{"id":5799,"date":"2019-10-28T08:53:46","date_gmt":"2019-10-28T12:53:46","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=5799"},"modified":"2019-10-28T08:53:53","modified_gmt":"2019-10-28T12:53:53","slug":"protecting-home-buyers","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2019\/10\/28\/protecting-home-buyers\/","title":{"rendered":"Protecting Home Buyers"},"content":{"rendered":"\n
\"protecting<\/a>
Home Buying Steps (infographic from nar.realtor)<\/figcaption><\/figure><\/div>\n\n\n\n

Of the handful of new Maryland real estate related laws that go into effect this week, two are highly important for you to know.\u00a0 These are passed for the purpose of protecting home buyers and sellers. One protects your confidential information, and the other concerns your earnest money deposit on a Maryland home sale.<\/p>\n\n\n\n

Protecting home buyers and sellers’ confidentiality is HB1228<\/a>\/SB807, which was effective October 1st<\/sup>.\u00a0 Besides cleaning up the definition of a brokerage relationship, the bill addresses client confidentiality.\u00a0 Unless a client consents in writing, Maryland licensed real estate brokers and agents may not disclose confidential information received from or about a client to any other party and\/or their representative (including their real estate agent).\u00a0 The non-disclosure of confidential information protects past and present clients, and now is extended to potential clients as well.\u00a0 <\/p>\n\n\n\n

Confidential information is defined as: a\nseller\/landlord willing to accept less than the listing price; a buyer\/tenant willing\nto pay more than their offer; motivation of a client; the need or urgency to\nbuy, sell, or rent; any facts that led the client to sell, buy, or rent; and\nalso relates to the client\u2019s negotiating strategy.  However, the duty to maintain confidentiality\ndoesn\u2019t apply to the disclosure of material facts about a property (which a\nhome seller is also required to disclose).<\/p>\n\n\n\n

Protecting home buyers deposits is effective October 1st<\/sup>. HB222<\/a> requires a written agreement between the buyer, seller and the escrow agent holding the earnest money deposit<\/a> (EMD).\u00a0 The EMD is described as \u201cconsideration\u201d for a seller to accept an offer.\u00a0 An escrow agent is the entity who accepts and holds the earnest money.\u00a0 The EMD is credited to the buyer at the time of settlement.\u00a0 However, if sale does not settle, the disbursement of the EMD can become contentious.\u00a0 Under certain circumstances, the contract of sale is clear about when the buyer may receive their EMD.\u00a0 However, real estate is not always black and white, and there are occasions when a dispute arises about whom is entitled to receive the EMD.<\/p>\n\n\n\n

It used to be common practice for a real estate\nbroker to accept and hold the EMD.  Real\nestate brokers are bound by law as to how to handle and care for the EMD.  However, brokers are increasingly reluctant\nin accepting EMDs for a number of reasons. \nInstead, brokers are directing their agents to have title companies to\nhold these deposits.  But home buyers (and\nsometimes their agents) don\u2019t realize that a title company is regulated\ndifferently than a real estate broker, and the EMD may not be handled as\nexpected.<\/p>\n\n\n\n

HB222 is important because it fills the gap for\nescrow agents who do not already have specific guidelines for handling EMDs.\n(HB222 doesn\u2019t apply to Maryland real estate brokers and agents, and Maryland\nregistered home builders selling new homes, as they are already\nregulated).  The bill provides transparency\nso both the buyer and seller understand the terms for holding the EMD. <\/p>\n\n\n\n

The bill requires an escrow agent to enter into a written agreement with the buyer and seller when the escrow agent agrees to hold an EMD for a Maryland home sale. The written agreement must contain the amount of the EMD; the date the EMD was given to the escrow agent; the responsibility of the escrow agent to notify the buyer and seller if the EMD funds are \u201cdishonored\u201d (e.g., bounced check); the conditions under which the escrow agent may release the EMD; and the process to address disputes over the release of the EMD. <\/p>\n\n\n\n

Original article is published at https:\/\/dankrell.com\/blog\/2019\/10\/28\/protecting-home-buyers\/<\/p>\n\n\n\n

By Dan Krell
Copyright\u00a9 2019<\/p>\n\n\n\n

If you like this post, do not copy; instead please:
link to the article<\/a>,
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\"Protected<\/a><\/figure>\n\n\n\n

Disclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Of the handful of new Maryland real estate related laws that go into effect this week, two are highly important for you to know.\u00a0 These are passed for the purpose of protecting home buyers and sellers. One protects your confidential information, and the other concerns your earnest money deposit on a Maryland home sale. Protecting … <\/p>\n

Continue reading “Protecting Home Buyers”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[383,281,270,382,405,13],"tags":[1080,597,1203,1079,490,912,797],"class_list":["post-5799","post","type-post","status-publish","format-standard","hentry","category-consumer","category-earnest-money-deposit","category-home-buyer","category-home-seller","category-homebuyer","category-real-estate","tag-confidential","tag-consumer-protection","tag-deposit","tag-fiduciary","tag-home-buyer-2","tag-home-seller","tag-real-estate"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1vx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/5799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=5799"}],"version-history":[{"count":5,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/5799\/revisions"}],"predecessor-version":[{"id":5808,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/5799\/revisions\/5808"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=5799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=5799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=5799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}