Title 17. Real Estate Brokers — Subtitle 5. Miscellaneous Provisions

the benefit of the owner or beneficial owner of the trust money; and

a purpose that relates to a real estate transaction involving real estate in the State.

Except as otherwise provided in subsection (c) of this section, a real estate broker promptly, but not more than 7 business days after the acceptance of a contract of sale by both parties, shall deposit trust money in an account that is maintained by the real estate broker:

A real estate broker may not use trust money for any purpose other than that for which it is entrusted to the real estate broker.

the real estate transaction for which the trust money was entrusted is consummated or terminated;

the real estate broker receives proper written instructions from the owner and beneficial owner directing withdrawal or other disposition of the trust money;

on an interpleader filed by the real estate broker, a court orders a different disposition; or

the owner or beneficial owner of the trust money fails to complete the real estate transaction for which the trust money was entrusted and the real estate broker, in the real estate broker’s sole discretion, decides to distribute the trust money in accordance with subsection (b) of this section.

Prior to distributing the trust money under subsection (a)(4) of this section, the real estate broker shall notify both the owner and the beneficial owner that the real estate broker intends to distribute the trust money to the person who, in the good faith opinion of the real estate broker, is entitled to receive the trust money in accordance with the terms of the real estate contract which established the trust.

The notice required under this subsection shall:

The notice required under this subsection shall be:

as the owner and beneficial owner of the trust money instruct in writing; or

as the real estate broker, owner, and beneficial owner of the trust money agree in writing.

a good faith decision to distribute the trust money under subsection (a)(4) of this section; or

a decision not to distribute the trust money under subsection (a)(4) of this section.

Each licensee shall keep copies of:

the stored record cannot be erased or edited;

the stored record is made or preserved as part of, and in the regular course of, the licensee’s business;

the original record from which the stored record was copied was made or prepared by the licensee or the licensee’s employees at or near the time of the activity described in the record;

the custodian of the record is able to identify the stored record, the mode of its preparation, and the mode of storage; and

the electronic storage system contains a reliable indexing system that provides:

On reasonable notice from the Commission, a licensee shall allow a representative of the Commission to enter the licensee’s place of business during business hours to inspect a record required to be kept under subsection (b) of this section.

The licensee shall provide, at the licensee’s expense, a paper copy of any document or record requested by the Commission.

A licensee shall display to the Commission on demand all records, books, and accounts of any money held in trust.

In this section the following words have the meanings indicated.

“Business” means a person or entity, regardless of legal structure, through which real estate brokerage services are provided.

“Interest in a business” means, in the case of a business that is in a corporation, the outstanding voting stock of the corporation through which real estate brokerage services are provided.

Not more than 50% of the interest in a business may be held directly or indirectly by associate real estate brokers, real estate salespersons, or any combination of associate brokers or salespersons.

Unless the immediate family member is affiliated with the business as an associate real estate broker or real estate salesperson, an interest of a licensee in a business through which real estate brokerage services are provided shall include any interest in the business held by an immediate family member of the licensee.

organize and wholly own a professional service corporation under the Maryland Professional Service Corporation Act;

form a limited liability company under the Maryland Limited Liability Company Act; or

form any other business entity authorized under Maryland law.

specify that service of process on the executive director of the Commission shall bind the applicant in any action, suit, or proceeding brought against the applicant;

specify that an action, suit, or proceeding may be brought against the applicant in any county in which:

specify that the consent is irrevocable; and

be signed by the applicant.

Subject to paragraph (2) of this subsection, service of process on the executive director of the Commission binds any person who has submitted a consent to the Commission, as required under this section.

If service of process is made on the executive director of the Commission as authorized under this section, the person filing immediately shall:

As to any person who submits a consent as required under this section, any action, suit, or proceeding may be brought in any county of the State in which:

participating in any real estate transaction in the State; or

dividing fees or holding deposits from any real estate transaction in the State.

An applicant for a branch office certificate shall:

The Commission shall issue a branch office certificate to each licensed real estate broker who meets the requirements of this section.

Subject to paragraph (2) of this subsection, the licensed real estate broker shall designate a manager, which may be the broker, for each branch office of the broker.

