. In this limited situation, the advertisement need not include all of the required disclosures if it includes a hyperlink that takes the use to a page containing all the required disclosures in the top 25% of that page. 

To illustrate, Twitter posts (280 character limit), Facebook advertisements (125 character limit) and Instagram advertisements (125 character limit) would all qualify for the one-click rule, but not Facebook posts (63,206 character limit) or Instagram posts (2,200 character limit). 

Md. Code Regs. 09.11.02.01(G)(4). 

Revised October 2023.

A team name is considered “directly connected” to a brokerage name if the word “of”, “from”, “with”, or “at” is the only word between the team name and the brokerage name and no other word, symbol, or image is between the team name and the brokerage name.

Md. Code Regs. 09.11.02.01(G)(5). 

Revised October 2024.

No, use of the Equal Housing Opportunity logo or slogan is not strictly required. However, it is highly recommended that it be included in all advertisements in order to demonstrate your commitment to fair housing, to assure the public that the properties are available to all persons and in order to limit legal liability. 

HUD has issued Advertising Guidelines for Fair Housing: “All advertising of residential real estate for sale, rent, or financing 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.” (54 FR 3308, Jan. 23, 1989, emphasis added). “Should” indicates that this is recommended but not required.  

In the event of a fair housing complaint, HUD will consider whether the entity has included the Equal Housing Opportunity logo or slogan in its advertisements as evidence of compliance with the Fair Housing Act. Additionally, if the use of the logo or slogan has been used in advertisements for some geographic areas and not others or for some properties and not others, this could have a discriminatory effect and may indicate a violation of the Fair Housing Act. 

The Equal Housing Opportunity logo should be included in all advertisements that are larger than four inches. It should be as large as any other logo in the advertisement and no smaller than half an inch. The slogan “Equal Housing Opportunity” should also be included in the advertisement. 

See 54 FR 3308, Jan. 23, 1989. Part 109, available here. 

Revised October 2024.

No, there is no requirement to use the REALTOR® logo. Members of the National Association of REALTORS® may use the REALTOR® logo, provided that they use it properly. For additional information regarding proper usage of the REALTOR® logo, click here. 

Revised October 2024.

Maybe. If a licensee uses inducements to obtain a listing or a buyer/broker agreement, or to motivate a buyer to purchase certain property, those inducements must be offered to all consumers on the same basis. 

For example, a seller may offer a drawing for a prize among attendees at an open house. As long as the only action a consumer has to take is to attend the open house, the Commission does not view this as a contest used to influence a party to purchase property. 

See Brokers Act §17-322(b)(9) and Office of the Attorney General’s Counsel to the Real Estate Commission 12/14/10, available here. 

Revised October 2024.

 A referral fee can only be paid to a real estate licensee. The act of referring someone for real estate brokerage services is itself real estate brokerage services. So only a real estate licensee can be compensated for real estate referrals. 

See Brokers Act §17-101(l)(2) and §17-604(a). 

Revised October 2024.

Yes. A real estate licensee may assist a non-client/customer in certain pre-contractual matters in a residential transaction and in post-contractual matters relative to completing certain contingencies in the written contract of sale. However, the services must qualify as “ministerial acts,” meaning they do not involve the discretion or judgment of the licensee, and the written agreement between the licensee and their client must authorize the licensee to perform these ministerial acts on behalf of the non-client. 

The licensee may assist the non-client, but it must be the non-client who ultimately makes all decisions relative to any pre- or post – contract matters. For example, if the contract of sale is subject to a home inspection, the licensee may assist the non-client buyer in arranging the date, time and place of the home inspection as well as contacting the home inspector to schedule and complete the home inspection. However, the buyer must select the inspector and decide the date, time and place of the inspection.  Ministerial acts might also include helping with pre-qualifying the buyer, arranging for inspections, providing information regarding the loan application, and facilitating settlement. 

