Maryland Real Estate License Law
Maryland real estate practice is governed by the Maryland Real Estate Brokers Act and administered by the Maryland Real Estate Commission. This chapter covers licensing authority, the salesperson-broker relationship, and consumer protections such as the Guaranty Fund.
The Commission and the Brokers Act
The Maryland Real Estate Commission, within the Maryland Department of Labor, licenses and regulates brokers, associate brokers, and salespersons under the Maryland Real Estate Brokers Act (Business Occupations and Professions Article, Title 17). A license is required for anyone who provides real estate brokerage services for others for compensation, unless a specific exemption applies. The Commission investigates complaints and may deny, suspend, or revoke licenses and impose penalties.
Salesperson and Broker Affiliation
A Maryland salesperson must be affiliated with a licensed broker and may act only on behalf of that broker. Compensation for brokerage services flows through the broker; a salesperson may not accept payment directly from a buyer or seller. The broker is responsible for supervising affiliated licensees and for the proper handling of client trust money.
The Guaranty Fund and Discipline
The Maryland Real Estate Guaranty Fund reimburses consumers who obtain a final judgment against a licensee for an actual monetary loss caused by fraud, misrepresentation, or a violation of the Brokers Act and cannot otherwise collect, subject to statutory caps. A licensee whose conduct triggers a payment must repay the fund before the license is restored. Grounds for discipline include dishonest dealing, commingling trust funds, and failing to make required disclosures.