Ch. 563                                          LAWS OF MARYLAND

firms being licensed. For instance, former Art. 56, § 217(a)
stated that "it should be unlawful for any person, copartnership,
association, or corporation to engage in or carry on the business
of or act in the capacity of a real estate broker or a real
estate salesman within this State without first obtaining a
license as herein provided". However, the requirements to
qualify for a license under the former law were clearly the type
that could only be met by individuals. Also, in practice, the
Commission only granted licenses to individuals. The revision
resolves this conflict by stating clearly that only individuals
may qualify for a license.

2.  Relationship between real estate brokers and real estate
firms.

The former law lacked provisions specifying how a real
estate broker may operate through a corporate or partnership
firm, the respective responsibilities of the broker and the firm,
and other aspects of the relationship between the broker and the
firm. This is remedied by § 4-321 [Practice through corporations
or partnerships authorized] of this title, which specifies the
requirements that a broker must meet to qualify to provide real
estate brokerage services through a corporate or partnership
firm; requires that each individual who provides real estate
brokerage services through a firm be a licensed real estate
broker who is the broker of the firm or a licensed associate real
estate broker or real estate salesperson who is affiliated with
and providing services on behalf of the broker of the firm;
clarifies the responsibility of a licensed real estate broker who
serves as the broker of a firm; and clarifies the liability of a
corporation or partnership through which real estate brokerage
services are provided and of the individuals who provide real
estate brokerage services through the firm.

3.  Regulation of real estate firms.

The former law lacked any process by which a corporate or
partnership firm that provided real estate brokerage services
could be regulated. Since firms are not required to be licensed,
the Commission does not have any disciplinary authority over
them. As a means for responding to the wrongful acts of these
firms, § 4-612 [Violations by corporation, partnership, or other
association] is added. This new section prohibits a firm from:
(1) committing or causing any other person to commit any act that
constitutes a ground for disciplinary action against a licensee
under § 4-322 [Denials, reprimands, suspensions, and revocations
Grounds] or § 4-329 [Summary suspension of licenses for trust
fund violations] of this title; or (2) violating or causing any
other person to violate any other provision of this title. The
penalty for a violation of § 4-612, as set forth under §
4-613(b), provides for a fine not exceeding $5,000 on conviction.

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