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92 Cards in this Set
- Front
- Back
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Why was the Maryland Real Estate Brokers Act (Title (Chapter) 17) designed to do? |
To protect the public interest, became effective in June 1, 1939. |
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What did the Civil Rights Acts of 1866, determine? |
That persons could not be denied real estate because of their race |
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The Maryland Real Estate Commission is one of the ____________ licensing boards within the _____________________, adopts and enforces regulations to implement the Brokers Act. |
largest; Department of Labor, Licensing, and Regulations |
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COMAR |
The Code of Maryland Regulations |
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The Code of Maryland Regulations contains regulations adopted by all _______ of Maryland's licensing boards. |
18 |
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As used in Title 17, certain terms that __________. |
have specific definitions that apply to either a section of the law or the entire statute.
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Real Estate Broker |
A person who provides real estate brokerage services |
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Compensation |
Payment for brokerage services |
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Consideration for Compensation include the following: |
-Selling, buying, exchanging, or leasing any real estate or collecting rent for its use -Assisting another person to locate or obtains for purchase or lease any residential real estate -Engaging regularly in a business of dealing in real estate -Engaging in a business, the primary purpose of which is promoting the sale of real estate through a listing in a publication issued primarily for promotion of real estate sales -Engaging in a business that subdivides land located in any state into lots and then selling those subdivided lots -For consideration, serving as a consultant for any of the activities in this list |
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Persons |
individuals, receivers, trustees, guardians, personal representatives, fiduciaries, or representatives of any kind and any partnership, firm, association, or other entity |
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Licensed |
Refers to the status of an individual licensed by the Commission |
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There are three levels of license for individuals delivering real estate brokerage services |
broker, associate broker, salesperson |
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Maryland has reciprocal licensing agreements only in which states? |
Pennsylvania and Oklahoma |
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Types of Brokerage |
Resident Nonresident Reciprocal Temporary for commerical only |
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Types of Associate Brokerage and Salesperson Licenses |
Resident Non-resident Reciprocal |
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Do associate brokers have authority over salespersons? |
NO. The only difference between an associate broker and a salesperson is the fact that the associate broker has met the requirements to be a broker. The can only be only ONE broker per firm. |
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True or False. To have an active license, a salesperson or an associate broker must be affiliated with and under the authority of a licensed broker. |
TRUE. |
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What qualifies a person as a statutory nonemployee? |
The broker not withholding federal or state income taxes or pay their Social Security or Medicare assessments |
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Affiliates' paycheck are |
net income |
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Qualified Real Estate Agents may report their income on |
Schedule 1040C |
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To be qualified real estate agents |
-be licensed real estate agents (hold an active real estate license); -receive "substantially all" -- meaning at least 90%--- of their brokerage remuneration for production rather than for hours worked; and -act pursuant to written contracts with their brokerage firms, which state that, for federal tax purposes, the affiliates will not be treated as employees |
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Real estate, as used in the Brokers Act, is defined |
as any interest in real property anywhere. |
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In the Brokers Act, the term state refers to |
any state in the United States, its territories, possessions, or the District of Columbia. |
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Persons not Subject to the Brokers Act When Performing Acts of Real Estate Brokerage |
-persons acting under a judgement or order of a court; -public officers performing the duties of their office; -landlords or owners of any real estate, unless their primary business is providing real estate brokerage services' -persons engaging in a single transaction selling or leasing real estate, if they are acting under a power of attorney executed by the owener of that real estate -auctioneers, licensed by various jurisdictions within Maryland, to sell real estate at public auction, and -persons acting as receivers, trustees, personal representatives, or guardians |
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Person who must conform to the Brokers Act When Performing Acts of Real Estate Brokerage Although They are NOT Required to Hold Brokerage Licenses |
