In Maryland, real estate agents and brokers are required to maintain records of communications and documents related to real estate transactions, which may include text messages if they contain material information. These requirements are governed by the Maryland Real Estate Brokers Act and other related regulations.

1. Record Retention Requirements in Maryland

Retention Period
Under Maryland Business Occupations and Professions Code § 17-507, real estate brokers must retain all transaction-related records for a minimum of five years from the date of the transaction's closure or from the expiration of the listing agreement.

Records to Be Retained
Required records include:

• Contracts, offers, counteroffers, and listing agreements

• Transaction-related disclosures and agreements

• Correspondence, including electronic communications (emails and text messages) if they are material to the transaction

2. Inclusion of Text Messages

Material Communications
Text messages that are considered part of the transaction record include:

• Negotiations, offers, or counteroffers

• Discussions regarding terms, fees, or conditions

• Client instructions or approvals

• Amendments, disclosures, or other transaction-related agreements

These messages must be retained as part of the overall transaction documentation.

Electronic Record Definition
The Maryland Real Estate Commission recognizes electronic communications as part of the "documents and records" that brokers must maintain, as long as they are related to licensed activities.

3. Methods for Archiving Text Messages

Acceptable Archiving Practices

• Manual Archiving: Text messages can be manually exported, saved digitally, or printed and stored with other transaction files.

• Automated Tools: Compliance software can be used to capture and archive text messages automatically, ensuring efficient and accurate record retention.

• Centralized Recordkeeping: All transaction-related records, including text messages, must be securely stored and accessible for inspection during the retention period.

4. Oversight and Inspections

Audit Authority
The Maryland Real Estate Commission has the authority to audit or inspect a brokerage's transaction records, including electronic communications, to ensure compliance with record-keeping requirements.

Broker Responsibility
Brokers are responsible for ensuring that all required records, including text messages, are retained for the statutory retention period and are accessible if requested by regulatory authorities.

5. Consequences of Non-Compliance

Regulatory Penalties
Failure to retain required records, including text messages, may result in:

• Fines

• Disciplinary actions, such as suspension or revocation of licenses

Legal Risks
Incomplete records could lead to legal disputes, claims of misrepresentation, or regulatory violations, increasing liability for brokers and agents.

6. Best Practices for Compliance

Establish a Policy
Develop a brokerage-wide policy requiring agents to retain material text messages related to transactions.

Use Technology
Leverage archiving software to automatically capture and store text messages for the required retention period.

Educate Agents
Train agents to identify and retain transaction-related communications, including text messages.

Perform Regular Audits
Conduct routine checks to ensure compliance with the brokerage’s retention policy and identify any gaps in recordkeeping.

Summary

In Maryland, real estate brokers are required to retain all transaction-related records, including material text messages, for a minimum of five years under § 17-507. Text messages that pertain to negotiations, terms, disclosures, and client instructions should be treated as part of the official transaction record. Implementing clear policies, utilizing automated archiving tools, and conducting regular compliance audits can help brokers and agents adhere to Maryland's record-keeping requirements and minimize risks.

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Sample: Text Archive for Real Estate

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Mortgage Loan Originators in Maryland

In Maryland, mortgage loan originators (MLOs) and mortgage brokers are subject to federal and state record-keeping regulations, which include the retention of communications such as text messages if they are material to the loan transaction. These requirements are overseen by the Maryland Office of the Commissioner of Financial Regulation and informed by federal laws such as those enforced by the Consumer Financial Protection Bureau (CFPB).

1. Federal Regulations Applicable to Text Message Retention

Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA):

• MLOs must retain records that demonstrate compliance with disclosures, loan terms, and other regulatory requirements.

• Communications (including text messages) related to terms, fees, disclosures, or other transaction matters must be retained as part of the loan file.

CFPB Compliance:

• Under Regulation Z (TILA) and Regulation X (RESPA), lenders and originators are required to retain consumer communication records, including text messages, for five years if they include material information about the transaction.

2. Maryland-Specific Requirements

Record Retention Period:

• Maryland law requires MLOs and brokers to retain all records related to a mortgage loan transaction for at least five years from the date of loan closure or termination, consistent with federal guidelines.

Definition of Records:

• Maryland includes emails, text messages, and other forms of electronic communication as part of the official transaction record if they pertain to:

  • Loan terms or conditions

  • Consumer disclosures

  • Negotiations, agreements, or amendments

Inspection Requirements:

• The Maryland Commissioner of Financial Regulation has the authority to audit or inspect loan transaction records, including electronic communications, to ensure compliance.

3. Archiving Text Messages

What Must Be Retained:
Any text messages that:

• Provide disclosures or explanations to the borrower

• Confirm terms, interest rates, fees, or conditions

• Include instructions, agreements, or amendments between the borrower and the MLO

Acceptable Methods for Archiving:

• Manual Archiving: Export text messages to digital formats or print them for inclusion in loan files.

• Automated Solutions: Use compliance software that automatically captures and securely archives text messages.

• Centralized Storage: Maintain all communications, including text messages, in a secure, accessible system for the duration of the retention period.

4. Consequences of Non-Compliance

Regulatory Penalties:
Failure to maintain proper records, including text messages, may result in:

• Fines and penalties

• Suspension or revocation of the MLO license

• Regulatory sanctions from the Maryland Commissioner of Financial Regulation or the CFPB

Legal Risks:
Incomplete records could expose MLOs and brokers to allegations of non-disclosure, fraud, or misrepresentation, increasing liability in consumer disputes.

5. Best Practices for Compliance

Adopt a Communication Policy:
Develop clear policies requiring the retention of all material communications, including text messages.

Leverage Archiving Technology:
Utilize platforms that integrate with mobile devices to capture and securely store text messages automatically.

Educate Staff:
Provide training to MLOs and brokers on identifying and retaining transaction-related communications, including text messages.

Conduct Regular Audits:
Review loan files periodically to ensure all required communications, including text messages, are properly archived.

Summary

In Maryland, mortgage loan originators are required to retain all transaction-related records, including material text messages, for a minimum of five years under state and federal regulations. Communications that discuss loan terms, disclosures, and borrower agreements must be included in the official loan transaction file. To ensure compliance, MLOs and brokers should implement clear policies, use automated archiving tools, and conduct regular audits to minimize risks and adhere to legal requirements.