Section 17-511 - Limitation on interest in business by associate brokers and salespersons. - Maryland Statutes

§ 17-511. Limitation on interest in business by associate brokers and salespersons.
 

(a)  Definitions.-  

(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)  Limitation on interest.-  

(1) Not more than 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) Unless the immediate family member is affiliated with the business as an associate real estate broker or real estate salesperson, 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. 

(c)  Effect upon formation of professional service corporation.- Except as to the limitation of interest of the professional service corporation in a business through which real estate brokerage services are provided, this section does not affect the formation of a professional service corporation by associate real estate brokers and real estate salespersons authorized by § 17-512 of this subtitle. 
 

[An. Code 1957, art. 56A, § 4-511; 1989, ch. 3, § 1; 1994, ch. 3, § 13; 1995, ch. 400; 1996, ch. 471.]