Maryland 2022 Regular Session

Maryland House Bill HB720

Introduced

2/3/22

Refer

2/3/22

Caption

Real Estate - Real Estate Brokerage Services and Termination of Residential Real Estate Contracts (The Anthony Moorman Act)

Impact

The bill brings significant changes to the Maryland Real Property and Business Occupations and Professions codes, effectively mandating that real estate brokers and escrow agents notify involved parties about trust money distributions. The legislation also stipulates that these agents cannot be held liable for good faith decisions regarding the distribution of trust money. This could streamline processes within real estate transactions but also emphasizes the need for brokers to be diligent in their communication and actions surrounding trust fund management.

Summary

House Bill 720, known as 'The Anthony Moorman Act', introduces important reforms regarding real estate transactions in Maryland. The legislation establishes clear protocols for the handling of trust money—funds that a purchaser delivers to a real estate broker or escrow agent. Under this bill, if a purchaser terminates a residential real estate contract based on a contingency clause, the holder of the trust money is required to distribute these funds to the purchaser within 30 days of receiving proper notification. This provision aims to enhance consumer protection by ensuring timely access to their funds in case of contract terminations.

Contention

Notable points of contention surrounding HB720 could stem from concerns about its implications for the flexibility of real estate transactions. Critics may argue that while the bill aims to protect consumers, there could be unintended consequences regarding the responsiveness of brokers in complex transactions. Weathering potential disputes over trust money distributions and ensuring procedural compliance could challenge brokers, leading to concerns over operational burdens. Overall, while the law primarily advocates for consumer rights, it could also pave the way for regulatory scrutiny over brokerage practices.