Duties and Powers of the Real Estate Commission
Five of the forty Maryland state items sit here. The published subtopics are General Powers; Investigations, Hearings, and Appeals; Suspensions, Revocations, and Penalties; Guaranty Fund; and Examination of Records, which PSI flags as broker-only.
General Powers and Discipline
The State Real Estate Commission sits in the Maryland Department of Labor (Bus. Occ. & Prof. § 17-201) and has nine members — five licensed practitioners and four consumer members (§ 17-202). It adopts regulations and, under § 17-207, a code of ethics by regulation. Its disciplinary reach is § 17-322: thirty-five listed grounds, and under § 17-322(c)(1) a penalty of up to $5,000 for each violation, imposed instead of or in addition to a reprimand, suspension, or revocation. Section 17-208(c) marks one thing it may not do — adopt a regulation allowing a conditional or temporary license.
Investigations, Hearings, and Appeals
A complaint must be in writing, state the facts, and (except for advertising complaints, which may be anonymous) be sworn (§ 17-323). The Commission, a hearing board, or the executive director may hold hearings, administer oaths, and subpoena witnesses (§ 17-209). Before final action the licensee gets a hearing, with notice served personally or by certified mail at least 10 days ahead (§ 17-324(d)). Appeals run under §§ 10-222 and 10-223 of the State Government Article; a court may stay a suspension only on a bond of up to $50,000 (§ 17-329).
The Guaranty Fund
Maryland's Guaranty Fund is administrative. There is no requirement of a court judgment. A claim must be submitted to the Commission within 3 years after the claimant discovers, or should have discovered, the loss (§ 17-404(d)); it must be in writing and under oath (§ 17-406); and the Commission orders payment after a hearing at which the claimant carries the burden of proof (§§ 17-407, 17-410). The cap is $50,000 per claim (§§ 17-404(b), 17-410(b)(2)), the Fund is held at a minimum of $250,000 (§ 17-402), and every broker-supplied sales contract must notify the buyer of the protection (§ 17-405). On payment, § 17-412 suspends the responsible licensee's license at once until the Fund is repaid in full with interest.
Examination of Records (Broker Only)
On reasonable notice a licensee must let a Commission representative enter the place of business during business hours to inspect records, and must pay for any paper copies the Commission asks for (§ 17-507(d)(1)–(2)). Trust records are stricter still: a licensee must display them to the Commission on demand (§ 17-507(d)(3)), and failing to do so is a ground for summary suspension under § 17-328(a)(2).
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State-specific details
State exam facts
- State regulator
- Maryland Real Estate Commission (MREC)
- Exam vendor
- PSI
- Prelicensing education
- 135 clock hours (broker prelicense program), after 3 years of active licensed practice
- Passing score
- 70% on each portion (56 national, 28 state)
- Scored questions
- 115
- Time limit
- 120 minutes
Who regulates real estate brokers in Maryland?
The Maryland Real Estate Commission (MREC), within the Department of Labor's Division of Occupational and Professional Licensing, licenses brokers and salespersons. MREC contracts with PSI for its exams.
What experience do I need before the Maryland broker exam?
Business Occupations and Professions § 17-305 requires three years as a licensed salesperson actively and lawfully providing brokerage services, plus a Commission-approved broker course — 135 clock hours under COMAR 09.11.01.12. PSI also requires a Maryland license history certifying three years of active, regular, lawful practice, valid for 90 days. An applicant qualified to practice law in Maryland has both the education and experience requirements waived.
How is the Maryland broker exam structured?
PSI bulletin 529 puts the broker exam at 115 scored questions in 120 minutes: a 75-question national portion scored to 80 points in 90 minutes, and a 40-question Maryland state portion worth 40 points in 30 minutes. You must pass each portion separately — 56 of 80 points national, 28 of 40 state. Do not use the salesperson figures (80 national + 30 state = 110); the two exams differ.
What does the Maryland state portion actually cover?
Six areas, at these broker item counts: Duties and Powers of the Real Estate Commission 5, Licensing Requirements 8, Brokerage Relationships 7, Supervision 6, Business Conduct 9, and Ethics 5. 'Examination of Records' is flagged broker-only. Maryland licenses Salesperson, Associate Broker, Broker, and Branch Office Manager.
Sources: https://labor.maryland.gov/license/mrec/mrecexam.shtml, https://test-takers.psiexams.com/api/content/bulletin/529
In the Maryland Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.