Section 17-404 - Claims against Guaranty Fund. - Maryland Statutes

§ 17-404. Claims against Guaranty Fund.
 

(a)  In general.-  

(1) Subject to the provisions of this subtitle, a person may recover compensation from the Guaranty Fund for an actual loss. 

(2) A claim shall: 

(i) be based on an act or omission that occurs in the provision of real estate brokerage services by: 

1. a licensed real estate broker; 

2. a licensed associate real estate broker; 

3. a licensed real estate salesperson; or 

4. an unlicensed employee of a licensed real estate broker; 

(ii) involve a transaction that relates to real estate that is located in the State; and 

(iii) be based on an act or omission: 

1. in which money or property is obtained from a person by theft, embezzlement, false pretenses, or forgery; or 

2. that constitutes fraud or misrepresentation. 

(b)  Limitation on recovery.- The amount recovered for any claim against the Guaranty Fund may not exceed $25,000 for each claim. 

(c)  Excluded claims.-  

(1) A person may not recover from the Guaranty Fund for any loss that relates to: 

(i) the purchase of any interest in a limited partnership that is formed for the purpose of investment in real estate; 

(ii) a joint venture that is promoted by a licensed real estate broker, a licensed associate real estate broker, or licensed real estate salesperson for the purpose of investment in real estate by 2 or more individuals; or 

(iii) the purchase of commercial paper that is secured by real estate. 

(2) A claim under the Guaranty Fund may not be made by: 

(i) the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim; or 

(ii) the personal representative of the spouse of the licensee or the unlicensed employee alleged to be responsible for the act or omission giving rise to the claim. 

(d)  Limitations period.- A claim under this subtitle shall be submitted to the Commission within 3 years after the claimant discovers or, by the exercise of ordinary diligence, should have discovered the loss or damage. 
 

[An. Code 1957, art. 56A, § 4-404; 1989, ch. 3, § 1; 1994, ch. 3, § 13.]