Baltimore, MD asked in Real Estate Law for Maryland

Q: Can you tell me the minimum and maximum number of payout to real estate clients. And payout penalties of guilty salesper

I am practicing to take my real estate exam and want clarity on guaranty fund and the money amounts involved in payouts.

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1 Lawyer Answer
Mark Oakley
Mark Oakley
Answered
  • Rockville, MD
  • Licensed in Maryland

A: A consumer may make a claim for up to $50,000 against the Guaranty Fund on account of an allowed claim against a real estate agent or broker. The Maryland Real Estate Commission can separately pursue disciplinary action against an agent or broker for violation of the ethical standards, and impose penalties such as a reprimand, suspension of license and revocation of license. Violations of the laws applicable to licensed real estate agents include numerous prohibited practices and acts, which are prosecuted a criminal offenses, and carry up to a $5,000 fine and 1 year in jail for a first offense, and escalating penalties for subsequent offenses. The list of prohibited acts and fines and penalties can be found in Title 17, Subtitle 6, of the Maryland Business Occupations and Professions Code.

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