Supervision
Six of forty items, and the most broker-specific area on the paper: handling trust money, recordkeeping including electronic records, supervision requirements, and knowledge of other Maryland state laws — short sale, home improvements, and the Protection of Homeowners in Foreclosure Act, which the outline prints as 'PIFHA'.
Handling Trust Money
An associate broker or salesperson who receives trust money hands it to the broker promptly (§ 17-502(a)). The broker deposits it promptly, and not more than 7 business days after both parties accept the contract of sale, into an account separate from the broker's own and used solely for trust money (§ 17-502(b)), at a Maryland-located insured institution (§ 17-503), normally non-interest-bearing (§ 17-504; COMAR 09.11.01.06). It stays there until the transaction closes or terminates, until written instructions from both owner and beneficial owner, until a court order on the broker's interpleader, or through the § 17-505(b) notice-and-30-day-protest route. The broker must be a signator on escrow checks; any alternate signator must be a licensee, and an unlicensed cosignator is allowed only if a designated licensee also signs (COMAR 09.11.01.17). The account's bank and number are reported to the Commission as soon as trust monies are received (COMAR 09.11.01.07).
Recordkeeping
Trust money records are kept in a secured area within the broker's office (§ 17-507(a)). Listings and every document executed or obtained in a brokerage transaction, including electronic signatures, are kept 5 years from closing, or 5 years from the listing date if the deal does not close, and 5 years from termination of a property management agreement (§ 17-507(b)). Electronic storage is permitted only where the stored record cannot be erased or edited, was made in the regular course of business, has an identifiable custodian, and sits in a reliable, chronologically arranged indexing system (§ 17-507(c)).
Layered Supervision
The broker must exercise reasonable and adequate supervision over anyone providing brokerage services on the broker's behalf, independent contractors included (§ 17-320(c)). A branch office manager supervises the licensees registered to that office, and a team leader supervises the team — but both duties are expressly in addition to, and not in lieu of, the broker's (§ 17-320(d)(2), § 17-545(b)). COMAR 09.11.05.03 sets out what adequate supervision looks like, from training sessions at least every two months to written policies on escrow, fair housing, advertising, contract review, unlicensed assistants, and the unauthorized practice of law — and puts the burden on the broker to prove supervision was adequate once a failure is shown.
Other Maryland Laws
The Protection of Homeowners in Foreclosure Act (Real Property Title 7, Subtitle 3) governs dealings with a residence in default — owner-occupied residential property of up to four units at least 60 days in default. A Maryland licensee is exempt only while engaged in licensed activity, not violating § 7-307 or Title 17, and only if the property is listed in the local MLS and sold or transferred through a settlement (§ 7-302(a)(6)); the exemption disappears if the licensee is steering title to themselves or a relative (§ 7-302(b)). A homeowner may rescind a sale of a residence in default within 5 days, and a quitclaim deed may not be used (§ 7-310). Separately, negotiating or offering to negotiate home improvement contracts with an owner requires a Maryland Home Improvement Commission license (Bus. Reg. §§ 8-101(n), 8-601).
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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
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