# Business Occupations and Professions (GBO)

## Title 17. Real Estate Brokers

### Subtitle 3. Licensing

#### Section 17-301

(a)

  (1) Except as otherwise provided in this title or Sec.Sec. 10-14A-03 and 10-14B-03 of the State Government Article, an individual shall be licensed by the Commission as a real estate broker before the individual may provide real estate brokerage services in the State.

  (2) Except as otherwise provided in this title or Sec.Sec. 10-14A-03 and 10-14B-03 of the State Government Article, an individual shall be licensed by the Commission as an associate real estate broker or a real estate salesperson before the individual, while acting on behalf of a real estate broker, may provide real estate brokerage services in the State.

(b) A license is not required for:

  (1) a financial institution, as defined in Title 1 of the Financial Institutions Article, a subsidiary or affiliate of such a financial institution, or mortgage loan institution incorporated under the laws of any state or of the United States to manage, lease, or sell any property that the institution or subsidiary or affiliate of a financial institution acquires in connection with a mortgage foreclosure or deed or assignment in lieu of foreclosure;

  (2) a lawyer authorized to practice law in the State who:

    (i) is not engaged regularly in the business of providing real estate brokerage services;

    (ii) does not represent to the public, by use of a sign or advertisement or otherwise, that the lawyer is in the business of providing real estate brokerage services; and

    (iii) provides real estate brokerage services while representing another person in the course of the lawyer's regular practice of law;

  (3) a home builder in the rental or initial sale of a home constructed by the builder;

  (4) an agent of a licensed real estate broker or of an owner of real estate while managing or leasing that real estate for the real estate broker or owner;

  (5) any person in negotiating the sale, lease, or other transfer of a business enterprise if the proposed transfer does not include any interest in real property other than a lease under which the business enterprise operates; or

  (6) any person to subdivide and sell unimproved property owned by that person if the person meets the requirements of Sec. 17-302 of this subtitle.

#### Section 17-302

(a) An individual is not required to hold a license under this subtitle to:

  (1) sell, in a calendar year, 6 or fewer unimproved lots that the individual owns; or

  (2) subdivide and sell unimproved property that the individual owns for 10 years or more.

(b) To measure time under subsection (a)(2) of this section, if the ownership of property passes by inheritance to successive individuals, an individual who inherits the property may add the time that the property was owned by preceding individuals in the line of inheritance to the time that the property is owned by that individual.

(c) To determine ownership under subsection (a)(2) of this section, an individual shall be considered the owner of property that is titled to a corporation if:

  (1) during the period in question:

    (i) the corporation was wholly owned by the individual or the heirs of the individual; and

    (ii) the individual or the heirs of the individual were personally liable for all indebtedness or claims relating to the property; and

  (2) the individual or the heirs of the individual remain personally liable for all indebtedness or claims relating to the property that arose during the period in question.

#### Section 17-303

(a) To qualify for a real estate salesperson license, an applicant shall be an individual who meets the requirements of this section.

(b) An applicant shall be of good character and reputation.

(c) An applicant shall be at least 18 years old.

(d) An applicant shall have completed successfully:

  (1) a basic course in real estate approved by the Commission that:

    (i) does not require more than 60 clock hours of:

      (1) classroom instruction; or

      (2) instruction provided by:

      (A) remote access satellite;

      (B) closed-circuit video;

      (C) computer, including transmission over the Internet and the World Wide Web;

      (D) home study; or

      (E) any other delivery system approved by the Commission; and

    (ii) includes a 3 clock hour course in real estate ethics approved by the Commission; or

  (2) if approved by the Commission as an alternative, courses in real estate subjects in any college, including a 3 clock hour course in real estate ethics approved by the Commission.

(e) An applicant shall pass an examination given by the Commission under Sec. 17-306 of this subtitle.

(f) An applicant shall obtain, from a licensed real estate broker, a commitment providing that the applicant shall become affiliated with the licensed real estate broker as a real estate salesperson on the granting of a real estate salesperson license to the applicant.

(g) An applicant shall meet any other requirement that the Commission establishes to ensure that only individuals who are professionally competent and of good character and reputation are licensed.

#### Section 17-304

(a) To qualify for an associate real estate broker license, an applicant shall be an individual who meets the requirements of this section.

(b) An applicant shall meet the requirements for a real estate broker license under Sec. 17-305 of this subtitle.

(c) An applicant shall obtain, from a licensed real estate broker, a commitment providing that the applicant shall become affiliated with the licensed real estate broker as an associate real estate broker on the granting of an associate real estate broker license to the applicant.

#### Section 17-305

(a) To qualify for a real estate broker license, an applicant shall be an individual who meets the requirements of this section.

(b) An applicant shall be of good character and reputation.

(c) An applicant shall be at least 18 years old.

(d)

  (1) Except as provided in paragraph (2) of this subsection, an applicant shall:

    (i) have completed successfully a course in real estate approved by the Commission for real estate brokers that includes a 3 clock hour course in real estate ethics approved by the Commission; and

    (ii) have been a licensed real estate salesperson and have actively and lawfully provided real estate brokerage services for at least 3 years.

  (2) If an applicant is qualified to practice law in the State, the Commission shall waive the educational and experience requirements of paragraph (1) of this subsection for that applicant.

(e) An applicant shall pass an examination given by the Commission under Sec. 17-306 of this subtitle.

(f) An applicant shall meet any other requirement that the Commission establishes to ensure that only individuals who are professionally competent and of good character and reputation are licensed.

#### Section 17-306

(a) An applicant who otherwise qualifies for a license is entitled to be examined as provided in this section.

(b) The Commission periodically shall give examinations to applicants at the times and places that the Commission determines.

(c) Except as provided in subsection (f)(2)(ii) of this section, the Commission shall give each qualified applicant notice of the time and place of examination.

(d) To take an examination, an applicant shall pay:

  (1) to the Commission, an examination fee set by the Commission; and

  (2) to the Commission or a testing service chosen by the Commission, an amount covering the cost of the examination.

(e)

  (1) Except as otherwise provided in this subsection, the Commission shall determine the subjects, scope, and form of and the passing score for examinations given under this subtitle.

  (2) To ensure the protection of the interests of those persons who are represented by licensed real estate brokers, the Commission shall structure the examinations for a real estate broker license to test:

    (i) the ability of an applicant to perform the services authorized by a real estate broker license; and

    (ii) the knowledge of the applicant of the general practice for handling real estate transactions.

  (3) The examinations shall be written.

  (4) To eliminate the possibility of discrimination in the administration of the examination, each copy of an examination for a particular license given on a particular date shall contain the same questions. However, the questions may be in different order.

(f)

  (1) The Commission may use a testing service to administer the examinations under this section.

  (2) If the Commission uses a testing service under this subsection, the testing service, subject to the requirements set by the Commission, may:

    (i) set the times and places of examinations; and

    (ii) give applicants notice of the examinations.

#### Section 17-307

(a) An applicant for a license:

  (1) shall submit to the Commission an application on the form that the Commission provides;

  (2) if a testing service was used to administer the examination, shall submit to the Commission a copy of the examination results of the applicant;

  (3) shall pay into the Guaranty Fund any fee required under Sec. 17-403 of this title;

  (4) shall pay to the Commission a fee set by the Commission; and

  (5) shall submit to the Commission any additional information or documentation that the Commission requires, including any information or documentation to determine the professional competence or the good character and reputation of the applicant.

