Ch. 471

1996 LAWS OF MARYLAND

CHAPTER 471
(House Bill 639)

AN ACT concerning

Real Estate Brokers - limitation on Interest in Business by Associate Real Estate

Brokers and Real Estate Salespersons

FOR the purpose of creating a certain exception to the limitation on increasing the
percentage of interest in a real estate business that may be held by an associate real
estate broker or real estate salesperson or any combination of associate brokers or
salespersons; providing an exception to the general rule that an interest of a
licensee in a business through which real estate brokerage services are provided
shall include any interest in the business held by an immediate family member of
the licensee; defining a certain term: providing for the effective date of this Act; and
generally relating to the ownership of real estate businesses.

BY repealing and reenacting, with amendments,

Article - Business Occupations and Professions

Section 17-511

Annotated Code of Maryland

(1995 Replacement Volume and 1995 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Business Occupations and Professions

17-511.

(a)     (1) In this section the following words have the meanings indicated.

(2)     "Business" means a person or entity, regardless of legal structure,
through which real estate brokerage services are provided.

(3)     "Interest in a business" means, in the case of a business that is in a
corporation, the outstanding voting stock of the corporation through which real estate
brokerage services are provided.

(4) (I) "IMMEDIATE FAMILY MEMBER" MEANS A SPOUSE, PARENT,
CHILD, OR SIBLING.

(II) "IMMEDIATE FAMILY MEMBER" INCLUDES A STEPPARENT,
STEPCHILD, OR STEPSIBLING.

(b)     (1) Not more than 49% 50% of the interest in a business may be held
directly or indirectly by associate real estate brokers, real estate salespersons, or any
combination of associate brokers or salespersons.

(2) An UNLESS THE IMMEDIATE FAMILY MEMBER IS AFFILIATED WITH
THE BUSINESS AS AN ASSOCIATE REAL ESTATE BROKER OR REAL ESTATE

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