Maryland Realtor's Ministerial Act Limitations:
How does EFynch help Maryland Realtor's avoid the common missteps within Home Improvement.
Baltimore, MD: In Maryland, Real Estate Agents are not allowed to perform more than a Ministerial Acts with regards to home improvement or handyman recommendations. According to our good friends at Maryland Realtors, a Ministerial act is any act that involves "the discretion and exercise of judgment by the licensee".
Wikipedia provides a good example by relating the definition of Ministerial Acts to a person who might hold a position within the government. Imagine you are at the Motor Vehicle Administration and are speaking with the clerk. We've all been in the position when we are requesting something and are told that our documents are incomplete. All jokes aside, let's assume the clerk is sincere and sympathetic because, they honestly cannot complete the process unless a full checklist is met. That individual doe not have the authority to perform the requested actions, no matter how much they want to. This is a case where they are restricted to Ministerial Acts.
Now, relating this to home improvement. A client is readying for settlement and some type of small project is required. They are busy and ask you to help, can you?
Absolutely! The easiest response is that you can refer them to EFynch in order to hire that perfect handyman but, that is pretty much all you can do.
- You cannot call, choose, or hire a contractor.
- You cannot cannot negotiate the rate for the work.
- You cannot make the decision on the type of repair that should be made.
- You cannot make a posting on EFynch on their behalf.
By performing any of the actions above, you are opening yourself up to a huge liability and are in violation of Maryland Real Estate Law ($5,000 fine according in each Commission, MHIC and MREC, plus liability for damage).
So, here is what you can do:
- Advise or give examples of similar projects and previous owner's solutions to the issue.
- Recommend a handyman (provided you follow ALL referral guidelines and have verified their license within the previous 12 months).
- Pass information onto a contractor in order to help facilitate the completion of work.
- Meet a contractor to assist in gaining access to the property.
- Help out in any way that does not include yourself having to make a decision on behalf of the owner.
Adhering to these (often confusing) guidelines is something that we are doing with EFynch- we provide tools that enable the homeowner to perform many of the decision making tasks listed above with ease and efficiency, just as you or I would do as professionals. EFynch has simply detailed and provided this process in an easy to follow, online system.
This article was written by EFynch.com Co-Founder, Teris Pantazes. Teris is not an attorney and the views expressed above are opinion and this is NOT legal advice. The information above is meant for conversation purposes only. EFynch does not perform any physical work to residential properties and is ONLY a software platform that helps facilitate the sharing of information between a home owner, home buyer, real estate agent, contractor, handyman, etc. Please consult a licensed contractor prior to performing any work or consult legal counsel if clarification is needed on any of the information above.