(b) If the applicant is applying for a real estate broker license, the applicant:

  (1) shall have submitted to the Commission, by a credit reporting agency approved by the Commission, a credit report that contains the information required by the Commission; or

  (2) shall have paid to the Commission or the Commission's designee a credit report fee in an amount not to exceed the cost charged by a credit reporting agency approved by the Commission to obtain a credit report that contains the information required by the Commission.

(c) If the applicant is applying for a real estate salesperson or associate real estate broker license, the applicant shall submit to the Commission adequate evidence that the applicant has obtained, from a licensed real estate broker, a commitment providing that the applicant shall become affiliated with the licensed real estate broker as a real estate salesperson or an associate real estate broker on the granting of a real estate salesperson license or an associate real estate broker license to the applicant.

(d) If the applicant currently is licensed as a real estate salesperson or an associate real estate broker, the applicant shall submit to the Commission a copy of the written notice required under Sec. 17-313 of this subtitle informing each real estate broker with whom the applicant currently is affiliated that the applicant intends to affiliate with an additional real estate broker or to obtain a real estate broker license.

(e) If the applicant is not a resident of this State, the applicant shall submit to the Commission a consent and any related document required under Sec. 17-514 of this title.

#### Section 17-308

(a) Subject to the provisions of this section, the Commission may waive any requirement of this subtitle for a particular license for an applicant who holds a comparable or equivalent license granted by another state.

(b) The Commission may grant a waiver under this section only if the applicant:

  (1) pays the application fee required under Sec. 17-307 of this subtitle for the license for which the applicant is applying;

  (2) provides adequate evidence that the applicant meets the qualifications otherwise required by this subtitle for the license for which the applicant is applying;

  (3) submits a certified copy of the applicant's license from the other state that is comparable or equivalent to the license for which the applicant is applying; and

  (4) if the applicant holds a license comparable or equivalent to a real estate broker license, provides adequate evidence that the applicant actively maintains an office in the other state.

#### Section 17-309

(a) On compliance by the applicant with the procedures under Sec. 17-307 of this subtitle, the Commission shall grant an appropriate license to each applicant who meets the requirements under this subtitle for that license.

(b) The Commission shall issue an appropriate license certificate and pocket card to each applicant who has been granted a license under this section.

(c)

  (1) Subject to paragraph (2) of this subsection, the Commission shall determine the size, form, and content of any license certificate or pocket card that the Commission issues.

  (2) On each license certificate that the Commission issues to an associate real estate broker or real estate salesperson, the Commission shall include the name of the firm of the licensed real estate broker for whom the associate real estate broker or real estate salesperson is licensed to provide real estate brokerage services.

#### Section 17-310

(a) While a real estate broker license is in effect, it authorizes the licensee to provide real estate brokerage services.

(b)

  (1) While an associate real estate broker or real estate salesperson license is in effect, it authorizes the licensee to provide real estate brokerage services on behalf of a licensed real estate broker:

    (i) who is named in the license certificate of the associate real estate broker or real estate salesperson; and

    (ii) with whom the associate real estate broker or real estate salesperson is affiliated.

  (2) An associate real estate broker or real estate salesperson license does not authorize the licensee to provide real estate brokerage services on the licensee's own behalf or on behalf of any person other than a licensed real estate broker named in the license certificate of the associate real estate broker or real estate salesperson.

#### Section 17-311

(a) A licensed real estate salesperson may transfer affiliation from a licensed real estate broker to another licensed real estate broker, if the real estate salesperson:

  (1) obtains, from the other licensed real estate broker, a commitment providing that, on cancellation of the current affiliation of the real estate salesperson and issuance of a new license certificate and pocket card to the real estate salesperson, the real estate salesperson shall become affiliated with the licensed real estate broker as a real estate salesperson; and

  (2) complies with the application procedures under subsection (c) of this section.

(b) A licensed associate real estate broker may transfer affiliation from a licensed real estate broker to another licensed real estate broker, if the associate real estate broker:

  (1) obtains, from the other licensed real estate broker, a commitment providing that, on cancellation of the current affiliation of the associate broker and issuance of a new license certificate and pocket card to the associate broker, the associate broker shall become affiliated with the licensed real estate broker as an associate real estate broker; and

  (2) complies with the application procedures under subsection (c) of this section.

(c) To transfer affiliation under this section, a qualified real estate salesperson or associate real estate broker shall:

  (1) surrender the license certificate and pocket card of the salesperson or associate broker to the Commission;

  (2) submit to the Commission a transfer application on the form that the Commission provides;

  (3) submit to the Commission:

    (i) acknowledgment from the licensed real estate broker with whom the salesperson or associate broker currently is affiliated that the affiliation is terminated; or

    (ii) a statement from the salesperson or associate broker that the current affiliation of the salesperson or associate broker is terminated;

  (4) submit to the Commission adequate evidence that the salesperson or associate broker has obtained, from a licensed real estate broker, a commitment providing that the salesperson or associate broker shall become affiliated with the licensed real estate broker as a real estate salesperson or an associate real estate broker on cancellation of the current affiliation of the salesperson or associate broker and issuance of a new license certificate and pocket card to the salesperson or associate broker; and

  (5) pay to the Commission a transfer fee set by the Commission.

(d) On compliance by the applicant with the procedures of subsection (c) of this section, the Commission shall issue a new license certificate and pocket card to each real estate salesperson and associate real estate broker who meets the applicable requirements under this subtitle.

#### Section 17-312

(a) A licensed real estate salesperson may exchange a real estate salesperson license for an associate real estate broker license and become affiliated with a licensed real estate broker as an associate real estate broker, if the real estate salesperson:

  (1) has previously held an associate real estate broker license or a real estate broker license;

  (2) has held a license continuously since initially being licensed as an associate real estate broker or a real estate broker;

  (3) obtains, from a licensed real estate broker, a commitment providing that, on the granting of an associate real estate broker license to the real estate salesperson, the real estate salesperson shall become affiliated with the broker as an associate real estate broker; and

  (4) complies with the application procedures under subsection (g) of this section.

(b) A licensed real estate salesperson may exchange a real estate salesperson license for a real estate broker license, if the salesperson:

  (1) has previously held an associate real estate broker license or a real estate broker license;

  (2) has held a license continuously since initially being licensed as an associate real estate broker or a real estate broker; and

  (3) complies with the application procedures under subsection (g) of this section.

(c) A licensed associate real estate broker may exchange an associate real estate broker license for a real estate salesperson license and become affiliated with a licensed real estate broker as a real estate salesperson, if the associate broker:

  (1) obtains, from a licensed real estate broker, a commitment providing that, on the granting of a real estate salesperson license to the associate broker, the associate broker shall become affiliated with the licensed real estate broker; and

  (2) complies with the application procedures under subsection (g) of this section.

(d) A licensed associate real estate broker may exchange an associate real estate broker license for a real estate broker license if the associate broker complies with the application procedures under subsection (g) of this section.

(e) A licensed real estate broker may exchange a real estate broker license for a real estate salesperson license and become affiliated with another licensed real estate broker as a real estate salesperson, if the broker:

  (1) obtains, from the other licensed real estate broker, a commitment providing that, on the granting of a real estate salesperson license to the real estate broker, that individual shall become affiliated with the other broker as a real estate salesperson; and

  (2) complies with the application procedures under subsection (g) of this section.

(f) A licensed real estate broker may exchange a real estate broker license for an associate real estate broker license and become affiliated with another licensed real estate broker as an associate real estate broker, if the broker:

  (1) obtains, from the other licensed real estate broker, a commitment providing that, on the granting of an associate real estate broker license to the real estate broker, that individual shall become affiliated with the other real estate broker as an associate real estate broker; and

  (2) complies with the application procedures under subsection (g) of this section.

