reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-323 - Failure to Disclose Certain Facts -- Commencement of Proceedings

(a)    Subject to the provisions of this section, the Commission shall commence proceedings under § 17–322 of this subtitle on a complaint made to the Commission by a member of the Commission or any other person.
(b)    (1)    A complaint shall:
(i)    be in writing; and
(ii)    state specifically the facts on which the complaint is based.
(2)    If a complaint is made by any person other than a member of the Commission, the complaint shall be made under oath by the person who submits the complaint.
(3)    A complaint may be accompanied by documentary or other evidence.
(c)    (1)    The Commission, or its designee, shall review each complaint received by the Commission. A complaint shall be referred for investigation if, after a review under this subsection, it is determined that the complaint:
(i)    alleges facts that establish a prima facie case that is grounds for disciplinary action under § 17–322 of this subtitle; and
(ii)    meets the requirements of subsection (b) of this section.
(2)    A complaint not referred for investigation under paragraph (1) of this subsection shall be dismissed, and any appeal shall be taken under paragraph (3) of this subsection.
(3)    (i)    If a complaint is dismissed under paragraph (2) of this subsection, within 30 days from the date of the dismissal any member of the Commission may file an exception to the decision.
(ii)    If an exception is filed with the Commission under subparagraph (i) of this paragraph, the Commission shall set a hearing on the matter by the full Commission on whether the complaint satisfies the requirements of paragraph (1) of this subsection. If the Commission determines that the complaint is satisfactory, the matter shall be referred for an investigation.
(iii)    If an exception is not filed within the time allowed under subparagraph (i) of this paragraph:
1.    the decision of the Commission is final; and
2.    any party aggrieved by the decision may take a judicial appeal as provided in § 17–329 of this subtitle.
(d)    (1)    On completion, an investigation shall be referred directly to the Commission or its designee.
(2)    If the Commission or its designee determines there is a reasonable basis to believe any grounds exist for disciplinary action under § 17–322 of this subtitle, the investigation shall be referred for a hearing in accordance with § 17–324 of this subtitle.
(3)    A complaint not referred for a hearing by the Commission or its designee shall be dismissed, and any party aggrieved by the decision may take a judicial appeal as provided in § 17–329 of this subtitle.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-324 - Failure to Disclose Certain Facts -- Hearings

(a)    Except as otherwise provided in § 10-226 of the State Government Article, before the Commission takes any final action under § 17-322 of this subtitle, it shall give the individual against whom the action is contemplated an opportunity for a hearing before the Commission or, as provided under § 17-326 of this subtitle, a hearing board.
(b)    The Commission shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.
(c)    In connection with any proceeding under this section, the following individuals may administer oaths:
(1)    a member of the Commission;
(2)    the executive director of the Commission; and
(3)    the assistant director of the Commission.
(d)    (1)    At least 10 days before the hearing, the hearing notice to be given to the individual shall be:
(i)    served personally on the individual; or
(ii)    sent by certified mail to the last known business address of the individual.
(2)    If the individual is an associate real estate broker or a real estate salesperson, at least 10 days before the hearing, the Commission shall give notice of the hearing to each real estate broker with whom the associate real estate broker or the real estate salesperson is affiliated by sending notice by certified mail to the last known business address of the real estate broker.
(e)    The individual may be represented at the hearing by counsel.
(f)    If, after due notice, the individual against whom the action is contemplated fails or refuses to appear, nevertheless the Commission may hear and determine the matter.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-325 - Real Estate Hearing Board

(a)    With the approval of the Secretary, the Commission may establish 1 or more real estate hearing boards. If established, each hearing board shall be a unit in the Department.
(b)    (1)    If established, each hearing board shall consist of at least 3 members of the Commission, appointed by the Commission.
(2)    Of the 3 mandatory positions on the hearing board:
(i)    at least 1 shall be a professional member of the Commission; and
(ii)    at least 1 shall be a consumer member of the Commission.
(c)    From among the members of each hearing board, the Commission shall designate a chairman.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-326 - Referral of Cases; Procedure Before Hearing Board

