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Maryland Enacts Law to License Builder’s Sales Agents
Maryland enacted a law earlier this month requiring home builders to use licensed real estate agents. Under the new law, all home builders selling homes in the state must hold real estate licenses issued by the Maryland Real Estate Commission.
The commission issues three categories of real estate licenses — 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 salespeople and associate brokers.
Nine other states also require licensed real estate agents to sell new homes, according to the National Conference of State Legislatures. These include Alabama, Connecticut, Hawaii, Montana, Nebraska, New Jersey, Pennsylvania, Tennessee and West Virginia.
Several state and local home builders associations are concerned that more state legislatures may require licenses for builder sales agents in an effort to find local solutions to the credit crunch and foreclosures now affecting the housing market.
“The 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,” said Kathleen Mahoney of the Maryland State Builders Association (MSBA). “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.”
To read more about home builder sales agent requirements in Maryland, click here.
For additional information, e-mail Mahoney at MSBA, or call her at 410-263-0070.
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