Each listing contract or sales contract shall state the amount of brokerage agreed upon, in either a specific amount or a specific percentage. The licensee may not accept a listing contract to sell real property that provides for a net return to the seller, leaving the licensee free to sell the real property at a price higher than the net price. A broker may not act as principal and agent in the same transaction without consent of all parties concerned. For administrative efficiency, renewal applications which are filed properly shall be processed automatically. Renewal of a license therefore may not affect the power of the Commission to bring charges for prior acts or conduct. An applicant for an original real estate broker's license shall submit a credit report from an approved credit reporting agency. The credit report shall include any judgments and local, state or federal tax liens of the applicant. If a licensee has custody or possession of money belonging to others, in the absence of proper written instructions from the parties involved in the transaction to the contrary, they shall be deposited and retained in a non-interest-bearing escrow account clearly designated as containing funds held for others. A real estate broker shall maintain a non-interest-bearing escrow or special account and report the bank's name and account number to the Commission as soon as trust monies are received. If a licensee establishes another non-interest-bearing or special escrow account, changes the escrow account number, or transfers the account to another bank, the licensee shall notify the Commission in writing within 10 days after the action. The establishment of individual interest-bearing accounts, as provided under Business Occupations and Professions Article, §17-505, Annotated Code of Maryland, need not be reported to the Commission as long as records are maintained for each account and available for inspection by Commission personnel during regular business hours. When a licensed broker changes business location, the licensed broker shall notify the Commission in writing within 10 days. Course of Instruction. Every applicant for licensure as a real estate salesperson shall furnish, at the time of filing an application for licensure, evidence of having satisfactorily completed a course of instruction in Real Estate Principles and Practices for Salespersons. This course of instruction shall be one of the following: The Realtors Institute of Maryland (G. R. I.) Course “I” consisting of a minimum of 60 clock-hours of instruction as described under §B of this regulation, sponsored by the Maryland Association of Realtors; A course approved by the Maryland Real Estate Commission, consisting of a minimum of 60 clock-hours of instruction. The minimum 60 clock-hour educational requirement for a salesperson shall embrace the following areas of study: Principles of Real Property; Landlord-Tenant Relationship; Real Estate Contracts; Rules of Agency and Listings; Transfer of Title to Real Property; Title Insurance and Settlements; Fundamentals of Appraising; Real Estate Finance; Maryland Real Estate License Law; Regulations of the Real Estate Commission; Details of the Code of Ethics; Laws and Practices Covering Human Rights and Community Relations; Basic Mathematics Pertaining to the Real Estate Industry; Property Condition Disclosure and Latent Defects; Laws and Regulations Covering Hazardous Substances. Any subjects other than those set out in §B of this regulation shall be in addition to, and not be taught as a part of, the minimum 60 clock-hour course requirements. Courses required by this regulation are not interchangeable with the requirements for brokers spelled out in Regulation .14 of this chapter. Likewise, the separate course for brokers required by Regulation .14 will not be accepted as satisfactory completion of the education requirements for salespersons, as set forth in this regulation. An individual who demonstrates by evidence satisfactory to the Commission active and regular engagement in real estate practice as a licensed real estate salesperson in a jurisdiction other than Maryland may be considered to have satisfied the educational requirement for a salesperson set forth in this regulation if the prelicensing education requirements of that jurisdiction are equivalent to or greater than those of Maryland. Effective July 1, 1995, applicants who have passed both parts of the licensing exam shall apply for licensure within 1 year of successfully completing the exam in order for the applicants' test results to remain valid. Completion of Examination. An applicant for a salesperson’s license shall have 1 year from