<?xml version='1.0' encoding='utf-8'?>
<subtitle article="gbo" title_number="17" subtitle_number="6" title_name="Real Estate Brokers" subtitle_name="Prohibited Acts; Penalties">
  <section article="gbo" article_name="Business Occupations and Professions" number="17-601" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <text>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.</text>
    </level>
    <level label="b">
      <text>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.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-602" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <text>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.</text>
    </level>
    <level label="b">
      <text>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.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-603" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <text>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.</text>
    </level>
    <level label="b">
      <text>A real estate broker may not retain an unlicensed individual to provide real estate brokerage services on behalf of the real estate broker.</text>
    </level>
    <level label="c">
      <text>A licensed real estate broker may not lend the license certificate or pocket card of the broker to another individual.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-604" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <text>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.</text>
    </level>
    <level label="b">
      <text>Subsection (a) of this section does not prohibit the payment of compensation to:</text>
      <level label="1">
        <text>an individual:</text>
        <level label="i">
          <text>who is licensed in another state; and</text>
        </level>
        <level label="ii">
          <text>who meets the requirements of § 17–513 of this title;</text>
        </level>
      </level>
      <level label="2">
        <text>a professional service corporation formed under § 17–512 of this title;</text>
      </level>
      <level label="3">
        <text>a limited liability company formed under § 17–512 of this title;</text>
      </level>
      <level label="4">
        <text>a business entity formed under § 17–512 of this title; or</text>
      </level>
      <level label="5">
        <text>a title insurance producer licensed under Title 10 of the Insurance Article acting in accordance with subsection (c) of this section.</text>
      </level>
    </level>
    <level label="c">
      <text>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:</text>
      <level label="1">
        <text>an associate real estate broker;</text>
      </level>
      <level label="2">
        <text>a real estate salesperson; or</text>
      </level>
      <level label="3">
        <text>a business entity formed under § 17–512 of this title.</text>
      </level>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-605" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <level label="1">
        <text>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.</text>
      </level>
      <level label="2">
        <text>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.</text>
      </level>
    </level>
    <level label="b">
      <text>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.</text>
    </level>
    <level label="c">
      <text>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.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-606" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <text>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.</text>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-607" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <text>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:</text>
      <level label="1">
        <text>title insurance company;</text>
      </level>
      <level label="2">
        <text>settlement company;</text>
      </level>
      <level label="3">
        <text>escrow company;</text>
      </level>
      <level label="4">
        <text>mortgage lender, or financial institution as defined in the Financial Institutions Article; or</text>
      </level>
      <level label="5">
        <text>title lawyer.</text>
      </level>
    </level>
    <level label="b">
      <text>A seller may not be prohibited from offering owner financing as a condition of settlement.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-607.1" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <text>In this section, “commercial real estate” has the meaning stated in § 17–524.1 of this title.</text>
    </level>
    <level label="b">
      <text>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:</text>
      <level label="1">
        <text>title insurance company;</text>
      </level>
      <level label="2">
        <text>settlement company;</text>
      </level>
      <level label="3">
        <text>escrow company; or</text>
      </level>
      <level label="4">
        <text>title lawyer.</text>
      </level>
    </level>
    <level label="c">
      <text>A seller may not be prohibited from offering owner financing as a condition of settlement.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-608" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <level label="1">
        <text>In this subsection, “handicap” and “familial status” each have the meanings indicated in the federal Fair Housing Act.</text>
      </level>
      <level label="2">
        <text>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:</text>
        <level label="i">
          <text>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;</text>
        </level>
        <level label="ii">
          <text>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</text>
        </level>
        <level label="iii">
          <text>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:</text>
          <level label="1">
