1 December Maryland Real Estate Commission Meeting – November 19, 2025 by Jacky Mueck MREC Updates 0 0 Comment 66 Below is your November summary of key updates from the Maryland Real Estate Commission. This month’s meeting included updates on the advertising guidance, the status of MREC’s regulatory proposals, and a practical overview of what auditors look for during escrow account reviews. Advertising Taskforce Update Work continues on the Commission’s effort to modernize and clarify the MREC Advertising Checklist. The Taskforce is carefully reviewing standards across all forms of advertising to ensure the updated guidance reflects current business practices and digital platforms. The revised checklist is expected to be finalized and presented to the Commission at the January meeting. We will share the updated checklist as soon as it becomes available. Legislative Committee Updates The Commission’s Legislative Committee has begun meeting to discuss potential legislative proposals for submission to the Department of Labor for consideration in the 2027 legislative session. Currently the Legislative Committee is examining how other states structure their background check processes, including requirements for fingerprinting to determine what changes may be appropriate to pursue in Maryland. These discussions are still preliminary, and additional updates will be provided should the proposal advance. Regulatory Updates Continuing Education Late Fee Proposal The regulatory proposal to establish a separate $75 fee for licensees who complete their continuing education late rather than applying the higher reinstatement fee is continuing to move through the regulatory process. Currently, the same $168 reinstatement fee applies to both licensees who are late completing CE as well as those reinstating an expired license. If approved, this proposal will provide clarity within the fee structure to licensees by distinguishing a true license reinstatement from a licensee who is in good standing but missed their deadline for completing CE. During the November meeting, MREC Counsel shared that this proposal is expected to be published in the Maryland Register on December 12, 2025 for public comment. Revisions to the Disclosure and Disclaimer Form The update to the Disclosure and Disclaimer form also remains in progress. After receiving comments during the Maryland Register’s public comment period several months ago, the Commission voted to adopt those recommended changes. The proposed updates to the form have been submitted to the Department of Labor and are awaiting departmental approval before they can be republished in the Maryland Register. Broker Supervision Course Many of you are aware that the required Broker Supervision course hours have been reduced from 3.0 hours to 1.5 hours due to legislation that became effective in October. Because the existing regulations still state that the course must be three hours, the Commission submitted a proposal to update the regulatory language, so it aligns with the statute. Counsel anticipates that this proposal will be published in the Maryland Register on December 1, 2025. Escrow Accounts: What Auditors Review Presentation by Patrick Richardson, MREC Auditor MREC Auditor Patrick Richardson provided brokers with an overview of what is reviewed during a routine escrow account audit when deposits are being held by the broker. His presentation included the checklist shared during the meeting, which is reproduced below exactly as it appeared. If presently holding any deposits, verify deposits received according to the date of the contract and deposited promptly. Trace deposits, if any, to an online statement on the day of the audit. Are voided checks properly defaced? Is the broker a signature on the escrow account? Does broker’s address match the location presently listed with the MREC, and are records maintained at this address? Was there evidence of any co-mingling of funds? Were there any interest-bearing escrow accounts? Was a sign located at either a directory, outside the business premises or at the residence? In addition to the above checklist, the main part of an escrow audit is to examine an online statement of the escrow account on the day of the audit, along with a list of contracts by address and earnest money deposit amounts, if any. If there are any earnest money deposits being held by a third party, such as a title company, it is considered a zero amount on the auditor’s log as deposits held by the broker. Additionally, the Executive Director mentioned that while routine spot audits are conducted regularly, brokers or licensees who believe a firm may not be complying with escrow requirements may reach out directly to Executive Director Scott Lederer. In some cases, the information provided may lead to a recommendation for further review by the auditing team. Consumer Member Vacancy The Maryland Real Estate Commission currently has a vacant consumer member position that it is actively working to fill. Updates will be shared as the appointment process moves forward. 2025, MREC Update, November Share Showing 0 Comment Comments are closed.