(a)    Except as otherwise provided in this subtitle, the Commission may refer to a hearing board for a hearing:
(1)    a complaint or claim that has been submitted to the Commission; and
(2)    any matter for which a hearing may be required under § 17-327 or § 17-328 of this subtitle.
(b)    The hearing board may exercise the same powers and shall conduct a hearing in accordance with the same procedures applicable to the Commission under § 17-324 of this subtitle.
(c)    (1)    The hearing board shall determine if there is a reasonable basis to believe that there are grounds for disciplinary action under § 17-322 of this subtitle against an applicant or licensee.
(2)    (i)    If the hearing board finds a reasonable basis as provided under paragraph (1) of this subsection, the hearing board shall:
1.    hold a hearing on the matter; and
2.    file its finding with the Commission.
(ii)    If the hearing board does not find a reasonable basis as provided under paragraph (1) of this subsection, the hearing board shall dismiss the complaint.
(3)    A hearing board shall advise the Commission specifically of any action brought against a licensee as a result of monetary loss, misappropriation of money, or fraud.
(d)    The decision of the hearing board shall be considered as the final decision of the Commission and any party aggrieved by the decision may take a judicial appeal as provided in § 17-329 of this subtitle.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-327 - Summary Revocation of Licenses Based on Actions of Other Agencies

(a)    Subject to the provisions of subsection (b) of this section, the Commission may order summarily the revocation of:
(1)    the license of any licensee, if:
(i)    the licensee is convicted of a violation of this title;
(ii)    the conviction is final; and
(iii)    the period for appeal has expired; or
(2)    the license of any nonresident licensee, if the real estate regulatory agency of the state where the licensee is a resident:
(i)    revokes the license issued by that state; and
(ii)    certifies the order of revocation to the Commission.
(b)    The Commission may order summarily a revocation under this section only if it gives the licensee:
(1)    written notice of the revocation and the finding on which the revocation is based; and
(2)    after the summary revocation is effective, an opportunity to be heard promptly before the Commission or, as provided under § 17-326 of this subtitle, before a hearing board.
(c)    (1)    Rather than order summarily a revocation of a license under this section, the Commission may elect not to revoke the license until after the licensee is given an opportunity for a hearing.
(2)    If the Commission elects to give the licensee an opportunity for a hearing before revoking the license for the grounds set forth in this section, the Commission shall give notice and hold the hearing in the same manner as required under § 17-324 of this subtitle.
(d)    (1)    In any hearing held on the grounds for revocation under subsection (a) of this section, the Commission may restrict the admission of evidence to the issue whether:
(i)    the alleged conviction in fact occurred; or
(ii)    the alleged revocation in fact occurred.
(2)    Notwithstanding paragraph (1) of this subsection, in any hearing held on the grounds for revocation under subsection (a) of this section, a licensee may present matters in mitigation of the offense charged.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-328 - Summary Suspension of Licenses for Trust Fund Violations

(a)    Subject to the provisions of subsection (b) of this section, the Commission may order summarily the suspension of the license of a licensee if the licensee:
(1)    fails to account promptly for any money held in trust;
(2)    on demand, fails to display to the Commission all records, books, and accounts of any money held in trust;
(3)    has been convicted of a felony under the laws of the United States or of any state; or
(4)    within 10 days after the conviction or within 10 days following release from incarceration as a result of the conviction, whichever is later, fails to disclose to the Commission that the licensee has been convicted of a felony under the laws of the United States or of any state.
(b)    The Commission may order summarily a suspension under this section only if the Commission gives the licensee:
(1)    written notice of the suspension and the finding on which the suspension is based; and
(2)    after the summary suspension is effective, an opportunity to be heard promptly before the Commission or, as provided under § 17–326 of this subtitle, before a hearing board.
(c)    A summary suspension ordered by the Commission under this section:
(1)    may start immediately or at any later date, as set by the order; and
(2)    shall continue until:
(i)    the licensee complies with the conditions set forth by the Commission in its order; or
(ii)    the Commission orders a different disposition after a hearing held under this section.
(d)    (1)    Rather than order summarily a suspension of a license under this section, the Commission may elect not to suspend the license until after the licensee is given an opportunity for a hearing.
(2)    If the Commission elects to give the licensee an opportunity for a hearing before suspending the license for the grounds set forth in this section, the Commission shall give notice and hold the hearing in the same manner as required under § 17–324 of this subtitle.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-329 - Judicial Review

