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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