§ 17-505. Trust account duration and disposition
West's Annotated Code of MarylandBusiness Occupations and ProfessionsEffective: October 1, 2023
Effective: October 1, 2023
MD Code, Business Occupations & Professions, § 17-505
§ 17-505. Trust account duration and disposition
(a) A real estate broker shall maintain trust money in an account authorized under this Part I of this subtitle until:
(4) the owner or beneficial owner of the trust money fails to complete the real estate transaction for which the trust money was entrusted and the real estate broker, in the real estate broker's sole discretion, decides to distribute the trust money in accordance with subsection (b) of this section.
(b)(1) Prior to distributing the trust money under subsection (a)(4) of this section, the real estate broker shall notify both the owner and the beneficial owner that the real estate broker intends to distribute the trust money to the person who, in the good faith opinion of the real estate broker, is entitled to receive the trust money in accordance with the terms of the real estate contract which established the trust.
(c) If a purchaser of residential real estate, as defined in § 10-802 of the Real Property Article, terminates a real estate transaction in accordance with § 10-803 of the Real Property Article, the real estate broker shall distribute the trust money to the purchaser in accordance with this section.
(d) When the duty of the real estate broker to maintain trust money in an account terminates, the real estate broker promptly shall account for all trust money.
(e) A real estate broker may invest trust money:
(f) A real estate broker may not be liable to an owner or beneficial owner of the trust money for:
(g) An agreement under which a real estate broker is entrusted with the trust money shall contain a statement that the real estate broker may distribute the trust money in accordance with subsection (b) of this section if the owner or beneficial owner of the trust money fails to complete the real estate transaction for which the trust money was entrusted.
Credits
Added by Acts 1989, c. 3, § 1, eff. Oct. 1, 1989. Renumbered from Business Occupations and Professions § 16-505 by Acts 1994, c. 3, § 13, eff. Feb. 28, 1994. Amended by Acts 1995, c. 58, § 2, eff. Oct. 1, 1995; Acts 2001, c. 42, § 1, eff. Oct. 1, 2001; Acts 2004, c. 267, § 1, eff. Oct. 1, 2004; Acts 2011, c. 156, § 1, eff. Oct. 1, 2011; Acts 2023, c. 585, § 1, eff. Oct. 1, 2023.
Formerly Art. 56A, § 4-505.
MD Code, Business Occupations & Professions, § 17-505, MD BUS OCCUP & PROF § 17-505
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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