Ch. 563

LAWS OF MARYLAND

A LICENSED REAL ESTATE SALESPERSON OR A LICENSED ASSOCIATE
REAL ESTATE BROKER WHO IS A SHAREHOLDER OF A PROFESSIONAL SERVICE
CORPORATION MAY DIRECT THAT ANY COMMISSION DUE THE SALESPERSON OR
ASSOCIATE BROKER BE PAID TO THE CORPORATION.

SUBCOMMITTEE COMMENT: Subsection (a) of this section is new
language derived without substantive change from
former Art. 56, § 218(d)(1).

Subsection (b) of this section is new language added
to clarify who may organize and own a professional
service corporation under this section. It is
consistent with the provisions of the Maryland
Professional Service Corporation Act, Title 5,
Subtitle 1, of the Corporations and Association
Article.

Subsection (c) of this section is new language derived
without substantive change from former Art. 56, §
218(d)(2).

In this section, references to "licensed associate
real estate broker" are added to state expressly that
licensed associate real estate brokers may organize
and own a professional service corporation. Since
associate real estate brokers in fact act as real
estate salespersons, associate real estate brokers
should also be entitled to organize and own
professional service corporations.

In subsection (a) of this section, the specific
reference to the Maryland Professional Service
Corporation Act is added for clarity and to provide a
convenient cross-reference to that Act.

Defined terms: "Affiliate" § 4-101
"Licensed associate real estate broker" § 4-101
"Licensed real estate broker" § 4-101
"Licensed real estate salesperson" § 4-101
"Real estate broker" § 4-101

4-513.
STATE.

DIVISION OF FEES WITH INDIVIDUAL LICENSED IN ANOTHER

AN INDIVIDUAL LICENSED BY THIS STATE MAY DIVIDE A FEE THAT
IS EARNED ON A REAL ESTATE TRANSACTION IN THIS STATE WITH AN
INDIVIDUAL LICENSED TO PROVIDE REAL ESTATE BROKERAGE SERVICES IN
ANOTHER STATE IF THE OTHER STATE ALLOWS THE DIVISION WITH AN
INDIVIDUAL LICENSED BY THIS STATE OF A FEE THAT IS EARNED ON A
REAL ESTATE TRANSACTION IN THAT STATE.

- 3864 -