Maryland Homeowners: Understanding Long Term Listing Agreements and Their Impact on Families
Recent news surrounding MV Realty and the Maryland Attorney General’s investigation has raised questions about long term listing agreements a.k.a homeowner benefit agreements. I want all homeowners to be asking what these contracts are, how they work, and whether they can affect heirs.
Recently, our Attorney General brought increased attention to long term real estate listing agreements and the impact they can have on homeowners and their families. While the investigation will ultimately determine if any laws were violated, the news highlights an important topic that every homeowner should know before signing any real estate contract.
As a Maryland Realtor, I believe that consumer education is one of the most important services we can provide. A home is generally a families largest asset and any decisions about it deserves careful consideration, transparency and a clear understanding of the obligations involved.
Understanding Long Term Listing Agreements
A traditional listing agreement typically has a well defined term (usually six months or less) and establishes a relationship that allows the agent to market and sell the property. Some companies have decided that the normal timeframes are just not long enough and decided to use terms far beyond those. These contracts may create obligations that continue for years, even decades and may affect future property decisions.
The problem is that many homeowners do not understand the long term implications at the time of signing.
WHY THIS MATTERS TO FAMILIES
In my own work, I have assisted a family dealing with the consequences of a long term agreement from MV Realty signed by a homeowner who was in the early stages of cognitive decline at the time of signing . A FORTY year long agreement in this particular case.
After his passing, the heir was left financially tied to an agreement that he didnt sign and never knew existed. The situation added complexity and stress during an already difficult time for the family.
While every case of this is unique, it always highlights why transparency and informed decision making are so important when it comes to real estate contracts.
THE UNIQUE VULNERABILITY OF AGING HOMEOWNERS
As people age, they may face health issue that can affect judgement, memory and decision making. Conditions like dementia set in gradually and can make it hard for others to recognize the full extent of cognitive decline.
This reality makes this a responsibility for all of us, attorneys, financial proffesionals, health care providers, the family, and real estate professionals alike. We need to ensure that important decisions are made with appropriate understanding and informed consent. Families can not do it all and can not see everything. This is why protecting aging homeowners is not just a family issue, it is a consumer protection issue.
QUESTIONS EVERY HOMEOWNER SHOULD ASK BEFORE SIGNING
How long does this agreement remain in effect?
Can this agreement be terminated and how so?
Are there any future obligations?
Could this agreement negatively affect my heirs or estate?
What happens if I decide to not sell my home after signing?
Are there penalties, fees or commissions that may become due in the future?
Should I have an attorney review this?
If the answers to these questions are unclear, you can not locate the written clause to confirm what you’re being told or you feel rushed to sign, always seek further clarification prior to signing, preferably from a third party (i.e an attorney).
THE IMPORTANCE OF CONSUMER EDUCATION
Most of us real estate professionals work hard to serve our clients ethically and transparently. Trust is the foundation of our profession, and consumers should feel confident that they understand every document they sign. As a homeowner of any age, when working with a real estate professional, you should feel comfortable to ask questions, get clear answers that can easily be confirmed even if thats through an independent party, and be fully aware of any or all consequences that may be attached to a contract.
FINAL THOUGHTS
As a Maryland realtor, I remain committed to helping homeowners understand their options, navigate complex situations and make decisions that best benefit them and their families. Please treat me as a resource of clarity if you or your elders need it. If I can not help directly, I will point you in the correct direction.
The AGs investigation will continue to unfold. He is seeking a cease and desist order, immediate termination of all active agreements and liens, full restitution for consumers, and statutory civil penalties. The case is scheduled for an administrative hearing beginning September 8, 2026. While I can not predict the outcome of this, one thing is very clear: Families should not be surprised by unexpected contractual obligations at any time, let alone during periods of illness, transition or loss.