WES MOORE, Governor Ch. 359
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Chapter 359
(Senate Bill 542)
AN ACT concerning
Real Estate Brokers – Brokerage Agreements – Requirements
FOR the purpose of requiring certain provisions to be included in a brokerage agreement
between a real estate broker and a seller or lessor or a buyer or lessee; and generally
relating to real estate brokerage agreements.
BY repealing and reenacting, with amendments,
Article – Business Occupations and Professions
Section 17–534
Annotated Code of Maryland
(2018 Replacement Volume and 2023 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
17–534.
(a) A brokerage relationship commences at the time that a client enters into a
brokerage agreement and shall continue until:
(1) the completion of performance in accordance with the brokerage
agreement; or
(2) the earlier of:
(i) any date of expiration as agreed on by the parties in the
brokerage agreement or in any amendments to the brokerage agreement;
(ii) any mutually agreed on termination of the brokerage
relationship;
(iii) a default by any party under the terms of the brokerage
agreement; or
(iv) a termination under § 17–530 of this subtitle.
(b) The brokerage agreement BETWEEN A BROKER AND A SELLER OR LESSOR
shall:
Ch. 359 2024 LAWS OF MARYLAND
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(1) have a definite termination date that is effective automatically without
notice from the client;
(2) state the amount of compensation to be paid to the broker [and whether
the broker is authorized to receive the compensation from a person other than the client];
(3) state whether the broker is authorized to cooperate with other brokers
and share compensation with the other brokers and the amount of the compensation
DESCRIBED AS A PERCENTAGE OF T HE PURCHASE PRICE , A SPECIFIC DOLLAR
AMOUNT, OR A COMBINATION OF BOTH;
(4) explain the events or conditions that will entitle the broker to a
commission or other compensation; and
(5) contain a provision for the cancellation of the brokerage relationship by
either the client or the broker OR BY MUTUAL AGREEME NT OF THE CLIENT AND THE
BROKER.
(C) THE BROKERAGE AGREEMENT BETWEEN A BROKER AND A BUYER OR
LESSEE SHALL:
(1) HAVE A DEFINITE TERM INATION DATE THAT IS EFFECTIVE
AUTOMATICALLY WITHOU T NOTICE FROM THE CL IENT;
(2) STATE THE AMOUNT OF COMPENSATION TO BE P AID TO THE
BROKER, DESCRIBED AS A PERCENTAGE OF T HE PURCHASE PRICE , A SPECIFIC
DOLLAR AMOUNT , OR A COMBINATION OF BOT H;
(3) STATE WHETHER THE BR OKER IS AUTHORIZED T O RECEIVE SOME
OR ALL OF THE COMPEN SATION TO BE PAID TO THE BROKER FROM A PE RSON OTHER
THAN THE CLIENT;
(4) STATE THE CLIENT’S RIGHTS AND OBLIGATIO NS REGARDING THE
COMPENSATION TO BE PAID TO THE BROKER I F THE BROKER IS AUTHOR IZED TO
RECEIVE SOME OR ALL OF THE COMPENSATION TO BE PAID TO THE BR OKER FROM A
PERSON OTHER THAN TH E CLIENT;
(5) EXPLAIN THE EVENTS T HAT MUST OCCUR OR CO NDITIONS THAT
MUST BE MET IN ORDER FOR THE BROKER TO BE ENTITLED TO A COMMIS SION OR
OTHER COMPENSATION ; AND
WES MOORE, Governor Ch. 359
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(6) CONTAIN A PROVISION FOR THE CANCELLATION OF THE
BROKERAGE RELATIONSH IP BY EITHER THE CLIENT OR THE BROKER OR BY MUT UAL
AGREEMENT OF THE CLIENT AND THE BROKER .
[(c)] (D) Except as otherwise provided in the brokerage agreement, a licensee
shall have no further duties or obligations to a client after the termination, expiration, or
completion of performance of the brokerage relationship, except to:
(1) account for all trust money in the licensee’s possession in accordance
with this title; and
(2) except as otherwise provided by this title or another law, keep
confidential all personal and financial information received from the client during the
course of the brokerage relationship and any other information that the client requests
during the brokerage relationship to be kept confidential, unless:
(i) the client consents in writing to the disclosure of the information;
or
(ii) the information becomes public from a source other than the
licensee.
[(d)] (E) The payment or promise of payment of compensation to a licensed real
estate broker by a seller, lessor, buyer, or lessee, or by a licensee acting for a seller, lessor,
buyer, or lessee:
(1) is not determinative of whether a brokerage relationship has been
created or exists; and
(2) does not create or determine the existence of a brokerage relationship
between a broker and a seller, lessor, buyer, lessee, or licensee.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2024.
Approved by the Governor, April 25, 2024.