# Business Occupations and Professions (GBO)

## Title 17. Real Estate Brokers

### Subtitle 6. Prohibited Acts; Penalties

#### Section 17-601

(a) Except as otherwise provided in this title, a person may not provide, attempt to provide, or offer to provide real estate brokerage services unless licensed by the Commission as a real estate broker.

(b) Except as otherwise provided in this title, a person may not, on behalf of a real estate broker, provide, attempt to provide, or offer to provide real estate brokerage services unless licensed by the Commission as an associate real estate broker or a real estate salesperson to provide real estate brokerage services for that real estate broker.

#### Section 17-602

(a) Unless authorized under this title to provide real estate brokerage services, a person may not represent to the public, by use of the title "licensed real estate broker", by other title, by description of services, methods, or procedures, or otherwise, that the person is authorized to provide real estate brokerage services in the State.

(b) Unless authorized under this title to provide real estate brokerage services on behalf of a real estate broker, a person may not represent to the public, by use of the titles "licensed associate real estate broker" or "licensed real estate salesperson", by other title, by description of services, methods, or procedures, or otherwise, that the person is authorized to provide real estate brokerage services in the State on behalf of that real estate broker.

#### Section 17-603

(a) A real estate broker may not allow an associate real estate broker, a real estate salesperson, or any other unauthorized individual to provide real estate brokerage services independently as a real estate broker.

(b) A real estate broker may not retain an unlicensed individual to provide real estate brokerage services on behalf of the real estate broker.

(c) A licensed real estate broker may not lend the license certificate or pocket card of the broker to another individual.

#### Section 17-604

(a) Except as provided in subsection (b) of this section, a real estate broker, an associate real estate broker, or a real estate salesperson may not pay compensation, in any form, for the provision of real estate brokerage services to any person who is not licensed under this title.

(b) Subsection (a) of this section does not prohibit the payment of compensation to:

  (1) an individual:

    (i) who is licensed in another state; and

    (ii) who meets the requirements of Sec. 17-513 of this title;

  (2) a professional service corporation formed under Sec. 17-512 of this title;

  (3) a limited liability company formed under Sec. 17-512 of this title;

  (4) a business entity formed under Sec. 17-512 of this title; or

  (5) a title insurance producer licensed under Title 10 of the Insurance Article acting in accordance with subsection (c) of this section.

(c) During the settlement of property, a licensed title insurance producer may, on behalf of a real estate broker and in accordance with a written disbursement authorization provided by the real estate broker, pay compensation to:

  (1) an associate real estate broker;

  (2) a real estate salesperson; or

  (3) a business entity formed under Sec. 17-512 of this title.

#### Section 17-605

(a)

  (1) Except as otherwise provided in subsection (b) of this section, a real estate broker, an associate real estate broker, or a real estate salesperson may not pay or offer to pay a commission to a lawyer simply for the referral of a person as a possible party to a residential real estate transaction.

  (2) A real estate broker, an associate real estate broker, or a real estate salesperson may not solicit referral business from lawyers by a mass solicitation that offers to pay fees or commissions to the lawyers.

(b) Subsection (a)(1) of this section does not apply to payments or offers of payments to lawyers who hold a real estate broker license under this title or are otherwise entitled to a commission.

(c) Other than the commissions expressly prohibited, subsection (a) of this section does not prohibit the payment or the offer of a payment of a commission by a real estate broker, an associate real estate broker, or a real estate salesperson to a lawyer for any service that relates to a real estate transaction.

#### Section 17-606

A real estate broker, an associate real estate broker, or a real estate salesperson may not post, on real property that is offered for sale or exchange, an outdoor sign or other advertisement on which the cost and capitalization of ground rent on the real property is shown in print or lettering that is smaller than the size of the print or lettering that is used to show the price of the real property.

#### Section 17-607

(a) Except as otherwise provided in subsection (b) of this section, in a real estate transaction involving a single-family dwelling, a real estate broker, an associate real estate broker, a real estate salesperson, or a lawyer acting as a real estate broker may not require a buyer, as a condition of settlement, to employ a particular:

  (1) title insurance company;

  (2) settlement company;

  (3) escrow company;

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

  (5) title lawyer.

(b) A seller may not be prohibited from offering owner financing as a condition of settlement.

#### Section 17-607.1

(a) In this section, "commercial real estate" has the meaning stated in Sec. 17-524.1 of this title.

