Apex Realty, a Maryland licensed brokerage, employs both associate brokers and salespersons. One of its associate brokers, Michael, has been practicing for five years. The managing broker of Apex Realty retires and no replacement broker is designated. Under Maryland law, which of the following most accurately describes the impact on Michael and the other affiliated licensees?
Correct Answer
B) All affiliated licensees, including Michael, must immediately cease licensed activities until a new licensed broker takes responsibility for the brokerage or they transfer to another brokerage
Under Md. Code Ann., Bus. Occ. & Prof. § 17-302 et seq., a brokerage must have a licensed broker responsible for its operations. An associate broker is not authorized to independently operate a brokerage or assume the managing broker role without holding an active broker license in that capacity. When the managing broker departs and no replacement is designated, all affiliated licensees — including associate brokers and salespersons — must cease licensed activities until either a new licensed broker assumes responsibility for the brokerage or each licensee individually transfers to another active brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
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- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
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- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
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