Ch. 3

LAWS OF MARYLAND

NOT MORE THAN 49% OF THE INTEREST IN A PARTNERSHIP THROUGH
WHICH REAL ESTATE BROKERAGE SERVICES ARE PROVIDED MAY BE HELD BY
ASSOCIATE REAL ESTATE BROKERS OR REAL ESTATE SALESPERSONS OR ANY
COMBINATION OF ASSOCIATE BROKERS OR SALESPERSONS.

REVISOR'S NOTE: This section formerly appeared as Art. 56A,
§ 4-511.

There are no changes.

Defined terms: "Associate real estate broker" § 16-101
"Provide real estate brokerage services" § 16-101
"Real estate salesperson" § 16-101

16-512. FORMATION OF PROFESSIONAL SERVICE CORPORATION BY
SALESPERSONS AND ASSOCIATE 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 LICENSED REAL ESTATE
BROKER MAY ORGANIZE AND WHOLLY OWN A PROFESSIONAL SERVICE
CORPORATION UNDER THE MARYLAND PROFESSIONAL SERVICE CORPORATION
ACT.

(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.

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.

REVISOR'S NOTE: This section formerly appeared as Art. 56A,
§ 4-512.

In subsection (a) of this section, the former
cross-reference to "Title 5, Subtitle 1, of the
Corporations and Associations Article" is deleted as
unnecessary in light of the use of the short title
"Maryland Professional Service Corporation Act". See
CA § 5-122.

The only other changes are in style.

- 808 -