FAQ: Can my real estate agent require the use of a specific lender?
Many Maryland real estate professionals like to suggest the use of their favorite mortgage lenders and settlement companies. However, it needs to be clear that suggestions are not requirements in order to avoid committing a crime and being subject to a disciplinary action before the Real Estate Commission.
The following notice is from the Maryland Real Estate Commission website:
A Licensee May Not Require a Buyer to Use a Specific Lender or Settlement Company as a Condition of Settlement - Real Estate Commission
The Real Estate Commission has received several complaints recently about salespersons who attempted to require a buyer to use a specific lender or settlement company. These complaints involved the sale of new homes as well as the sale of existing homes. Section 17-607 of the Maryland Real Estate Brokers Act states that, in a real estate transaction involving a single-family dwelling, a licensee may not require a buyer, as a condition of settlement, to employ a particular title insurance company, settlement company, escrow company, mortgage lender, or title lawyer. The only exception is that a seller may not be prohibited from offering owner financing as a condition of settlement. Violation of this provision of the law is a misdemeanor crime, and could lead to a fine not exceeding $5,000, imprisonment not exceeding one year, or both. Under Section 17-322(b)(29), these actions could also be the basis of a disciplinary action before the Commission which could result in the suspension or revocation of the license and/or a fine of up to $5,000.
Centaurea montana, Bachelor's Button, Mountain Bluet,
Kentlands Photowalk, Gaithersburg, Maryland USA IMG 8566
Canon PowerShot G11 Camera
Photograph by Roy Kelley
Roy and Dolores Kelley Photographs
Comments (14)Subscribe to CommentsComment