(b) Except as otherwise provided in subsection (c) of this section, in a real estate transaction involving commercial real estate, a real estate broker, a nonresident real estate broker, an associate real estate broker, a real estate salesperson, a nonresident real estate salesperson, or a lawyer acting as a real estate broker may not require a buyer, as a condition of settlement, to employ a particular:

  (1) title insurance company;

  (2) settlement company;

  (3) escrow company; or

  (4) title lawyer.

(c) A seller may not be prohibited from offering owner financing as a condition of settlement.

#### Section 17-608

(a)

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

  (2) Whether or not acting for monetary gain, a person may not knowingly induce or attempt to induce another person to sell or rent a dwelling or otherwise transfer real estate or knowingly discourage or attempt to discourage another person from buying real estate by:

    (i) making representations about the entry or prospective entry into a neighborhood of individuals of a particular race, color, sex, religion, handicap, familial status, or national origin;

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

    (iii) representing that the existing or potential proximity of real property owned or used by individuals of a particular race, color, sex, religion, 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 schools serving the area.

(b) A person may not provide financial assistance by loan, gift, or otherwise to another person if the person has actual knowledge that the financial assistance will be used in a transaction that results from a violation of subsection (a) of this section.

#### Section 17-609

If one of the purposes of the solicitation or attempted solicitation is to change the racial composition of a neighborhood, a person may not solicit or attempt to solicit the listing of residential properties for sale or lease by:

(1) in person door-to-door solicitation;

(2) telephone solicitation; or

(3) mass distribution of circulars.

#### Section 17-610

A person may not submit to the Commission any notice, statement, or other document under Subtitle 4 of this title that a person knows to be false or to contain any material misstatement of fact.

#### Section 17-611

A person may not violate a suspension order issued under Sec. 17-522 of this title.

#### Section 17-612

A corporation, partnership, or other association may not:

(1) commit or cause any other person to commit any act that constitutes a ground for disciplinary action against a licensee under Sec. 17-322 or Sec. 17-328 of this title; or

(2) violate or cause any other person to violate any other provision of this title.

#### Section 17-613

(a) Subject to the provisions of subsection (d) of this section, a person who violates any provision of the following sections of this title is guilty of a misdemeanor and on conviction for a first offense is subject to a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both:

  (1) Sec. 17-502;

  (2) Sec. 17-525;

  (3) Sec. 17-526;

  (4) Sec. 17-527;

  (5) Sec. 17-530;

  (6) Sec. 17-532;

  (7) Sec. 17-601;

  (8) Sec. 17-602;

  (9) Sec. 17-603;

  (10) Sec. 17-604;

  (11) Sec. 17-605;

  (12) Sec. 17-606;

  (13) Sec. 17-607;

  (14) Sec. 17-608;

  (15) Sec. 17-609;

  (16) Sec. 17-610; or

  (17) Sec. 17-611.

(b) A corporation, partnership, or other association that violates Sec. 17-612 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine:

  (1) not exceeding $5,000 for a first violation;

  (2) not exceeding $15,000 for a second violation; and

  (3) not exceeding $25,000 for a third or subsequent violation.

(c)

  (1) The Commission may impose on a person who violates any provision of this title a penalty not exceeding:

    (i) $5,000 for a first violation;

    (ii) $15,000 for a second violation; and

    (iii) $25,000 for a third or subsequent violation.

  (2) In setting the amount of the penalty, the Board shall consider:

    (i) the seriousness of the violation;

    (ii) the harm caused by the violation;

    (iii) the good faith of the violator;

    (iv) any history of previous violations by the violator; and

    (v) any other relevant factors.

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

(d)

  (1) Any person found guilty of a second violation of any provision of the sections listed in subsection (a) of this section is subject to a fine not exceeding $15,000 or 2 years imprisonment or both.

  (2) Any person found guilty of a third or subsequent violation of any provision of the sections listed in subsection (a) of this section is subject to a fine not exceeding $25,000 or 3 years imprisonment or both.

#### Section 17-614

A court shall report to the Commission for appropriate action under this title each conviction of a real estate broker, an associate real estate broker, or a real estate salesperson for a violation of any provision of the following sections of this title:

(1) Sec. 17-608;

(2) Sec. 17-525; and

(3) Sec. 17-526.

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