Legal Hotline

By Chris Darby, Tom Muldoon and John Nalls of Counselors Title, LLC, and Pardo & Drazin, LLC, General Counsel

QUESTION: I am about to list a home that is in the process of foreclosure, but the owner has declared bankruptcy to interfere with the bank’s involvement. There is a court involved for third-party approval. One of my clients wants to make an offer. How do I handle representation, as I am a one-person brokerage? ANSWER: Both Maryland and District of Columbia law allow a single brokerage to represent both sides of a transaction, provided that all parties consent in writing and the broker appoints a separate “intra company agent“ [MD] or “designated representative“ [DC] to represent each side. This is known as dual agency in Maryland, and designated representation in the district. As a one-person brokerage, this is not an option for you because there are not separate individuals available to represent each side. Dual agency is the only accepted form of joint representation in Maryland. District of Columbia law, however, also recognizes (again with the written consent of all parties) dual representation wherein the same broker or agent may represent both sides. Therefore, if the property is in the district and both parties consent to true dual representation after proper disclosure, you could potentially represent both parties. Otherwise, you must terminate your representation with one of the parties and disclose to them that you are representing the other. If one or both parties have shared confidential information with you, you could be disqualified from representing either of them. QUESTION: For the Maryland HOA Act, when do the number of days start after sending the HOA packet? ANSWER: Under the Maryland HOA Act, you have five calendar days to void the contract once all the HOA information has been received. The first of the five days is the day following receipt of the HOA packet. So, if it was received on a Monday, you would have until Saturday to void.

QUESTION: What are the current TOPA laws for a one-bedroom condo that isn’t registered as a rental unit, but is occupied by a tenant? ANSWER: As of July 3, 2018, the TOPA Single-Family Home Exemption Amendment Act of 2017, which was signed by the District of Columbia mayor on May 7, 2018 as The TOPA Single-Family Home Exemption Amendment Act of 2018, became law. With limited exceptions for elderly or disabled tenants, the amendment exempts single-family rental units, single-family rental units with an accessory dwelling unit and single condominium units from the old law. Having said that, a notice of sale is still required, and you will have to consult with your settlement company for its underwriting requirements. For additional information and updated forms, please consult the District of Columbia Department of Housing and Community Development at dhcd.dc.gov/service/ conversion-and-sales.

DISCLAIMER: The answers provided here are the opinion of the authors, are for informational purposes and are only for GCAAR members. Neither Counselors Title, LLC, nor Pardo & Drazin, LLC, is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is–or will be–established as a result of this material. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.