1. (a)

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

   2. (2) A claim shall:

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

         1. 1. a licensed real estate broker;
         2. 2. a licensed associate real estate broker;
         3. 3. a licensed real estate salesperson; or
         4. 4. an unlicensed employee of a licensed real estate broker;
      2. (ii) involve a transaction that relates to real estate that is located in the State; and

      3. (iii) be based on an act or omission:

         1. 1. in which money or property is obtained from a person by theft, embezzlement, false pretenses, or forgery; or
         2. 2. that constitutes fraud or misrepresentation.
2. (b) The amount recovered for any claim against the Guaranty Fund may not exceed $50,000 for each claim.

3. (c)

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

      1. (i) the purchase of any interest in a limited partnership that is formed for the purpose of investment in real estate;
      2. (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
      3. (iii) the purchase of commercial paper that is secured by real estate.

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

      1. (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
      2. (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.
4. (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.

Added by Acts 1989, c. 3, § 1, eff. Oct. 1, 1989. Renumbered from Business Occupations and Professions § 16-404 by Acts 1994, c. 3, § 13, eff. Feb. 28, 1994. Amended by Acts 2012, c. 184, § 1, eff. July 1, 2012.

Formerly Art. 56A, § 4-404.