{"data":{"id":"us-md/md.-code-business-occupations-and-professions-17-404","jurisdiction":"us-md","citation":"Md. Code, Business Occupations and Professions § 17–404","heading":"","body":"(a) (1) Subject to the provisions of this subtitle, a person may recover compensation from the Guaranty Fund for an actual loss.\n(2) A claim shall:\n(i) be based on an act or omission that occurs in the provision of real estate brokerage services by:\n1. a licensed real estate broker;\n2. a licensed associate real estate broker;\n3. a licensed real estate salesperson; or\n4. an unlicensed employee of a licensed real estate broker;\n(ii) involve a transaction that relates to real estate that is located in the State; and\n(iii) be based on an act or omission:\n1. in which money or property is obtained from a person by theft, embezzlement, false pretenses, or forgery; or\n2. that constitutes fraud or misrepresentation.\n(b) The amount recovered for any claim against the Guaranty Fund may not exceed $50,000 for each claim.\n(c) (1) A person may not recover from the Guaranty Fund for any loss that relates to:\n(i) the purchase of any interest in a limited partnership that is formed for the purpose of investment in real estate;\n(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\n(iii) the purchase of commercial paper that is secured by real estate.\n(2) A claim under the Guaranty Fund may not be made by:\n(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\n(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.\n(d) 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.","path":["Article - Business Occupations and Professions"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gbo\u0026section=17-404","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:13Z","sha256":"cbc410082e8804d8385b97b361d6379cd81cd567985f420cf1705fbf6f369e13","source_id":"us-md","stale":false,"prev":"us-md/md.-code-business-occupations-and-professions-17-403","next":"us-md/md.-code-business-occupations-and-professions-17-405"},"notice":"GroundRules: Original legal text. Not legal advice."}