Business Entities

Question 1

Business entities

Answer 1

▪ Broker may offer real estate brokerage services through a business entity.
▪ Salespersons and associate brokers can form a business entity with broker’s consent.
▪ Shareholders or owners of the business entity must be licensed salespersons or associate brokers.

Question 2

Business entities

Answer 2

▪ Salespersons or associate brokers can request commissions to be paid to the business entity.
▪ Business ownership cannot exceed 50% by associate brokers, salespersons, or their immediate family members.

Question 3

Place of Business

Answer 3

・ Real estate brokers who are residents of Maryland must maintain an office in the state.
・ Nonresident brokers must maintain an office in Maryland if their home state requires it.
・ Brokers can maintain branch offices in Maryland, but they must obtain a branch office certificate from the Commission, submit written notice of who has been appointed branch manager, and pay the application fee.
・ The branch manager must be an associate real estate broker, a real estate salesperson with at least 3 years of experience, or a real estate salesperson who has passed a course in real estate and the broker’s exam.
・ The branch manager is responsible for supervising the associate brokers and salespersons at the branch office.
・ Branch office certificates expire on the first April 30 that comes after the effective date of the certificate in an even-numbered year.
・ Brokers can renew a branch office certificate for an additional 2-year term by submitting an application, an application for renewal of the branch office manager’s license, and the renewal fee.