(a)    Any person aggrieved by a final decision of the Commission in a contested case, as defined in § 10-202 of the State Government Article, may take an appeal as allowed in §§ 10-222 and 10-223 of the State Government Article.
(b)    Except as provided in subsection (c) of this section, unless stayed by the Commission or a court, a decision of the Commission is not stayed pending review.
(c)    A court may grant a stay of the suspension or revocation of the license of the licensee only on the filing of a bond by a licensee as provided in subsection (d) of this section.
(d)    (1)    The court may set the bond required under subsection (c) of this section in any amount not exceeding $50,000.
(2)    The bond shall be conditioned for the use and benefit of any person who, as a member of the public, might sustain pecuniary loss because of any violation of this title by the licensee.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3 - Licensing › Section 17-330 - Notice of Revocation or Suspension

(a)    Whenever the Commission revokes or suspends the license of a licensee under § 17-322 of this subtitle and a stay is not ordered by the Commission or the court, the Commission shall mail notice of the suspension or revocation:
(1)    to the licensee;
(2)    if the licensee is an associate real estate broker or a real estate salesperson, to each real estate broker with whom the licensee is affiliated;
(3)    to the Maryland Association of Realtors; and
(4)    to the local board of realtors and the realtist organization having jurisdiction over the geographic area where the licensee maintained an office.
(b)    (1)    If the Commission revokes or suspends the license of a nonresident licensee, the Commission also shall notify by mail the real estate commission or other licensing authority in the state where the licensee is a resident.
(2)    The Commission shall include in the notice the cause for the revocation or suspension of the license.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-01 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Reciprocal license” means a license issued under this subtitle.
(c)    “Standard license” means a license issued under Subtitle 3 of this title.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-02 - Issuance of License in General

(a)    Subject to the limitations of this subtitle, the Commission may issue a reciprocal license to a person:
(1)    holding a current license to provide real estate brokerage services issued by another state; and
(2)    whose principal place of business for the provision of real estate brokerage services is outside the State.
(b)    The reciprocal license shall be for the category of license the Commission determines is most similar to the category of license issued by the other state.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-03 - Obtaining License Constitutes Sufficient Contact for Personal Jurisdiction

Obtaining a reciprocal license from the Commission shall constitute sufficient contact with the State for the exercise of personal jurisdiction by the Commission and the courts of the State over the holder of a reciprocal license in any action or proceeding arising out of acts or omissions by the holder of the reciprocal license:
(1)    in the State; or
(2)    relating to an actual or proposed transaction involving real property located in the State.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-04 - Issuance or Denial of Reciprocal License

(a)    Except as otherwise provided in this subtitle, the Commission shall issue a reciprocal license to an applicant licensed in another state to provide real estate brokerage services if:
(1)    the applicant files with the Commission an application for a reciprocal license;
(2)    (i)    the jurisdiction in which the principal place of business of the applicant is located submits a certified copy of a current license issued to the applicant; or
(ii)    the licensing body for the other state submits a certified statement indicating that the applicant holds a current license in the other state;
(3)    the licensing body for the other state submits:
(i)    a statement indicating whether the applicant has been the subject of any disciplinary proceeding; and
(ii)    if the applicant has been the subject of any disciplinary proceeding, the details of the proceeding;
(4)    the applicant submits to the Commission a statement attesting to the fact that:
(i)    to the knowledge of the applicant, the applicant is not the subject of discipline or a current investigation or proceeding alleging misconduct under a licensing law or criminal law of this State or any other jurisdiction;
(ii)    the applicant has not been convicted under the laws of the United States or of any state of:
1.    a felony;
2.    a misdemeanor that is directly related to the fitness and qualifications of the applicant to provide real estate brokerage services; or
3.    a crime that constitutes a violation of any provision of this title;
(iii)    the applicant has reviewed, is familiar with, and agrees to be bound by the:
1.    provisions of this title;
2.    regulations of the Commission; and
3.    Maryland Code of Ethics; and
(iv)    the applicant agrees to permit the disclosure to the Commission of the record in any disciplinary proceeding involving alleged misconduct by the applicant from any jurisdiction in which the applicant is or has been licensed;
(5)    the applicant pays the fees required under this title for the comparable or equivalent license for which the applicant is seeking a reciprocal license; and
(6)    the applicant submits a consent form to service of process, in a form required by the Commission.
(b)    The Commission may deny an application for a reciprocal license if the Commission finds that an applicant is not of good character and conduct based on:
(1)    the applicant’s violation of a real estate licensing law of another state;
(2)    the applicant’s conviction of a crime described in subsection (a)(4)(ii) of this section; or
(3)    the applicant’s being the subject of a disciplinary proceeding in another jurisdiction.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-06 - Written Agreements With Authorities of Other States Not Required

