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Robert is a licensed Maryland real estate salesperson whose license is currently on inactive status. A friend asks Robert to help find a buyer for the friend's house and offers to pay Robert a commission. Which of the following is true regarding Robert's ability to accept this commission under Maryland law?

Correct Answer

D) Robert may not perform real estate brokerage activities or accept a commission while his license is on inactive status

Under Md. Code Ann., Bus. Occ. & Prof. § 17-301 et seq., a licensee on inactive status may not engage in real estate brokerage activities or receive compensation for such activities. An inactive license means the licensee is not affiliated with an active broker and is not authorized to practice. Performing brokerage services or accepting a commission while inactive constitutes unlicensed activity and is a violation of the Brokers Act.

Answer Options
A
Robert may accept the commission if he discloses his inactive license status to both the buyer and the seller in writing
B
Robert may accept the commission if he completes his continuing education requirements within 30 days of receiving payment
C
Robert may accept the commission because he holds a valid Maryland real estate license, regardless of its active or inactive status
D
Robert may not perform real estate brokerage activities or accept a commission while his license is on inactive status

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Related Topics & Key Terms

Key Terms:

inactive_licenseunlicensed_activitycommission_prohibitionlicense_status

Related Concepts

Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

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