(g) To exchange a license for another license, a qualified licensee shall:

  (1) surrender the current license certificate and pocket card of the licensee to the Commission;

  (2) submit to the Commission an application on the form that the Commission provides;

  (3) if exchanging a real estate salesperson license or an associate real estate broker license for another license, submit to the Commission:

    (i) acknowledgment from the licensed real estate broker with whom the licensee currently is affiliated that the affiliation is terminated; or

    (ii) a statement from the licensee that the current affiliation of the licensee is terminated;

  (4) if exchanging a license for a real estate salesperson license or an associate real estate broker license, submit to the Commission adequate evidence that the licensee has obtained, from a licensed real estate broker, a commitment providing that the licensee shall become affiliated with the broker as a real estate salesperson or an associate real estate broker on the granting of a new license to the licensee;

  (5) pay to the Commission an application fee set by the Commission; and

  (6) submit to the Commission any additional information or documentation that the Commission requires.

(h) On compliance by the applicant with the procedures of this section, the Commission shall cancel the current license of and grant an appropriate new license to each individual who meets the applicable requirements under this subtitle.

(i) The Commission shall issue an appropriate license certificate and pocket card to each individual who has been granted a license under subsection (h) of this section.

#### Section 17-313

(a) A licensed real estate salesperson may obtain an additional real estate salesperson license and become affiliated with an additional licensed real estate broker as a real estate salesperson, if the salesperson:

  (1) obtains, from an additional licensed real estate broker, a commitment providing that the salesperson shall become affiliated with the broker as a real estate salesperson on the granting of an additional real estate salesperson license to the salesperson;

  (2) gives each real estate broker with whom the salesperson currently is affiliated written notice that the salesperson intends to affiliate with an additional real estate broker; and

  (3) complies with the application procedures under subsection (j) of this section.

(b) A licensed real estate salesperson may obtain an associate real estate broker license and become affiliated with an additional licensed real estate broker as an associate real estate broker, if the salesperson:

  (1)

    (i) meets the requirements for an associate real estate broker license under Sec. 17-304 of this subtitle;

    (ii) gives each real estate broker with whom the salesperson currently is affiliated written notice that the salesperson intends to affiliate with an additional real estate broker; and

    (iii) complies with the application procedures under Sec. 17-307 of this subtitle; or

  (2)

    (i) has previously held an associate real estate broker license or a real estate broker license;

    (ii) has held a license continuously since initially being licensed as an associate real estate broker or a real estate broker;

    (iii) obtains, from an additional licensed real estate broker, a commitment providing that the salesperson shall become affiliated with the broker as an associate real estate broker on the granting of an associate real estate broker license to the salesperson;

    (iv) gives each real estate broker with whom the salesperson currently is affiliated written notice that the salesperson intends to affiliate with an additional real estate broker; and

    (v) complies with the application procedures under subsection (j) of this section.

(c) A licensed real estate salesperson may obtain a real estate broker license, if the salesperson:

  (1)

    (i) meets the requirements for a real estate broker license under Sec. 17-305 of this subtitle;

    (ii) gives each real estate broker with whom the salesperson currently is affiliated written notice that the salesperson intends to obtain a real estate broker license; and

    (iii) complies with the application procedures under Sec. 17-307 of this subtitle; or

  (2)

    (i) has previously held an associate real estate broker license or a real estate broker license;

    (ii) has held a license continuously since initially being licensed as an associate real estate broker or a real estate broker;

    (iii) gives each real estate broker with whom the salesperson currently is affiliated written notice that the salesperson intends to obtain a real estate broker license; and

    (iv) complies with the application procedures under subsection (j) of this section.

(d) A licensed associate real estate broker may obtain an additional associate real estate broker license and become affiliated with an additional licensed real estate broker as an associate real estate broker, if the associate broker:

  (1) obtains, from an additional licensed real estate broker, a commitment providing that the associate broker shall become affiliated with the broker as an associate real estate broker on the granting of an additional associate real estate broker license to the associate broker;

  (2) gives each real estate broker with whom the associate broker currently is affiliated written notice that the associate broker intends to affiliate with an additional real estate broker; and

  (3) complies with the application procedures under subsection (j) of this section.

(e) A licensed associate real estate broker may obtain a real estate salesperson license and become affiliated with an additional licensed real estate broker as a real estate salesperson, if the associate broker:

  (1) obtains, from an additional licensed real estate broker, a commitment providing that the associate broker shall become affiliated with the broker as a real estate salesperson on the granting of a real estate salesperson license to the associate broker;

  (2) gives each real estate broker with whom the associate broker currently is affiliated written notice that the associate broker intends to affiliate with an additional real estate broker; and

  (3) complies with the application procedures under subsection (j) of this section.

(f) A licensed associate real estate broker may obtain a real estate broker license, if the associate broker:

  (1) gives each real estate broker with whom the associate broker currently is affiliated written notice that the associate broker intends to obtain a real estate broker license; and

  (2) complies with the application procedures under subsection (j) of this section.

(g) A licensed real estate broker may obtain a real estate salesperson license and become affiliated with another licensed real estate broker as a real estate salesperson, if the broker:

  (1) obtains, from another licensed real estate broker, a commitment providing that the broker shall become affiliated with the other broker as a real estate salesperson on the granting of a real estate salesperson license to the broker; and

  (2) complies with the application procedures under subsection (j) of this section.

(h) A licensed real estate broker may obtain an associate real estate broker license and become affiliated with another licensed real estate broker as an associate real estate broker, if the broker:

  (1) obtains, from another licensed real estate broker, a commitment providing that the broker shall become affiliated with the other broker as an associate real estate broker on the granting of an associate real estate broker license to the broker; and

  (2) complies with the application procedures under subsection (j) of this section.

(i)

  (1) A licensed real estate broker shall obtain a real estate broker license for each real estate brokerage operated by the real estate broker.

  (2) In order to receive an additional real estate broker license, a licensed real estate broker shall comply with the application procedures under subsection (j)(1), (4), and (5) of this section.

(j) To obtain an additional license, a qualified licensee shall:

  (1) submit to the Commission an application on the form that the Commission provides;

  (2) if applying for a real estate salesperson or associate real estate broker license, submit to the Commission adequate evidence that the licensee has obtained, from a licensed real estate broker, a commitment providing that the licensee shall become affiliated with the broker as a real estate salesperson or an associate real estate broker on the granting of an additional license to the licensee;

  (3) if currently licensed as a real estate salesperson or an associate real estate broker, submit to the Commission a copy of the written notice informing each real estate broker with whom the licensee currently is affiliated that the licensee intends to affiliate with an additional real estate broker or obtain a real estate broker license;

  (4) pay to the Commission an application fee set by the Commission; and

  (5) submit to the Commission any additional information or documentation that the Commission requires.

(k) On compliance by the applicant with the procedures of this section, the Commission shall grant an appropriate new license to each individual who meets the applicable requirements under this subtitle.

(l) The Commission shall issue an appropriate license certificate and pocket card to each individual who has been granted a license under subsection (k) of this section.

#### Section 17-314

(a) Licenses issued under this title shall expire on a staggered basis.

(b)

  (1) At least 60 days before a license expires, the Commission shall mail or electronically transmit to the licensee, as provided in paragraph (2) of this subsection:

    (i) a renewal application form; and

    (ii) a notice that states:

      (1) the date on which the current license expires; and

      (2) the amount of the renewal fee.

  (2)

    (i) If the licensee is a real estate broker, the Commission shall mail or electronically transmit the renewal application form and notice to the principal office of the broker.

