MD: Real Estate Agents Beware of Making Referrals

real estate agents

In a sweeping change, the Maryland Department of Labor, Licensing, and Regulation (DLLR) issued a change that requires Maryland real estate agents, to confirm that an entity is licensed and provide a link to the government site for easy confirmation before referring clients to contractors and appraisers. Effective August 18, 2014, real estate agents are required to take certain actions before referring people to “a mortgage lender or mortgage broker, a real estate appraiser, a home inspector, a home improvement contractor, a plumber, an electrician, or a heating/ventilation/air conditioning/cooling (HVAC) contractor”. The agent must first verify that the referral is licensed and must include a link to the governmental site so the client can easily re-verify the licensing status of the referred business or person.