WILLIAM DONALD SCHAEFER, Governor

Ch. 563

Article, to clarify that the discretion of a real
estate broker to deposit trust money in an account
that earns interest payable to the Maryland Housing
Resource Corporation is subject to the right of the
owner or beneficial owner to require a different
disposition.

The provision of former Art. 56, § 227A-l(c)(l) that
provided immunity from liability for placing trust
money in a noninterest bearing account is deleted.
The intended effect of that provision was to provide
protection for a real estate broker who elected to
place the trust money in a noninterest bearing account
rather than an interest bearing account on which the
interest accrued to the benefit of the owner or
beneficial owner of the trust money. Since the
authority of a real estate broker to elect to place
the trust money in an interest bearing account has
been deleted under this revision, the immunity
provision no longer is necessary.

Defined terms: "Beneficial owner" § 4-501
"Real estate broker" § 4-101
"Trust money" § 4-501

4-507. MAINTENANCE OF RECORDS.

A REAL ESTATE BROKER SHALL MAINTAIN ALL RECORDS OF TRUST
MONEY IN A SECURED AREA WITHIN THE OFFICE OF THE BROKER.

SUBCOMMITTEE COMMENT: This section is new language derived
without substantive change from the first sentence of
former Art. 56, § 224C, except as that sentence
related to the requirement that a time share developer
maintain all records of trust money in a secured area
within the office of the developer.

The former reference to an individual who is
"licensed" is deleted to avoid an unintended
limitation in the application of this subsection.
Even if a real estate broker fails to comply with the
licensing requirements of this title and, therefore,
is not licensed, the real estate broker is required to
comply with the record keeping requirements of this
section.

The former words "books and accounts" are deleted as
unnecessary in light of the word "records".

The former phrase "as designated in writing to the
Commission", which modified "licensee's ... place of
business", is deleted as unnecessary.

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