(a)    This subtitle may be implemented by written reciprocal licensing agreements with the real estate licensing authorities of other states.
(b)    Subject to § 17-3A-07 of this subtitle, the Commission is not required to enter into an agreement with another state before issuing a reciprocal license to a licensee from that other jurisdiction.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-07 - Issuance of License Without Agreement With Other State

(a)    Subject to subsection (b) of this section, if the Commission determines that another state does not offer reciprocal licensure opportunities to a licensee of this State that are substantially comparable to those afforded to licensees of that other state by this subtitle, the Commission shall require that reciprocal license applicants from that other state meet education, experience, and examination requirements substantially comparable to those required by that state with respect to licensees of this State who seek a reciprocal license in that other state.
(b)    Any requirements imposed under subsection (a) of this section may not exceed the requirements imposed on residents of this State for obtaining a standard license.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-08 - Publication of Reciprocity Information

The Commission shall annually publish in the Maryland Register and make available both on request and on the Internet:
(1)    (i)    a list of states with which the Commission has signed agreements under § 17-3A-06 of this subtitle; and
(ii)    a summary of the terms of each agreement listed under item (i) of this paragraph; and
(2)    (i)    a list of the states that the Commission has identified under § 17-3A-07 of this subtitle as not offering substantially comparable reciprocal licensure opportunities; and
(ii)    a description of the additional requirements the Commission determines are necessary for applicants from other states to comply with the requirements of § 17-3A-07 of this subtitle.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-09 - Reciprocal License Holder Establishing In-State Business

(a)    A person that holds a reciprocal license shall promptly notify the Commission if the person establishes a principal place of business for the provision of real estate brokerage services in the State.
(b)    A person that holds a reciprocal license shall obtain a standard license under the licensing provisions of this title within 90 days after establishing a principal place of business in the State.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 3A - Reciprocity › Section 17-3A-10 - Rights and Responsibilities of Holder of License

(a)    Subject to subsection (c) of this section, the holder of a reciprocal license has the same rights and responsibilities as a person who holds a comparable standard license issued under this title.
(b)    (1)    Subject to paragraph (2) of this subsection, a person that holds a reciprocal license issued by the Commission may renew the reciprocal license in accordance with the renewal procedures for the comparable or equivalent standard license under § 17-314 of this title.
(2)    At the time of application for the renewal of a reciprocal license, the applicant shall provide proof that the applicant:
(i)    continues to hold a current license in the state in which the applicant’s principal place of business is located; and
(ii)    is not the subject of a disciplinary action or a current investigation or proceeding alleging misconduct under a real estate licensing law of the state in which the applicant’s principal place of business is located.
(c)    The holder of a reciprocal license is:
(1)    not eligible to be a member of the Commission;
(2)    exempt from the requirements of §§ 17-303, 17-304, 17-305, 17-315, 17-503, and 17-517 of this title; and
(3)    exempt from having to pass an examination required for a comparable standard license.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-401 - Scope of Subtitle

