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Practice Of Real EstateLicense LawMEDIUM

Agent Torres is a licensed Maryland salesperson who operates a popular Instagram account with 10,000 followers. He posts property listings, market updates, and client testimonials. His Instagram bio reads '@TorresHomes — Real Estate in Baltimore' with no mention of his brokerage. His broker, who follows the account, has never objected. If a complaint is filed with MREC, which party is most likely to face disciplinary action?

Correct Answer

A) Both Agent Torres and the broker, because the broker had knowledge and failed to supervise, and Torres violated advertising rules

Under Maryland law, a salesperson is personally responsible for ensuring their own advertising complies with MREC regulations, including identifying the brokerage firm. Torres's Instagram account constitutes advertising that violates COMAR 09.11.04.08 by omitting the brokerage name. Additionally, the broker has supervisory responsibility for affiliated licensees' advertising and, having actual knowledge of the non-compliant account, failed in that supervisory duty. Both parties are therefore subject to MREC disciplinary action.

Answer Options
A
Both Agent Torres and the broker, because the broker had knowledge and failed to supervise, and Torres violated advertising rules
B
Neither party, because social media bios are not considered real estate advertising under Maryland law
C
Only Agent Torres, because the broker had no knowledge of the Instagram account
D
Only the broker, because the broker is solely responsible for all advertising by affiliated licensees

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Related Topics & Key Terms

Key Terms:

advertising_rulessocial_mediabroker_supervisiondisciplinary_actionInstagram

Related Concepts

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.

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

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