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Maryland Real Estate Commission Rules For Referrals to Contractors

By
Industry Observer with Retired
Maryland Real Estate Commission Rules For
 
Referrals to Contractors
 
Further Clarification Of What You Need To Know
 
 

"In the last issue of The Commission Check, we urged licensees to ensure that any referrals they made to clients for home-related contractors were only for licensed individuals. We provided links to the list of services that require a valid MHIC license to be performed, and for the licensing boards of other building tradespersons.

We would like to further clarify the importance of actively searching for the status of a contractor's license before making any type of referral to a consumer or your client. If the person or business you recommend turns out to be unlicensed, it can cause serious problems for both your client and for you. As we explained, if the job were to go wrong, your client would not have access to monetary relief from the Home Improvement Commission's Guaranty Fund. That fund is maintained only for licensed home improvement contractors.

Additionally, the Commission has always held the position that if you recommend a person who does not have a valid, current license, then you have not met your duty of care to your client. Failing to adhere to the standards set forth in §17-532 of the Maryland Real Estate Brokers Act is a civil offense, and the Commission is authorized to suspend or revoke your license, and can assess a civil penalty up to $5000 for each violation."

Maryland real estate professionals need to understand and follow these guidelines to meet duty of care requirements as well as to avoid fines and loss of license.  

Posted on ActiveRain as a real estate industry service.  Character counts in Gaithersbrurg.


If you have referred a client to an unlicensed contractor, your might be feeling a bit of stress at this point.  I recommend a photowalk through your community with camera in hand.  

Daylily, Kentlands, Spring Flowers IMG_1418

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

Laura Murray
Weichert - Silver Spring, MD
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com

Roy as always great information and wonderful pictures.  I recently attended a seminar on hiring home improvement contractor put on by Montgomery County government.  It was full of good information and pitfalls to avoid.

Jun 26, 2012 01:10 AM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

It has to be fully disclosed that you will be receiving a referral fee, but I know it slips through the cracks a lot around here.

Jun 26, 2012 01:22 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow Roy,  Tahnsk for this information, I guess I never looked at it this way before.  It is good to share this information.

Jun 26, 2012 01:44 AM
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

Great, IMPORTANT information to pass along. I often check our department of professional and occupational regulation site. Can never be too careful!

Jun 26, 2012 01:53 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, great information for those homeowners needing referrals in Maryland.     

Jun 26, 2012 01:56 AM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Hi Roy,  I am feeling a bit stressed but not because I referred a client to a non-licensed contractor.  Maybe I should take a quick photo-walk.  Oh wait, It's going to be 104 degrees today in Denver......  Maybe an air conditioned photo walk.

Jun 26, 2012 02:02 AM
Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

I definitely make sure that whomever I am referring to clients are licensed and bonded.

Jun 26, 2012 02:19 AM
William True
True Sarasota Real Estate - Sarasota, FL
Sarasota Real Estate

Roy, a great detailed post on Maryland Real Estate Commission Rules for Referrals to Contractors. Wishing you a great day in real estate and more!

Jun 26, 2012 02:39 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Roy,

You are doing an excellent job of helping Maryland Realtor's stay within the laws in your state so they do not get into trouble.

Jun 26, 2012 02:40 AM
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Hi Roy.

Great information.

Jun 26, 2012 02:47 AM
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Roy,

Yikes! $5000 is a lot of money to part with... great information as I'm sure something similar applies in TN/VA

Have a great day

Rob

Jun 26, 2012 02:52 AM
Roy Kelley
Retired - Gaithersburg, MD

Thanks so much for your comments.  It is always good to receive your feedback.  

All of us need to be very careful when we recommend contractors.  We find that some of the advertisements say they are licensed when they actually are not licensed.  We need to go to the next step and confirm current licensing.

Lilies, Kentlands, Spring Flowers IMG_1449

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

Jun 26, 2012 02:59 AM
Chris Smith
Re/Max Chay Realty Inc., Brokerage - New Tecumseth, ON
South Simcoe, Caledon, King, Orangeville Real Esta

Very interesting information Roy, I have to find out what are the standards (and punishments) in Ontario now.

Jun 26, 2012 08:53 AM
Roy Kelley
Retired - Gaithersburg, MD

We have another beautiful day in Maryland and Dolores is on the golf course. 

Have an outstanding week.

Aug 03, 2016 03:17 AM
Roy Kelley
Retired - Gaithersburg, MD

We have a beautiful morning in Kentlands. Dolores is heading to the golf course.

Jun 20, 2017 07:52 AM
Roy Kelley
Retired - Gaithersburg, MD

There appears to be an ActiveRain issue with reblog notifications. If you comment on an old reblog, the member may be notified that you have just reblogged the post. Have you seen this issue?

Jul 14, 2017 07:43 AM
Roy Kelley
Retired - Gaithersburg, MD

Be well prepared for very hot weather.

Remember your pets.
Hot weather can affect the well-being of pets making them susceptible to overheating which can lead to very dangerous heat stroke. Always provide a source of water and a cool, ventilated place for your pet. Leaving your pet inside a parked car, even for a few minutes, can be fatal. The inside of a car can reach 120 degrees in a matter of minutes. 

Jul 20, 2017 05:46 AM
Roy Kelley
Retired - Gaithersburg, MD

We have a beautiful day in Maryland. Dolores is on the golf course and I just returned from a long walk through Kentlands and Lakelands.

Aug 02, 2017 08:04 AM
Roy Kelley
Retired - Gaithersburg, MD
Budget & Fee Schedule Adoptedbudget
The FY19 budget process is now complete with the approval of the strategic plan, budget and fee schedule at the June 4 Mayor and City Council meeting. The strategic plan outlines the priorities for the City in the coming years, with the budget reflecting those priorities. The FY19 adopted budget is $70.7 million, with $10.9 million of that total committed to capital improvements, including the construction of a new police headquarters, new parks, street reconstruction, and other infrastructure enhancements. The documents will be available online as of July 1, 2018.
Jun 06, 2018 12:11 PM
Roy Kelley
Retired - Gaithersburg, MD

It is sometimes a good practice to revisit old blogs and reblogs. We might even find some good ideas for new posts.

Sep 04, 2018 10:06 AM