    (ii) If the licensee is an associate real estate broker or a real estate salesperson, the Commission shall mail or electronically transmit the renewal application form and notice to the principal office of the real estate broker with whom the licensee is affiliated.

  (3) If an electronic transmission under paragraph (1) or (2) of this subsection is returned to the Commission as undeliverable, the Commission shall mail to the licensee, at the last known address of the licensee, the materials required under paragraph (1) of this subsection within 10 business days of the date the Commission received the notice that the electronic transmission was undeliverable.

(c)

  (1) Before a license expires, the licensee periodically may renew it for an additional 2-year term, if the licensee:

    (i) otherwise is entitled to be licensed;

    (ii) pays to the Commission a renewal fee set by the Commission;

    (iii) submits to the Commission a renewal application on the form that the Commission provides;

    (iv) not later than 30 days before the license expires, has complied with the continuing education requirements under Sec. 17-315 of this subtitle;

    (v) notifies the Commission of the name of each real estate broker with whom the licensee then is affiliated; and

    (vi) for the renewal of a real estate broker license:

      (1) submits to the Commission, by a credit reporting agency approved by the Commission, a credit report that contains the information required by the Commission; or

      (2) pays to the Commission or the Commission's designee a credit report fee in an amount not to exceed the cost charged by a credit reporting agency approved by the Commission to obtain a credit report that contains the information required by the Commission for renewal of a real estate broker license.

  (2) A licensee who fails to comply with paragraph (1)(iv) of this subsection shall be subject to a reinstatement fee set by the Commission.

(d) The Commission shall renew the license of and issue a renewal certificate and pocket card to each licensee who meets the requirements of this section.

(e) The Commission shall reinstate the license of a licensee under this title whose license has expired if the licensee:

  (1) applies to the Commission for reinstatement within 3 years after the license expires;

  (2) meets the requirement of good character and reputation;

  (3) complies with the applicable continuing education requirement for the period during which the individual was not licensed; and

  (4) pays to the Commission a reinstatement fee set by the Commission.

#### Section 17-315

(a)

  (1) To qualify for renewal of a license under this subtitle, a licensee shall complete at least 15 clock hours of continuing education instruction, as provided in subsection (b) of this section, during the preceding 2-year term.

  (2) For a licensee who provides real estate brokerage services solely in connection with nonresidential real estate, of the clock hours required under paragraph (1) of this subsection, 2 clock hours shall be satisfied by a course regarding the federal Americans with Disabilities Act.

  (3) A licensee holding a license from another state must complete at least the number of clock hours of continuing education instruction required under paragraph (1) of this subsection during each 2-year license term and may substitute clock hours of continuing education instruction earned in another state, if those clock hours:

    (i) are approved as real estate continuing education in that state; and

    (ii) meet the distribution requirements of subsection (b)(2) of this section.

  (4) The Commission shall grant the substitution of clock hours in paragraph (3) of this subsection only if the other state permits the substitution of clock hours of continuing education instruction approved by the Commission for a licensee of this State.

(b)

  (1) The Commission shall approve the form, substance, and, as provided under paragraphs (2) and (3) of this subsection, subject matter of all continuing education courses.

  (2) For a licensee who has been issued a renewal certificate under Sec. 17-314 of this subtitle, the subject matter approved by the Commission shall:

    (i) relate to real estate or to a subject matter intended to assist a licensee in providing real estate brokerage services to the public in a more efficient and effective manner, provided that the subject matter is related to helping the public buy or sell real estate;

    (ii) every 2 years, include at least one 3 clock hour course that outlines relevant changes that have occurred in federal, State, or local laws and regulations, court cases and industry trends that have an impact on those laws and regulations, or any combination of those laws, regulations, court cases, and industry trends;

    (iii) every 2 years, include at least one 2 clock hour course that outlines federal, State, and local fair housing laws and regulations, including fair housing advertising;

    (iv) every 2 years, include at least one 3 clock hour ethics course that includes a discussion of:

      (1) the Maryland Code of Ethics;

      (2) fraudulent real estate practices; and

      (3) professionalism as it relates to the Maryland Code of Ethics, including a discussion relating to conflict resolution and a licensee's duty to respect the public, peers, and property;

    (v) every 2 years, include at least one 3 clock hour course that includes the principles of real estate brokerage relationships and disclosures; and

    (vi) every 2 years for the renewal of a real estate broker license and the renewal of the license of an individual designated as a branch office manager or a team leader, include at least one 1.5 clock hour course that includes the requirements of broker supervision.

  (3) For a licensee who was issued an initial real estate salesperson license under Sec. 17-309 of this subtitle, the subject matter approved by the Commission shall include:

    (i) at least one 3 clock hour course for each of the following topics:

      (1) outlining contract writing, standard contract provisions, key regional contract requirements, and standard addenda and contingencies;

      (2) the principles of real estate brokerage relationships and disclosures;

      (3) the principles of real estate practice in relation to:

      (A) advertising requirements for licensees;

      (B) the handling and disbursement of escrow funds; and

      (C) common ownership communities; and

      (4) property management and landlord and tenant laws; and

    (ii) at least one 1.5 clock hour course for each of the following topics:

      (1) professionalism as it relates to the Maryland Code of Ethics, including a discussion relating to conflict resolution and a licensee's duty of respect for the public, peers, and property; and

      (2) real estate financing.

  (4) The requirement of paragraph (2)(iii) of this subsection does not apply to a licensee who provides real estate brokerage services solely in connection with nonresidential real estate.

  (5) To be acceptable for credit as a continuing education course under this section, the course shall cover 1 or more topics approved by the Commission.

(c)

  (1) Continuing education courses may be conducted by:

    (i) the Maryland Association of Realtors or its member boards;

    (ii) the Real Estate Brokers of Baltimore, Inc.;

    (iii) any similar professional association; or

    (iv) an educational institution approved by the Commission.

  (2) Notwithstanding any other provision of law, continuing education courses shall be taught by a qualified instructor who is experienced in the real estate industry and selected by the course provider.

  (3) The Commission shall adopt regulations that provide for the conduct of continuing education instruction courses by virtual or remote means.

  (4) To verify the identity of an individual enrolled in a continuing education course, the entity that conducts the continuing education course shall require, as a condition of participating in the course, that the individual provide:

    (i) for an in-person course, a photo identification; and

    (ii) for a virtual or other remote course, a signed affidavit attesting to the identity of the individual.

(d) If feasible, continuing education courses shall be offered at reasonable intervals in each county and in each major geographic area of the larger counties.

(e) Within 14 days after completion of a continuing education course, the entity that conducted the course may submit the course completion information directly to the Commission and the licensee by electronic means.

(f) The Commission may waive the requirements of this section for a licensee if the licensee shows good cause for being unable to meet the requirements.

(g) The Commission shall require each course provider to pay a continuing education course application fee set by the Commission.

#### Section 17-316

(a)

  (1) The Commission shall place the license of a real estate broker on inactive status if the real estate broker:

    (i) requests that the license of the broker be placed on inactive status; and

    (ii) surrenders the license certificate and pocket card of the broker to the Commission.

  (2) The Commission shall place the license of an associate real estate broker or a real estate salesperson on inactive status if:

    (i) the associate broker or salesperson no longer is affiliated with the licensed real estate broker whose firm is named in the license certificate of the associate broker or salesperson; or

    (ii) the associate broker or salesperson:

      (1) requests that the license of the associate broker or salesperson be placed on inactive status; and

      (2) surrenders the license certificate and pocket card of the associate broker or salesperson to the Commission.

(b)

  (1) A licensee whose license is on inactive status may not provide real estate brokerage services through that license.

