State of Maryland Calls for Licensure of Builder Sales Agents
A new
Maryland
law requiring home builders to use licensed real estate agents went into effect October 1, 2007. All homebuilders selling homes in the state of
Maryland
must hold real estate licenses issued by the Maryland Real Estate Commission. There are three categories of licenses issued by the Commission – broker, associate broker, and salesperson. Salespersons and associate brokers must be affiliated with a real estate brokerage that is headed by a broker. The broker is responsible for supervising the activities of the salespersons and associate brokers; they in turn offer real estate brokerage services through that brokerage.
This law is not the first of its kind around the country. In fact, according to the National Conference of State Legislatures,
Maryland
joins
Alabama
,
Connecticut
,
Hawaii
,
Pennsylvania
,
Tennessee
,
Montana
,
Nebraska
,
New Jersey
and
West Virginia
in the required use of licensed agents.
The NAHB State & Local Government Affairs committee has identified the licensure of builder sales agents as an emerging issue given its impact on housing affordability, especially within the context of today’s sensitive housing market. The fear is that legislators in the states will begin to correlate the foreclosure rate and the credit crunch, with unlicensed sales agents.
“Fact is builder sales teams are trained extensively through builder training programs, and they represent only one client, not many members of the general public. Furthermore, the sales job itself is far less complicated. Builder sales teams show only one community at a time, they sell only new construction, and they don’t set or evaluate pricing. A builder sales agent has a far more limited role than a typical agent” says Kathleen Mahoney of the Maryland State Builders Association.
Visit the MD Department of Labor, Licensing and Regulation for frequently asked questions on
the new licensing requirements.
For additional information contact Katie Mahoney at 410-263-0070.
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