Key Takeaways
- The Maryland Real Estate Commission (MREC) regulates real estate licensees under the Maryland Real Estate Brokers Act
- MREC operates under the Maryland Department of Labor, Division of Occupational and Professional Licensing
- MREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- The Real Estate Guaranty Fund provides up to $50,000 per claim for consumer losses due to licensee misconduct
- Maryland requires 60 hours of pre-license education for salesperson applicants
Maryland Real Estate Commission (MREC)
The Maryland Real Estate Commission (MREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Maryland under the Maryland Real Estate Brokers Act (Title 17, Business Occupations and Professions, Annotated Code of Maryland).
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MREC Structure and Authority
Organizational Structure
MREC operates under the Maryland Department of Labor, within the Division of Occupational and Professional Licensing.
| Component | Description |
|---|---|
| Parent Agency | Maryland Department of Labor |
| Division | Occupational and Professional Licensing |
| Commission | Maryland Real Estate Commission (MREC) |
Key MREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose fines |
| Guaranty Fund | Administer the Real Estate Guaranty Fund |
Maryland Real Estate Brokers Act
The Maryland Real Estate Brokers Act (Title 17) is the primary statute governing real estate licensing in Maryland. Key provisions include:
- Who must be licensed - Definitions of broker and salesperson activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
MREC Regulations (COMAR)
MREC adopts administrative rules through the Code of Maryland Regulations (COMAR) that implement the Brokers Act. These regulations cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Agency disclosure procedures
Exam Tip: MREC can impose administrative penalties and revoke licenses. Effective October 1, 2019, new laws related to real estate brokerage relationships, continuing education, and disclosures were implemented.
Real Estate Guaranty Fund
The Maryland Real Estate Guaranty Fund provides compensation to consumers who suffer financial losses due to the misconduct of a licensed real estate professional.
Fund Details
| Requirement | Details |
|---|---|
| Maximum per claim | $50,000 |
| What is covered | Actual monetary losses from the transaction |
| Filing requirements | Must exhaust other remedies first |
| Excluded losses | Attorney fees, commissions to licensees, investment losses |
What the Fund Does NOT Cover
The Guaranty Fund does not cover losses related to:
- Purchase of limited partnership interests for real estate investment
- Joint ventures promoted by brokers for investment purposes
- Purchase of commercial paper secured by real estate
- Attorney fees incurred in pursuing claims
- Commissions owed to licensees
Who Cannot Make Claims
- Spouse of the licensee alleged to be responsible
- Unlicensed employees of the licensee
Key Point: The Guaranty Fund covers actual monetary losses only—not punitive damages, attorney fees, or speculative losses.
MREC Contact Information
| Resource | Information |
|---|---|
| Website | labor.maryland.gov/license/mrec |
| Parent Agency | Maryland Department of Labor |
| Online System | eLicense Maryland portal |
| Exam Provider | PSI (Pearson VUE) |
What is the maximum amount the Maryland Real Estate Guaranty Fund can pay per claim?
Under which Maryland state agency does the Maryland Real Estate Commission operate?