WILLIAM DONALD SCHAEFER, Governor

Ch. 563

SUBCOMMITTEE COMMENT: This section is new language derived
without substantive change from the second sentence of
former Art. 56, § 218(b).

In this section, the references to "associate real
estate brokers" are added, on the recommendation of
the Joint Subcommittee on the Business Occupations
Article, to expand the limitations on holding an
interest in a corporation or partnership to include
associate real estate brokers.

In subsection (a) of this section, the language
"outstanding voting stock of a corporation" is
substituted for the former language "equity interest
... in a ... corporation", for clarity.

In subsection (b) of this section, the language
"interest in a partnership" is substituted for the
former language "equity interest ... in a
partnership", for clarity.

The former reference to "association" is deleted as
surplusage.

Defined terms: "Associate real estate broker" § 4-101
"Provide real estate brokerage services" § 4-101
"Real estate salesperson" § 4-101

4-512. FORMATION OF PROFESSIONAL SERVICE CORPORATION BY REAL
ESTATE SALESPERSONS AND ASSOCIATE REAL ESTATE BROKERS.

(A)  IN GENERAL.

WITH THE CONSENT OF A LICENSED REAL ESTATE BROKER, 1 OR MORE
LICENSED REAL ESTATE SALESPERSONS AND LICENSED ASSOCIATE REAL
ESTATE BROKERS WHO ARE AFFILIATED WITH THE REAL ESTATE BROKER MAY
ORGANIZE AND WHOLLY OWN A PROFESSIONAL SERVICE CORPORATION UNDER
THE MARYLAND PROFESSIONAL SERVICE CORPORATION ACT, TITLE 5,
SUBTITLE 1, OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE.

(B)  COMPOSITION OF CORPORATION.

A PROFESSIONAL SERVICE CORPORATION MAY BE ORGANIZED AND
OWNED UNDER THIS SECTION BY ANY NUMBER AND ANY COMBINATION OF
LICENSED REAL ESTATE SALESPERSONS AND LICENSED ASSOCIATE REAL
ESTATE BROKERS. HOWEVER, EACH SHAREHOLDER IN THE CORPORATION
SHALL BE EITHER A LICENSED REAL ESTATE SALESPERSON OR A LICENSED
ASSOCIATE REAL ESTATE BROKER.

(C)  PAYMENT OF COMMISSIONS TO CORPORATION.

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