completion of a prelicensing education course to pass both portions of the salesperson licensing examination. An applicant who does not pass both portions of the licensing examination within 1 year of the course completion date must complete a new prelicensing course in order to be eligible to take or retake the examination. All residential listing contracts, listing real property for sale, rental, lease, or exchange, either exclusive or open, shall be in writing and signed, and a copy of the contract shall be given to the seller or owner before the licensee advertises, shows, or offers the property. The definite place of business required by Business Occupations and Professions Article, §17-507, Annotated Code of Maryland, shall be an office or headquarters where the real estate broker and the real estate broker’s employees regularly transact the business of a real estate broker. The records of the brokerage business, including the records of the escrow account, shall be kept in this office or headquarters. The Real Estate Commission may not consider an answering service, a mechanical message recording device or a mail drop, singly or in combination, to satisfy the requirements of an office under Business Occupations and Professions Article, §§17-517, 17-518, and 17-520, Annotated Code of Maryland. Course of Instruction. Every applicant for licensure as a real estate broker shall furnish, at the time of filing an application for licensure, evidence of having satisfactorily completed a course of instruction in Real Estate Principles and Practices for Brokers. This course of instruction shall be one of the following: The Realtors Institute of Maryland (G. R. I.) Courses “I”, “II”, “III”, and “IV”, consisting of a minimum of 135 clock-hours or 9 semester credit hours of instruction as described under §D, of this regulation, sponsored by the Maryland Association of Realtors; or A course approved by the Maryland Real Estate Commission consisting of 135 clock-hours or 9 semester credit hours of instruction. A semester credit hour is defined as not less than 15 standard 50-minute classroom hours of instruction. The current 135 clock-hour or 9 semester credit hour minimum educational requirement effective January 1, 1979, for broker, shall substantially embrace the following areas of study: The concept of private property in relation to the constitutional powers of the federal and State governments, such as their powers of eminent domain, taxation, police powers, and escheat; Types of Property; Types of Property Interests and Restrictions; Methods of Transferring Real Property Interests; Transfer Instruments, such as Deeds, Leases, Contracts of Sale, Assignments; Financing of Real Estate Transactions; The Mortgaging Process; Settlements, including the Mathematics of Real Estate Transactions; The Role of the Real Estate Agent, including Principles of Agency, Licensing Laws, and Ethics; Real Estate Development, including Governmental Assistance Programs, Zoning, and other Governmental Restrictions on Land Development; Real Estate Appraisal; Real Estate Management; Human Relations Aspects, including study of Fair Housing Laws and effect of undesirable practices such as Exploitation, Steering, Blockbusting, Prejudicial Solicitation and related activities; Basic mathematics pertaining to the real estate industry; Real Estate Securities and Syndication; Advanced Commercial Property; Legal and License Law Update; Advanced Commercial Real Estate Financing; Creative Real Estate Financing; Advanced Sales and Leasing of Industrial Property; Relations to the Public and Proper and Ethical Advertising; Advanced Real Estate Office Management and Administration; Real Estate Exchanging; State and Federal Tax Laws; Condominium Sales, Resales and Time-Sharing Programs; Advanced Real Property Management; New Home Subdivision Marketing. Any subjects other than those set out in §C of this regulation shall be in addition to, not substituted for, the minimum 135 clock-hour requirement. Courses required by this regulation are not interchangeable with the requirements for salesman established in Regulation .11 of this chapter. Also, the separate course for salesman required by Regulation .11 will not be accepted as satisfactory completion of the education requirements for broker as set forth in this regulation. Experience Requirement for Broker. An individual who demonstrates by evidence satisfactory to the Commission active, regular, and lawful engagement in real estate practice as a licensed salesperson or broker in good standing for at least the 3 years immediately preceding submission of the application in Maryland or any other jurisdiction