"In the last issue of The Commission Check, we urged licensees to ensure that any referrals they made to clients for home-related contractors were only for licensed individuals. We provided links to the list of services that require a valid MHIC license to be performed, and for the licensing boards of other building tradespersons.
We would like to further clarify the importance of actively searching for the status of a contractor's license before making any type of referral to a consumer or your client. If the person or business you recommend turns out to be unlicensed, it can cause serious problems for both your client and for you. As we explained, if the job were to go wrong, your client would not have access to monetary relief from the Home Improvement Commission's Guaranty Fund. That fund is maintained only for licensed home improvement contractors.
Additionally, the Commission has always held the position that if you recommend a person who does not have a valid, current license, then you have not met your duty of care to your client. Failing to adhere to the standards set forth in §17-532 of the Maryland Real Estate Brokers Act is a civil offense, and the Commission is authorized to suspend or revoke your license, and can assess a civil penalty up to $5000 for each violation."
Maryland real estate professionals need to understand and follow these guidelines to meet duty of care requirements as well as to avoid fines and loss of license.
Posted on ActiveRain as a real estate industry service. Character counts in Gaithersbrurg.
If you have referred a client to an unlicensed contractor, your might be feeling a bit of stress at this point. I recommend a photowalk through your community with camera in hand.
Daylily, Kentlands, Spring Flowers IMG_1418
Photograph by Roy Kelley using a Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs
We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC.
Roy Kelley & Associates
Associate Broker, RE/MAX Realty Group
Client Assistance: 301-670-8996
Recipient of the RE/MAX International Lifetime Achievement Award - 2008