Real Estate Article:
Maryland REALTORS recently released a brief report on 2018 Maryland legislation key issues affecting the real estate industry. REALTORS throughout the state provide advocacy and participation through legislative Calls for Action during the annual sessions. A sampling of the outcomes from the 2018 legislative session is listed below, and a more complete list can be viewed online at www.mdrealtor.org.
Homebuyer Savings Account. Establishes a tax-free homebuyer savings account. Although the legislation was passed unanimously in the Senate, the legislation was not passed by the House of Delegates.
Escrow Legislation. Requires most companies (including title companies) holding escrow money to follow the same escrow rules followed by real estate brokers. The legislation was opposed by the title companies and a couple of other groups and failed in the House Environment and Transportation Committee.
Septic Legislation – Point of Sale. Required all home sales in the Critical Area to install a new Best Available Technology (BAT) septic system if the property had a septic system regardless of whether the system was working or not. Current law only requires failing septic systems in the Critical Area to upgrade to a BAT system and does not target the Point of Sale (POS). The bill was defeated in the House Environment and Transportation Committee.
Septic Legislation – Blue Line Streams. Required new homes built within a 1,000 feet of a blue stream line in Maryland to install a BAT septic system rather a conventional system. The legislation would have impacted almost as many properties as last year’s septic legislation mandating BAT systems for all new construction in the Coastal and Chesapeake Bay Watershed. The bill was defeated in the House Environment and Transportation Committee.
Sea Level Rise Real Estate Disclosure. Among other provisions, required a seller of property to indicate whether the property would be impacted by sea level rise and provide a map of how the property would be impacted. The bill also included other provisions affecting how state funds are spent on projects impacted by sea level rise. Although the bill passed, the real estate disclosure was removed from the bill.
Standard Deduction. Provides a small increase in the standard deduction for Maryland taxpayers ($250 for individuals and $500 for joint filers). The legislation also institutes a cost-of-living adjustment. The bill is expected to protect most Maryland taxpayers from paying more state taxes due to the impact of federal tax reform legislation, but about 20% will pay higher state taxes. The bill passed.
Fire Sprinkler Pilot Program. Established a state fund to help pay for automatic fire sprinklers in new homes if a homebuyer met the Maryland Mortgage Program income limits and purchased a new, single-family detached property less than 2,500 square feet. The property would also have to be served by well water. The bills were defeated in the House Environment and Transportation and the Senate Education, Health, and Environment Committees.
Lauren Bunting is an Associate Broker with Bunting Realty, Inc. in Berlin, MD.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