Also, the written agreement between the licensee and the licensee’s client (i.e., the listing agreement or buyer agency agreement) must authorize the licensee to provide these ministerial acts on behalf of a non-client. The Maryland REALTORS® Exclusive Right to Sell Residential Brokerage Agreement, the Exclusive Right to Sell Unimproved Land Brokerage Agreement, the Exclusive Right to Lease Residential Brokerage Agreement, and the Exclusive Buyer/Tenant Residential Brokerage Agreement include the required notice and consent. 

See Brokers Act §17–528(l), §17–532(h). 

Revised March 2024. 

No. You are following the law if you post the Open House Notice prepared by the Maryland Real Estate Commission in a conspicuous place about the property. This document may not be altered, must be displayed in at least 8.5" x 11" size, in color, and remain on the Maryland Real Estate Commission letterhead. You may download the open house disclosure at: https://www.dllr.state.md.us/forms/mrecopenhouse.pdf. 

See Brokers Act §17–530(b)(2). 

Revised March 2024. 

When only one party is represented, the real estate licensee must provide the Understanding Whom Real Estate Agents Represent form to the unrepresented party no later than the first scheduled face-to-face contact with the unrepresented party.  

If the unrepresented party refuses to sign the form, the licensee may self-certify that the licensee made the required disclosure. 

See Brokers Act §17–530(a)(3), (c), (d), (e). 

Revised March 2023. 

If the first contact with an unrepresented seller/lessor is not face-to-face, the buyer’s agent shall disclose through medium in which contact occurred that the buyer’s agent represents the buyer. For example, if you call a FSBO seller to schedule a showing appointment for your buyer client, you will disclose to the seller that you represent the buyer during that first telephone call. Not later than the first scheduled face-to-face contact with the unrepresented seller/lessor, the buyer’s agent must provide the unrepresented seller/lessor with a copy of the Understanding Whom Real Estate Agents Represent form so that the unrepresented seller/lessor can acknowledge that the agent represents the buyer. 

See Brokers Act §17–530(a)(3). 

Revised March 2024. 

If the first contact with an unrepresented buyer/lessee is not face-to-face, the seller’s agent or subagent shall disclose through the medium in which the contact occurred that the seller’s agent or subagent works for the seller. Not later than the first scheduled face-to-face contact with the unrepresented buyer/lessee, the seller’s agent or subagent must provide the unrepresented buyer with a copy of the Understanding Whom Real Estate Agents Represent form so that the unrepresented buyer/lessee can acknowledge that the seller’s agent or subagent represents the seller. 

See Brokers Act §17–530(a)(3). 

Revised March 2024. 

A real estate licensee who acted as a seller’s agent or subagent at the time of an initial showing of a listed property is not precluded from thereafter acting as a buyer's agent for the buyer. If the agent learned any confidential information about the seller while working as a subagent or seller’s agent, Maryland law requires that the agent maintain seller’s confidentiality.  

We recommend having the seller acknowledge that the other agent in the transaction initially worked for the seller as a subagent or seller’s agent and now represents the buyer. The Maryland REALTORS® Agency Change Acknowledgement form may be used for this purpose. 

See Brokers Act §17–532(b)(3). 

Revised March 2023. 

A subagent shows the home to buyer customers on behalf of the seller but is from a different company than the listing broker. The full definition under the Broker’s Act is as follows: 

“Subagent” means a licensed real estate broker, licensed associate real estate broker, or licensed real estate salesperson who: 

1. is not affiliated with or acting as the listing real estate broker for a property; 
2. is not a buyer's agent; 
3. has a brokerage relationship with the seller or lessor; and 
4. assists a prospective buyer or lessee in the acquisition of real estate for sale or for lease in a nonagency capacity. 

See Brokers Act §17–528(n). 

Revised March 2023. 

Yes. Maryland REALTORS^® has prepared an infographic, “Understanding Brokerage Relationships,” which you can use to discuss Maryland agency law with your clients and customers. You may access the document by clicking here.  

