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Terms Used In Maryland Code, BUSINESS OCCUPATIONS AND PROFESSIONS 17-607

  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(a) Except as otherwise provided in subsection (b) of this section, in a real estate transaction involving a single-family dwelling, a real estate broker, an associate real estate broker, a real estate salesperson, or a lawyer acting as a real estate broker may not require a buyer, as a condition of settlement, to employ a particular:

(1) title insurance company;

(2) settlement company;

(3) escrow company;

(4) mortgage lender, or financial institution as defined in the Financial Institutions Article; or

(5) title lawyer.

(b) A seller may not be prohibited from offering owner financing as a condition of settlement.