Licensing and Regulation: MREC and Maryland License Law
Who regulates
The Maryland Real Estate Commission (MREC), within the Maryland Department of Labor, licenses and disciplines brokers, associate brokers, and salespersons under the Business Occupations and Professions Article, Title 17. MREC does not set commission rates (that would violate antitrust law) and does not resolve commission or contract disputes - those are civil matters.
The license ladder
A salesperson must be at least 18, have a high school diploma or equivalent, complete the required pre-licensing course, pass the exam, and affiliate with a licensed broker. A broker needs the required active licensed experience (traditionally three years within the preceding five years) plus the broker course and exam. An associate broker holds a broker's license but chooses to work under another broker.
The broker owns the transaction
Every listing and buyer-broker agreement belongs to the brokerage, not the individual agent. Earnest money and other trust funds are handled by the broker through a trust account; commingling is prohibited and 'borrowing' from escrow is grounds for severe discipline. Advertising must be under the broker's supervision and identify the brokerage. A salesperson may not accept compensation from anyone other than their own broker.
Discipline and traps
MREC may reprimand, suspend, revoke, fine, and require education or restitution, and it can act on convictions and unprofessional conduct. Classic trap answers: assuming a salesperson may sign a brokerage agreement in their own name; assuming the Commission enforces a 'standard' commission; forgetting Maryland's two-year renewal cycle and its continuing-education requirement, which includes a fair housing component.
Rule of thumb: in any scenario involving money or a signed contract, ask 'whose broker?' The answer resolves most licensing questions.