A real estate broker shall maintain trust money in an account authorized under this Part I of this subtitle until: 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: be in writing; state whether the trust money will be paid to the owner or beneficial owner; and disclose to the owner and the beneficial owner that: either party may prevent distribution of the trust money under subsection (a)(4) of this section by submitting a protest within 30 days from the date the notice was delivered or mailed by the real estate broker; and if neither party submits a protest within 30 days from the date the notice was delivered or mailed by the real estate broker, the trust money will be distributed in accordance with the real estate broker’s notice. The notice required under this subsection shall be: hand delivered to both the owner and beneficial owner; or sent by certified mail, return receipt requested, and regular mail to both the owner and beneficial owner. An owner or beneficial owner may protest the distribution of the trust money. An owner or beneficial owner shall submit the protest to the real estate broker holding the trust money within 30 days from the date the notice required in paragraph (1) of this subsection was delivered or mailed by the real estate broker. A protest shall be in writing and either: hand delivered; or sent by certified mail, return receipt requested, and regular mail. If a written protest is received by the real estate broker, the real estate broker shall distribute the trust money in accordance with subsection (a)(1), (2), or (3) of this section. If no written protest is received by the real estate broker holding the trust money, the real estate broker shall distribute the trust money in accordance with the terms of the notice as required in this section. If a purchaser of residential real estate, as defined in § 10–802 of the Real Property Article, terminates a real estate transaction in accordance with § 10–803 of the Real Property Article, the real estate broker shall distribute the trust money to the purchaser in accordance with this section. When the duty of the real estate broker to maintain trust money in an account terminates, the real estate broker promptly shall account for all trust money. A real estate broker may invest trust money: 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 real estate broker may not be liable to an owner or beneficial owner of the trust money for: 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. An agreement under which a real estate broker is entrusted with the trust money shall contain a statement that the real estate broker may distribute the trust money in accordance with subsection (b) of this section if the owner or beneficial owner of the trust money fails to complete the real estate transaction for which the trust money was entrusted.

Each real estate broker shall maintain all records of trust money in a secured area within the office of the broker. Each licensee shall keep copies of: listings; and any other document executed or obtained by the licensee in connection with a transaction involving the provision of real estate brokerage services, including any electronic signature contained on a document. A licensee shall keep the records required by this section for 5 years, starting on the date of the closing of a real estate transaction, or, if the transaction is not closed, 5 years after the date of the listing. A licensee providing property management services shall keep the records required by this section for 5 years after the termination of the management agreement. For any record required to be kept under subsections (a) and (b) of this section, a licensee may keep and store an electronic record of the information if: 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: convenient access to the document or record; appropriate quality control of the storage process; and chronological arrangement of stored documents or records. 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. “Immediate family member” means a spouse, parent, child, or sibling. “Immediate family member” includes a stepparent, stepchild, or stepsibling. “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. Except as to the limitation of interest of the professional service corporation in a business through which real estate brokerage services are provided, this section does not affect the formation of a professional service corporation by associate real estate brokers and real estate salespersons authorized by § 17–512 of this subtitle.

With the consent of a licensed real estate broker, one or more licensed real estate salespersons and licensed associate real estate brokers who are affiliated with the licensed real estate broker may: 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. A professional service corporation may be organized and owned or a limited liability company or other business entity may be formed under this section by any number and any combination of licensed real estate salespersons and licensed associate real estate brokers. However, each shareholder in the corporation, member of the limited liability company, or owner of any other business entity shall be either a licensed real estate salesperson or a licensed associate real estate broker. A licensed real estate salesperson or a licensed associate real estate broker who is a shareholder of a professional service corporation, a member of a limited liability company, or the owner of any other business entity may direct that any commission due the salesperson or associate broker be paid to the corporation, limited liability company, or other business entity.

A nonresident applicant for a license shall submit to the Commission an irrevocable consent, as provided under this section. The consent required under this section shall: 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: the cause of action arose; or the plaintiff resides; specify that the consent is irrevocable; and be signed by the applicant. The Commission may not issue a license to a nonresident applicant, unless the nonresident applicant complies with the requirements of subsections (a) and (b) of this section. 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: submit a copy of the filing to the Commission; and send a copy of the filing, by certified mail, return receipt requested, to the principal office of the person against whom the action, suit, or proceeding is directed. 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: the cause of action arose; or the plaintiff resides.

