Ch. 563

LAWS OF MARYLAND

(A)  MAINTENANCE OF ACCOUNT.

A REAL ESTATE BROKER SHALL MAINTAIN TRUST MONEY IN AN
ACCOUNT AUTHORIZED UNDER THIS PART I OF THIS SUBTITLE UNTIL:

(1)  THE REAL ESTATE TRANSACTION FOR WHICH THE TRUST
MONEY WAS ENTRUSTED IS CONSUMMATED OR TERMINATED; OR

(2)  THE REAL ESTATE BROKER RECEIVES PROPER WRITTEN
INSTRUCTIONS FROM THE OWNER AND BENEFICIAL OWNER DIRECTING
WITHDRAWAL OR OTHER DISPOSITION OF THE TRUST MONEY; OR

(3) ON AN INTERPLEADER FILED BY THE REAL ESTATE
BROKER, A COURT ORDERS A DIFFERENT DISPOSITION.

(B)  ACCOUNTING.

WHEN THE DUTY OF THE REAL ESTATE BROKER TO MAINTAIN TRUST
MONEY IN AN ACCOUNT TERMINATES, THE REAL ESTATE BROKER PROMPTLY
SHALL ACCOUNT FOR ALL TRUST MONEY.

(C)  DISPOSITION ON DIRECTION OF SELLER OR PURCHASER.

EXCEPT FOR TRUST MONEY THAT A REAL ESTATE BROKER HAS
DEPOSITED IN AN ACCOUNT ESTABLISHED UNDER § 4-506 OF THIS
SUBTITLE THAT EARNS INTEREST PAYABLE TO THE MARYLAND HOUSING
RESOURCE CORPORATION, A REAL ESTATE BROKER MAY INVEST TRUST
MONEY:

(1)  AS THE OWNER OR AND BENEFICIAL OWNER OF THE TRUST
MONEY INSTRUCTS INSTRUCT IN WRITING; OR

(2)  AS THE REAL ESTATE BROKER AND THE OWNER OR,
OWNER, AND BENEFICIAL OWNER OF THE TRUST MONEY AGREE IN WRITING.

SUBCOMMITTEE COMMENT: Subsections (a)(1) and (2), (b), and
(c) of this section are new language derived without
substantive change from former Art. 56, § 227A-l(c)(2)
and the second sentence of § 227A(a).

Subsection (c)(3) of this section is new language
added to provide another method for disposition of
trust money. This addition conforms to practice in
the industry.

In subsection (a) of this section, the language of
former Art. 56, § 227A(a) that provided an exception
for participation in the Housing Resource Fund program
is deleted as erroneous. The duties set forth in this
section apply even if the trust money is deposited in
an account that earns interest for the benefit of the
Housing Resource Fund.

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