  (2) The placement of a license on inactive status does not affect the power of the Commission to suspend or revoke the license or to take any other disciplinary action against the licensee.

(c) Unless a license on inactive status is reactivated, the license expires 3 years after the date it is placed on inactive status.

(d)

  (1) Subject to paragraph (2) of this subsection, a licensee whose license is on inactive status remains responsible for renewing the license as required under Sec. 17-314 of this subtitle.

  (2) Subject to the 3-year limitation under subsection (c) of this section, a licensee may renew a license while it is on inactive status if the licensee complies with the continuing education requirements of Sec. 17-315 of this subtitle.

(e) If a person whose license is on inactive status fails to reactivate the license before the license expires under subsection (c) of this section, the person must comply with the requirements under Sec.Sec. 17-301 through 17-308 of this subtitle in order to obtain a license.

(f)

  (1) The Commission shall reactivate the license of a real estate broker that is on inactive status and reissue a license certificate and pocket card to the broker if the broker:

    (i) requests that the license be reactivated;

    (ii) pays to the Commission a reissuance fee set by the Commission; and

    (iii) meets the continuing education requirements that would have been required for renewal of a license under Sec. 17-315 of this subtitle if the license had not been on inactive status.

  (2) The Commission shall reactivate the license of an associate real estate broker or a real estate salesperson that is on inactive status and reissue a license certificate and pocket card to the associate broker or salesperson if the associate broker or salesperson:

    (i) requests that the license be reactivated;

    (ii) pays to the Commission a reissuance fee set by the Commission;

    (iii) meets the continuing education requirements that would have been required for renewal of a license under Sec. 17-315 of this subtitle if the license had not been on inactive status; and

    (iv) submits to the Commission adequate evidence that the associate broker or salesperson has obtained, from a licensed real estate broker, a commitment providing that the associate broker or salesperson shall become affiliated with the broker as an associate real estate broker or a real estate salesperson on reactivation of the license of the associate broker or salesperson.

#### Section 17-317

(a)

  (1) A licensed real estate broker shall display at all times:

    (i) the license certificate of the real estate broker in a conspicuous place in the principal office of the real estate broker; and

    (ii) in accordance with paragraph (2) of this subsection, the license certificate of each associate real estate broker and real estate salesperson who is affiliated with the real estate broker.

  (2)

    (i) If an associate real estate broker or a real estate salesperson who is affiliated with the real estate broker works primarily out of the principal office of the real estate broker, the real estate broker shall display the license certificate of the associate broker or salesperson in a conspicuous place in the principal office.

    (ii) If an associate real estate broker or a real estate salesperson who is affiliated with the real estate broker works primarily out of a branch office of the real estate broker, the real estate broker shall display the license certificate of the associate broker or salesperson in a conspicuous place in the branch office out of which the associate broker or salesperson primarily works.

(b)

  (1) If a license certificate is lost or destroyed, the licensee immediately shall notify the Commission.

  (2) To receive a duplicate license certificate, the licensee shall submit to the Commission:

    (i) an affidavit stating that the license certificate has been lost or destroyed; and

    (ii) a fee set by the Commission.

  (3) On receipt of the affidavit and fee, the Commission shall issue an appropriate duplicate license certificate to the licensee.

(c)

  (1) If a pocket card is lost or destroyed, the licensee immediately shall notify the Commission.

  (2) To receive a duplicate pocket card, the licensee shall submit to the Commission:

    (i) an affidavit stating that the pocket card has been lost or destroyed; and

    (ii) a fee set by the Commission.

  (3) On receipt of the affidavit and fee, the Commission shall issue an appropriate duplicate pocket card to the licensee.

#### Section 17-318

(a) To change the name of a licensee or a firm on a license certificate and pocket card, a licensee shall submit to the Commission:

  (1) an application on the form that the Commission provides;

  (2) the license certificate and pocket card of the licensee;

  (3) any documentation about the name change that the Commission requires; and

  (4) a fee set by the Commission.

(b) On receipt of the application, fee, and any required documentation, the Commission shall issue, to the licensee, a new license certificate and pocket card containing the new name of the licensee or firm.

#### Section 17-319

(a) In this section, "disability" means a total and permanent disability that renders a broker unable to perform real estate brokerage services.

(b)

  (1) Subject to paragraph (2) of this subsection and subsection (c) of this section, on the disability or death of a licensed real estate broker, any adult member of the family of the disabled or deceased broker may carry on the business of the disabled or deceased broker for up to 6 months for the purposes of closing and terminating the business.

  (2)

    (i) A family member under paragraph (1) of this subsection may not carry on the business of a disabled or deceased licensed real estate broker until the death certificate or evidence of the disability has been provided to the Commission.

    (ii) If a death certificate or evidence of disability is not provided to the Commission within a reasonable time, the business may designate another individual who is a licensed real estate broker to provide real estate brokerage services for the business under Sec. 17-319.1 of this subtitle.

(c) To qualify to carry on the business of a disabled or deceased real estate broker, a family member shall:

  (1) surrender the license certificate and pocket card of the disabled or deceased real estate broker to the Commission; and

  (2) submit to the Commission any information or documentation required by the Commission.

(d)

  (1) The Commission shall reissue the license of a disabled or deceased real estate broker to a family member who qualifies to carry on the business of the broker under subsection (c) of this section.

  (2) The term of the reissuance shall be 6 months.

(e) Before the end of the 6-month period for carrying on the business of a disabled or deceased real estate broker, an individual may qualify for the license of the disabled or deceased broker if:

  (1) the individual is a member of the immediate family of the disabled or deceased broker;

  (2) the individual has been continuously licensed as a real estate salesperson for the immediately preceding 3 years;

  (3) regardless of whether the individual has met the educational requirements for a real estate broker license under Sec. 17-305 of this subtitle, the individual passes the real estate broker's examination under Sec. 17-306 of this subtitle;

  (4) the individual surrenders the real estate salesperson license certificate and pocket card of the individual to the Commission; and

  (5) there has been compliance with the requirements of subsection (c) of this section.

(f) The Commission shall reissue the license of a disabled or deceased real estate broker to an individual who qualifies for the license of the broker under subsection (e) of this section.

(g)

  (1) An individual who qualifies for and is reissued the license of a disabled or deceased real estate broker may hold the license for up to 4 years from the time of reissuance without meeting the educational requirements for a real estate broker license under Sec. 17-305 of this subtitle.

  (2) Subject to the 4-year restriction under paragraph (1) of this subsection, an individual who has been reissued the license of a disabled or deceased real estate broker is responsible for renewing the license as required under Sec. 17-314 of this subtitle.

  (3) If an individual who has been reissued the license of a disabled or deceased real estate broker does not meet the educational requirements for a real estate broker license within the 4-year period, the license shall expire automatically at the end of that period.

  (4) If an individual who has been reissued the license of a disabled or deceased real estate broker meets the educational requirements for a real estate broker license within the 4-year period, the individual may continue to hold the license and may renew the license under Sec. 17-314 of this subtitle.

#### Section 17-319.1

(a) Subject to subsection (b) of this section, if a licensed real estate broker is terminated by a business for any reason, the business may designate another individual who is a licensed real estate broker to provide real estate brokerage services for the business.

(b)

  (1) If the license certificate and pocket card of a terminated real estate broker are surrendered to the Commission, the Commission shall approve the designation under subsection (a) of this section in accordance with all applicable laws and regulations.

  (2) If the license certificate and pocket card of a terminated real estate broker are not surrendered to the Commission, the Commission shall approve the designation under subsection (a) of this section only if:

    (i) the designated licensed real estate broker is in good standing with the Commission;

    (ii) the business notifies the Commission of the reason for the termination of the real estate broker; and

    (iii) the designation of the licensed real estate broker complies with all applicable laws and regulations.