Subject to the provisions of this subtitle, a licensed real estate broker may maintain branch offices in the State. A licensed real estate broker shall obtain a branch office certificate before the broker may maintain a branch office in the State. An applicant for a branch office certificate shall: submit to the Commission an application on the form that the Commission provides; submit to the Commission written notice of the identity of the individual appointed as manager of the branch office under subsection (d) of this section; and pay to the Commission an application fee of $5. 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 associate real estate broker; a licensed real estate salesperson who has at least 3 years’ experience providing real estate brokerage services; or a licensed real estate salesperson who: has completed successfully a course in real estate approved by the Commission for real estate brokers; and has passed the real estate broker’s examination given by the Commission under § 17–306 of this title. 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: after the effective date of the certificate; and in an even–numbered year. Before a branch office certificate expires, a licensed real estate broker periodically may renew it for an additional 2–year term, if the broker: submits to the Commission a renewal application on the form that the Commission provides accompanied by the license renewal application of the manager of the branch office; and pays to the Commission a renewal fee of $5. The Commission shall renew the branch office certificate of each licensed real estate broker who meets the requirements of this section.

Within the time set by the Commission, a real estate broker shall submit to the Commission: 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. On receipt of the notice, fee, license certificate, and pocket card, the Commission shall issue a new license certificate and pocket card to the real estate broker for the unexpired period of the broker’s license. Within the time set by the Commission, a real estate broker shall submit to the Commission: 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. On receipt of the notice, fee, and branch office certificate, the Commission shall issue a new branch office certificate to the real estate broker for the unexpired period of the branch office certificate. If a real estate broker changes the address of the principal office or a branch office of the broker and fails to submit the required notice, the license of the broker shall be suspended automatically until the broker submits the required notice. If the address of the affiliated brokerage of a licensed associate real estate broker or a licensed real estate salesperson changes, within the time set by the Commission, the licensee shall submit to the Commission: 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.

After a public hearing, the Commission may declare an urban area a “real estate conservation area” if the Commission finds that the racial stability of the area is threatened by the volume of real estate transactions. 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: the area would benefit by the suspension; the suspension would advance a State interest; there is a reasonable basis to believe that panic selling, blockbusting, or depressed real estate market values would occur without the suspension; and there is no less restrictive alternative available. 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: the racial and economic composition of the real estate conservation area; the number of real estate transactions in the area; and the fair market values of properties affected. A suspension under paragraph (1) of this subsection may not: apply to advertising in regularly distributed newspapers, magazines, radio, television, or telephone directories; or exceed 24 months in duration. Subject to the provisions of this subsection, the Commission may: modify a suspension; remove a suspension; or periodically renew a suspension for a period not exceeding 24 months. 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. Any person aggrieved by a suspension may take an appeal to the circuit court of any county.

In this section, “commercial real estate” means: real property improved by five or more single–family units; improved and unimproved real property zoned for commercial, industrial, or nonresidential use by the local zoning authority of the county or municipality in which the property is located; or unimproved real property zoned for improvement as multifamily units by the local zoning authority of the county or municipality in which the property is located. “Commercial real estate” does not include: property zoned for agricultural use; and single–family units, including a condominium or co–op unit, for sale or for lease, or otherwise conveyed or to be conveyed on a single basis. Each real estate contract submitted to a party by a real estate broker, a nonresident real estate broker, an associate real estate broker, a real estate salesperson, or a nonresident real estate salesperson for use in the sale of commercial real estate shall contain, in bold–faced type, a statement that the buyer has the right to select the buyer’s own: title insurance company; settlement company; escrow company; or title lawyer. The statement required under subsection (b) of this section shall also contain, in bold–faced type, a statement that a seller may not be prohibited from offering owner financing as a condition of settlement.