of the United States, District of Columbia, or United States territories may be deemed to have satisfied the 3 years experience as a salesperson required for licensure as a broker. Waiver of Educational Requirement for Broker. An individual who demonstrates by evidence satisfactory to the Commission active, regular, and lawful engagement in real estate practice as a licensed real estate broker in good standing in a jurisdiction other than Maryland for at least 3 years immediately preceding submission of the application may be deemed to have satisfied the educational requirement for broker. Licensing Examination. An applicant for a broker’s license shall have 1 year from full completion of prelicensing education requirements to pass both portions of the broker licensing examination. An applicant who does not pass both portions of the licensing examination within 1 year of completion of the requirements shall complete a new set of prelicensing education requirements in order to be eligible to take or retake the examination. Application for Licensure. An applicant who has successfully completed both portions of the licensing exam shall apply for licensure within 1 year of successfully completing the exam in order for the applicant's test results to remain valid. If an applicant or licensee receives from the Commission a written communication requesting a response, the applicant or licensee shall respond in writing within 30 days of the date of the mailing. The Commission shall send a written communication by first-class mail to the last known address furnished to the Commission by the applicant or licensee. It is a responsibility of an applicant or licensee to notify the Commission in writing if there has been a change in applicant’s or licensee’s address. Failure to respond as required by this regulation may be considered by the Commission to be a violation of Business Occupations and Professions Article, §17-322(b), Annotated Code of Maryland. The basic course of instruction required of salesmen by Business Occupations and Professions Article, §17-303(d), Annotated Code of Maryland, shall include instruction in the human relations aspect of the practice of real estate, including study of fair housing laws and effect of undesirable practices, such as exploitation, steering, blockbusting, prejudicial solicitation, discriminatory practices, misleading advertising, and related activities. The amount of compensation recoverable by a claimant from the Real Estate Guaranty Fund, pursuant to Business Occupations and Professions Article, Title 17, Subtitle 4, Real Estate Guaranty Fund, Annotated Code of Maryland, shall be restricted to the actual monetary loss incurred by the claimant, but may not include monetary losses other than the monetary loss from the originating transaction. Actual monetary losses may not include commissions owed to a licensee of this Commission acting in the licensee’s capacity as either a principal or agent in a real estate transaction, or any attorney's fees the claimant may incur in pursuing or perfecting the claim against the guaranty fund. For the purpose of this regulation, the following terms have the meanings indicated. Definitions. “Advertising” means all oral, written , and visual advertising done by the licensee or by others on behalf of the licensee including telephone solicitation by individuals or by machine. “Licensee” means a real estate broker, associate broker, or salesperson licensed by the Real Estate Commission. “Trade name” means trademark or service mark, company name or business name, irrespective of whether the licensee needs to obtain permission from another person or entity who has an existing or continuing right in that trademark or service mark by virtue of any State or federal law. Licensee Using Trade Name. In the advertising of or contracting for any real estate brokerage services defined under Business Occupations and Professions Article, §17-101, Annotated Code of Maryland, a licensee using a trade name shall clearly and unmistakably include in the advertisement or contract the licensee’s name or trade name, as registered with the Commission, to insure that the licensee’s identity is meaningfully and conspicuously displayed to members of the general public. A licensee using a trade name on a for-sale sign, business card, office sign, sales contract, listing contract, or other document relating to real estate activities as defined under Business Occupations and Professions Article, §17-101, Annotated Code of Maryland, shall clearly and unmistakably include on any of these documents the licensee’s name, or trade name, as registered with the Commission. Any licensee