Maryland lawmakers have approved legislation to prohibit exclusive real estate listing agreements that bind homeowners for more than one year.
The legislation, sponsored by Del. Marlon Amprey, was drafted in response to the practices of a real estate company, MV Realty, which incorporated in Maryland in late 2021. In less than a year, the company locked hundreds of homeowners across the state into 40-year contracts granting it the exclusive right to list their homes for sale.
As The Banner reported in October, these agreements are breakable only by paying a “termination fee” equal to 3% of the home value as estimated by the company. If a homeowner, or any heir — on purpose or by accident — does break the agreement, the termination fee is secured by a lien on the property.
Homeowners interviewed by The Banner at the time said that they did not fully understand the fine print of the agreement and were enticed by the cash offered in exchange for signing the agreements— often just a few hundreds dollars. In Baltimore, the majority of affected homes are located in predominantly African American neighborhoods on the east and west sides of the city.
“[Lawmakers] were really appalled and didn’t know that these kinds of agreements were taking place,” said Amprey, a Baltimore Democrat. “It’s going to protect a lot of people’s homes, and it’s going to protect a lot of Black wealth in my district.
The story continues at the Baltimore Banner: Legislation banning binding home listings passes House and Senate
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