This subtitle does not limit the authority of the Commission to take:
(1)    any action against a licensee under the disciplinary provisions of Subtitle 3 of this title; or
(2)    any other action authorized under this title.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-402 - Establishment of Guaranty Fund; Investments

(a)    The Commission shall:
(1)    establish a Real Estate Guaranty Fund; and
(2)    maintain the Guaranty Fund at a level of at least $250,000.
(b)    (1)    The Commission shall deposit all money collected to the credit of the Guaranty Fund with the State Treasurer for placement into a special account.
(2)    (i)    The State Treasurer may invest or reinvest money in the Guaranty Fund in the same manner as money in the State Retirement and Pension System.
(ii)    The investment earnings shall be:
1.    credited to the Guaranty Fund; and
2.    available for the same purposes as the money deposited into the Guaranty Fund.
(c)    The Commission may adopt regulations for the administration of a Guaranty Fund.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-403 - Initial Fee; Transfer to Guaranty Fund; Assessments

(a)    (1)    Subject to paragraph (2) of this subsection, before the Commission issues a real estate broker license, an associate real estate broker license, or a real estate salesperson license to any individual, the individual shall pay a fee of $20 to be credited to the Guaranty Fund.
(2)    Regardless of how many times an individual applies to the Commission for a license under this title, the Commission may charge the individual only once for the fee required under this subsection.
(b)    If the amount in the Guaranty Fund falls below $300,000, and the Commission is projected to have an operating surplus of at least $500,000 in the current fiscal year, the Commission may transfer up to $500,000 to the Guaranty Fund from the State Real Estate Commission Fund established under § 2–106.3 of the Business Regulation Article.
(c)    If the amount in the Guaranty Fund falls below $250,000, the Commission shall assess each real estate broker, each associate real estate broker, and each real estate salesperson a fee in an amount that will return the Guaranty Fund to a level of at least $250,000.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-404 - Claims Against Guaranty Fund

(a)    (1)    Subject to the provisions of this subtitle, a person may recover compensation from the Guaranty Fund for an actual loss.
(2)    A claim shall:
(i)    be based on an act or omission that occurs in the provision of real estate brokerage services by:
1.    a licensed real estate broker;
2.    a licensed associate real estate broker;
3.    a licensed real estate salesperson; or
4.    an unlicensed employee of a licensed real estate broker;
(ii)    involve a transaction that relates to real estate that is located in the State; and
(iii)    be based on an act or omission:
1.    in which money or property is obtained from a person by theft, embezzlement, false pretenses, or forgery; or
2.    that constitutes fraud or misrepresentation.
(b)    The amount recovered for any claim against the Guaranty Fund may not exceed $50,000 for each claim.
(c)    (1)    A person may not recover from the Guaranty Fund for any loss that relates to:
(i)    the purchase of any interest in a limited partnership that is formed for the purpose of investment in real estate;
(ii)    a joint venture that is promoted by a licensed real estate broker, a licensed associate real estate broker, or licensed real estate salesperson for the purpose of investment in real estate by 2 or more individuals; or
(iii)    the purchase of commercial paper that is secured by real estate.
(2)    A claim under the Guaranty Fund may not be made by:
(i)    the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim; or
(ii)    the personal representative of the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim.
(d)    A claim under this subtitle shall be submitted to the Commission within 3 years after the claimant discovers or, by the exercise of ordinary diligence, should have discovered the loss or damage.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-406 - Form of Claims

(a)    Each claim against the Guaranty Fund shall be made in accordance with this section.
(b)    Each claim shall:
(1)    be in writing;
(2)    be made under oath;
(3)    state the amount of loss claimed;
(4)    state the facts on which the claim is based; and
(5)    be accompanied by any documentation or other evidence that supports the claim.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-407 - Action on Claim by Commission