who is in the course of oral communication with another person (whether in person or by telephone), shall clearly and unmistakably include in the communication the licensee’s name, or trade name, as registered with the Commission, to insure that the licensee’s identity is meaningfully and conspicuously made known to that person. A real estate broker shall be a signator or at least one of the signators on checks which may be drawn on escrow accounts which, under Business Occupations and Professions Article, Title 17, Subtitle 5, Part I, Annotated Code of Maryland, this real estate broker is required to maintain at all times. This real estate broker may designate an alternate signator to sign checks, and this designated alternate signator shall be a licensee. A nonlicensed person may be a cosignator on the broker's escrow account, provided all checks are also cosigned by a designated licensee. In any transaction in which a licensee has custody or possession of funds which belong to others, in the absence of a provision to the contrary, in the contract of sale, rental lease, option agreement, or other similar type of document, and a dispute arises as to the disposition of these funds by and between the parties to the transaction, the licensee shall: Hold these funds until he or she has releases signed by all parties to the transaction authorizing disposition of the funds; File a bill of interpleader in the proper court in the county or Baltimore City, as the case may be, thereby causing these funds to be deposited in the registry of this court; Hold these funds until such time as one of the parties to the transaction files suit and the court in which this suit is filed orders the disbursement of these funds, whichever event under the purview of §§B and C of this regulation shall first occur; or Distribute the funds in accordance with the procedure set forth in Business Occupations and Professions Article, §17-505, Annotated Code of Maryland. The Commission may summarily dismiss any complaint brought against a licensee after 3 years from the date of the written listing contract, contract of sale, lease agreement, option, or actions upon which the complaint is based, unless the Commission finds that the complainant's delay in bringing the complaint was justified and that the delay does not result in an undue burden for the licensee. Unless revoked by a final order of the Commission, a licensee is suspended by operation of law under Business Occupations and Professions Article, §17-412, Annotated Code of Maryland, upon payment from the Guaranty Fund due to the conduct of a licensee. The Commission may not consider any application for reinstatement until the amount paid from the Fund because of that conduct is repaid in full, plus 12 percent interest from the time payment is made, under Business and Professions Article, §17-411(a), Annotated Code of Maryland. For purposes of this regulation only, the term “application for reinstatement” may include a written request for reissuance of a license at the discretion of the Commission. A licensee shall furnish to the Commission full information regarding an ownership interest held by the licensee in entities providing real estate brokerage services, together with the licensee's renewal application. A licensee acquiring or disposing of ownership interest in an entity providing real estate brokerage services during the licensing period shall furnish to the Commission full information regarding the resulting ownership interest within 30 days of the change in ownership. A new licensee shall furnish to the Commission full information regarding an ownership interest held by the new licensee in entities providing real estate brokerage services, at the time of application for the license. A licensee who is designated as a broker, branch office manager, or team leader shall complete a 1.5 clock-hour course that includes the requirements of broker supervision under COMAR 09.11.06.01B(8)(i) within 90 days of the effective date of the designation if the licensee has not completed that course during the previous four years. Business Occupations and Professions Article, §§17-208, 17-303, 17-306, 17-315, and 17-528, Annotated Code of Maryland Effective dates: Regulations .01—.03 effective March 16, 1967 Regulation .04 amended effective May 12, 1976 (3:10 Md. R. 529) Regulations .05—.07 effective March 16, 1967 Regulation .06 amended effective February 19, 1975 (2:4 Md. R. 227); repealed effective October 26, 1981 (8:21 Md. R. 1706) Regulation .06 adopted effective October 7, 1985 (12:20 Md. R. 1925) Regulation .07 amended effective June 15, 1987 (14:12 Md. R. 1349) Regulation .08 amended