            <text>the lowering of property values;</text>
          </level>
          <level label="2">
            <text>a change in the racial, religious, or ethnic character of the block, neighborhood, or area;</text>
          </level>
          <level label="3">
            <text>an increase in criminal or antisocial behavior in the area; or</text>
          </level>
          <level label="4">
            <text>a decline in the quality of schools serving the area.</text>
          </level>
        </level>
      </level>
    </level>
    <level label="b">
      <text>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.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-609" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <text>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:</text>
    <level label="1">
      <text>in person door-to-door solicitation;</text>
    </level>
    <level label="2">
      <text>telephone solicitation; or</text>
    </level>
    <level label="3">
      <text>mass distribution of circulars.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-610" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <text>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.</text>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-611" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <text>A person may not violate a suspension order issued under § 17-522 of this title.</text>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-612" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <text>A corporation, partnership, or other association may not:</text>
    <level label="1">
      <text>commit or cause any other person to commit any act that constitutes a ground for disciplinary action against a licensee under § 17-322 or § 17-328 of this title; or</text>
    </level>
    <level label="2">
      <text>violate or cause any other person to violate any other provision of this title.</text>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-613" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <level label="a">
      <text>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:</text>
      <level label="1">
        <text>§ 17–502;</text>
      </level>
      <level label="2">
        <text>§ 17–525;</text>
      </level>
      <level label="3">
        <text>§ 17–526;</text>
      </level>
      <level label="4">
        <text>§ 17–527;</text>
      </level>
      <level label="5">
        <text>§ 17–530;</text>
      </level>
      <level label="6">
        <text>§ 17–532;</text>
      </level>
      <level label="7">
        <text>§ 17–601;</text>
      </level>
      <level label="8">
        <text>§ 17–602;</text>
      </level>
      <level label="9">
        <text>§ 17–603;</text>
      </level>
      <level label="10">
        <text>§ 17–604;</text>
      </level>
      <level label="11">
        <text>§ 17–605;</text>
      </level>
      <level label="12">
        <text>§ 17–606;</text>
      </level>
      <level label="13">
        <text>§ 17–607;</text>
      </level>
      <level label="14">
        <text>§ 17–608;</text>
      </level>
      <level label="15">
        <text>§ 17–609;</text>
      </level>
      <level label="16">
        <text>§ 17–610; or</text>
      </level>
      <level label="17">
        <text>§ 17–611.</text>
      </level>
    </level>
    <level label="b">
      <text>A corporation, partnership, or other association that violates § 17–612 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine:</text>
      <level label="1">
        <text>not exceeding $5,000 for a first violation;</text>
      </level>
      <level label="2">
        <text>not exceeding $15,000 for a second violation; and</text>
      </level>
      <level label="3">
        <text>not exceeding $25,000 for a third or subsequent violation.</text>
      </level>
    </level>
    <level label="c">
      <level label="1">
        <text>The Commission may impose on a person who violates any provision of this title a penalty not exceeding:</text>
        <level label="i">
          <text>$5,000 for a first violation;</text>
        </level>
        <level label="ii">
          <text>$15,000 for a second violation; and</text>
        </level>
        <level label="iii">
          <text>$25,000 for a third or subsequent violation.</text>
        </level>
      </level>
      <level label="2">
        <text>In setting the amount of the penalty, the Board shall consider:</text>
        <level label="i">
          <text>the seriousness of the violation;</text>
        </level>
        <level label="ii">
          <text>the harm caused by the violation;</text>
        </level>
        <level label="iii">
          <text>the good faith of the violator;</text>
        </level>
        <level label="iv">
          <text>any history of previous violations by the violator; and</text>
        </level>
        <level label="v">
          <text>any other relevant factors.</text>
        </level>
      </level>
      <level label="3">
        <text>The Board shall pay any penalty collected under this subsection into the General Fund of the State.</text>
      </level>
    </level>
    <level label="d">
      <level label="1">
        <text>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.</text>
      </level>
      <level label="2">
        <text>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.</text>
      </level>
    </level>
  </section>
  <section article="gbo" article_name="Business Occupations and Professions" number="17-614" title_number="17" title_name="Real Estate Brokers" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties">
    <text>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:</text>
    <level label="1">
      <text>§ 17-608;</text>
    </level>
    <level label="2">
      <text>§ 17-525; and</text>
    </level>
    <level label="3">
      <text>§ 17-526.</text>
    </level>
  </section>
</subtitle>