Which incentive practice is permissible under Maryland license law?

Which incentive practice is permissible under Maryland license law?

• A. Licensees may offer incentives but only if available to all on the same basis.
• B. A lottery or prize drawings to sign an agreement.
• C. Licensees cannot offer any incentives whatsoever.
• D. Licensees can waive admin fees for the first ten buyers.

Answer: (A)

The key idea is that incentives in Maryland real estate practice must be offered to everyone on the same terms. When incentives are available equally to all parties, they are allowed because they promote fair dealing and transparency in advertising and negotiations. For example, offering a seller or buyer a closing-cost credit that’s available to any qualifying client keeps the process open and non-discriminatory. In contrast, using a lottery or prize drawing to entice someone to sign a contract turns the decision into a gamble and can run afoul of rules against improper inducements or unfair practices. Likewise, waiving admin fees only for the first ten buyers creates unequal treatment and isn’t compliant with the requirement that incentives be offered on the same basis to all. So the permissible approach is providing incentives that are available to all equally.

The key idea is that incentives in Maryland real estate practice must be offered to everyone on the same terms. When incentives are available equally to all parties, they are allowed because they promote fair dealing and transparency in advertising and negotiations. For example, offering a seller or buyer a closing-cost credit that’s available to any qualifying client keeps the process open and non-discriminatory.

In contrast, using a lottery or prize drawing to entice someone to sign a contract turns the decision into a gamble and can run afoul of rules against improper inducements or unfair practices. Likewise, waiving admin fees only for the first ten buyers creates unequal treatment and isn’t compliant with the requirement that incentives be offered on the same basis to all. So the permissible approach is providing incentives that are available to all equally.