Regulations of Code and Ethics

Flashcards on Maryland Real Estate Commission's code of ethics, predatory or unethical business practices.

Maryland Code of Ethics

Regulations that apply to all Maryland licensees.

National Association of Realtor Code of Ethics

Applies to all members of the National Association of Realtors.

Topics Addressed

Additional advertising guidance and predatory lending practices such as illegal flipping, relation to the public, clients, and licensees.

Key Terms

Cash out refinances, comparative market analysis, cooperate, fraud, illegal flipping, the Maryland Home Improvement Commission, misrepresentation, predatory lending, and subprime loans.

Ethics

Ethics says we gotta rise a little bit higher than what the law says.

Purpose of the Code of Ethics

To protect the interest of the public, the commission shall adopt by regulation a code of ethics to set the standard of conduct for all individuals licensed under this title.

Brokers Act (Title 17)

Violating the code of ethics as a prohibited act indicates a violation of the license laws.

Ethics Requirements for Licensing Candidate

Prelicensed class for salesperson and brokers must include three hours of real estate ethics.

Same Subject Matter

Included in the mandatory three-hour continuing education class of Maryland ethics required every two years to renew your license.

Ethics in Relations to the Public

Licensee shall remain informed of matters affecting real estate in the community, state, and nation.

Protect Against Fraud

Licensee shall protect the public against fraud, misrepresentation, or unethical practices in the real estate field.

Licensee Participation

Licensees cannot participate in transactions when they are aware that unethical or fraudulent activities are occurring without discussing with a manager or broker.

Licensee's Responsibility

Shall make a reasonable effort to ascertain all material facts concerning every property for which the licensee accepts agency.

Affirmative Disclosure

Voluntary disclosure is required of Maryland licensees when handling material facts.

Misrepresentation

Incorrect information being provided; must verify it.

Fair Housing Laws

May not discriminate in the sale, rental, leasing, trading, or transfer of a property based on a party's membership in a protected class.

Three Additional Protected Classes in Maryland

Marital status, sexual orientation, and gender identity.

False Consideration

No licensee should be a party to a transaction in which the financial details are not accurately disclosed.

Advertising

Licensee shall be especially careful to present a true picture.

Financial Obligations

Licensee shall see to it that the financial obligations and commitments regarding real estate transactions are in writing.

Signatures on Documents

All real estate documents shall be signed by a licensee, and the licensee’s own name may not be signed in the name of a group or team.

Vendor Recommendations

Only have to ask for recommendation for the licensed status of home improvement contractors.

Accepting Employment as an Agent

Shall protect and promote the interest of the client.

Maryland Licensees

Licensees act as a fiduciary to their clients, placing their clients’ interest first.

Compensation

Licensee may not accept compensation from more than one party to a transaction without the full knowledge of the other parties.

Disclosure Requirements

Licensees seeking to acquire an interest in real property must disclose their license status in writing to the seller or landlord no later than the time the offer is submitted.

Immediate Family

Spouse or domestic partner, their child, stepchild, child's spouse, stepchild's spouse, their parent, sibling, grandparent, or grandchild.

Property Management

When acting as an agent in the management of property, the licensee may not accept any commission, rebate, or profit on expenditures made for an owner without the owner's knowledge and consent.

Competitive Market Analysis

Prepare competitive market analysis of a specific property for a client, prospective client, or customer.

Presentation of Offers

A licensee shall present all written offers and counter offers received by the licensee to the client.

Property Disclosure

Residential sellers in Maryland, unless exempt, are required to provide a completed property disclosure disclaimer statement.

Agency of a Licensee

The agency of a licensee who holds exclusive listings shall be respected.

Advertising a Property

Licensees must have a signed listing agreement before advertising.

Illegal Flipping

Reselling a property at an artificially inflated value for a considerable profit.

Subprime Loans

Home loan with higher interest rates for people with lower credit scores or without any established credit.

Advertising Definition

Advertising includes all written and verbal contact with the public that's intended to generate business for the licensee.

Advertising

Is defined by the code of Maryland and includes all written and verbal contact with the public that's intended to generate business for the licensee.