A Maryland broker charges a 2026 finder fee under a clause buried in the general engagement paperwork. Does this satisfy the separate written finder-fee agreement requirement?
Correct Answer
A) Prohibited: the agreement is separate and distinct from any other document
A finder fee may not be charged unless it is pursuant to a written agreement between the broker and the borrower which is separate and distinct from any other document. Other choices: signing the bundle is what the separateness requirement guards against; bold type inside another document does not make it separate; and the defect is independent of the amount. Source: Md. Com. Law § 12-805(d)(1)
Why This Is the Correct Answer
A finder fee may not be charged unless it is pursuant to a written agreement between the broker and the borrower which is separate and distinct from any other document. Other choices: signing the bundle is what the separateness requirement guards against; bold type inside another document does not make it separate; and the defect is independent of the amount. Source: Md. Com. Law § 12-805(d)(1)
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