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Practice Of Real EstateLicense LawHARD

A Maryland real estate broker, Vincent, is disciplined by MREC and his license is suspended for 60 days. During the suspension period, Vincent's affiliated salesperson, Angela, continues to list and show properties under the brokerage's name, believing the brokerage itself is still operational even though Vincent cannot personally practice. Which of the following most accurately describes the legal status of Angela's activities during Vincent's suspension?

Correct Answer

A) Angela's activities are unlawful because a salesperson cannot operate without an active supervising broker, and Vincent's suspension renders him unable to fulfill that supervisory role

Under Md. Code Ann., Bus. Occ. & Prof. § 17-301 et seq., a salesperson must work under the supervision of a licensed, active broker. When Vincent's broker license is suspended, he cannot legally supervise affiliated salespersons. Angela's continued real estate activities without a properly licensed and active supervising broker constitute a violation of the Brokers Act, regardless of the status of her own salesperson license. The brokerage entity's continued existence does not substitute for the requirement of an active supervising broker.

Answer Options
A
Angela's activities are unlawful because a salesperson cannot operate without an active supervising broker, and Vincent's suspension renders him unable to fulfill that supervisory role
B
Angela's activities are lawful as long as she discloses to all clients that the supervising broker is temporarily suspended
C
Angela's activities are lawful if another associate broker in the same brokerage assumes supervisory responsibility without MREC notification
D
Angela's activities are lawful because her own salesperson license remains active and she may continue working under the brokerage entity's license

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Related Topics & Key Terms

Key Terms:

broker_suspensionsalesperson_supervisionunlicensed_activityactive_broker_requirement

Related Concepts

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.

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

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