Real Estate Licensing and Regulations

Flashcards reviewing key vocabulary and concepts from the Maryland Real Estate Commission lecture notes.

Maryland Real Estate Brokers Act

A law enacted to protect the public interest related to real estate transactions.

Title 17

Chapter 17 in the business occupations and professions article of the annotated code of Maryland; also known as the Brokers Act.

Statutory Law

Law based on statutes (like the Brokers Act) enacted by the legislative branch.

Administrative Law

Law found in the Code of Maryland Regulations (COMR), governing the practice of real estate brokerage; enacted and enforced by the Maryland Real Estate Commission.

Common Law

Unwritten law based on court decisions, used when no relevant statute exists or when a law's application is ambiguous.

Strict Construction

Interpreting laws based on their original intent and literal wording.

General Assembly

The legislative branch of the Maryland government that enacts statutory law.

Maryland Real Estate Commission

One of the largest licensing boards within the Maryland Department of Labor, responsible for adopting and enforcing regulations to implement the Brokers Act.

Real Estate Broker

An individual who provides brokerage services for consideration (compensation) related to buying, selling, exchanging, or leasing properties.

Natural Persons

In the context of holding a real estate license, only natural persons (individuals) may hold a real estate license.

Broker's Designated Name

Name under which a broker is operating, typically a company name.

Licensee

A person licensed by the Maryland Real Estate Commission.

Broker's license, associate broker, salesperson license

Levels of licenses issued by the Maryland Real Estate Commission for individuals delivering real estate brokerage services.

Broker License

May be resident, nonresident, reciprocal, or temporary for commercial only.

Associate Broker and Salesperson License

May include resident, nonresident, and reciprocal.

Inactive Status

Status of a license that is temporarily inactive; licenses may be kept on this status no longer than three years.

Affiliation with a Broker

Once you pass the class and the PSI exam, this entitles you to affiliate with a broker to receive your license.

Affiliate

A licensed associate broker or salesperson; although fully subject to supervision and control, they can still meet the IRS requirement for qualified real estate agents.

Associate Brokers

Individuals who have met the educational, experience, and testing requirements for becoming real estate brokers, but request licenses that authorize them to provide real estate broker services under a broker with whom they affiliate as associate brokers.

Salespersons

Individuals who aid the brokers with whom they affiliated in providing brokerage services.

Real Estate (defined by Broker Act)

Any interest in real property anywhere, including condominiums, timeshares, fee estates, and life estates.

Irrevocable Consent

An agreement to allow official documents to be served without requiring travel out of state.

Reciprocity Agreements

Agreements between states that recognize the previous education, experience, and examination of applicants for licensure.

License Certificate/Pocket Card

Document issued by the commission containing the licensee's name, designated name of their broker, expiration date, and license registration number.

Red Flags

Physical indications that there may be a defect in a property.

Real Estate Guaranteed Fund

Exists to reimburse members of the public for actual financial losses at the hands of real estate licensees and their unlicensed employees.