The purpose of this section is to prohibit steering and other discriminatory real estate practices with respect to residential housing in Baltimore City to: 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 section applies only in regard to residential property in Baltimore City. Except as provided in paragraph (2) of this subsection, each real estate broker shall maintain a current and complete registry of all residential properties that the broker lists for sale in Baltimore City. The real estate broker shall break down the properties listed in the registry into price categories that are established by the Commission. If a prospective buyer requests to see the registry, the real estate broker shall allow the prospective buyer to see the part of the registry for the price category in which the prospective buyer indicates interest. 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: the race, color, sex, religion, or national origin of the prospective buyer or renter; or the racial 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 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. This section does not prohibit a real estate broker, an associate real estate broker, or a real estate salesperson from charging a reasonable fee for showing a residential property to a prospective buyer or renter. The Commission shall enforce the provisions of this section and, for this purpose, may receive complaints, conduct investigations, issue subpoenas, administer oaths, and hold hearings.

The purpose of this section is to prohibit certain discriminatory real estate practices with respect to housing in Montgomery County to: 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. This section applies only in regard to residential property in Montgomery County. Each real estate broker shall maintain a current and complete registry of all residential properties that: the broker personally lists for sale or rent in Montgomery County; and if the broker is a member of a multiple listing service, are listed with the multiple listing service in Montgomery County. 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: prepare a notice that sets forth the exact language of paragraphs (1) through (3) of this subsection; and distribute a copy of the notice to each real estate office that is located in Montgomery County. 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: 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 the composition or character of the neighborhood where the property is located. 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. The Commission shall enforce the provisions of this section and, for this purpose, may receive complaints, conduct investigations, issue subpoenas, and hold hearings.

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. “Advertisement” means, unless the context requires otherwise, any oral, written, or printed media advertisement. “Advertisement” includes any correspondence, mailing, newsletter, brochure, business card, for sale or for lease sign and sign rider, promotional item, automobile signage, telephone directory listing, television announcement, radio announcement, telephone solicitation, and World Wide Web and Internet voice-overs. “Designated name” means the individual name of a licensed real estate salesperson, licensed real estate broker, or licensed associate real estate broker other than the licensed real estate salesperson’s, licensed real estate broker’s, or licensed associate real estate broker’s full legal name. “Designated name” includes a first name, nickname, or last name. A licensed real estate salesperson, licensed real estate broker, or licensed associate real estate broker may not advertise unless: 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: is meaningfully and conspicuously included in the advertisement; and is the full name of the business and not a logo used by the business.

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. Notwithstanding any other provision of law and except as otherwise provided in subsection (c) of this section, if a licensee offers the name of a service provider to a client in the provision of real estate brokerage services, the licensee need not verify that the service provider is currently licensed by the State to perform the services. If a licensee offers the name of a home improvement contractor to a client, the licensee shall: 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.

In this Part III of this subtitle the following words have the meanings indicated. “Broker” means a licensed real estate broker, including a corporation, limited liability company, partnership, or sole proprietorship through which a licensed real estate broker provides real estate brokerage services under § 17–321 of this title. “Brokerage agreement” means a written agreement between a broker and a client to provide real estate brokerage services under a brokerage relationship. “Brokerage relationship” means a relationship under a brokerage agreement between a client and a broker who has been authorized by the client to provide real estate brokerage services in a residential real estate transaction. “Buyer’s agent” means a licensed real estate broker, licensed associate real estate broker, or licensed real estate salesperson who, in accordance with a written brokerage agreement, represents a prospective buyer or lessee in the acquisition of real estate for sale or for lease. “Client” means a person who has entered into a brokerage agreement with a broker under a brokerage relationship. “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. “Confidential information” includes information that: 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. “Dual agency” means each relationship in which a licensed real estate broker or branch office manager acts as a dual agent. “Dual agent” means a licensed real estate broker who acts as, or a branch office manager described in § 17–518(d) of this subtitle who has been designated by the licensed real estate broker to act as, an agent for both the seller and the buyer or the lessor and the lessee in the same real estate transaction. “Intra–company agent” means a licensed associate real estate broker or licensed real estate salesperson who has been designated by a dual agent to act on behalf of a seller or lessor or buyer or lessee in the purchase, sale, or lease of real estate. “Ministerial act” means an act that: 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. “Seller’s agent” means a licensed real estate broker who, in accordance with a written brokerage agreement, acts as the listing broker for real estate, or a licensed associate real estate broker or licensed real estate salesperson who is affiliated with the listing broker. “Subagent” means a licensed real estate broker, licensed associate real estate broker, or licensed real estate salesperson who: 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. “Timely” means a reasonable time under the particular facts and circumstances.

