§ 17–404
Statutes in effect as of October 1, 2026.
Md. Code Ann., Bus. Occ. & Prof. § 17-404 (2026)
Title 17. Real Estate Brokers
Subtitle 4. Real Estate Guaranty Fund
§ 17–404LinkCopy Citation
(a)
(1)
Subject to the provisions of this subtitle, a person may recover compensation from the Guaranty Fund for an actual loss.
(2)
A claim shall:
(i)
be based on an act or omission that occurs in the provision of real estate brokerage services by:
(1)
a licensed real estate broker;
(2)
a licensed associate real estate broker;
(3)
a licensed real estate salesperson; or
(4)
an unlicensed employee of a licensed real estate broker;
(ii)
involve a transaction that relates to real estate that is located in the State; and
(iii)
be based on an act or omission:
(1)
in which money or property is obtained from a person by theft, embezzlement, false pretenses, or forgery; or
(2)
that constitutes fraud or misrepresentation.
(b)
The amount recovered for any claim against the Guaranty Fund may not exceed $50,000 for each claim.
(c)
(1)
A person may not recover from the Guaranty Fund for any loss that relates to:
(i)
the purchase of any interest in a limited partnership that is formed for the purpose of investment in real estate;
(ii)
a joint venture that is promoted by a licensed real estate broker, a licensed associate real estate broker, or licensed real estate salesperson for the purpose of investment in real estate by 2 or more individuals; or
(iii)
the purchase of commercial paper that is secured by real estate.
(2)
A claim under the Guaranty Fund may not be made by:
(i)
the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim; or
(ii)
the personal representative of the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim.
(d)
A claim under this subtitle shall be submitted to the Commission within 3 years after the claimant discovers or, by the exercise of ordinary diligence, should have discovered the loss or damage.