State and Local Reporter - 10/01/2007 (Plain Text Version)

Thomas Woods, Chair
Independence, Missouri

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In this issue:
Register for SLGA Conference Online Until Oct. 14
Austin Mayor Will Wynn to address NAHB’s Annual State & Local Government Affairs Conference
Why Vote in November? To Protect Your Business
Governors Say States Stressed by Absence of Unifom Immigration Policy
NAHB Member Resources Available on Immigration Law
NAHB promotes Green Building Standards Among Local Associations
Election Update: Kentucky, Louisianna, Mississippi, New Jersey, Virginia
Build PAC Introduces Peer to Peer Initiative
Congress Tackles States' Agenda
State of Maryland Calls for Licensure of Builder Sales Agents
NAHB's BuilderLink Update: In-District Congressional Visits
Community Service Award Entries Due by Nov. 12

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.