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Agent Rivera is a licensed Maryland salesperson who wants to advertise that she offers a reduced commission rate of 1% to sellers. Her broker has given written approval for this pricing. Under Maryland law, which statement is correct regarding advertising commission rates?

Correct Answer

B) Agent Rivera may advertise the 1% commission rate only if the broker's name is also included in the advertisement

Advertising specific commission rates is permissible under Maryland law — commissions are negotiable and may be advertised. However, any advertisement by a salesperson, including one promoting a specific commission rate, must comply with MREC's advertising rules requiring the brokerage firm's name to be included. Agent Rivera may advertise her 1% commission offering provided the advertisement also clearly identifies her brokerage firm. The broker's written approval for the pricing is good practice but the brokerage identification in the ad is the legal requirement.

Answer Options
A
Advertising specific commission rates is prohibited under Maryland antitrust regulations
B
Agent Rivera may advertise the 1% commission rate only if the broker's name is also included in the advertisement
C
Commission rates are set by MREC and cannot be advertised as negotiable or variable
D
Agent Rivera must obtain MREC approval before advertising any non-standard commission rate

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Related Topics & Key Terms

Key Terms:

advertising_rulescommission_advertisingnegotiable_commissionsbrokerage_identificationantitrust

Related Concepts

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.

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.

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