Broker and Manager Forum 2019 Escrow Agreement Law

Broker and Manager Forum 2019

Escrow Agreement Law • Does not apply to: • Real Estate Licensees • Homebuilders (only initial sale exempted) • Lenders including Credit Unions • Commercial transactions

Escrow Agreement Law • Requirements: • Applies only to “escrow agents” • Escrow agent must enter into written agreement with the purchaser and seller when the agent agrees to hold trust money

Escrow Agreement Law • Written agreement must contain: • Amount of Trust money • Date money was entrusted to the escrow agent • Responsibility of the escrow agent to notify parties if the trust money returned due to dishonored funds • Conditions under which the escrow agent may release funds • The process to address disputes over the release

Escrow Agreement Law

Confidentiality Law • Confidential Information: • Price • Motivation • Facts leading to sale or purchase • Negotiating Strategy

Confidentiality Law • Confidentiality is not just a duty of agent in a “client” relationship • Also applies to: • Non-client after termination of agent/client relationship • Prospective clients • Must be obtained in anticipation of forming a brokerage relationship

Mortgage Debt Cancellation Law

Mortgage Debt Cancellation Law • State Mortgage Forgiveness • State credit applies if federal credit is not extended • State Credit: • Extended Permanently • Applies only against the state income tax

Remote Notary Law • Video Link to Remote Notary https: //youtu. be/Jvo. Mzl. IBJa 0

Remote Notary Law • Examination and test to be notary or renew notary license • Permits remote notarization

Criminal Record Law Licensees • If a period of 7 years has passed since the person completed the sentence, a person cannot be denied solely a license for a crime even it was directly related to the occupational license • Unless the person was convicted of another crime other than a minor traffic violation

Team Advertising Law • Team: 2 or more licensees who: • Work together on a regular basis • Represent themselves as members of a single entity; AND • Use a collective name such as: • Team • Group • “and Associates”

Expedited Licensing - Veterans • The law now allows a full license to be granted to a veteran, military service member or military spouse • Must meet following conditions: • Hold a license in good standing from a state with substantially equivalent requirements • Submit proof of identify and military or veteran status • Proof of legal residence in Maryland

Expedited Licensing - Veterans • License must be issued within 60 days • The Department must publish on its website the process for obtaining an expedited license

Notice of Conservation Easement Law • Authorizes certain entities to file a “notice of easement” in the land records • Applies to: • Easements • Covenants • Restrictions, or • Other conditions

Notice of Conservation Easement Law • Entities authorized to file under the bill: • Maryland Ag Land Preservation Foundation • Maryland Historical Trust • Maryland Environmental Trust • Many land trusts recognized under state and federal law • A county • Department of Natural Resources

Septic Law Change • Uniform Definition of Failing Septic System • On-site sewage disposal systems or cesspools that pose a threat to public health through the potential of direct contact between sewage and people

Flood Insurance • Temporarily Extended to Sept 30 th 2019