If the licensed real estate broker designates another individual as a branch office manager, the manager shall be:

A licensed real estate salesperson seeking to qualify as a branch office manager under paragraph (2)(iii) of this subsection shall submit to the Commission, before taking the real estate broker’s examination, a commitment from the licensed real estate broker proposing to engage the salesperson as a branch office manager.

The manager shall have the responsibility to supervise the provision of real estate brokerage services by the associate brokers and sales agents registered to that office as provided for in § 17–320 of this title.

Unless a branch office certificate is renewed for a 2–year term as provided in this subsection, the certificate expires on the first April 30 that comes:

Before a branch office certificate expires, a licensed real estate broker periodically may renew it for an additional 2–year term, if the broker:

The Commission shall renew the branch office certificate of each licensed real estate broker who meets the requirements of this section.

written notice of any change in the address of the principal office of the broker on the form that the Commission provides;

the license certificate and pocket card of the broker; and

a fee for issuance of a new license certificate and pocket card of $5.

written notice of any change in the address of a branch office of the broker on the form that the Commission provides;

the branch office certificate; and

a fee for the issuance of a new branch office certificate of $5.

written or electronic notice of any change in the address of the brokerage;

the license certificate and pocket card of the licensee; and

a fee for the issuance of a new license certificate and pocket card of $5.

Subject to the provisions of this subsection, the Commission may suspend, by order, any methods of advertising real estate brokerage services or soliciting listings of houses for the purpose of resale or rental in a real estate conservation area if the Commission determines that:

In determining whether to impose a suspension, the Commission shall base its determination on a preponderance of the evidence.

When determining whether to impose a suspension, the Commission shall provide information to the community affected, including:

A suspension under paragraph (1) of this subsection may not:

Subject to the provisions of this subsection, the Commission may:

In determining whether to modify, remove, or renew a suspension, the Commission shall follow the same requirements for originally imposing a suspension under subsection (b) of this section.

title insurance company;

settlement company;

escrow company;

mortgage lender, or financial institution as defined in the Financial Institutions Article; or

title lawyer.

In this section, “commercial real estate” means:

“Commercial real estate” does not include:

title insurance company;

settlement company;

escrow company; or

title lawyer.

ensure fair and equal real estate housing practices in Baltimore City for all of its residents, regardless of race, color, sex, religion, or national origin;

provide fair and equal real estate housing opportunities in Baltimore City for all of its residents, regardless of race, color, sex, religion, or national origin; and

protect and ensure the peace, health, safety, prosperity, and general welfare of all residents of Baltimore City.

This subsection does not require a real estate broker who is a member of a multiple listing service to disclose properties that are obtained from multiple listing.

Unless requested to do so by a prospective buyer or renter, a real estate broker, an associate real estate broker, or a real estate salesperson may not fail or refuse to show any residential property that is available for sale, rent, or sublease to a prospective buyer or renter because of:

A real estate broker, an associate real estate broker, or a real estate salesperson may not fail or refuse to show all available listed residential properties that are in a certain area and within a specified price range to a prospective buyer or renter who has requested to be shown all available properties that are in the area and within the specified price range.

If the representation is made because of the race, color, sex, religion, or national origin of the prospective buyer or renter or because of the racial composition or character of the area where the property is located, a real estate broker, an associate real estate broker, or a real estate salesperson may not represent to a prospective buyer or renter that the available residential properties, prospective sites for a residence, or listings are limited to those already shown when, in fact, there is a residential property, a prospective site for a residence, or a listing that is available and within the price range specified by the prospective buyer or renter.

ensure fair and equal real estate housing practices for all of its residents, regardless of race, color, religion, sex, marital status, national origin, or, as defined in § 20–701 of the State Government Article, disability;

provide fair and equal real estate housing opportunities for all of its residents, regardless of race, color, religion, sex, marital status, national origin, or, as defined in § 20–701 of the State Government Article, disability;

ensure fair and equal real estate housing practices and provide fair and equal real estate housing opportunities for those individuals who are at least 62 years of age; and

protect and ensure the peace, health, safety, prosperity, and general welfare of all residents of Montgomery County.

Each real estate broker shall maintain a current and complete registry of all residential properties that:

The real estate broker shall break down the properties listed in the registry into price categories that are established by the Commission or the multiple listing service.

If a prospective buyer or renter requests to see the registry, the real estate broker shall allow the prospective buyer or renter to see the part of the registry for the price category in which the prospective buyer or renter indicates interest.