Revised March 2023. 

Yes. This is called “Dual Agency” when one brokerage company represents both the owner and the prospective buyer or tenant of the property.  

The broker (or branch manager as designated by the broker) acts as the dual agent in the transaction. They appoint two licensees in the company to act as intra-company agents, one represents the seller solely and exclusively while the other represents the buyer solely and exclusively.  

The intra-company agents must provide the same services to their clients as an exclusive seller’s or buyer’s agent, including advising their clients as to price and negotiation strategy. Also, dual agents and intra-company agents must keep confidential information about a client’s bargaining position or motivations unless the client gives written consent to disclose the information.  However, like all agents, an intra-company agent must disclose any material facts about a property. 

If either the buyer or seller refuses to consent in writing to the dual agency, the broker may withdraw from representing the client who refuses to consent.  The withdrawal may not prejudice the ability of the licensee to continue to represent the other client in the transaction nor to limit the licensee from representing the client who refused to consent to dual agency in transactions not involving dual agency. 

See Brokers Act §17–530.1. 

Revised March 2024. 

Generally, the seller and buyer consent to dual agency before the dual agency actually arises. As a convenience, the listing agent will typically have the seller sign the consent for dual agency form when the seller is signing the listing agreement and the buyer’s agent will typically have the buyer sign it when the buyer agency agreement is signed. At this point, however, no dual agency has actually occurred.   

The current Consent for Dual Agency form contains, on page 2, two subparts. The first subpart is for the seller/buyer to consent in advance for the listing/buyer broker to act as a dual agent in the sale/purchase of property (the seller specifies the property address). This consent authorizes all of the agents affiliated with the listing broker to show the home to their buyer clients. Similarly, the consent authorizes the buyer’s agent to show their client all of the homes listed by the broker with whom they are affiliated. 

The second subpart of the form requires the affirmation of the seller/buyer when the actual dual agency occurs. The seller must sign the second subpart, affirming their advance consent for dual agency for the specific buyers identified below. The buyer must sign the second subpart, affirming the advance consent for dual agency for the specific property. 

The written consent for dual agency shall include an affirmation that identifies the property and the buyer when the real estate broker or branch office manager is serving as a dual agent and the buyer and seller or lessee and lessor enter into a written contract for sale or for a lease, respectively. 

See Brokers Act § 17-530.1. 

No, in the case of dual agency, the broker will be the dual agent and therefore cannot represent the seller as the listing agent. In a dual agency situation, the broker cannot act as an intra-company agent for the seller or the buyer. However, there are two possible ways to address this issue.

For this analysis, we assume both buyer and seller have executed written brokerage agreements and signed the Consent for Dual Agency form published by the Maryland Real Estate Commission.  A real estate brokerage needs at least three licensees to participate in dual agency, the dual agent, the seller’s intra-company agent and the buyer’s intra-company agent. 
  
The first way is for the broker to assign the listing to another agent in the office who will then be the seller’s intra-company agent, while the broker serves in the role of the dual agent.   The second way to make it work is to avoid dual agency for this property. If the broker elects to continue to represent the seller as the listing agent, the brokerage may withdraw its representation of the buyer, continue to represent the seller, and offer to assist the (now unrepresented) buyer as the seller’s agent.  You must be careful to perform only “ministerial acts” on behalf of the buyer. Another option, should the buyer prefer to be represented, would be to refer the buyer to another brokerage.  

See Brokers Act §17–530.1(b)(1)(vii). 

Revised March 2023. 

Compensation to the buyer’s broker is negotiated in the Buyer Representation Agreement. Each brokerage firm must independently set its compensation rate. Once that’s negotiated, it must be inserted into the brokerage agreement and expressed as a percentage of sales price, a percentage of sales price plus a flat dollar amount, or a flat dollar amount.

