(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.
Amount of claim
(b) The amount recovered for any claim against the Guaranty Fund may not exceed $50,000 for each claim.
Losses excluded
(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.
Limitations
(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.
Credits
Added by Acts 1989, c. 3, § 1, eff. Oct. 1, 1989. Renumbered from Business Occupations and Professions § 16-404 by Acts 1994, c. 3, § 13, eff. Feb. 28, 1994. Amended by Acts 2012, c. 184, § 1, eff. July 1, 2012.
Formerly Art. 56A, § 4-404.
MD Code, Business Occupations & Professions, § 17-404, MD BUS OCCUP & PROF § 17-404
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