The Commission shall:

Each real estate broker shall post the notice in a conspicuous place in each real estate office of the broker that is located in Montgomery County.

A real estate broker, an associate real estate broker, or a real estate salesperson may not refuse to show any residential property or prospective site for a residence that is available for sale, rent, or sublease to a prospective buyer or renter because of:

If the representation is made because of the race, color, religion, sex, marital status, national origin, or, as defined in § 20–701 of the State Government Article, disability of the prospective buyer or renter or because of the composition or character of the neighborhood where the property is located, a real estate broker, an associate real estate broker, or a real estate salesperson may not represent to a prospective buyer or renter that the available residential properties, prospective sites for a residence, or listings in a specified price range are limited to those already shown when, in fact, there is an additional residential property, a prospective site for a residence, or a listing in a specified price range that is available and within the price range specified by the prospective buyer or renter.

In this section the following words have the meanings indicated.

“Advertise” means the use of any oral, written, or visual advertisement by a licensed real estate salesperson, licensed real estate broker, licensed associate real estate broker, or other person on behalf of a licensed real estate salesperson, licensed real estate broker, or licensed associate real estate broker.

the name or designated name of the licensed real estate salesperson, licensed real estate broker, or licensed associate real estate broker, as the name or designated name appears on the license certificate and pocket card issued by the Commission, is meaningfully and conspicuously included in the advertisement; and

the name of the business with which the licensed real estate salesperson, licensed real estate broker, or licensed associate real estate broker is affiliated:

an application on the form that the Commission provides;

the license certificate and pocket card of the licensee;

any documentation about the designated name that the Commission requires; and

a fee of $5.

In this section, “service provider” includes a mortgage lender, a mortgage broker, a real estate appraiser, a home inspector, a plumber, an electrician, and a heating, ventilation, air–conditioning, and refrigeration contractor.

“Service provider” does not include a home improvement contractor.

annually verify that the home improvement contractor is licensed by the Home Improvement Commission under Title 8 of the Business Regulation Article to act as a home improvement contractor before offering the name to the client; and

inform the client of the website on which the licensing information may be found, and the date on which the licensee verified the information.

“Common source information company” means any person that is a source, compiler, or supplier of information regarding residential real estate for sale or lease or other data.

“Common source information company” includes a multiple listing service.

the seller or lessor will accept a price or rent less than the price or rent as set forth in the brokerage agreement or will accept terms other than those contained in the brokerage agreement;

the buyer or lessee is willing to pay a price or rent higher than the price or rent the buyer or lessee offered or will accept terms other than those contained in the offer of the buyer or lessee;

discloses the motivation of a buyer, lessee, seller, or lessor or the need or urgency of a seller to sell, a buyer to buy, a lessee to lease, or a lessor to lease;

discloses any facts that led the seller to sell, the buyer to buy, the lessee to lease, or the lessor to lease; or

relates to the negotiating strategy of a client.

a licensee performs on behalf of a client before and after the execution of a contract of sale or lease;

assists another person to complete or fulfill a contract of sale or lease with the client of the licensee; and

does not involve discretion or the exercise of the licensee’s own judgment.

is not affiliated with or acting as the listing real estate broker for a property;

is not a buyer’s agent;

has a brokerage relationship with the seller or lessor; and

assists a prospective buyer or lessee in the acquisition of real estate for sale or for lease in a nonagency capacity.

the sale or lease of real property improved by one, two, three, or four single-family units; and

unimproved real property zoned for residential use by the local zoning authority of the county or municipality in which the real property is located.

Except as provided in paragraphs (2) and (3) of this subsection, a licensee who participates in a residential real estate transaction as a seller’s agent, buyer’s agent, or a subagent shall disclose in writing that the licensee represents the seller or lessor or the buyer or lessee as provided in this section.

The disclosure required under this section does not apply to a seller, lessor, buyer, or lessee with whom a broker has entered into a written brokerage agreement.

