Maryland Realestate License

Using A Real Estate Broker In Maryland

Although most brokers enter into written listing agreements or written fee agreements, Maryland courts find that oral agreements are enforceable as well. The employment of a broker for specified services may be implied from the conduct of parties, or the owner may ratify the acts of a party acting as a broker, thereby confirming the broker’s expected oral employment.

Commissions, in those instances, are imposed under the broker laws, which prescribe the payment terms to be used in the absence of a written agreement to the contrary. Therefore, it is strongly recommended that anyone who wants to hire or use a licensed broker for a real estate transaction in Maryland, or who is concerned about when and whether fees accrue, clarify the listing agreement or fee terms in writing.

A listing agreement should specify what the broker is to be paid for, and when the commission is deemed earned: for instance, in a sales listing agreement, the commission should be stated to be earned when the sale closes, and in a leasing listing agreement, to be earned when the tenant actually occupies the space and first pays rent.

The listing agreement should also detail the broker’s obligations to the owner, such as confirmation that the broker is licensed, the broker’s use of its best efforts on the owner’s behalf, the level of ability and training the broker’s employees assigned for the project, whether some specific employee will be assigned, and periodic reporting requirements.