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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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BUSINESS OCCUPATIONS AND PROFESSIONS |
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TITLE 17. REAL ESTATE BROKERS |
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SUBTITLE 4. REAL ESTATE GUARANTY FUND |
§ 17-404. Claims against Guaranty Fund
Latest version.
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(a) In general. --
(1) Subject to the provisions of this subtitle, a person may recover compensation from the Guaranty Fund for an actual loss.
(2) A claim shall:
(i) be based on an act or omission that occurs in the provision of real estate brokerage services by:
1. a licensed real estate broker;
2. a licensed associate real estate broker;
3. a licensed real estate salesperson; or
4. an unlicensed employee of a licensed real estate broker;
(ii) involve a transaction that relates to real estate that is located in the State; and
(iii) be based on an act or omission:
1. in which money or property is obtained from a person by theft, embezzlement, false pretenses, or forgery; or
2. that constitutes fraud or misrepresentation.
(b) Limitation on recovery. -- The amount recovered for any claim against the Guaranty Fund may not exceed $ 50,000 for each claim.
(c) Excluded claims. --
(1) A person may not recover from the Guaranty Fund for any loss that relates to:
(i) the purchase of any interest in a limited partnership that is formed for the purpose of investment in real estate;
(ii) a joint venture that is promoted by a licensed real estate broker, a licensed associate real estate broker, or licensed real estate salesperson for the purpose of investment in real estate by 2 or more individuals; or
(iii) the purchase of commercial paper that is secured by real estate.
(2) A claim under the Guaranty Fund may not be made by:
(i) the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim; or
(ii) the personal representative of the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim.
(d) Limitations period. -- A claim under this subtitle shall be submitted to the Commission within 3 years after the claimant discovers or, by the exercise of ordinary diligence, should have discovered the loss or damage.