No. Under the NAR settlement, any compensation agreed to in the written buyer agreement must be ‘objectively ascertainable and not open-ended. For example, a written buyer agreement cannot provide, “Buyer broker compensation shall be whatever amount the seller is offering to the buyer” or "between X and Y percent.” Also, according to the settlement agreement, the buyer’s broker may not receive compensation from any source in excess of the amount specified in the agreement.

Under the NAR settlement, buyer brokers cannot receive compensation for brokerage services from any source that exceeds the amount or rate in the agreement with the buyer. Do not accept “bonuses” or other compensation from a seller or any other source that is more than what is in your written buyer agreement.

Whether that’s an option for you is a matter of company policy that must be decided by your broker in consultation with the broker’s legal counsel. Maryland REALTORS® does not take a position on this question. That said, NAR’s settlement FAQ page states, in #74: “At times, a new or amended buyer agreement may be appropriate, and the buyer and broker may agree to amended terms. However, amended agreements must also meet the requirements of the practice changes.”

There are three potential sources of compensation due to the buyer’s broker. First, the seller, through the listing broker may be offering cooperative compensation. Second, the seller may be offering concessions, which may be used to pay the broker. Third, the buyer may be responsible for paying some or all of the broker’s commission.

The settlement agreement prohibits using the MLS or any platform that takes an IDX data feed from the MLS to communicate offers of cooperative compensation. The settlement agreement includes an exception that allows a broker, on the broker’s website that receives an IDX data feed from the MLS, to advertise cooperative compensation for the broker’s own listings. Any place outside the MLS or a platform that takes an IDX data feed from the MLS, brokers are free to advertise offers of cooperative compensation (signs, fliers, social media, etc.). Additionally, you can always contact the listing agent. If you are the listing agent and a buyer’s agent contacts you, please respond as soon as possible. Engaging in this dialogue is the only way to fulfill your duty to act in the best interests of the client.

The listing broker and the buyer’s broker must enter into an agreement using the Listing Broker’s Offer of Cooperative Compensation form. Remember: The amount of cooperative compensation agreed to cannot exceed what the buyer’s broker agreed to receive in compensation as provided in the buyer brokerage agreement.

Yes, the buyer may ask for seller concessions. There are two kinds of seller concessions. The first are concessions used to pay closing costs. If the buyer wants the seller to contribute towards closing costs, include the “Seller Contribution Addendum” in the offer. Be aware that these funds are subject to any lender-imposed Interested Party Contribution (IPC) caps, so make sure the amount does not exceed those limits.

The second kind of seller concession would be used to pay the buyer broker’s compensation. When the buyer submits their offer, they can include the Buyer Request for Seller’s Compensation of Buyer’s Broker Addendum. The buyer uses this addendum to ask the seller to compensate the buyer’s broker. These concessions are not subject to the IPC caps.

Can we use more than one of these options?

Yes, they are not mutually exclusive. If the amount of cooperative compensation is less than what the buyer has agreed to compensate you, the buyer may request a seller concession to make up the difference.

You cannot accept compensation in excess of the amount specified in the buyer agreement. However, you could let the buyer know that the seller may be amenable to a request for concessions to help pay other closing costs in that amount.

We understand that many buyers may only want to consider properties where buyer broker compensation is certain but that may not always be possible. If the listing broker is offering cooperative compensation, that’s easy and knowable. If not, explain to the buyer that asking for seller concessions to pay the buyer’s broker is always an option, even though they won’t know until the end of negotiations whether and to what extent the seller will contribute.

Be extra careful here. Under NAR’s Code of Ethics and MLS policy, steering buyers based on the amount of broker compensation is prohibited. Avoid this at all costs by ensuring that all choices are made by the buyer and are documented. Agents should educate buyers on the pros and cons of each option available when looking at and making an offer on a property, including that buyers can ask sellers to pay for buyer broker compensation as part of the offer, even if there is no offer of cooperative compensation.

