MD Real Estate Agents Can Now be Fined $5000.00 For Making Referrals

Is the state worried about money changing hands for referrals?  I have no problem with referrals but if that's the problem and it's common, then changes have to be made

With a new Gov on the way, one can only hope for strong changes to be made within the state for common sense. Thank you for sharing.

That is a stiff penalty but not as much as a lawsuit.  Just don't refer.

It can be considered steering, but if at east 3 qualified practitioners are offered it would be difficult to say it was a bad move

It seems there should be some way to give consumers some name, but let them know the should ask for refereneces/ insurance etc.

Jeff Pearl - now I wonder why can't one refer a lender/attorney/inspector when one represents the buyers and works in their best interest. What if they ask for a referral? (Should we give them a list of these service providers?)

Jeff, my understanding is that, if we recommend any service provider, we are responsible for ensuring they are licensed to do whatever they do in the state of Maryland. 

And I gotta say, Maryland really is into regulatory overkill.  Maybe the new Republican governor will make it easier for us.

Maryland, trying to legislate common sense once again.

As a consumer, if the realtor gave me one name only, I'd be suspicious. If they gave me three and told me to use whoever I want, I'd still think I better check into them myself, just 'cuz.

Apparently, I'm just less trusting than the average person.  Apparently, I'd likely not benefit much from Maryland's regulations as a consumer.  As an agent, now a few more steps.

I was told before to provide a list of three or more to ensure there were no issues with the referrals. I am against all of the regulations but have seen some people strong arm buyers into using specific lenders and other providers.

Hi Jeff - I saw the WaPost article before I came here.  I couldn't figure out how it could take a real estate agent "three hours to locate a licensed inspector with the necessary credentials" as quoted in the article.  For fun, I went to see if one well known ActiveRainer, who has already commented on your post, is, in fact, a Maryland real estate broker.  It took less than 5 seconds to click on the Washington Post link and verify that she was.  It would take another few seconds to generate a PDF or printout of the screen and another few seconds to type up an email with the recommendations and prescribed data elements.  (BTW, this same blogger is also a broker and a firm in Virginia, using a different WaPost link.)

I also tried to find a Maryland home inspector.  I typed "S" into last name and found quite a few in milliseconds.  Of course, I don't know if they are good, responsive, work in the right area etc. but that is not the purpose of the new Maryland law.

All in all, it doesn't seem to be a cumbersome law, just a bit more administration that should not take a significant amount of time.

This is totally insane! Fortunately, our contracts here in NC explicily state that we can provide recommendations, but that the buyers are responsible for any advice they take from any professional we may hae recommended. The point is to provide several options and let them choose. But buyers and sellers do want to depend on us to help them make the right choices.

Jeff Pearl, This is an interesting topic but it could backfire because most professionals aren't referring for kickbacks...they are referring to multiple businesses who will take care of the client or who they know will do a great job for them.  

Sounds crazy!  If a realtor provides a list of mortgage lenders to a buyer, I don't see how that should put a realtor in jeopardy.

Usually, the clients will always ask  that question. Do you know a Lender, An inspector, or a title company.? Can you please refer me to someone that you have worked with. So, what could be the answer since we are getting penalized.? What will be our due diligence towards those clients. Do we just has to say we don't know. We can provide a list to them but that's not what they expect of us as their agent.  What can we do for Heaven sake.

That is crazy. How bad does that make an agent sound when their client asks for help and we tell them figure it out themselves. Wow

I keep a Preferred Vendor list on my web site which lists 7 mortgage lenders. I have 3 insurance agents and several inspectors listed - among multiple other categories (plumbers, electricians, etc.). I encourage clients to check my list and/or ask friends or family for recommendations. I have a disclosure on my page of Preferred Vendors which I hope covers my liability: 

The above vendors are those from whom I or my clients have enjoyed good service. I hope you find this list useful.  Recommendation of these vendors is based solely on opinions and experience of the quality of their service. Please consult the BBB and ask for proof of insurance or registration if that is of concern to you.