22 February About Transaction Coordinators by Jacky Mueck Legal Hotline 0 0 Comment 1257 BY KATHLEEN DARTEZ, ESQ. Director of Legal Affairs for Maryland REALTORS®’ Q: Agents within my brokerage have asked me about the rules regarding transaction coordinators. Some have asked about off-site or virtual transaction management services, while others have asked about hiring licensed or unlicensed transaction coordinators. Can you provide any? guidance? A: Although the Maryland Real Estate Commission (MREC) has not enacted any regulations directly addressing the role of a transaction coordinator, they have issued guidance regarding which activities are permissible for an unlicensed assistant to perform and which activities are impermissible. Please follow this link to review information on MREC’s Website. Regardless of whether a transaction coordinator is on-site or off-site, the Broker still has the responsibility to “reasonably and adequately” supervise the transaction coordinator. We have heard that some companies offering virtual transaction management services are unwilling to enter into a written agreement to address matters such as confidentiality, compensation, and permissible/impermissible activities. As a best practice, we strongly urge you to have a written agreement with transaction coordinators. In the absence of a Maryland regulation, we would suggest the following “best practices” with respect to transaction coordinators: Any transaction coordinator providing services for a brokerage must have a written agreement with the Broker of the brokerage for which those transaction coordinator services are being provided; The written agreement should specify the services being provided by the transaction coordinator and any compensation being paid to the transaction coordinator for those services; The written agreement should identify activities which are permissible or impermissible for an unlicensed individual to perform, consistent with MREC’s guidance mentioned above; The written agreement should specify that the transaction coordinator owes the Broker the duty of confidentiality. A Broker who hires a transaction coordinator remains responsible for the transaction. Hiring a transaction coordinator in no way eliminates the Broker’s responsibilities or obligations to the Broker’s customer or client, to the other Broker, or to the parties to the transaction. Click here for the Guidelines for the Use of Unlicensed Employees and Online Chat Providers Maryland Real Estate Commission (MREC) Division of Occupational and Professional Licensing Brokerages, Brokers, FM24, Transaction Coordinators Share Comments are closed.