In addition to the written disclosure required under subsection (b) of this section:

Except as provided in paragraph (2) of this subsection, the disclosure shall occur not later than the first scheduled face–to–face contact with the seller or lessor or the buyer or lessee.

the differences between a seller’s agent, buyer’s agent, subagent, dual agent, and intra–company agent;

the duties of a licensee to exercise reasonable care and diligence and maintain confidentiality;

that regardless of whom a licensee represents in a real estate transaction, the licensee has a duty to treat each party fairly and honestly, promptly present each written offer and counteroffer, respond truthfully to each question, disclose all material facts that are known or should be known relating to a property, and offer each property without discrimination;

that a licensee is qualified to advise only on real estate matters and that legal or tax advice should be obtained from a licensed attorney or accountant;

the need for an agreement with a seller’s agent, buyer’s agent, or dual agent to be in writing and to include the duties and obligations of the agent, how and by whom the agent will be compensated, and any fee–sharing arrangements with other agents;

the duty of a buyer’s agent to assist in the:

the possibility that a dual agency may arise in a real estate transaction and the options that would become available to the buyer and seller or lessee and lessor; and

that any complaints concerning a licensee may be filed with the Commission.

The written consent for dual agency shall include an affirmation that identifies the property and the buyer when the real estate broker or branch office manager is serving as a dual agent and the buyer and seller or lessee and lessor enter into a written contract for sale or for a lease, respectively.

the real estate broker receives compensation on the sale of a property listed only by the broker;

as a dual agent the real estate broker represents both the seller and the buyer and there may be a conflict of interest because the interests of the seller and the buyer may be different or adverse;

as a dual agent the real estate broker does not owe undivided loyalty to either the seller or the buyer;

except as otherwise required by this title, a dual agent may not disclose confidential information to the buyer or seller in the same real estate transaction;

unless authorized by the seller, neither an intra–company agent nor a dual agent may tell a buyer that the seller will accept a price lower than the listing price or accept terms other than those contained in the listing agreement or suggest that the seller accept a lower price in the presence of the buyer;

unless authorized by the buyer, neither an intra–company agent nor a dual agent may tell a seller that the buyer is willing to pay a price higher than the price the buyer offered or accept terms other than those contained in the offer of the buyer or suggest that the buyer pay a higher price in the presence of the seller;

a dual agent may not disclose the motivation of a buyer or seller or the need or urgency of a seller to sell or a buyer to buy;

except as otherwise required by this title, if the information is confidential, a dual agent may not disclose any facts that lead the seller to sell;

the buyer or seller does not have to consent to the dual agency;

the buyer or seller has voluntarily consented to the dual agency; and

the terms of the dual agency are understood by the buyer or seller.

A cause of action may not arise against a licensee for disclosure of the dual agency relationship as provided by this section.

A dual agent does not terminate any brokerage relationship by making any required disclosure of dual agency.

In any residential real estate transaction, a licensed real estate broker may withdraw from representing a client who refuses to consent to a disclosed dual agency and to terminate the brokerage relationship with the client.

The withdrawal may not prejudice the ability of the licensed real estate broker to continue to represent the other client in the transaction, nor to limit the licensed real estate broker from representing the client who refused the dual agency in other transactions not involving dual agency.

A licensed real estate broker, licensed associate real estate broker, or licensed real estate salesperson who participates in a residential real estate transaction shall utilize a standard disclosure form in each real estate transaction that includes the information specified in § 17–530(f) of this subtitle.

A licensed real estate broker or branch office manager who acts as a dual agent and a licensed real estate associate broker or licensed real estate salesperson who acts as an intra–company agent in a real estate transaction shall utilize a standard consent form that includes the information specified in § 17–530.1(c) of this subtitle.

The Commission shall prepare and provide:

The standard disclosure form and the standard consent form for dual agency shall be:

A licensee shall:

Unless the client consents in writing to the disclosure, a licensee may not disclose confidential information received from or about a client to any other party or licensee acting as the agent of that party or other representative of that party.

Unless the client to whom the confidential information relates consents in writing to a disclosure of that confidential information, a licensee who receives confidential information from or about the licensee’s own past or present client or a past or present client of the licensee’s broker may not disclose that information to:

Unless otherwise specified in the brokerage agreement, a licensee is not required to seek additional offers to purchase or lease real estate while the real estate is subject to an existing contract of sale or lease.

