As ridiculous as it sounds, there must have been enough complaints for this new rule/regulation to be created. Personally, I do not rush to make referrals or recommendations on lenders, inspectors, etc. I do point out that certains lenders do or don't do 203K loans for example. I also ask both buyers and sellers if they already have lender, inspectors, title company, warranty company, etc that they prefer to use. I have zero interest in affiliate deals some companies might have with my broker.
This new regulation in Maryland would really limit the amount of recommendations I would make to buyers and sellers. Although, it wouldn't be that time consuming to document the companies I might refer someone to. It could be worth the trouble to verify someone is licensed, etc.
I wonder now if many MD brokers will just instruct their agents to not make any referrals just to play it safe? Why take the risk? Would giving someone a list of lenders, inspectors, etc be considered indirectly making a referral? I suppose it would be hard to monitor in most cases, but if there was a problem, and a disgruntled buyer or seller filed a complaint, agents could find themselves in trouble.
Seems like agents already have to conduct business with one hand tied behind their back.
Jeff Pearl | Lic in VA
Remax Distinctive | McLean VA
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