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Maryland real estate licensees are regulated by the:

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Question & Answer

Review the question and all answer choices

A

Maryland Real Estate Board

CORRECT_ANSWER

B

Maryland Real Estate Commission

Correct Answer
C

Maryland Department of Commerce

The Maryland Real Estate Board does not exist as the regulatory body in Maryland. Many states use 'Board' terminology, but Maryland specifically uses 'Commission' for this function.

D

Maryland Real Estate Association

The Maryland Real Estate Association is likely a voluntary professional organization that provides networking, education, and advocacy for real estate professionals, but it does not have regulatory authority.

Why is this correct?

The Maryland Real Estate Commission is the correct regulatory body because it is specifically established by state law to oversee real estate licensees, set licensing requirements, enforce regulations, and handle disciplinary actions in Maryland.

Deep Analysis

AI-powered in-depth explanation of this concept

Understanding regulatory bodies is crucial in real estate practice as it defines the legal framework within which licensees operate. This question tests knowledge of Maryland's specific regulatory structure. The core concept is identifying which state entity has the authority to regulate real estate licensees. To arrive at the correct answer, one must recognize that most states have a commission or board specifically designated for real estate regulation. While option A (Maryland Real Estate Board) might seem plausible, Maryland actually uses a 'Commission' rather than a 'Board' structure. Option C (Department of Commerce) is a broader state agency that may include real estate oversight but isn't the specific regulator. Option D (Maryland Real Estate Association) is likely a voluntary professional organization, not a regulatory body. This question is straightforward but tests precise knowledge of terminology used in different state regulatory structures, which can vary significantly across jurisdictions.

Knowledge Background

Essential context and foundational knowledge

In the United States, real estate regulation is typically handled at the state level. Most states have established either a Real Estate Commission or Real Estate Board as the regulatory authority. These bodies are created through state legislation and are responsible for establishing licensing requirements, setting continuing education standards, enforcing laws and regulations, and disciplining licensees who violate professional standards. Maryland established its Real Estate Commission to ensure that real estate professionals meet minimum competency requirements and operate ethically within the state.

Memory Technique
analogy

Think of the Maryland Real Estate Commission as the 'principal' in a principal-agent relationship - it's the authority figure that sets the rules and oversees the agents (licensees) who work in the real estate industry.

When you see 'Commission' in Maryland real estate questions, visualize it as the governing authority in a school setting that enforces rules for students (licensees).

Exam Tip

For regulatory body questions, look for the option that specifically includes 'Commission' or 'Board' rather than a general state department or association. Maryland uses 'Commission' specifically.

Real World Application

How this concept applies in actual real estate practice

When Sarah, a new Maryland real estate agent, received her first complaint from a buyer about misrepresentation of property details, she immediately contacted her broker. Her broker explained that the Maryland Real Estate Commission would be the entity to investigate this complaint and potentially take disciplinary action if the complaint was substantiated. The Commission has the authority to suspend or revoke licenses, impose fines, and require additional training based on their investigation.

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