(c) A licensed real estate broker who has been designated by a business under subsection (a) of this section is subject to all of the applicable provisions of this title that relate to real estate brokers.

#### Section 17-320

(a)

  (1) Subject to the provisions of this section, a licensed real estate broker may utilize as an independent contractor, employ, or otherwise contract with a licensed real estate salesperson or a licensed associate real estate broker to provide real estate brokerage services on behalf of the licensed real estate broker.

  (2) A real estate broker may not provide real estate brokerage services through any other individual unless the individual is licensed as an associate real estate broker or real estate salesperson to provide real estate brokerage services on behalf of the real estate broker.

(b) Any individual, including a licensed associate real estate broker, who provides real estate brokerage services on behalf of a real estate broker shall be considered a real estate salesperson with respect to the provision of those services.

(c)

  (1) A real estate broker shall exercise reasonable and adequate supervision over the provision of real estate brokerage services by any other individual, including an independent contractor, on behalf of the broker.

  (2) The requirement of paragraph (1) of this subsection applies regardless of the manner in which the individual who provides the services is affiliated with the real estate broker on whose behalf the services are provided.

(d)

  (1) A branch office manager, as defined in Sec. 17-518(d) of this title, shall exercise reasonable and adequate supervision over the provision of real estate brokerage services by any sales agent or associate broker registered with that office.

  (2) The responsibility of the branch office manager to supervise sales agents and associate brokers registered to the manager's office is in addition to, and not in lieu of, the responsibility of the broker set forth in subsection (c) of this section.

(e) If the affiliation between a real estate broker and a real estate salesperson or an associate real estate broker terminates, the real estate broker immediately shall:

  (1) mail to the salesperson or associate broker, at the last known home and office address of that individual, notice that the affiliation is terminated;

  (2) submit to the Commission written notice that the affiliation is terminated, including copies of the notices mailed to the salesperson or associate broker; and

  (3) return the license certificate of the salesperson or associate broker to the Commission.

#### Section 17-321

(a) Subject to the provisions of this section, a licensed real estate broker may provide real estate brokerage services through a corporation, limited liability company, or partnership.

(b) To qualify to provide real estate brokerage services through a corporation, limited liability company, or partnership, the licensed real estate broker:

  (1) shall be employed by or have another contractual relationship with the corporation, limited liability company, or partnership;

  (2) shall have been designated by the corporation, limited liability company, or partnership as the broker of the firm, to be individually responsible for the provision of real estate brokerage services through the corporation, limited liability company, or partnership; and

  (3) shall submit notice to the Commission as provided in subsection (c) of this section.

(c)

  (1) Before a licensed real estate broker may provide real estate brokerage services through a corporation, limited liability company, or partnership, the broker shall submit to the Commission a notice that states the broker's intent to provide services through a corporation or partnership. The notice shall include:

    (i) the name of the real estate broker submitting the notice;

    (ii) a statement that the named individual has been designated as the broker of the firm;

    (iii) the address of the firm's principal place of business and of each proposed branch office;

    (iv) any trade or fictitious name that the firm intends to use while conducting the business of the firm;

    (v) a list of all the licensed associate real estate brokers and licensed real estate salespersons who will be affiliated with the broker of the firm; and

    (vi) any other information that the Commission may require by regulation.

  (2) The Commission may set by regulation procedures for maintaining current information about any corporation, limited liability company, or partnership through which real estate brokerage services are provided.

(d)

  (1) An individual may provide real estate brokerage services through a firm only if:

    (i) the individual is the licensed real estate broker who has been designated as the broker of the firm; or

    (ii) the individual:

      (1) is licensed as an associate real estate broker or real estate salesperson to provide real estate brokerage services on behalf of the broker of the firm; and

      (2) continues to be affiliated with the broker of the firm.

  (2) This subsection applies regardless of whether the individual is associated with the firm as a partner, officer, member, or shareholder or in any other capacity.

(e) An individual who serves as a broker of the firm under this section shall be responsible for the provision of real estate brokerage services through the firm and is subject to all of the provisions of this title regarding those services.

(f)

  (1) A corporation, limited liability company, or partnership that provides real estate brokerage services under this section is not, by its compliance with this section, relieved of any responsibility that the corporation, limited liability company, or partnership may have for an act or omission of its officer, partner, member, employee, or agent.

  (2) An individual who provides real estate brokerage services through a corporation, limited liability company, or partnership is not, by reason of the individual's employment or other relationship with the corporation, limited liability company, or partnership, relieved of any individual responsibility that the individual may have regarding those services.

#### Section 17-322

(a) In this section, "handicap" and "familial status" each have the meanings indicated in the federal Fair Housing Act.

(b) Subject to the hearing provisions of Sec. 17-324 of this subtitle, the Commission may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee:

  (1) fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another;

  (2) fraudulently or deceptively uses a license;

  (3) directly or through another person willfully makes a misrepresentation or knowingly makes a false promise;

  (4) intentionally or negligently fails to disclose to any person with whom the applicant or licensee deals a material fact that the licensee knows or should know and that relates to the property with which the licensee or applicant deals;

  (5) as an associate real estate broker or a real estate salesperson, provides or attempts to provide real estate brokerage services on behalf of a real estate broker without informing in writing any other real estate broker with whom the associate real estate broker or the real estate salesperson is affiliated;

  (6) violates Sec. 17-530.1(a) or (b) of this title;

  (7) retains or attempts to retain the services of any unlicensed individual as an associate real estate broker or a real estate salesperson to evade the law prohibiting payment of a commission to an unlicensed individual;

  (8) guarantees or authorizes or allows another person to guarantee future profits from the resale of real property;

  (9) solicits, sells, or offers to sell real property, so as to influence or attempt to influence a prospective party to the sale of real property, by:

    (i) offering a prize or a free lot;

    (ii) conducting a lottery or contest; or

    (iii) advertising "free appraisals", unless the advertiser is prepared to appraise the real estate free of charge for any person, regardless of the purpose for which the person requests the appraisal;

  (10) accepts a listing contract to sell real property that fails to provide a definite termination date that is effective automatically without notice from the buyer or the seller;

  (11) accepts a listing contract to sell real property that provides for a "net" return to a seller and leaves the licensee free to sell the real property at any price higher than the "net" price;

  (12) knowingly solicits a party to an exclusive listing contract with another licensee to terminate that contract and enter a new contract with the licensee making the solicitation;

  (13) solicits a party to a sales contract, lease, or agreement that was negotiated by another to breach the contract, lease, or agreement for the purpose of substituting a new contract, lease, or agreement for which the licensee making the solicitation is either the real estate broker or an associate real estate broker or a real estate salesperson affiliated with the real estate broker;

  (14) for any transaction in which the licensee has served as or on behalf of a real estate broker, fails to furnish promptly to each party to the transaction a copy of:

    (i) the listing contract to sell or rent real property;

    (ii) the contract of sale; or

    (iii) the lease agreement;

  (15) for any transaction in which the licensee has served as or on behalf of a real estate broker, fails to keep a copy of any executed:

    (i) listing contract to sell or rent real property;

    (ii) contract of sale; or

    (iii) lease agreement;

  (16) whether or not acting for monetary gain, knowingly induces or attempts to induce a person to transfer real estate or discourages or attempts to discourage a person from buying real estate:

    (i) by making representations about the existing or potential proximity of real property owned or used by individuals of a particular race, color, religion, sex, handicap, familial status, or national origin; or

