Sunset Realty, a Maryland licensed brokerage, has been operating for 10 years. The qualifying broker, Anne, decides to retire and transfer ownership of the brokerage to her associate broker, Frank, who has been with the firm for eight years. Frank wants to continue operating the brokerage under the same name. Under Maryland law, which of the following must occur before Frank may legally operate the brokerage as the responsible broker?
Correct Answer
A) Frank must apply for and obtain a broker license from MREC, then register the brokerage under his broker license before conducting any brokerage activities as the responsible broker
Under Md. Code Ann., Bus. Occ. & Prof. §§ 17-302 and 17-401 et seq., a real estate brokerage in Maryland must be operated under the license of a licensed broker. An associate broker license does not authorize the holder to operate as the responsible broker of a brokerage. Frank must first apply for and obtain a full broker license from MREC, and the brokerage must be registered under his broker license before he may legally operate as the responsible broker. Operating a brokerage under an associate broker license or under a retired broker's license is not permitted under Maryland law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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?
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