(a)    The Commission shall act promptly on a claim made under this subtitle.
(b)    Upon receipt of a claim, the Commission shall:
(1)    forward a copy of the claim:
(i)    to each licensee alleged to be responsible for the act or omission giving rise to the claim;
(ii)    to each unlicensed employee alleged to be responsible for the act or omission giving rise to the claim; and
(iii)    if the licensee alleged to be responsible for the act or omission giving rise to the claim is an associate real estate broker or a real estate salesperson, to each real estate broker with whom the associate real estate broker or the real estate salesperson is affiliated; and
(2)    request from each of those individuals a written response within 10 days to the allegations set forth in the claim.
(c)    (1)    The Commission:
(i)    shall review the claim and any response to the claim; and
(ii)    may conduct an investigation of the claim.
(2)    On the basis of its review and any investigation that the Commission conducts, it shall:
(i)    issue a proposed award under subsection (d) of this section;
(ii)    set the matter for a hearing; or
(iii)    if the claim is frivolous, made in bad faith, or legally insufficient, dismiss the claim.
(d)    (1)    (i)    If a claimant’s total claim arising from the conduct of one licensee does not exceed $5,000, the Commission may issue a proposed order to either pay the claim in whole or in part or to deny the claim.
(ii)    The Commission shall send the proposed order to the claimant and the licensee by personal delivery or by both regular and certified mail, return receipt requested.
(iii)    The proposed order shall be sent to the licensee at the most recent address on record with the Commission.
(2)    (i)    Within 30 days after the date of personal service of the proposed order or receipt of the proposed order by certified mail, the licensee or the claimant may request in writing a hearing before the Commission or file written exceptions to the proposed order issued under paragraph (1) of this subsection.
(ii)    On receipt of a written request for a hearing or written exceptions to the proposed order in accordance with subparagraph (i) of this paragraph, the Commission shall schedule a hearing on the claim.
(iii)    If a hearing is not requested or if timely exceptions are not filed to the proposed order, the proposed order shall become a final order of the Commission.
(e)    At any claim hearing, the burden of proof shall be on the claimant to establish the validity of the claim.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-408 - Right to Participate in Hearing; Notice

(a)    The Commission shall give the claimant and the licensee or unlicensed employee alleged to be responsible for the act or omission giving rise to the claim an opportunity to participate in the hearing before the Commission.
(b)    The Commission shall give notice of the hearing to:
(1)    the claimant;
(2)    each licensee alleged to be responsible for the act or omission giving rise to the claim; and
(3)    each unlicensed employee alleged to be responsible for the act or omission giving rise to the claim.
(c)    The Commission may not proceed with the hearing unless the records of the Commission show that all notices required under this subtitle were sent to each licensee and each unlicensed employee alleged to be responsible for the act or omission giving rise to the claim.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-409 - Joinder of Proceedings

(a)    If a claim against the Guaranty Fund alleges that the act or omission giving rise to the claim was performed by a licensed real estate broker, a licensed associate real estate broker, or a licensed real estate salesperson, the Commission shall join the proceeding on the claim with any disciplinary proceeding against the licensee under this title arising from the same facts alleged in the claim.
(b)    (1)    For that part of a hearing on consolidated proceedings that relates to disciplinary action but does not relate to the Guaranty Fund claim against a licensee, the claimant:
(i)    may not be a party; and
(ii)    may participate only as a witness.
(2)    For that part of a hearing on consolidated proceedings that relates to the claim against the Guaranty Fund, the claimant is a party.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-410 - Payments by Guaranty Fund

(a)    The Commission shall order payment of a claim by the Guaranty Fund if, on the hearing, the claimant:
(1)    proves that the claimant has a valid claim under this subtitle; and
(2)    presents evidence, satisfactory to the Commission, that the claimant is not:
(i)    the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim; or
(ii)    the personal representative of the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim.
(b)    (1)    The Commission may order payment by the Guaranty Fund only for the actual monetary loss suffered by the claimant as a result of the claim proven by the claimant.
(2)    For any claim, the Commission may not order a payment by the Guaranty Fund of more than $50,000.
(c)    A payment may not be made by the Guaranty Fund under an order of the Commission until:
(1)    the expiration of the time provided under Title 10, Subtitle 2 of the State Government Article for seeking judicial review of the Commission’s order; or
(2)    the expiration of any judicial stay of the order of the Commission.
(d)    The Commission shall order payment of each claim due in the order in which the claim was awarded.
(e)    If, at the time a payment is due, the money in the Guaranty Fund is insufficient to satisfy fully the order for payment, the Commission:
(1)    immediately shall pay to the claimant the amount that is available in the Guaranty Fund; and
(2)    when sufficient funds are available in the Guaranty Fund, shall pay the claimant:
(i)    the balance due on the order; plus
(ii)    interest calculated on that balance at an annual rate of 10%.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 4 - Real Estate Guaranty Fund › Section 17-412 - Suspension of License