An intra–company agent may disclose confidential information to the broker or dual agent for whom the intra–company agent works but the broker or dual agent may not disclose that confidential information to the other party or the intra–company agent for the other party, as provided in § 17–530.1(b) of this subtitle.

showing other available properties to prospective buyers or lessees;

representing other clients who have or are looking for similar properties for sale or lease;

representing other sellers or lessors who have similar properties to that sought by the buyer or lessee;

showing the buyer or lessee other available properties; and

during an open house, discussing other properties with prospective buyers or lessees, if the licensee has the written consent of the seller or lessor to do so.

violate the licensee’s duties to the client, provided that the client has consented in the brokerage agreement to the licensee’s provision of ministerial acts; or

form a brokerage relationship between the licensee and the person for whom the ministerial acts are performed.

the completion of performance in accordance with the brokerage agreement; or

the earlier of:

have a definite termination date that is effective automatically without notice from the client;

state the amount of compensation to be paid to the broker;

state whether the broker is authorized to cooperate with other brokers and share compensation with the other brokers and the amount of the compensation described as a percentage of the purchase price, a specific dollar amount, or a combination of both;

explain the events or conditions that will entitle the broker to a commission or other compensation; and

contain a provision for the cancellation of the brokerage relationship by either the client or the broker or by mutual agreement of the client and the broker.

have a definite termination date that is effective automatically without notice from the client;

state the amount of compensation to be paid to the broker, described as a percentage of the purchase price, a specific dollar amount, or a combination of both;

state whether the broker is authorized to receive some or all of the compensation to be paid to the broker from a person other than the client;

state the client’s rights and obligations regarding the compensation to be paid to the broker if the broker is authorized to receive some or all of the compensation to be paid to the broker from a person other than the client;

explain the events that must occur or conditions that must be met in order for the broker to be entitled to a commission or other compensation; and

contain a provision for the cancellation of the brokerage relationship by either the client or the broker or by mutual agreement of the client and the broker.

account for all trust money in the licensee’s possession in accordance with this title; and

except as otherwise provided by this title or another law, keep confidential all personal and financial information received from the client during the course of the brokerage relationship and any other information that the client requests during the brokerage relationship to be kept confidential, unless:

is not determinative of whether a brokerage relationship has been created or exists; and

does not create or determine the existence of a brokerage relationship between a broker and a seller, lessor, buyer, lessee, or licensee.

“Commercial real estate” means:

“Commercial real estate” does not include:

provides real estate brokerage services through a real estate broker licensed under this title;

enters into a written agreement with a licensed real estate broker in this State which:

complies with the requirements of subsection (b) of this section.

the name, address, and telephone number of the nonresident real estate broker;

the name, address, and telephone number of the business entity through which the nonresident real estate broker provides real estate brokerage services;

the name, address, and telephone number of each nonresident real estate salesperson who will offer or provide real estate brokerage services in this State on behalf of the nonresident real estate broker;

a copy of the agreement required by subsection (a) of this section;

written evidence that the nonresident real estate broker and each nonresident real estate salesperson listed under paragraph (3) of this subsection, are duly licensed in another jurisdiction, and that the license is valid, current, and active;

written consent signed by the nonresident real estate broker, individually and on behalf of the business entity, and by each nonresident real estate salesperson listed under paragraph (3) of this subsection, that service of process on the Executive Director of the Commission shall bind the applicant in any action, suit, or proceeding brought against the broker or salesperson;

written consent signed by the nonresident real estate broker and by each nonresident salesperson listed under paragraph (3) of this subsection, to submit to the jurisdiction of the Commission for the purposes of disciplinary action under § 17-322 of this title;

any other information that is requested by the Commission; and

a temporary license fee of $45.

allows a Maryland broker to obtain a temporary license under similar circumstances; or

waives the examination and qualification requirements for licensure for individuals licensed in Maryland.

the nonresident real estate salesperson is licensed with and provides real estate brokerage services under the direct supervision of the nonresident real estate broker;

the nonresident real estate broker satisfies the requirements of § 17-537 of this subtitle; and

the nonresident real estate salesperson provides real estate brokerage services in the name of the nonresident real estate broker.

a licensed associate real estate broker; or

a licensed real estate salesperson who has at least 3 years of experience in providing real estate brokerage services.

maintain a current list of all members and employees of the team; and

provide the list and any revisions of the list to the broker or the branch office manager of the brokerage with which the licensees are affiliated.

maintain copies of the lists; and

make the copies available to the Commission on request.

the name of the brokerage displayed in a meaningful and conspicuous way;

the name of at least one of the licensee members of the team; and

the telephone number of the real estate broker or branch office manager of the real estate broker.