Regardless of whether a Buyer pursues financing in good faith, the statute only applies to “third party approval not related to financing”. We believe the language in Section 10-803 clearly excludes “financing” from the list of contingencies which would trigger the new EMD distribution process of 10 days’ notice. Therefore, if a contract is terminated due to financing, the old release of deposit procedure of 30 days’ notice applies.

If you believe an ethics violation has occurred, we suggest speaking with your broker to determine if further action is needed. For more information on ethics complaints and how to file, please visit here: Ethics Complaint (mdrealtor.org).

It depends. Owners of housing facilities are required to make reasonable accommodations in their policies and operations to afford people with disabilities equal housing opportunities. 

To qualify, the renter must have a disability, in other words, a “substantial limitation on a major life activity.” The landlord could ask for a note from their doctor or a determination letter from a government agency to make this determination. Also, there must be a connection between the disability and the need for the animal. If the connection is not obvious, the property manager can request documentation. 

Allowing an animal that only offers emotional support can be a reasonable accommodation. If allowing the animal counts as a reasonable accommodation, then no additional fees or pet deposits may be charged. 

There are a number of exceptions to this requirement. A property manager is not required to allow an animal that is a direct threat to the health and safety of others, the animal would cause substantial physical damage to the property, or the accommodation would be an undue burden. 

For more information, see HUD’s Assistance Animal Notice, available here. 

Yes. There is a very narrow religious exemption in the Fair Housing Act that allows a religious organization or related nonprofit to deal exclusively or preferentially with members of their same religion in the “sale, rental, or occupancy of dwellings,” but there are several requirements. 

First, the housing must be provided by a religious organization - such as a church, mosque, or synagogue - or a nonprofit that is “operated, supervised, or controlled by or in conjunction with a religious organization.”  

Second, the housing must be provided for a purpose “other than a commercial purpose;” essentially, the goal of the religious organization in providing the housing cannot be to generate a profit.  

Third, membership in the subject faith or religion must not be “restricted on account of race, color, or national origin.” 

Further, the housing cannot be advertised and REALTORS® cannot assist in the transaction. 

See Section 807(1)(a) of the Fair Housing Act.

Revised March 2023. 

No. Even when the religious exemption applies, there is no religious exemption from the prohibition on making, printing, and publishing advertisements indicating a preference or limitation because of religion.  

See Section 804(c) of the Fair Housing Act. 

Revised March 2023. 

No, a REALTOR^® cannot assist a religious organization with a transaction that is limited in any way by religion even if the religious organization can lawfully engage in that transaction. 

See 24 CFR § 100.135(a) and Article 10 of the NAR® Code of Ethics.  

Revised March 2023. 

No. The landlord is not required to return the security deposit in an amount greater than one month’s rent for leases signed before October 1, 2024.

Lease renewals completed by an addendum to the original lease that is either about to expire or has already been converted to a month-to-month lease are considered an extension or modification of the existing lease. Therefore, a new lease is not created, and the landlord does not have to return any portion of the security deposit that is greater than one month’s rent.  If the landlord requires the tenant to enter a new lease at the expiration of the current term, the landlord can only retain one month’s rent as the security deposit and any amount greater must to be returned to the tenant.

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 the Office of Tenant and Landlord Affairs about the offer using the NOTICE OF INTENT TO SELL AND TENANT’S RIGHT OF FIRST REFUSAL form.
2. 30-Day Right of First Refusal: The tenant has 30 days to match the third-party 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 the Office of Tenant and Landlord Affairs of the tenant’s decision.

It depends. The owner may not offer or sell the property to a third party until the tenants’ “exclusive negotiation period” is terminated, either through the tenant or tenants declining to make an offer to purchase, or the tenant(s) and landlord being unable to agree on terms of sale, within 30 days of the owner notifying the tenant(s) of the impending sale.

The Office of Tenant and Landlord Affairs has created the standardized notice forms. 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.