Maryland lawmakers and state regulators are taking major steps to protect homeowners from controversial real estate contracts known as Homeowner Benefit Agreements (HBAs), following growing concerns that some companies used these agreements to lock homeowners into decades-long obligations.
This year, the Maryland General Assembly passed Senate Bill 814, strengthening consumer protections and placing new restrictions on these agreements. At the same time, Maryland’s Attorney General announced legal action against a company accused of using HBAs in ways that violated Maryland consumer protection and lending laws.
What Is a Homeowner Benefit Agreement?
Homeowner Benefit Agreements are contracts in which a homeowner receives an upfront payment—sometimes only a few hundred or a few thousand dollars—in exchange for granting a real estate company certain rights related to the future sale of the home.
In many cases, these agreements required homeowners to use a specific brokerage if they ever sold their property. If they chose another broker or transferred the property in another way, they could face significant penalties.
Why Did Maryland Lawmakers Act?
Some HBAs functioned much like other types of home loans, while avoiding many of the consumer protections that apply to traditional lending. These arrangements have also interfered with homeowners’ ability to sell, refinance, or transfer their property.
The Maryland General Assembly responded by passing legislation in both 2023 and 2026 to prevent abusive practices and provide greater transparency for homeowners.
These laws place important restrictions on long-term real estate service agreements and prevent companies from recording agreements that create liens or other encumbrances on residential property.
Attorney General Targets HBA Provider
Just days before the 2026 legislation took effect, the Attorney General’s Office announced charges against the main HBA company and executives for failure to comply with Maryland lending laws. Regulators also claim consumers were not adequately informed that the agreements could bind heirs and successors for decades and that recorded agreements could function like liens on the property.
The Attorney General is seeking to terminate the agreements, remove related property liens, obtain restitution for affected consumers, and impose civil penalties.
What This Means for Maryland Homeowners
Before signing any agreement involving your home, consider consulting a qualified real estate attorney or housing counselor to understand the full legal and financial implications.
Extra scrutiny should be given to any contract that:
- Offers cash upfront in exchange for future real estate services.
- Creates obligations lasting many years or decades.
- Requires payment based on a percentage of the home’s value.
- Is recorded in land records or otherwise affects the property title.
- Impacts heirs, family members, or future transfers of the property.
If you believe that you have previously signed a Homeowner Benefit Agreement on your property, contact the Maryland Attorney General’s Consumer Protection Division at 410-528-8662, file a complaint online at oag.maryland.gov, or write to the Consumer Protection Division at 200 St. Paul Place, 16th Floor, Baltimore, MD 21202
