In Maryland the amount a broker may charge for commission is:
Question & Answer
Review the question and all answer choices
6.00%
6.00% is not a legally mandated or capped commission rate in Maryland; citing a specific fixed percentage implies a standardized rate, which would constitute illegal price-fixing under the Sherman Antitrust Act.
Up to 6%
'Up to 6%' incorrectly implies there is a statutory ceiling of 6% on commissions in Maryland, which does not exist — brokers and clients may agree to any rate they mutually accept.
Up to 7%
'Up to 7%' similarly implies a government-imposed cap on commissions, which has no basis in Maryland law and would be inconsistent with free-market and antitrust principles.
Negotiable
Why is this correct?
Answer D is correct because Maryland law explicitly provides that real estate commissions are negotiable between the broker and the client — there is no statutory minimum or maximum rate set by the state. The Maryland Real Estate Brokers Act reinforces this by requiring that listing agreements clearly state the commission amount or rate, precisely because it must be individually agreed upon. Any attempt by brokers to collectively fix a standard rate would violate federal antitrust law.
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