Elena is a licensed Maryland salesperson who has been working at Harbor Realty for three years. She passes the broker examination and submits her broker license application to MREC. While her broker application is pending, a client asks Elena to represent them in a complex commercial transaction that would typically require broker-level authority. Which of the following correctly states Elena's authority during the application-pending period?
Correct Answer
B) Elena may handle the transaction under her existing salesperson license, subject to the supervision of her broker at Harbor Realty
Until MREC actually issues Elena's broker license, she continues to hold only her salesperson license. Under Md. Code Ann., Bus. Occ. & Prof. § 17-302, a pending application does not confer broker authority. Elena may continue to practice under her salesperson license with the supervision of her broker at Harbor Realty during the application-pending period. The scope of her authority remains that of a salesperson until the broker license is formally issued by MREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
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