    (ii) by representing that the existing or potential proximity of real property owned or used by individuals of a particular race, color, religion, sex, handicap, familial status, or national origin will or may result in:

      (1) the lowering of property values;

      (2) a change in the racial, religious, or ethnic character of the block, neighborhood, or area;

      (3) an increase in criminal or antisocial behavior in the area; or

      (4) a decline in the quality of the schools serving the area;

  (17) uses any of the following material if it includes the name of an organization or association of which the licensee is not a member:

    (i) a contract form for the listing of real property for sale, rent, or exchange;

    (ii) a contract form for the sale, rent, or exchange of real property; or

    (iii) any advertising matter;

  (18) as a real estate broker, an associate real estate broker, or a real estate salesperson, advertises the sale or rent of or an offer to buy real property while failing to disclose in the advertisement the name of the advertiser and the fact that the advertiser is a real estate broker, an associate real estate broker, or a real estate salesperson;

  (19) advertises in any misleading or untruthful manner or violates Sec. 17-527.2 of this title;

  (20) as a licensed associate real estate broker or a licensed real estate salesperson, advertises the sale or rent of or an offer to buy real property in the name of the associate broker or the salesperson while failing to disclose in the advertisement the name of the real estate broker on behalf of whom the associate broker or the salesperson is acting;

  (21) except as provided under Sec. 17-604 of this title, for real estate brokerage services provided by an associate real estate broker or a real estate salesperson, accepts a commission or other valuable consideration from any person other than a real estate broker with whom the associate broker or the salesperson is affiliated;

  (22) fails to account for or to remit promptly any money that comes into the possession of the licensee but belongs to another person;

  (23) pays or receives a rebate, profit, compensation, or commission in violation of any provision of this title;

  (24) under the laws of the United States or of any state, is convicted of:

    (i) a felony;

    (ii) a misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to provide real estate brokerage services; or

    (iii) a crime that constitutes a violation of any provision of this title;

  (25) engages in conduct that demonstrates bad faith, incompetency, or untrustworthiness or that constitutes dishonest, fraudulent, or improper dealings;

  (26) with actual knowledge of the violation, associates with a licensee in a transaction or practice that violates any provision of this title;

  (27) violates Sec. 17-320(c) of this subtitle by failing as a real estate broker to exercise reasonable and adequate supervision over the provision of real estate brokerage services by another individual on behalf of the broker;

  (28) provides to a party a contract that does not contain a notice of the buyer's right of selection, as required by Sec. 17-524 of this title;

  (29) requires a buyer to employ a particular title insurance company, settlement company, escrow company, or title lawyer in violation of Sec. 17-607 of this title;

  (30) fails to make the disclosure or provide the consent form required by Sec. 17-530.2 of this title;

  (31) violates any provision of Subtitle 5 of this title that relates to trust money;

  (32) violates any other provision of this title;

  (33) violates any regulation adopted under this title or any provision of the code of ethics;

  (34) violates Sec. 17-320(d) of this subtitle by failing as a branch office manager to exercise reasonable and adequate supervision over the provision of real estate brokerage services by any salesperson or associate broker registered with that office; or

  (35) has been disciplined under a real estate licensing law of another jurisdiction.

(c)

  (1) Instead of or in addition to reprimanding a licensee or suspending or revoking a license under this section, the Commission may impose a penalty not exceeding $5,000 for each violation.

  (2) To determine the amount of the penalty imposed, the Commission shall consider:

    (i) the seriousness of the violation;

    (ii) the harm caused by the violation;

    (iii) the good faith of the licensee; and

    (iv) any history of previous violations by the licensee.

  (3) The Commission shall pay any penalty collected under this subsection into the General Fund of the State.

  (4) The Commission may not impose a fine based solely on a violation of subsection (b)(35) of this section.

(d) The Commission shall consider the following facts in the granting, denial, renewal, suspension, or revocation of a license or the reprimand of a licensee when an applicant or licensee is convicted of a felony or misdemeanor described in subsection (b)(24)(i) and (ii) of this section:

  (1) the nature of the crime;

  (2) the relationship of the crime to the activities authorized by the license;

  (3) with respect to a felony, the relevance of the conviction to the fitness and qualification of the applicant or licensee to provide real estate brokerage services;

  (4) the length of time since the conviction; and

  (5) the behavior and activities of the applicant or licensee before and after the conviction.

#### Section 17-322.1

(a) For purposes of Sec. 17-322(b) of this subtitle, it is not a material fact relating to property offered for sale or lease that:

  (1) an owner or occupant of the property is, was, or is suspected to be:

    (i) infected with human immunodeficiency virus; or

    (ii) diagnosed with acquired immunodeficiency syndrome; or

  (2) a homicide, suicide, accidental death, natural death, or felony occurred on the property.

(b)

  (1) It is not grounds for a disciplinary action against a licensee under this subtitle, that a licensee did not disclose to a prospective purchaser or lessee, a fact contained in subsection (a) of this section.

  (2) A licensee may not be held personally liable for failure to disclose a fact contained in subsection (a) of this section.

#### Section 17-323

(a) Subject to the provisions of this section, the Commission shall commence proceedings under Sec. 17-322 of this subtitle on a complaint made to the Commission by a member of the Commission or any other person.

(b)

  (1) A complaint shall:

    (i) be in writing; and

    (ii) state specifically the facts on which the complaint is based.

  (2) Except as provided in paragraph (4) of this subsection, if a complaint is made by any person other than a member of the Commission, the complaint shall be made under oath by the person who submits the complaint.

  (3) Subject to paragraph (4) of this subsection, a complaint may be accompanied by documentary or other evidence.

  (4) A complaint alleging an advertising violation:

    (i) need not be made under oath and may be made anonymously; but

    (ii) shall be accompanied by documentary or other evidence.

(c)

  (1) The Commission, or its designee, shall review each complaint received by the Commission. A complaint shall be referred for investigation if, after a review under this subsection, it is determined that the complaint:

    (i) alleges facts that establish a prima facie case that is grounds for disciplinary action under Sec. 17-322 of this subtitle; and

    (ii) meets the requirements of subsection (b) of this section.

  (2) A complaint not referred for investigation under paragraph (1) of this subsection shall be dismissed, and any appeal shall be taken under paragraph (3) of this subsection.

  (3)

    (i) If a complaint is dismissed under paragraph (2) of this subsection, within 30 days from the date of the dismissal any member of the Commission may file an exception to the decision.

    (ii) If an exception is filed with the Commission under subparagraph (i) of this paragraph, the Commission shall set a hearing on the matter by the full Commission on whether the complaint satisfies the requirements of paragraph (1) of this subsection. If the Commission determines that the complaint is satisfactory, the matter shall be referred for an investigation.

    (iii) If an exception is not filed within the time allowed under subparagraph (i) of this paragraph:

      (1) the decision of the Commission is final; and

      (2) any party aggrieved by the decision may take a judicial appeal as provided in Sec. 17-329 of this subtitle.

(d)

  (1) On completion, an investigation shall be referred directly to the Commission or its designee.

  (2) If the Commission or its designee determines there is a reasonable basis to believe any grounds exist for disciplinary action under Sec. 17-322 of this subtitle, the investigation shall be referred for a hearing in accordance with Sec. 17-324 of this subtitle.

  (3) A complaint not referred for a hearing by the Commission or its designee shall be dismissed, and any party aggrieved by the decision may take a judicial appeal as provided in Sec. 17-329 of this subtitle.

