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Practice Of Real EstateLicense LawMEDIUM

Maria is a licensed Maryland salesperson whose license is currently on inactive status. A neighbor asks Maria to help him sell his home and offers to pay her a commission. Maria assists with the listing, negotiates with buyers, and accepts a fee at closing. Which statement best describes the legal consequence of Maria's actions under Maryland law?

Correct Answer

B) Maria may face disciplinary action by MREC for engaging in real estate activities while her license is inactive

Under Md. Code Ann., Bus. Occ. & Prof. § 17-601, a licensee with an inactive license is prohibited from performing any act that requires a real estate license, including listing, negotiating, and receiving compensation for real estate services. Engaging in licensed activities while on inactive status subjects Maria to disciplinary action by MREC, including fines and potential revocation.

Answer Options
A
Maria's actions are permissible because she holds a valid Maryland real estate license, even if inactive
B
Maria may face disciplinary action by MREC for engaging in real estate activities while her license is inactive
C
Maria's actions are permissible because she is helping a personal acquaintance rather than a member of the public
D
Maria may accept the fee but must report the transaction to MREC within 30 days of closing

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Related Topics & Key Terms

Key Terms:

disciplinary_actionsinactive_licenseunauthorized_practicelicense_status

Related Concepts

FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.

A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

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