Prohibited Conduct Flashcards
General provisions - the Commission may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license and levy a fine if the applicant or licensee engages in any of the conduct described below
▪ submits to the Commission information that the applicant or licensee knows to be false
▪ fraudulently or deceptively obtains a license for himself/herself, or for another party
▪ fraudulently or a deceptively uses a license
▪ if a licensee provides or attempts to provide real estate brokerage services on behalf of a real estate broker without informing any other real estate broker with whom the licensee is affiliated
A broker or branch manager is subject to discipline if the broker or branch manager
▪ fails to exercise reasonable and adequate supervision over the affiliated licensees
▪ allows an affiliated licensee, or any other unauthorized individual, to provide real estate brokerage services independently as a real estate broker
▪ retains an unlicensed individual to provide real estate brokerage services
A broker or branch manager is subject to discipline if the broker or branch manager
▪ lends the license certificate or pocket card of the broker to another individual
▪ provides a contract that does not contain a required notice of the buyer’s right of selection
or
▪ requires a buyer to employ a particular title insurance company, settlement company,
escrow company, or title lawyer
Any licensee is subject to discipline if the licensee
▪ intentionally makes a misrepresentation or a false promise
▪ intentionally or negligently fails to disclose a property-related material fact that the licensee knows or should know
▪ fails to make the required agency disclosure or provide the dual agency consent form
Any licensee is subject to discipline if the licensee
▪ guarantees future profits from the resale of real property
▪ solicits, sells, or offers to sell real property, so as to influence a prospective party to the
sale of real property, by
- offering a prize or a free lot
- conducting a lottery or contest
Listings and other contracts - a licensee is subject to discipline if the licensee
▪ fails to provide to the principal parties, and retain a personal copy of, the listing contract, the contract of sale or lease agreement.
▪ enters a net listing contract to sell real property
▪ fails to provide a definite termination date in a listing contract
▪ uses the name of an organization or association, of which the licensee is not a member, in
contracts and advertising materials
Listings and other contracts - a licensee is subject to discipline if the licensee
▪ knowingly solicits a party who has an exclusive listing contract with another licensee
▪ solicits a party to breach a contract that was negotiated by another licensee for the purpose of substituting a new contract with the principal
▪ knowingly engages in blockbusting
Advertising – a licensee is subject to discipline if the licensee
▪ uses a blind ad
▪ advertises in any misleading or untruthful manner
▪ fails to put the licensee’s designated name in an advertisement
▪ advertises without including the name of the broker with whom the licensee is affiliated
Compensation and money - a licensee is subject to discipline if the licensee
▪ accepts compensation from any person other than a broker with whom the licensee is
affiliated.
▪ pays compensation for real estate services to anyone who is not licensed in Maryland
▪ retains or attempts to retain the services of any unlicensed individual as a real estate
licensee to evade the law prohibiting payment of a commission to an unlicensed
individual
Compensation and money - a licensee is subject to discipline if the licensee
▪ fails to account for or to remit promptly any money that comes into the possession of the
licensee but belongs to another person
▪ violates any provision that relates to the handling of trust money
Compensation exceptions
▪ A fee can be paid to an out-state license if the other state allows payments to Maryland licensees
▪ fees can be paid to business entities
A licensee is subject to discipline if convicted of
▪ a felony
▪ a misdemeanor that is directly related to the fitness and qualification of the applicant or
licensee to provide real estate brokerage services
▪ a crime that constitutes a violation of any provision of the Real Estate Brokers law
▪ with actual knowledge of the violation, associates with a licensee in a transaction or practice that violates any real estate license law
▪ engages in conduct that demonstrates bad faith, incompetency, or untrustworthiness or that constitutes dishonest, fraudulent, or improper dealings
A licensee may not
▪ provide any financial aid to assist blockbusting
▪ a business entity may not commit or cause any other person to commit any act that constitutes a ground for disciplinary action against a licensee
▪ violate or cause any other person to violate any other provision of the Real Estate Brokers
Law