#### Section 17-324

(a) Except as otherwise provided in Sec. 10-226 of the State Government Article, before the Commission takes any final action under Sec. 17-322 of this subtitle, it shall give the individual against whom the action is contemplated an opportunity for a hearing before the Commission or, as provided under Sec. 17-326 of this subtitle, a hearing board.

(b) The Commission shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.

(c) In connection with any proceeding under this section, the following individuals may administer oaths:

  (1) a member of the Commission;

  (2) the executive director of the Commission; and

  (3) the assistant director of the Commission.

(d)

  (1) At least 10 days before the hearing, the hearing notice to be given to the individual shall be:

    (i) served personally on the individual; or

    (ii) sent by certified mail to the last known business address of the individual.

  (2) If the individual is an associate real estate broker or a real estate salesperson, at least 10 days before the hearing, the Commission shall give notice of the hearing to each real estate broker with whom the associate real estate broker or the real estate salesperson is affiliated by sending notice by certified mail to the last known business address of the real estate broker.

(e) The individual may be represented at the hearing by counsel.

(f) If, after due notice, the individual against whom the action is contemplated fails or refuses to appear, nevertheless the Commission may hear and determine the matter.

#### Section 17-325

(a) With the approval of the Secretary, the Commission may establish 1 or more real estate hearing boards. If established, each hearing board shall be a unit in the Department.

(b)

  (1) If established, each hearing board shall consist of at least 3 members of the Commission, appointed by the Commission.

  (2) Of the 3 mandatory positions on the hearing board:

    (i) at least 1 shall be a professional member of the Commission; and

    (ii) at least 1 shall be a consumer member of the Commission.

(c) From among the members of each hearing board, the Commission shall designate a chairman.

#### Section 17-326

(a) Except as otherwise provided in this subtitle, the Commission may refer to a hearing board for a hearing:

  (1) a complaint or claim that has been submitted to the Commission; and

  (2) any matter for which a hearing may be required under Sec. 17-327 or Sec. 17-328 of this subtitle.

(b) The hearing board may exercise the same powers and shall conduct a hearing in accordance with the same procedures applicable to the Commission under Sec. 17-324 of this subtitle.

(c)

  (1) The hearing board shall determine if there is a reasonable basis to believe that there are grounds for disciplinary action under Sec. 17-322 of this subtitle against an applicant or licensee.

  (2)

    (i) If the hearing board finds a reasonable basis as provided under paragraph (1) of this subsection, the hearing board shall:

      (1) hold a hearing on the matter; and

      (2) file its finding with the Commission.

    (ii) If the hearing board does not find a reasonable basis as provided under paragraph (1) of this subsection, the hearing board shall dismiss the complaint.

  (3) A hearing board shall advise the Commission specifically of any action brought against a licensee as a result of monetary loss, misappropriation of money, or fraud.

(d) The decision of the hearing board shall be considered as the final decision of the Commission and any party aggrieved by the decision may take a judicial appeal as provided in Sec. 17-329 of this subtitle.

#### Section 17-327

(a) Subject to the provisions of subsection (b) of this section, the Commission may order summarily the revocation of:

  (1) the license of any licensee, if:

    (i) the licensee is convicted of a violation of this title;

    (ii) the conviction is final; and

    (iii) the period for appeal has expired; or

  (2) the license of any nonresident licensee, if the real estate regulatory agency of the state where the licensee is a resident:

    (i) revokes the license issued by that state; and

    (ii) certifies the order of revocation to the Commission.

(b) The Commission may order summarily a revocation under this section only if it gives the licensee:

  (1) written notice of the revocation and the finding on which the revocation is based; and

  (2) after the summary revocation is effective, an opportunity to be heard promptly before the Commission or, as provided under Sec. 17-326 of this subtitle, before a hearing board.

(c)

  (1) Rather than order summarily a revocation of a license under this section, the Commission may elect not to revoke the license until after the licensee is given an opportunity for a hearing.

  (2) If the Commission elects to give the licensee an opportunity for a hearing before revoking the license for the grounds set forth in this section, the Commission shall give notice and hold the hearing in the same manner as required under Sec. 17-324 of this subtitle.

(d)

  (1) In any hearing held on the grounds for revocation under subsection (a) of this section, the Commission may restrict the admission of evidence to the issue whether:

    (i) the alleged conviction in fact occurred; or

    (ii) the alleged revocation in fact occurred.

  (2) Notwithstanding paragraph (1) of this subsection, in any hearing held on the grounds for revocation under subsection (a) of this section, a licensee may present matters in mitigation of the offense charged.

#### Section 17-328

(a) Subject to the provisions of subsection (b) of this section, the Commission may order summarily the suspension of the license of a licensee if the licensee:

  (1) fails to account promptly for any money held in trust;

  (2) on demand, fails to display to the Commission all records, books, and accounts of any money held in trust;

  (3) has been convicted of a felony under the laws of the United States or of any state; or

  (4) within 10 days after the conviction or within 10 days following release from incarceration as a result of the conviction, whichever is later, fails to disclose to the Commission that the licensee has been convicted of a felony under the laws of the United States or of any state.

(b) The Commission may order summarily a suspension under this section only if the Commission gives the licensee:

  (1) written notice of the suspension and the finding on which the suspension is based; and

  (2) after the summary suspension is effective, an opportunity to be heard promptly before the Commission or, as provided under Sec. 17-326 of this subtitle, before a hearing board.

(c) A summary suspension ordered by the Commission under this section:

  (1) may start immediately or at any later date, as set by the order; and

  (2) shall continue until:

    (i) the licensee complies with the conditions set forth by the Commission in its order; or

    (ii) the Commission orders a different disposition after a hearing held under this section.

(d)

  (1) Rather than order summarily a suspension of a license under this section, the Commission may elect not to suspend the license until after the licensee is given an opportunity for a hearing.

  (2) If the Commission elects to give the licensee an opportunity for a hearing before suspending the license for the grounds set forth in this section, the Commission shall give notice and hold the hearing in the same manner as required under Sec. 17-324 of this subtitle.

#### Section 17-329

(a) Any person aggrieved by a final decision of the Commission in a contested case, as defined in Sec. 10-202 of the State Government Article, may take an appeal as allowed in Sec.Sec. 10-222 and 10-223 of the State Government Article.

(b) Except as provided in subsection (c) of this section, unless stayed by the Commission or a court, a decision of the Commission is not stayed pending review.

(c) A court may grant a stay of the suspension or revocation of the license of the licensee only on the filing of a bond by a licensee as provided in subsection (d) of this section.

(d)

  (1) The court may set the bond required under subsection (c) of this section in any amount not exceeding $50,000.

  (2) The bond shall be conditioned for the use and benefit of any person who, as a member of the public, might sustain pecuniary loss because of any violation of this title by the licensee.

#### Section 17-330

(a) Whenever the Commission revokes or suspends the license of a licensee under Sec. 17-322 of this subtitle and a stay is not ordered by the Commission or the court, the Commission shall mail notice of the suspension or revocation:

  (1) to the licensee;

  (2) if the licensee is an associate real estate broker or a real estate salesperson, to each real estate broker with whom the licensee is affiliated;

  (3) to the Maryland Association of Realtors; and

  (4) to the local board of realtors and the realtist organization having jurisdiction over the geographic area where the licensee maintained an office.

(b)

  (1) If the Commission revokes or suspends the license of a nonresident licensee, the Commission also shall notify by mail the real estate commission or other licensing authority in the state where the licensee is a resident.

  (2) The Commission shall include in the notice the cause for the revocation or suspension of the license.

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Md. Code Ann., Bus. Occ. & Prof. (as displayed at mgaleg.maryland.gov, October 16, 2026)
