Ch. 563                                               LAWS OF MARYLAND

(A)  IN GENERAL.

IN THIS PART I OF THIS SUBTITLE THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

SUBCOMMITTEE COMMENT: This subsection is new language added
as the standard introductory language to a definition
section.

(B)  BENEFICIAL OWNER.

"BENEFICIAL OWNER" MEANS A PERSON, OTHER THAN THE OWNER OF
THE TRUST MONEY, FOR WHOSE BENEFIT A REAL ESTATE BROKER OR, ON
BEHALF OF A REAL ESTATE BROKER, AN ASSOCIATE REAL ESTATE BROKER
OR A REAL ESTATE SALESPERSON IS ENTRUSTED TO HOLD TRUST MONEY.

SUBCOMMITTEE COMMENT: This subsection is new language added
to provide an express definition for the term
"beneficial owner".

Defined terms: "Associate real estate broker" § 4-101
"Person" § 1-101 "Real estate broker" § 4-101
"Real estate salesperson" § 4-101
"Trust money" § 4-501

(C)  TRUST MONEY.

"TRUST MONEY" MEANS A DEPOSIT, PAYMENT, OR OTHER MONEY THAT
A PERSON ENTRUSTS TO A REAL ESTATE BROKER OR, ON BEHALF OF A REAL
ESTATE BROKER, TO AN ASSOCIATE REAL ESTATE BROKER OR A REAL
ESTATE SALESPERSON TO HOLD FOR:

(1)  THE BENEFIT OF THE OWNER OR BENEFICIAL OWNER OF
THE TRUST MONEY; AND

(2)  A PURPOSE THAT RELATES TO A REAL ESTATE
TRANSACTION INVOLVING REAL ESTATE IN THIS STATE.

SUBCOMMITTEE COMMENT: This subsection is new language
derived without substantive change from the
introductory phrase in the first sentence of former
Art. 56, § 227A(a). It is restated to provide an
express definition of the term "trust money".

Defined terms: "Associate real estate broker" § 4-101

"Beneficial owner" § 4-501

"Person" § 1-101 "Real estate" § 4-101

"Real estate broker" § 4-101

"Real estate salesperson" § 4-101

4-502. HANDLING OF TRUST MONEY.

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