-financial institutions in the leasing or selling of property they have acquired through foreclosure or by receiving a deed or an assignment in lieu of foreclosure; -lawyers who are not regularly engaged in the business of providing real estate services and who do not advertise that they conduct such business; -homebuilders in the rental or initial sale of homes they have constructed -agents of a licensed real estate broker or of an owner of real estate, while managing or leasing that real estate for that broker or for the property's owner; -persons who negotiate the sale, lease, or transfer of businesses when the sale does not include any interest in real property other than the lease for the property when the business operates -owners who subdivide and sell not more than six lots of their own unimproved property in any one calendar year |
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Title (Chapter) 17 |
Certain terms have specific definitions that apply to either a section of the law or the entire statute |
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Maryland Real Estate Commission |
composed of nine (9) members; five (5) of which hold real estate licenses and are chosen -- one each from the Eastern Shore, Baltimore Metropolitan Area, Baltimore City, Southern Maryland and Western Maryland and four (4) members, who are consumer members with no ownership interest in or received compensation from an entity regulated by the Commission in the year just before their appointments. They shall not be licensees or otherwise be subject to regulation by the Commission. |
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Members of the Commission are appointed by the |
Governor with the advice of the Secretary and the advice and consent of the Senate |
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Employees of the Commission are |
Executive Director and the field inspectors |
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Executive Director is appointed by and serves at the pleasure of the |
Secretary and is not a member of the Commission. |
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Membership of the Commission are |
staggered to ensure regulatory continuity begin on June 1, and end four years later, either with reappointment or on the appointment of a qualified replacement |
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Members may be removed before the end of their terms by the Governor in cases of |
incompetence or misconduct |
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Chairs of the Commission are elected |
annually; among themselves |
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The role of the Chairperson is to |
preside over the meetings |
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The role of the Commission Chair is covered by |
Surety Bond |
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The Commission meets |
monthly |
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True or False. Commission meetings are open to the public.
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True. |
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What governs the conduct of Commission meetings and regulations for the conduct of hearings and for issuance of licensing applications? |
It's bylaws |
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What must a member of the general public do before they can speak at a Commission meeting? |
Submit 10 days' advance written notice |
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True or False. The Executive Director is a member of the Commission. |
False. The Executive Director is a State employee and is covered by surety bond. |
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What are the roles of the Executive Director? |
Attends monthly meeting; Directs the day to day operations of the Commission supervises its office staff and field inspectors between monthly meetings |
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What are the primary duties of the Commission? |
administration and enforcement of the Brokers Act (Title 17) through the licensing process; it adopts, maintains and enforces General Regulations and a Code of Ethics that set forth standards of conducts for all individuals who are under the authority of the Brokers Act |
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What are the powers of the Commission? |
-investigate complaints of unlicensed brokerage activity; -investigate complaints about licensee behavior; -conduct hearings and administer oaths; -issue subpoenas for attendance of witnesses or production of evidence; -take deposits, and -seek injunctions (in certain circumstances) |
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True or False: The Commission doesn't have to investigate any complaint alleging an unauthorized person has provided real estate brokerage services |
False. The Commission MUST investigate any written, sworn complaint alleging that an unauthorized person has provided real estate brokerage services. |
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The Commission has statutory authority to hold hearings on alleged violations and to imipose penalties not to exceed:
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$5,000 for the first proven violation of any Title 17 provision; $15,000 and/or two years' imprisonment for the second violation, and $25,000 and/or three years' imprisonment for the third or subsequent violation |
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An unauthorized person |
one who neither holds a required license nor is exempt from the requirement to have one. |
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Other Powers and Duties of the Commission |
-issues, renews suspends or revokes licenses -orders investigations and holds hearings as needed after hearings, reprimands and/or fine licenses who ae found to have violated laws or regulations; -forwards the license fees it collects to the Comptroller, who distributes such funds to the State Real Estate Commission Fund; |
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Other Powers continued... |
