WARNING! CAUSES OF COMPLAINTS TO THE MARYLAND REAL ESTATE COMMISSION.

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

DANGER ! ! !   DANGER WILL ROBINSON ! ! ! 

Careful.
  Think carefully before you do it.  Then on the other hand, if you have to think about it, perhaps you
shouldn't be doing it anyway.  Is what you plan to do something you can't tell your broker?  If so, you
probably shouldn't do it. 

The list below represents SOME of the causes of complaints to the Maryland Real Estate Commission.
That is NOT the Maryland Association of REALTORS.  Not a County Association of REALTORS.  These are complaints before the Maryland Real Estate Commission, the folks that issue real estate licenses. 

TOP REASONS FOR CONSUMER COMPLAINTS:

Failure to disclose material facts
This could be to buyer or seller.  For a listing agent it could be failure to disclose flooding.
For a buyer's agent it could be failure to disclose financial condition, insufficient funds for escrow.

Giving advice to buyer or seller that would result in future problems.
This includes telling buyers that home inspections are a waste of money. 

Failing to keep copies of contracts and provide copies to buyers and sellers.
Buyers and sellers are entitled to have a copy of any document that they sign WHEN they sign.

Asking buyer or seller to sign blank forms.
Asking sellers to sign blank listing forms or buyers to sign blank contracts or addenda.

Failing to provide Disclosure/Disclaimer Forms
Failure to have seller complete the forms and/or failure to provide to buyer before the contract is
complete represents an incomplete contract. 

Not depositing escrow funds within 7 days of ratification of contract.
Brokers control escrow accounts and money is deposited immediately following contract acceptance.

Failing to disclosure Deed Restrictions or Covenants by Distribution of HOA or Condo Documents
Buyers have a period of time to review and rescind a contract when documents are received. 

Changing the terms of buyer financing from conventional to FHA without agreement of seller.
This changes the net to the seller.  Buyers making application with new lender and not pursuing loan
accepted by seller when contract accepted. 

Failure of agents to use the full name of their broker in advertising.
The consumer must be able to contact the broker through the agents advertising.

Agents failing to disclose known flooding in listing.
If the agent knows, they must disclose, even if the seller doesn't want to. 

Source:  List was obtained from course material at a Continuing Education class in April, 2007.

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Rainmaker
1,089,840
Bryant Tutas
Bryant Tutas-Tutas Towne Realty, Inc - Poinciana, FL
Broker/REALTOR, Tutas Towne Realty, Inc
Lenn, All of those seem like very foolish mistakes. Heck I can't even see any that would make me rich:) Hardly worth it. I'm just so happy I work by myself and don't have to police agents all day. Oops! Forgot about Veronica(my BA). But she's smart and safe.
May 01, 2007 06:15 PM #1
Ambassador
2,401,802
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Bryant.

These are some of the reasons I rid my company of all agents December 21, 2006.  Just too many dumb mistakes and too much risk. 

This list waa about half that were on the list.   

 

May 01, 2007 06:25 PM #2
Rainmaker
335,122
Ann Cummings
RE/MAX By The Bay - NH and Maine - Portsmouth, NH
Portsmouth NH Homes - Service With a Smile!

These all seem like common-sense things to me, but clearly they weren't too an awful lot of agents/brokers since they're showing up on a list like this.  I'd bet most other states have a list that would read almost just like this one.

Ann

May 01, 2007 08:38 PM #3
Ambassador
507,532
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
Education is key, you are right Lenn.  While they may seem like foolish mistakes or common sense, the fact is we often times forget about the fundamentals.  Getting back to the basics is never a bad thing to do no matter how much experience is under your belt.  Nice post Lenn!
May 01, 2007 08:47 PM #4
Rainmaker
223,559
Laurie Mindnich
Centennial, CO
Lenn, as the owners of a new company that sell homes on the north fork of long island, we are absolutely terrified to add salespeople without knowing everything about them.  It's easier to work too hard, but not be in a state of stress over what they're "up to".  There are so many great real estate agents, but for a small company, the liability is intimidating.  Thanks for the reminder (I think)!
May 01, 2007 08:48 PM #5
Rainer
201,327
Eddy Martinez
Nationwide Funding Group - Highland Park, CA

I don't do realty i solely focus on the financing portion of real estate but some of those violations are literally mind blowing!!!!

Thats a great decision on your part to get rid of the agents who were causing you such a liability.

Thanks for sharing

Eddy

May 01, 2007 08:57 PM #6
Rainer
69,715
Minnesota Home Staging Firm, Minnesota
Minnesota Home Staging Network~ MN's Top Home Staging Firm - Inver Grove Heights, MN

Yikes...stay away from that stuff!

