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§ 17-604. Compensation for real estate brokerage services to unlicensed persons prohibited

West's Annotated Code of MarylandBusiness Occupations and ProfessionsEffective: October 1, 2022

West's Annotated Code of Maryland
Business Occupations and Professions
Title 17. Real Estate Brokers (Refs & Annos)
Subtitle 6. Prohibited Acts; Penalties (Refs & Annos)
Effective: October 1, 2022
MD Code, Business Occupations & Professions, § 17-604
§ 17-604. Compensation for real estate brokerage services to unlicensed persons prohibited
Currentness
In general
(a) Except as provided in subsection (b) of this section, a real estate broker, an associate real estate broker, or a real estate salesperson may not pay compensation, in any form, for the provision of real estate brokerage services to any person who is not licensed under this title.
Exceptions
(b) Subsection (a) of this section does not prohibit the payment of compensation to:
(1) an individual:
(i) who is licensed in another state; and
(ii) who meets the requirements of § 17-513 of this title;
(2) a professional service corporation formed under § 17-512 of this title;
(3) a limited liability company formed under § 17-512 of this title;
(4) a business entity formed under § 17-512 of this title; or
(5) a title insurance producer licensed under Title 10 of the Insurance Article acting in accordance with subsection (c) of this section.
Compensation allowed with written disbursement authorization
(c) During the settlement of property, a licensed title insurance producer may, on behalf of a real estate broker and in accordance with a written disbursement authorization provided by the real estate broker, pay compensation to:
(1) an associate real estate broker;
(2) a real estate salesperson; or
(3) a business entity formed under § 17-512 of this title.

Credits

Added by Acts 1989, c. 3, § 1, eff. Oct. 1, 1989. Renumbered from Business Occupations and Professions § 16-604 by Acts 1994, c. 3, § 13, eff. Feb. 28, 1994. Amended by Acts 2005, c. 377, § 1, eff. Oct. 1, 2005; Acts 2015, c. 113, § 1, eff. Oct. 1, 2015; Acts 2022, c. 649, § 1, eff. Oct. 1, 2022; Acts 2022, c. 650, § 1, eff. Oct. 1, 2022.
Formerly Art. 56A, § 4-604.
MD Code, Business Occupations & Professions, § 17-604, MD BUS OCCUP & PROF § 17-604
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.
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