WILLIAM DONALD SCHAEFER, Governor Ch. 563

4.  Addition of provisions regarding associate real estate
brokers.

The former law did not adequately provide for the current
practice of granting associate real estate broker licenses. The
former law did contain a definition of "associate real estate
broker" or a fee for an associate real estate broker license. In
addition, there were a few other references to associate real
estate brokers scattered throughout the law. However, references
to associate real estate brokers were not incorporated throughout
the law and were missing in places where they were essential for
a complete and coherent statement of the law. For instance,
former Art. 56, § 217(a) provided that "it shall be unlawful for
any person ... 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". That subsection did, not state that it was unlawful
for a person to engage in business as an associate real estate
broker without first obtaining a license. Similarly, former Art.
56, § 217A stated that the Commission shall maintain a real
estate Guaranty Fund from which a person aggrieved by certain
acts of "a real estate broker or real estate salesman" may
recover. That subsection did not provide that a person aggrieved
by the same acts of an associate real estate broker could
recover. Likewise, former Art. 56, § 221(a) stated that "[i]t
shall be the duty of the Commission to issue licenses as real
estate broker or real estate salesman to all applicants who shall
be duly qualified". It did not provide for the issuance of
associate real estate broker licenses.

The revision remedies these omissions by adding provisions
regarding associate real estate brokers throughout this title. In
particular see: § 4-101(c) [Definitions — associate real estate
broker]; § 4-304 [Qualifications of applicants for associate real
estate broker license]; and § 4-310(b) [Scope of license].

5.  Relationship of real estate broker to associate real
estate broker and real estate salesperson.

The former law failed to state the relationship of a real
estate broker to an associate real estate broker and a real
estate salesperson. In practice, an individual could only obtain
an associate real estate broker license or a real estate
salesperson license if, in addition to meeting other
requirements, the individual: (1) obtained from a licensed real
estate broker a commitment providing that the individual would
become affiliated with the real estate broker as an associate
real estate broker or a real estate salesperson on the granting
of an appropriate license to the individual; and (2) submitted
adequate evidence of the commitment to the Commission. Also
under the practice of the Commission, an associate real estate
broker license and a real estate salesperson license only
authorized the holder to provide real estate brokerage services

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