A Maryland real estate transaction closes successfully, and Broker Diane has earned her $15,000 commission, which is currently sitting in the trust account along with other client funds. Under Maryland regulations, when may Diane transfer her earned commission out of the trust account?
Correct Answer
C) At or after settlement, once the commission has been earned and the transaction has closed
Under Maryland trust account rules (COMAR 09.11.03), a broker may withdraw earned commission from the trust account once the commission has been legitimately earned—typically at or after settlement when the transaction has closed. At that point, leaving earned funds in the trust account beyond a reasonable time would itself be a record-keeping issue. The transfer should occur promptly after the commission is earned.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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?
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