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Terms Used In Maryland Code, BUSINESS OCCUPATIONS AND PROFESSIONS 17-604

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • state: means :

    (1) a state, possession, territory, or commonwealth of the United States; or

    (2) the District of Columbia. See
(a) Except as provided in subsection (b) of this section, a real estate broker, an associate real estate broker, or a real estate salesperson may not pay compensation, in any form, for the provision of real estate brokerage services to any person who is not licensed under this title.

(b) Subsection (a) of this section does not prohibit the payment of compensation to:

(1) an individual:

(i) who is licensed in another state; and

(ii) who meets the requirements of § 17-513 of this title;

(2) a professional service corporation formed under § 17-512 of this title;

(3) a limited liability company formed under § 17-512 of this title;

(4) a business entity formed under § 17-512 of this title; or

(5) a title insurance producer licensed under Title 10 of the Insurance Article acting in accordance with subsection (c) of this section.

(c) During the settlement of property, a licensed title insurance producer may, on behalf of a real estate broker and in accordance with a written disbursement authorization provided by the real estate broker, pay compensation to:

(1) an associate real estate broker;

(2) a real estate salesperson; or

(3) a business entity formed under § 17-512 of this title.