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: if the first contact between a seller’s agent and a prospective buyer or lessee is not a face–to–face contact, the seller’s agent shall disclose, through the medium in which the contact occurs, that the seller’s agent represents the seller or lessor; and if the first contact between a buyer’s agent and a prospective seller or lessor is not a face–to–face contact, the buyer’s agent shall disclose, through the medium in which the contact occurs, that the buyer’s agent represents the buyer or lessee. 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. If a licensee is holding a property open to the public, the licensee complies with the disclosure requirements of this section if the licensee displays, in a conspicuous manner, a notice to prospective buyers or lessees that the licensee present on the property represents the seller or lessor. The Commission shall prepare and provide the notice required under this paragraph. In any residential real estate transaction involving a subagent, the subagent shall disclose in writing to the buyer or lessee as required under this section that the subagent represents the seller or lessor. In any residential real estate transaction that does not involve a subagent or buyer’s agent, the seller’s agent shall make the written disclosure to the buyer or lessee required under this section that the seller’s agent represents the seller or lessor. In any residential real estate transaction that does not involve a seller’s agent, the buyer’s agent shall make the written disclosure to the seller or lessor required under this section that the buyer’s agent represents the buyer or lessee. The written disclosure shall explain: 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: evaluation of a property, including the provision of a market analysis of the property; and preparation of an offer on a property and to negotiate in the best interests of the buyer; 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.

Except as otherwise provided in subsection (b) of this section, a licensed real estate broker, licensed associate real estate broker, or licensed real estate salesperson may not act as a dual agent in this State. If a licensed real estate broker obtains the written informed consent of all parties to a real estate transaction, the real estate broker, or a branch office manager described in § 17–518(d) of this subtitle who has been designated by the licensed real estate broker, may act as a dual agent for both the seller and the buyer or the lessor and the lessee in the same real estate transaction. The dual agent in a real estate transaction shall assign a licensed associate real estate broker or licensed real estate salesperson affiliated with the real estate broker to act as the intra–company agent on behalf of the seller or lessor and another licensed associate real estate broker or licensed real estate salesperson affiliated with the real estate broker to act as the intra–company agent on behalf of the buyer or lessee. Except as otherwise required by this title and except to the dual agent, an intra–company agent may not disclose confidential information. Except as otherwise required by this title, the dual agent may not disclose confidential information to the buyer or seller or the buyer’s or seller’s intra–company agent in the same real estate transaction. If a real estate broker offers any financial bonuses to licensees affiliated with the broker for the sale or lease of real property listed with the real estate broker, the real estate broker shall provide to each party to a real estate transaction a statement that discloses that financial bonuses are offered. An intra–company agent representing the seller or buyer shall provide the same services to the client as an agent for the seller or buyer would provide in a real estate transaction that does not involve dual agency, including advising the client as to price and negotiation strategy, provided that the intra–company agent has made the appropriate disclosures to the client and the client has consented, as required by this section, to dual agency representation. The provisions of the services specified in this subsection may not be construed to be a breach of duty of the licensee, provided that the licensee has complied with the duties specified in § 17–522 of this subtitle. A dual agent may not also act as an intra–company agent in the same real estate transaction. An intra–company agent may not also act as a dual agent in the same real estate transaction. 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 written consent for dual agency shall include a statement that: 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 required under subsection (a)(1) of this section to each licensee in this State; and the standard consent form for dual agency required under subsection (a)(2) of this section to each licensee in this State. The standard disclosure form and the standard consent form for dual agency shall be: written in a clear and coherent manner using words with common and everyday meanings; appropriately divided and captioned by their various sections; and printed in at least 10 point type.