May 01, 2007 09:24 PM #7
Rainmaker
640,198
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro
Our list in Texas reads much the same.
May 01, 2007 09:55 PM #8
Rainmaker
1,076,074
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
I am so glad that you wrote this blog.  I see all of these violations more often than one would hope!  I can't believe how agents cover up for the seller! What are they thinking?
May 01, 2007 10:38 PM #9
Rainmaker
605,804
Sharon Simms
Coastal Properties Group International - Saint Petersburg, FL
St. Pete FL - CRS CIPS CLHMS RSPS
In Maryland do you really have 7 days after ratification to deposit the escrow money?
May 01, 2007 10:44 PM #10
Rainmaker
295,234
Ray Saenz
United Property Brokers, Inc - Aurora, CO
Homes for Sale in Aurora, Colorado - Aurora, CO

Lenn,

I liked the blog and I like the professor Turtle :)

 

May 01, 2007 11:41 PM #11
Rainmaker
333,383
Thesa Chambers
Alpine Real Estate - Bend, OR
Principal Broker - Licensed in Oregon
Wow that is a scary list - it amazes me the short cuts people take and the trouble they can lead to
May 02, 2007 01:12 AM #12
Ambassador
2,401,802
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

These all seem like common-sense things to me, but clearly they weren't too an awful lot of agents/brokers since they're showing up on a list like this.  I'd bet most other states have a list that would read almost just like this one.
Ann Cummings
Ann.  Argeed.  But, unfortunately, common sense goes out the window when an agent is looking for the easy way to make a buck.

Education is key, you are right Lenn.  While they may seem like foolish mistakes or common sense, the fact is we often times forget about the fundamentals.  Getting back to the basics is never a bad thing to do no matter how much experience is under your belt.  Nice post Lenn!
Jason Sardi - Most of the reasons for commission complaints are not "mistakes", they are deliberate acts of negligence, laziness or lack of supervision.

Lenn, as the owners of a new company that sell homes on the north fork of long island, we are absolutely terrified to add salespeople without knowing everything about them.  It's easier to work too hard, but not be in a state of stress over what they're "up to".  There are so many great real estate agents, but for a small company, the liability is intimidating.  Thanks for the reminder (I think)!
laurie mindnich - Laurie.  My feelings exactly.  I no longer have any agents because I just got tired of the risk and constant angst over dump mistakes or laziness.  Too much time spent cleaning up things that should never have happened.  My brokers licenses means every thing to me and it was constantly put at risk by agent who
simply didn't think about consequences of their acts, or lack of acts.  The big companies don't care.  I care.

I don't do realty i solely focus on the financing portion of real estate but some of those violations are literally mind blowing!!!!
Thats a great decision on your part to get rid of the agents who were causing you such a liability.
Thanks for sharing
Eddy Martinez - Thanks Eddy.  I cannot begin to tell you how it feels to not have to worry about what agents are doing day to day.

Yikes...stay away from that stuff!
Beth Patnode - Beth. One of the nice things about providing services like staging to brokers/agents is that the agents/brokers have all of the risk.

Our list in Texas reads much the same.
Marchel Peterson - Marchel.  From what I read about other states, I believe the list would be the same in about any state.

I am so glad that you wrote this blog.  I see all of these violations more often than one would hope!  I can't believe how agents cover up for the seller! What are they thinking?
Joan Whitebook - Right Joan.  I know that agents commit these acts a lot more often than is reported or complaints made.

In Maryland do you really have 7 days after ratification to deposit the escrow money?
Sharon Simms - Thanks Sharon.  In my company, it was three days or I went after it.  I agree.  Seven days is too long. 

Lenn,
I liked the blog and I like the professor Turtle :)
Aurora Colorado Real Estate.  Thanks.  My pleasure.

Wow that is a scary list - it amazes me the short cuts people take and the trouble they can lead to
Thesa Chambers - It amazes me too.  Thanks Thesa for commenting.

May 02, 2007 05:33 AM #13
Rainmaker
210,923
Lucky Lang
Mel Foster Co. - Davenport, IA
SRES, Davenport, Iowa Real Estate

Lenn,

You would think that this is just common sense, but then again..........

Thanks for reporting this.

Lucky :)

May 02, 2007 09:16 PM #14
Rainmaker
137,687
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
Lenn- These also seem to be the same 10 things you shouldn't do in CA.. Carelessness and stupidity are apparently not limited by geography
May 03, 2007 01:45 AM #15
Rainmaker
187,191
Roberta Murphy
San Diego Previews * Previews Luxury Real Estate - San Diego, CA
Carlsbad Real Estate and Homes
Lenn and Kaye: There's very little difference between our two states--and probably most others. Hopefully this market contraction will weed out the dangerous agents.
May 05, 2007 12:32 AM #16
Ambassador
2,401,802
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Lucky Lang - Some of the things on the list require less than common sense. 


Lenn- These also seem to be the same 10 things you shouldn't do in CA.. Carelessness and stupidity are apparently not limited by geography
Kaye Thomas Kaye.  I suspect that a lot of licnesees and brokers practice "real estate sales by expediency".


Lenn and Kaye: There's very little difference between our two states--and probably most others. Hopefully this market contraction will weed out the dangerous agents.
Roberta Murphy  Roberta - I'm sure they are the same across the country.  It's just so amazing seeing the violations in print. 

THANKS all for commenting.

May 05, 2007 06:38 AM #17
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Lenn Harley

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