# Business Occupations and Professions (GBO)

## Title 17. Real Estate Brokers

### Subtitle 4. Real Estate Guaranty Fund

#### Section 17-404

(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.

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