A licensee shall comply with the provisions of this section when providing real estate brokerage services. A licensee shall: act in accordance with the terms of the brokerage agreement; promote the interests of the client by: seeking a sale or lease of real estate at a price or rent specified in the brokerage agreement or at a price or rent acceptable to the client; seeking a sale or lease of real estate on terms specified in the brokerage agreement or on terms acceptable to the client; and unless otherwise specified in the brokerage agreement, presenting in a timely manner all written offers or counteroffers to and from the client, even if the real estate is subject to an existing contract of sale or lease; disclose to the client all material facts as required under § 17–322 of this title; treat all parties to the transaction honestly and fairly and answer all questions truthfully; in a timely manner account for all trust money received; exercise reasonable care and diligence; and comply with all: requirements of this title; applicable federal, State, and local fair housing laws and regulations; and other applicable laws and regulations. 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: any of the licensee’s other clients; any of the clients of the licensee’s broker; any other party; any licensee acting as an agent for another party; or any representative of another party. 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. A licensee does not breach any duty or obligation to the client by: 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. A licensee may not disclose confidential information obtained from a prospective client in anticipation of forming a brokerage relationship, unless the prospective client consents in writing to the disclosure. This title does not limit the applicability of § 10–702 of the Real Property Article. The requirements of this section are in addition to any other duties required of the agent by law that are not inconsistent with these duties. The duties specified in this section may not be waived or modified. A licensee who performs ministerial acts for a person may not be construed to: 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.

A brokerage relationship commences at the time that a client enters into a brokerage agreement and shall continue until: the completion of performance in accordance with the brokerage agreement; or the earlier of: any date of expiration as agreed on by the parties in the brokerage agreement or in any amendments to the brokerage agreement; any mutually agreed on termination of the brokerage relationship; a default by any party under the terms of the brokerage agreement; or a termination under § 17–530 of this subtitle. The brokerage agreement between a broker and a seller or lessor shall: 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. The brokerage agreement between a broker and a buyer or lessee shall: 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. Except as otherwise provided in the brokerage agreement, a licensee shall have no further duties or obligations to a client after the termination, expiration, or completion of performance of the brokerage relationship, except to: 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: the client consents in writing to the disclosure of the information; or the information becomes public from a source other than the licensee. The payment or promise of payment of compensation to a licensed real estate broker by a seller, lessor, buyer, or lessee, or by a licensee acting for a seller, lessor, buyer, or lessee: 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.

In this Part IV of this subtitle the following words have the meanings indicated. “Commercial real estate” means: real property improved by five or more single–family units; improved and unimproved real property zoned for commercial, industrial, or nonresidential use by the local zoning authority of the county or municipality in which the property is located; or unimproved real property zoned for improvement as multifamily units by the local zoning authority of the county or municipality in which the property is located. “Commercial real estate” does not include: property zoned for agricultural use; and single–family units, including a condominium or co–op unit, for sale or for lease, or otherwise conveyed or to be conveyed on a single basis. “Nonresident real estate broker” means an individual, partnership, joint venture, limited liability company, limited liability partnership, or corporation that is not licensed under Subtitle 3 of this title but is licensed to provide real estate brokerage services in a jurisdiction other than this State. “Nonresident real estate salesperson” means an individual who is not licensed under Subtitle 3 of this title but is licensed to provide real estate brokerage services and is affiliated with a nonresident real estate broker.

A nonresident real estate broker may engage in a transaction under this title with respect to commercial real estate located in this State and receive compensation provided the nonresident real estate broker: 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: specifies the terms of cooperation and compensation and includes a statement by the nonresident real estate broker that the nonresident real estate broker and the nonresident real estate salespersons licensed and affiliated with the nonresident real estate broker will both adhere to the laws of this State and this title; and allocates the responsibility for the actions of the nonresident real estate broker in the transaction; and complies with the requirements of subsection (b) of this section. Before a nonresident real estate broker may provide real estate brokerage services in this State, the nonresident real estate broker shall make written application to the Commission including: 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. The Commission shall issue a temporary license to a nonresident real estate broker who complies with the requirements of this section if the jurisdiction in which the real estate broker holds a current license: 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.