(a)    If the Commission orders payment by the Guaranty Fund of a claim based on an act or omission for which a licensee is responsible, the Commission immediately and without further proceedings shall suspend the license of the licensee.
(b)    The Commission may not reinstate a license that is suspended under this section until the individual whose license was suspended:
(1)    repays in full:
(i)    the amount paid by the Guaranty Fund; and
(ii)    the interest due under § 17-411(a)(2) of this subtitle; and
(2)    applies to the Commission for reinstatement of the license.
(c)    Regardless of whether the disciplinary sanction was imposed for the same act or omission that gave rise to the claim against the Guaranty Fund, the reimbursement of the Guaranty Fund by a licensee does not affect any sanction imposed by the Commission against an individual under the disciplinary provisions of Subtitle 3 of this title.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part I - Trust Accounts › Section 17-501 - Definitions

(a)    In this Part I of this subtitle the following words have the meanings indicated.
(b)    “Beneficial owner” means a person, other than the owner of the trust money, for whose benefit a real estate broker or, on behalf of a real estate broker, an associate real estate broker or a real estate salesperson is entrusted to hold trust money.
(c)    “Trust money” means a deposit, payment, or other money that a person entrusts to a real estate broker or, on behalf of a real estate broker, to an associate real estate broker or a real estate salesperson to hold for:
(1)    the benefit of the owner or beneficial owner of the trust money; and
(2)    a purpose that relates to a real estate transaction involving real estate in the State.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part I - Trust Accounts › Section 17-502 - Handling of Trust Money

(a)    An associate real estate broker or a real estate salesperson who obtains trust money while providing real estate brokerage services promptly shall submit the trust money to the real estate broker on whose behalf the associate real estate broker or the real estate salesperson provided the real estate brokerage services.
(b)    (1)    Except as otherwise provided in subsection (c) of this section, a real estate broker promptly, but not more than 7 business days after the acceptance of a contract of sale by both parties, shall deposit trust money in an account that is maintained by the real estate broker:
(i)    separately from the real estate broker’s own accounts; and
(ii)    solely for trust money.
(2)    A real estate broker may not use trust money for any purpose other than that for which it is entrusted to the real estate broker.
(c)    Subsection (b)(1) of this section does not apply if the real estate broker receives written directions to the contrary as authorized under § 17-505(d) of this subtitle.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part I - Trust Accounts › Section 17-503 - Authorized Financial Institutions

Except as authorized under § 17-505 of this subtitle, a real estate broker shall deposit all trust money in a financial institution that is located in the State and whose deposits are insured by:
(1)    the Federal Deposit Insurance Corporation;
(2)    the Federal Savings and Loan Insurance Corporation;
(3)    the National Credit Union Administration;
(4)    the State of Maryland Deposit Insurance Fund Corporation; or
(5)    the Credit Union Insurance Corporation.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part I - Trust Accounts › Section 17-504 - Authorized Accounts

Unless the owner and beneficial owner give written instructions to the contrary, a real estate broker may deposit trust money in:
(1)    a noninterest bearing checking account;
(2)    a noninterest bearing savings account; or
(3)    any combination of these accounts.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part I - Trust Accounts › Section 17-507 - Maintenance of Records

