Unit 1 , 2

correlation of unit 1 , 2 notes

Wavier of Requirement

commission reserves the right to waive the educational requirements for licensure for individuals who hold licensure in another state that's comparable or equivalent to the licensure that they're applying for in Maryland.

Reciprocal Licenses

Licenses granted to professionals based on existing credentials from another jurisdiction, often simplifying the process for out-of-state practitioners. Maryland has reciprocal licensing agreements with two states: Oklahoma and Pennsylvania.

certain requirements in order to receive a reciprocal license

• Consent to service of process (like the required consent for non-resident licensees)

• Agree to follow all state laws

• Provide broker certification (if not a broker) showing supervision

• Submit current license certificate

• Provide a written statement on any disciplinary actions/proceedings

• Pass the Maryland state real estate exam portion (Oklahoma only; Pennsylvania exempt)

Non-Residents

Non-residents (except Pennsylvania reciprocal applicants) may qualify for a Maryland license, but must submit an irrevocable consent form allowing legal papers to be served through the commission’s executive director. They must also take the Maryland portion of the exam, and some may need the national exam depending on their state. The commission may require extra documents proving competence and good character, and non-resident broker applicants must pay for a credit report.

Broker

An individual who provides real estate brokerage service. Brokers may work independently, or they may supervise other licensees. Brokers are ultimately responsible for the activities of all of a firm's associated salespersons, associate brokers, employees, and staff.

Broker services

Selling, buying, transferring, or leasing real estate Collecting rent for real estate Assisting in the location or acquisition of real estate Regularly engaging in real estate business Regularly engaging in real estate advertising through a publication designed primarily to promote real estate Regularly engaging in lot subdivision and sale Consulting on any of the aforementioned activities.

Associate Broker

associate broker is a licensee who has taken and passed the broker's examination but chooses to associate with and work under a broker's supervision. Associate brokers may not work independently, they must be supervised by a broker. Associate brokers follow the same guidelines as salespersons.

Salesperson

A salesperson performs real estate brokerage services, but only under a broker's supervision. Like associate brokers, salespersons must be associated with and supervised by a licensed broker.

Maintaining a license (broker )

-Displays broker's license at all branch locations

- Stores licenses for all sponsored salespeople and associate brokers

-Completes 15 hours continuing education requirements every two years

-Multiple brokerages allowed, with separate broker's licenses

Maintaining a license (salesperson )

-Performing real estate activities for others for a fee

- Negotiating with or aiding any person in locating or obtaining for purchase, lease or acquisition an interest in real estate

-Negotiating the listing sale, purchase, exchange, lease, time-share, and similar interests; financing or option for any real estate

-Representing oneself to be a real estate consultant, counselor, agent, or finder

Multiple Affiliation

You may affiliate with more than one broker at a time if you obtain both brokers' approval. Both brokers must send a letter to the commission stating that there's no conflict of interest and that they agree to your affiliation with the other broker.Licensees with multiple affiliations must obtain and pay licensing fees for a license for each brokerage with which they're affiliated.

Exchange your license

need to meet all the education and exam requirements, just like you are doing for your salesperson's license, and apply to the commission for the new level of license, providing supporting documentation as necessary. And, of course, pay the associated fees. You must return your old license to the commission, as it will be voided.

Holding multiple license

Must have a separate broker's license for each separate brokerage.All this requires (other than a crazy work ethic) is submission of the proper applications for licensure to the commission and agreement with any affiliated brokers. And, of course, payment of the proper fees.

Broker license 2.0

broker must display their active broker's license at the principal place of business as well as at all branches. broker will store the licenses of all the salespeople they sponsor.

licensee

licensee must carry their pocket card at all times when doing business and they must show it on demand. A pocket card includes the licensee's name and business address. A salesperson or associate broker pocket card also includes the sponsoring broker's name and address.

How to select a broker ?

Changing brokers

First obtain a commitment of affiliation from a new broker.you submit a transfer application to the commission. The application should include either a statement from your old broker confirming the termination or a statement from the licensee that the current affiliation is terminated, and a statement from your new broker confirming the new affiliation.

Affiliating with a broker

Broker affiliation simply means that you select a principal or supervising broker who will maintain your license in the broker's office, and who agrees to supervise and train you and be responsible for your actions while you are a salesperson or an associate broker. You MUST be affiliated with a broker to have an active license.

Affiliating with a broker opt out benefits

Reduced/shared liability ,Office space and professional surroundings ,Administrative support ,Training Networking, social, and vacation coverage opportunities, Brand awareness and recognition ,Floor time, Shared advertising costs

Broker Supervision Requirements in Maryland pt 1

Affiliating with a broker means more than sharing office costs or using a brand name. Supervising brokers are legally required to provide training, education, and proper supervision to all affiliated licensees, including branch managers and designated sales managers. Branch office managers must also adequately supervise the real estate activities of associate brokers and salespersons in their branch. Designated brokers, branch managers, and team leaders are required to complete a three-hour broker supervision course within 90 days of designation, unless they have taken it within the last four years. Supervision does not create an employer-employee relationship or change a licensee’s independent contractor status, and all affiliated licensees must receive the same level of adequate supervision.

Broker Supervision Requirements in Maryland ("Reasonable" and "Adequate" )

Defined In determining whether supervision has been reasonable and adequate, the commission considers the firm's operations characteristics, including: The number of licensees affiliated with the broker The number of branch offices The number of managers in each office The number and routine work hours of the broker and managers The types of real estate activities the firm performs

how to select a broker

Licensees should not choose a broker based on convenience or sign with the first one they meet. Instead, they should research brokerages in the area where they want to work and consider the firm’s reputation, training, retention rate, and support. Since licensees are independent contractors paid by commission, it’s important to understand the commission split, caps, desk fees, and any additional costs. They should also ask about lead distribution, broker availability, and average sales volume. Before signing, they should review the independent contractor agreement and office policies.

"Reasonable" and "Adequate" Defined

Reasonable and adequate supervision requires brokers to provide training sessions at least every two months, access to experienced personnel to review contracts and advertising, and written policies covering areas such as trust funds, fair housing, advertising, transaction documents, use of unlicensed assistants, agency disclosure, legal updates, ethics compliance, personal interest transactions, and preventing unauthorized practice of law. Brokers must be able to show proof of meeting attendance, document and advertising review, and that policies were shared and followed. Failure to properly supervise can result in discipline by the commission, including license suspension, revocation, or fines up to $5,000 per violation.