-collects fines and forwards them to the General Fund of the State; -submits an annual reports of its activities to the Secretary -certifies, on request of any person and payment of the required fee, the licensing status and qualifications of any person who is the subject of the request; -approves the content of educational courses for licensing and for continuing education -adopts regulations and a code of ethics to implement Title 17 |
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Others Powers continued... |
-convenes hearing boards (panel) of three members, at least one of whom must be a consumer member and one a professional member (licensee) from among the commissioners; and -maintains and administers a Guaranty Fund to reimburse members of the public as much as $50,000 for actual losses caused by licenses and their employees |
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Qualifications to be a Broker |
-be of good character and reputation and at least 18 years of age; -have completed a 135 hour course in real estate- including three clock hours of real estate ethics-approved by the Commission -have been licensed as real estate salespersons actively and lawfully for at least three years; and -have passed the broker prelicensing examination |
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Exceptions for Brokers |
For applicants who are qualified to practice law in the State of Maryland, the Commission waives the education and experience requirements but not the examination requirement. Broker education requirements forall others persons are in addition to the salesperson (60-hour) requirements they may have previously met. |
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Qualifications for an Associate Broker |
Associate Real Estate Broker license, must meet the education and experience requirements for a broker license. Application must obtain written commitment from a licensed real estate broker to accept the applicant as an associate broker of the firm when all other associate broker requirements have been satisified. |
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Qualifications for a Salesperson |
-be of good character and reputation; -be at least 18 years of age; -successfully complete a basic (60 hour) course in real estate--including three clock hours of real estate ethics-- approved by the Commission -pass the required examination; and -obtain written commitment from a licensed real estate broker to accept the applicant as a salesperson |
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General steps to a license |
education, examination and application |
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Deadlines for candidate to pass the salesperson licensing exam |
Not more than one year after completing eduation requirements |
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Deadline for candidaate to apply for salesperson license |
Not more than one year after passing both portions of the salesperson exam |
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True or False. There is fee for licensing. |
True. |
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True of False. A salesperson remains control of their real estate license at all times. |
False. Licenses are maintained at all times by the salesperson's broker. A salesperson must always have their pocket card at tall times. |
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True or False. License certificates and pocket card are issued by the State of Maryland. |
False. License certificates and pocket cards are issued by the Commission |
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License certificates and pocket cards show: |
-name of the licensee -designated name of the licensed real estate broker with whom a salesperson or associate broker is affiliated; -date the licensed will expire, and -licensing registration numbe of the licensee |
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Real estate brokers licensee authorize |
their holders to provide real estate brokerage services to the public.
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Salespersons and associate broker on inactive status have |
no broker. |
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Continuing education for license renewal is measured in clock hours, with credit allowed only for approved, individual courses. A clock hour is defined in COMAR 09.11.06.01 as |
50 minutes of actual instruction per 60-minute hour |
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The standard requirement for all levels of license is ________ hours of approved instruction |
15 |
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Continuing Education Requirements include |
-three clock hours of local, state, and federal legislative and regulatory updates; -one and half clock hours dealing with fair housing' -three clock hours of "Maryland Real Estate Commission's Code of Ethics, Flipping and Predatory Lending; -three clock hours of "Principles of Agency and Agency Disclosure" -three clock hours of Requirements of "Broker Supervision" -additional electives needed to reach the required total hours |
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True or False: Licensees who are qualified to practice law in the state and those who hold graduate degrees in real estate from accredited colleges or universities -- and are not brokers, branch managers, or team leaders--- need to complete 15 hours of continuing education. |
False. The only need to complete 7.5 hours |
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True or False. A person whose lliceses has expired for nonrenewal may normally apply for reinstatement of that license at any time within five years after its expiration dae at the cost of $150. |
False. Reinstatement should happen within 3 years after expiration. |
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Alphabeical Categories for Approved Continuing Education |
