Broker Williams holds a Maryland broker license and operates Capital City Realty. He also holds a valid Virginia broker license. A Virginia seller asks Williams to list and sell the seller's property located in Prince George's County, Maryland. Williams wants to use only his Virginia broker license to handle this transaction. Which of the following best describes Williams's obligations under Maryland law?
Correct Answer
A) Williams must use his Maryland broker license to handle the Maryland transaction, as Maryland law requires a Maryland license for real estate activity involving Maryland property
Under Md. Code Ann., Bus. Occ. & Prof. § 17-601, any person who engages in real estate brokerage activities involving property located in Maryland must hold a valid Maryland real estate license. Williams already holds a Maryland broker license, so he must conduct this transaction under his Maryland license. A Virginia license, regardless of reciprocity agreements, does not authorize real estate brokerage activity involving Maryland property. Maryland's territorial jurisdiction requires Maryland licensure for Maryland real estate transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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