Real Estate Brokers - Residential Real Estate Transactions - Transaction Brokers
HB0545 would create a new “transaction broker” framework for certain residential real estate transactions in Maryland. Under the bill, a licensed real estate broker, associate broker, or salesperson could, with the written informed consent of all parties, act for both sides of a transaction without representing either side in an agency relationship. The bill applies to sales or leases of one- to four-unit residential property and to unimproved residentially zoned land, but not to short-term leases of 125 days or less.
The bill sets out the duties, limits, and disclosure requirements for transaction brokers. It requires a standard consent form prepared by the State Real Estate Commission, specifies that the broker must act honestly and fairly, present offers and counteroffers in a timely manner, disclose material facts, protect confidential information, and account for trust money. It also states that transaction brokers do not have duties to independently inspect property, verify financial conditions, or independently verify statements made by the parties or their representatives. The bill would take effect October 1, 2026, and it amends existing licensing and disclosure provisions in the Business Occupations and Professions Article to accommodate the new role.
HB0545 would add a new Part VI to Title 17 of the Business Occupations and Professions Article governing real estate licensees, creating a statutory basis for transaction brokerage in limited residential settings. It would also amend existing disciplinary and brokerage-service provisions so that failure to provide the required transaction-broker consent form could subject a licensee to Commission action. The State Real Estate Commission would be required to develop and distribute a standardized consent form, and licensees using this model would have to follow the bill’s disclosure, confidentiality, and limited-duty rules.
The available record shows little formal debate or recorded voting activity, and the bill was ultimately withdrawn by the sponsor in the House. Based on the bill text, the measure appears designed to expand flexibility for real estate professionals while preserving consumer disclosure and consent protections. The overall framing suggests a policy interest in allowing a neutral intermediary role in residential transactions, but the withdrawal indicates the proposal did not advance to a final vote or committee resolution.
The main policy tension in HB0545 is between transaction efficiency and traditional agency representation. Supporters of the concept would likely view transaction brokerage as a way to facilitate deals when parties do not want full buyer or seller representation, while critics may worry that a broker serving both sides without agency duties could create confusion or weaken advocacy for consumers. The bill tries to address that concern by requiring informed written consent, a prominent warning that the broker does not represent either party, and a right to withdraw consent. Another potential point of concern is the limited scope of the broker’s duties, especially the absence of duties to independently inspect or verify information, which may raise consumer-protection questions.