A. Federal, State or Local Legislative and Regulatory Changes B. Antitrust Law C. Fair housing Law D. Real Estate Ethics or Professionals Standards E. Disclosure F. Professional Enhancement for Practicing Licenses G. Technology relating to real estate brokerage services H. The principles of agency and agency disclosure I. The requirement of supervision by brokers, branch office managers and team leaders |
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True or False. The Commission will place the licenses of associate real estate brokers and real estate salesperson into inactive status when they are no longer affiliated with licensed real estate brokers, and their license certificates and pocket cards are returned to the Commission |
True. |
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A license on inactive status can still provide real estate brokerage services through that license. |
False . |
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True or False. Individuals with inactive licenses may still be paid by a referral company. |
False. Individuals on inactive status may NOT be paid by a referral company. |
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True or False. On the death of a licensed real estate broker, any adult member of the family may carry on the brokerage firm up to 9 months to close and terminate the business. |
False. They may carry on the business up to six months. |
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The license certificates and pocket ards of an affiliate must be returned to th Commission by the affiliate's broker: |
-on the request of an affiliate -on the death of an affiliate -after a hearing before the Commission and on a finding that the license of an affiliate is to be suspended or revoked |
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Steps to the Complaint Process |
-a completed Complaint Form is sent to the broker by the Commission along w/ a letrer from the ED -Broker MUST respond in writing w/ full explanation of the allegation and what actions the broker recommends -Copy of the ED's letter is sent to the complainant -Commission sends its own reply, along with a copy of the Brokers reply to the complainant |
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True or False: Complaints MUST be in writing and specifically state the facts of which the complaint is based |
True. |
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What is the difference between a proposed decision and a final decision? |
A proposed decision is heard by the Commission. A final decision can be appealed in court. |
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When is noticed served lersonally on the individuals against whom complaints are made? |
At least 10 days before the hearing. |
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How many real estate hearing boards are established by the Commission? |
Two or Three |
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Each Board or Panel consist of how many Members? |
Three Commission members-- at least one must be a professional and at least one must be a consumer. The Commission designates the Chairperson. |
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COMAR-- the Code of Maryland Regulations - provides four types of hearings |
-Judicial -Applications for licensure -Revocation or suspension of licenses -Claims against the Guaranty Fund |
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What are summary actions? |
Actions taken before holding hearings to protect the public quickly against imminent loss; followed by hearings for which formal, timely notice is given. |
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Summary of Suspension for Trust Fund and Other Violations |
-fails to account promptly for any fundss held in trust; -on demand, fails to display to the Commission all records and books, and fails to account for any funds held in trust; -been convicted of a crime as defined in 17-322(B)(24) (felony, misdemeanor) -fails, within 10 days after the conviction or within 10 days following release from incarceration as a result of the conviction |
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True or False: A summary suspension may start immediately or at any later date set by the order, and it shall continue until the license complies with the conditions set forth by the Commission. |
True. |
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What is the maximum reimbursement for any claim? |
$50,000 |
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License Activation Process |
-Renewal -Reissuance (Reactivation) -Reinstatement |
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Before receiving an initial license, applicants must pay _______ assessment that is applied to the __________________. |
$20; Guaranty Fund |
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The Commission assesses all the individuals then holding licenses a fee if the Fund falls below: |
$250,000 |
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Real Estate Brokers must include in each sales contract a written notice that buyers are protected by the Guaranty Fund in the amount not exceeding __________________. |
$50,000. |
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What is Comparative Market Analysis (CMA)? |
Not an appraisal, and its preparation for a seller or purchaser does not require an individual to have an appraisal license or certificate. |
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Maryland Securities Act |
requires licensing of persons engaged in the offer and sale of real estate-- related securities, including limited partnership interests in real property |
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Maryland Securities Commission |
regulates all activities construed to be securities-related business |
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Title 16, Business Occupations and Professions Article of the Annotated Code of Maryland |
establishes licensing and certification procedures for real estate appraisers as well as for home inspectors |