effective August 20, 1968 Regulation .09 effective March 16, 1967; amended effective October 26, 1981 (8:21 Md. R. 1706) Regulation .10 effective July 13, 1967 Regulation .11 effective December 31, 1967 Regulation .11 amended effective February 19, 1975 (2:4 Md. R. 227) Regulation .12 effective January 31, 1968 Regulation .13 amended effective February 19, 1975 (2:4 Md. R. 227); May 11, 1977 (4:10 Md. R. 766); October 26, 1981 (8:21 Md. R. 1706); June 17, 1985 (12:12 Md. R. 1162) Regulation .13A amended effective August 18, 1976 (3:17 Md. R. 915) Regulation .14 effective April 19, 1970 Regulation .15 effective June 29, 1970 Regulation .16 amended effective July 31, 1972; December 16, 1977 (4:26 Md. R. 2023); October 26, 1981 (8:21 Md. R. 1706); June 17, 1985 (12:12 Md. R. 1162) Regulation .16B amended effective February 19, 1975 (2:4 Md. R. 227) Regulation .16C amended effective August 18, 1976 (3:17 Md. R. 915) Regulation .17 effective June 29, 1970 Regulation .18 effective October 1, 1970 Regulation .19 effective February 1, 1971 Regulation .19 repealed effective October 26, 1981 (8:21 Md. R. 1706) Regulations .20—.21 effective April 25, 1972 Regulations .20—.21 repealed effective October 26, 1981 (8:21 Md. R. 1706) Regulation .22 effective July 31, 1972 Regulation .23 effective January 15, 1975 (2:3 Md. R. 152) Regulation .23 amended as an emergency provision effective February 22, 1977 (4:6 Md. R. 504) Regulation .23 amended effective June 25, 1977 (4:13 Md. R. 1030) Regulation .23 amended effective September 22, 1978 (5:19 Md. R. 1445) Regulation .23 amended as an emergency provision effective September 24, 1980 (7:21 Md. R. 1987); adopted permanently effective February 6, 1981 (8:3 Md. R. 226) Regulation .23 amended effective September 28, 1981 (8:19 Md. R. 1565) Regulation .23 amended as an emergency provision effective February 7, 1983 (10:6 Md. R. 535); emergency status extended at 10:8 Md. R. 720 and 10:14 Md. R. 1257; emergency status expired October 1, 1983 (Emergency regulations are temporary and not printed in COMAR) Regulation .23 amended as an emergency provision effective August 11, 1983 (10:18 Md. R. 1605); adopted permanently effective November 7, 1983 (10:22 Md. R. 1965) Regulation .23 repealed pursuant to State Government Article, §7-209(l), Annotated Code of Maryland, having been found unconstitutional by the United States District Court for the District of Maryland Regulation .24 amended effective January 5, 1977 (4:1 Md. R. 18) (adopted as Regulation .31); May 24, 1982 (9:10 Md. R. 1020) Regulation .25 adopted effective August 31, 1977 (4:18 Md. R. 1397) Regulation .26 adopted effective September 22, 1978 (5:19 Md. R. 1445) Regulation .27 adopted effective February 8, 1980 (7:3 Md. R. 263) Regulation .28 adopted effective September 5, 1980 (7:18 Md. R. 1739) Regulation .28 repealed and new .28 adopted effective November 18, 1985 (12:23 Md. R. 2215) Regulation .29 adopted effective September 5, 1980 (7:18 Md. R. 1739) Regulation .29 repealed effective May 24, 1982 (9:10 Md. R. 1020) Regulation .29 adopted effective November 18, 1985 (12:23 Md. R. 2215) Chapter revised effective June 11, 1990 (17:11 Md. R. 1342) Regulation .04 amended as an emergency provision effective February 27, 1992 (19:6 Md. R. 669); emergency status extended at 19:16 Md. R. 1466 (August 7, 1992); emergency status expired February 3, 1993 Regulation .05 repealed effective August 19, 2013 (40:16 Md. R. 1342) Regulation .11 amended effective January 1, 1996 (22:10 Md. R. 706); February 22, 1999 (26:4 Md. R. 273) Regulation .11B, G amended effective February 18, 2013 (40:3 Md. R. 217) Regulation .14 amended effective August 19, 2013 (40:16 Md. R. 1342) Regulation .14G adopted effective November 17, 1997 (24:23 Md. R. 1609) Regulation .23 amended effective April 13, 1992 (19:7 Md. R. 745) Regulation .24 repealed as an emergency provision effective January 1, 1999 (26:1 Md. R. 17); repealed permanently effective May 3, 1999 (26:9 Md. R. 730) Regulation .25 adopted effective October 7, 1996 (23:20 Md. R. 1421) Regulation .26 adopted as an emergency provision effective May 3, 1996 (23:11 Md. R. 807); adopted permanently effective November 4, 1996 (23:22 Md. R. 1495) Regulation .26B amended effective February 22, 1999 (26:4 Md. R. 273) Regulation .27 adopted effective October 29. 2012 (39:21 Md. R. 1378) Chapter revised effective June 1, 2017 (44:8 Md. R. 401) Chapter Regulations renumbered to correct prior Final Action effective June 1, 2017 (44:8 Md. R. 401) Regulation .13 repealed and new Regulation .13 adopted effective January 14, 2019 (46:1 Md. R. 11) Regulation .23 amended effective April 27, 2026 (53:8 Md. R. 355)