Fall 2017 Legal Update


DUTIES AND OBLIGATIONS OF REAL ESTATE LICENSEES (Section 17-532 of the Business Occupations and Professions Article)

            Effective October 1, 2017, Section 17-532 contains a number of new provisions for licensees providing brokerage services.  Below are the highlights:

  • During an Open House, if the Seller consents in writing, their Listing Agent may discuss other properties with Prospective Buyers or Lessees that attend the Open House.
  • Unless the Brokerage Agreement states otherwise, a Listing Agent is not required to seek additional offers to purchase or lease real estate while the property is subject to an existing sales contract or lease.
  • Disclosure of confidential information about a client to any other party, licensee, or representative of another party, requires the client’s written However, an intra-company agent may disclose confidential information to a broker or a dual agent for whom the intra-company agent works for, but confidential information may not be disclosed to the other party or the intra-company agent for the other party.
  • Ethical obligations: Besides acting in accord with the Brokerage Agreement, licensees are required to:
    • act promptly in presenting all offers and counteroffers;
    • exercise reasonable care and diligence;
    • treat all parties to the transaction fairly;
    • and answer all questions truthfully, to name a few.

To view the full text of this statute, see: https://govt.westlaw.com/mdc/Document/N3D784A306B6211E78E5FF3477C69ED24?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

HOMEOWNERS ASSOCIATIONS – RESALE OF LOT – INSPECTION FEES (Section 11B-106 of the Real Property Article)

            Effective October 1, 2017, when a lot subject to a Homeowners Association (HOA) is resold, the HOA may charge a fee up to fifty dollars ($50.00) for an inspection of the lot, if an inspection is required by the HOA governing documents.  In addition to this fee, a HOA can charge a statutory maximum of two hundred fifty dollars ($250.00) for providing:

  • information on lot fees and assessments;
  • overdue fees and assessments;
  • pending claims, covenant violations or notices of default against the lot;
  • contact information for the management agent, if any;
  • unsatisfied judgments or pending lawsuits against the HOA;
  • Articles of Incorporation and Declaration of the HOA;
  • covenants, restrictions, and other rules relating to the primary development of the lot

To view the full text of this statute, see:



Effective October 1, 2017, the person authorized to make a sale in a foreclosure action (for a foreclosed Deed of Trust: the Trustee or Substitute Trustee; for a foreclosed Mortgage: a secured party authorized by the lien instrument to make the sale or any other individual designated by name in the lien instrument to exercise the power of sale) must provide notice of the proposed sale to a Condominium or Homeowners Association that recorded a lien against the property under the Maryland Contract Lien Act at least thirty (30) days before the proposed sale date.  The notice must be sent via certified mail, return receipt requested, include the time, place, and terms of the sale, and be sent and no later than ten (10) days before the date of sale. The person giving the notice must file in the foreclosure proceedings the return receipt of the notice or an affidavit demonstrating compliance with the statute.

If a foreclosure sale is postponed or cancelled, the Trustee/authorized person must send a notice of the same to a Condominium or Homeowners Association that received a notice of the proposed sale, and do so by first-class mail, postage prepaid, within fourteen (14) days after the postponement or cancellation.

These amendments apply to any foreclosure sale scheduled to occur after October 1, 2017.  To view the full text of this statute, see:


FORECLOSURE REPORTING REQUIREMENTS TO DLLR TO TAKE EFFECT ON OCTOBER 1, 2018 (Section 7-105.2 of the Real Property Article, to be amended)


            Effective October 1, 2018, within seven (7) days of the filing of an Order to Docket or a Complaint to Foreclose a Mortgage or Deed of Trust on residential property, the person authorized to make the sale must provide a Notice of Foreclosure to the Department of Labor, Licensing, and Regulation (DLLR).  The Notice must be in the form that DLLR requires, which may be a registration with the Foreclosed Property Registry.  The Notice must contain the following regarding the property subject to foreclosure:

  • street address;
  • tax account number;
  • whether the property is vacant;
  • name, address, and telephone number of (1) the property owner, (2) the person authorized to make the sale, and (3) the person authorized to manage and maintain the property before the sale

To view the full text of these amendments, see: http://mgaleg.maryland.gov/2017RS/chapters_noln/Ch_349_hb1048E.pdf.  Once the amendments go into effect, be sure to further research reporting requirements with DLLR for additional clarification and to ensure compliance with the statute.


Readers with questions about this or any real estate legal matter can reach Dave Parker at 301-590-9300.