(a)    Each real estate broker shall maintain all records of trust money in a secured area within the office of the broker.
(b)    (1)    Each licensee shall keep copies of:
(i)    listings; and
(ii)    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.
(2)    (i)    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.
(ii)    A licensee providing property management services shall keep the records required by this section for 5 years after the termination of the management agreement.
(c)    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:
(1)    the stored record cannot be erased or edited;
(2)    the stored record is made or preserved as part of, and in the regular course of, the licensee’s business;
(3)    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;
(4)    the custodian of the record is able to identify the stored record, the mode of its preparation, and the mode of storage; and
(5)    the electronic storage system contains a reliable indexing system that provides:
(i)    convenient access to the document or record;
(ii)    appropriate quality control of the storage process; and
(iii)    chronological arrangement of stored documents or records.
(d)    (1)    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.
(2)    The licensee shall provide, at the licensee’s expense, a paper copy of any document or record requested by the Commission.
(3)    A licensee shall display to the Commission on demand all records, books, and accounts of any money held in trust.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part I - Trust Accounts › Section 17-508 - Disciplinary Action

In addition to being subject to disciplinary action under §§ 17-322 and 17-328 of this title, a real estate broker, an associate real estate broker, or a real estate salesperson who violates any provision of this Part I of this subtitle is subject to any other civil or criminal action provided by law.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part II - General Miscellaneous Provisions › Section 17-511 - Limitation on Interest in Business by Associate Brokers and Salespersons

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Business” means a person or entity, regardless of legal structure, through which real estate brokerage services are provided.
(3)    (i)    “Immediate family member” means a spouse, parent, child, or sibling.
(ii)    “Immediate family member” includes a stepparent, stepchild, or stepsibling.
(4)    “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.
(b)    (1)    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.
(2)    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.
(c)    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.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part II - General Miscellaneous Provisions › Section 17-512 - Formation of Various Business Entities by Salespersons and Associate Brokers

(a)    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:
(1)    organize and wholly own a professional service corporation under the Maryland Professional Service Corporation Act;
(2)    form a limited liability company under the Maryland Limited Liability Company Act; or
(3)    form any other business entity authorized under Maryland law.
(b)    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.
(c)    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.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part II - General Miscellaneous Provisions › Section 17-513 - Division of Fees With Individual Licensed in Another State

An individual licensed by this State may divide a fee that is earned on a real estate transaction in this State with an individual licensed to provide real estate brokerage services in another state if the other state allows a fee that is earned on a real estate transaction in that state to be divided with an individual licensed by this State.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part II - General Miscellaneous Provisions › Section 17-514 - Service of Process on and Venue for Nonresident Licensees

(a)    A nonresident applicant for a license shall submit to the Commission an irrevocable consent, as provided under this section.
(b)    The consent required under this section shall:
(1)    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;
(2)    specify that an action, suit, or proceeding may be brought against the applicant in any county in which:
(i)    the cause of action arose; or
(ii)    the plaintiff resides;
(3)    specify that the consent is irrevocable; and
(4)    be signed by the applicant.
(c)    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.
(d)    (1)    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.
(2)    If service of process is made on the executive director of the Commission as authorized under this section, the person filing immediately shall:
(i)    submit a copy of the filing to the Commission; and
(ii)    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.
(3)    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:
(i)    the cause of action arose; or
(ii)    the plaintiff resides.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part II - General Miscellaneous Provisions › Section 17-515 - Implied Consent

(a)    If any of the following acts are performed by a nonresident real estate broker, nonresident associate real estate broker, or nonresident real estate salesperson, the act shall constitute an irrevocable consent, as provided in subsection (b) of this section:
(1)    participating in any real estate transaction in the State; or
(2)    dividing fees or holding deposits from any real estate transaction in the State.
(b)    A consent arising under this section shall have the same effect and be subject to the same procedures for service of process as a consent submitted under § 17-514 of this subtitle.
2023 Maryland Statutes › Business Occupations and Professions › Title 17 - Real Estate Brokers › Subtitle 5 - Miscellaneous Provisions › Part II - General Miscellaneous Provisions › Section 17-516 - Actions for Compensation for Providing Real Estate Brokerage Services

A person may not bring an action or recover on an action for compensation for providing real estate brokerage services in a court of the State unless the person was authorized to provide real estate brokerage services under this title at the time of offering to provide and providing real estate brokerage services.