3024

LAWS OF MARYLAND

Ch. 586

(a) (1) The Maryland Real Estate Commission shall establish
and maintain a real estate guaranty fund from which, subject to
the provisions of this section, any person aggrieved by [any
action of) a real estate broker or real estate salesman, duly
licensed in this State, PERFORMING ANY ACTION FOR WHICH THAT
LICENSE IS REQUIRED BY THIS SUBTITLE, OR THE UNLICENSED EMPLOYEE
OF ANY REAL ESTATE BROKER, arising out of a real estate
transaction involving real estate located in this State, [and] by
reason of the theft OR EMBEZZLEMENT of money or property, or
money or property unlawfully obtained from any person by FALSE
PRETENSE, ARTIFICE, TRICKERY, OR forgery or by reason of any
fraud, misrepresentation or deceit [by or on the part of any such
real estate broker or real estate salesman or the unlicensed
employee of any such real estate broker, or by reason of a
violation of this subtitle by such broker, salesman, or employee
may recover compensation in the amount] MAY RECOVER COMPENSATION
of his actual loss as proven before the Commission IN AN AMOUNT
NOT EXCEEDING $25,000 IN CONSIDERATION OF ANY CLAIM. EACH AND
EVERY REAL ESTATE BROKER SHALL GIVE WRITTEN DISCLOSURE WARNING TO
THE PURCHASER IN THE SALES CONTRACT THAT THE PURCHASER IS NOT
PROTECTED BY THE FUND IN AN AMOUNT IN EXCESS OF $25,000.

(2)  FOR PURPOSES OF THIS SECTION, "REAL ESTATE
TRANSACTION" DOES NOT INCLUDE THE PURCHASE OF ANY INTEREST IN A
LIMITED PARTNERSHIP WHOSE PURPOSE IS TO INVEST IN REAL ESTATE, A
JOINT VENTURE PROMOTED BY A LICENSED REAL ESTATE BROKER OR
SALESMAN FOR THE PURPOSE OF INVESTMENT IN REAL ESTATE BY TWO OR
MORE PEOPLE, OR THE PURCHASE OF COMMERCIAL PAPER SECURED BY REAL
ESTATE.

(3)  ANY PERSON WHO FILES A CLAIM UNDER THIS
SUBSECTION SHALL FILE A VERIFIED CLAIM WITH THE COMMISSION
STATING THE AMOUNT CLAIMED AS WELL AS THE FACTS AND CIRCUMSTANCES
GIVING RISE TO THE CLAIM ALONG WITH ANY DOCUMENTATION OR OTHER
EVIDENCE IN SUPPORT OF THE CLAIM. A PERSON FILING A CLAIM MAY
NOT BE A SPOUSE OF THE LICENSEE OR UNLICENSED EMPLOYEE ALLEGED TO
BE RESPONSIBLE FOR THE CLAIM, OR THE PERSONAL REPRESENTATIVE OF
SUCH A SPOUSE.

(4)  UPON RECEIPT OF THE CLAIM, THE COMMISSION SHALL
NOTIFY THE LICENSEES ALLEGED TO BE RESPONSIBLE FOR THE CLAIM AND
MAY SET THE MATTER FOR HEARING. THE COMMISSION SHALL DIRECT
PAYMENT FROM THE REAL ESTATE GUARANTY FUND OF WHATEVER SUM IT
FINDS TO BE PAYABLE UNDER THE PROVISIONS OF AND IN ACCORDANCE
WITH THE LIMITATIONS CONTAINED IN THIS SUBSECTION.

(5)  PAYMENT FROM THIS GUARANTY FUND OF ANY SUM TO AN
AGGRIEVED PERSON UNDER THIS SUBSECTION SHALL VEST IN THE
COMMISSION OR ITS DESIGNEE A CAUSE OF ACTION FOR REIMBURSEMENT TO
THE FUND WITH INTEREST OF ANY MONEYS PAID ON ACCOUNT OF THE
LICENSEE FOUND BY THE COMMISSION TO BE RESPONSIBLE FOR THE CLAIM.
PAYMENT SHALL BE CONDITIONED UPON A SHOWING BY THE COMMISSION OR
ITS DESIGNEE THAT: