Real Estate Practices – Brokers, etc.

Baltimore City Code art. 2, subtit. 13

in effect

Baltimore City Code, Article 2, § 13-1 Definitions.

§ 13-1. Definitions. (a) In general. This subtitle shall apply to real estate brokers, real estate salesmen, and real estate dealers as herein defined. (b) Real estate. “Real estate” shall include leaseholds and all other interests in real property. (c) Real estate broker. “Real estate broker” shall mean any person, association, copartnership, or corporation, foreign or domestic, who: (1) for another and for a fee, commission, or any other valuable consideration, sells, purchases, exchanges, leases, rents, or collects rent, for the use of real estate; (2) attempts or who offers by verbal solicitation, advertisement, or otherwise to perform any such function; or (3) is engaged in the business of subdividing and selling land in building lots or sites. (d) Real estate dealer. “Real estate dealer” shall mean one who is regularly engaged in the business of dealing and trading in real estate or leases and options thereof. (e) Real estate salesman. “Real estate salesman” shall mean any person who performs on behalf of any real estate broker, any act or acts authorized by the Maryland Real Estate Brokers Act to be performed by a real estate broker. (Ord. 60-431.)

Baltimore City Code, Article 2, § 13-2 Scope of subtitle – Inclusions.

§ 13-2. Scope of subtitle – Inclusions. Any person, partnership, association, or corporation who, for another in consideration of compensation by fee, commission, salary, or otherwise or with the intention or in the expectation or upon the promise of receiving or collecting a fee, does, offers, or attempts or agrees to do, engages in or offers or attempts or agrees to engage in, either directly or indirectly, any single act or transaction contained in the definition of “real estate broker” or “real estate salesman” in this subtitle, whether said act be an incidental part of a transaction or the entire transaction, shall be deemed a real estate broker or real estate salesman within the meaning of this subtitle. (Ord. 60-431.)

Baltimore City Code, Article 2, § 13-3 Scope of subtitle – Exclusions.

§ 13-3. Scope of subtitle – Exclusions. Notwithstanding the foregoing definitions, the terms “real estate broker” and “real estate salesman” shall not include: (1) receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment of or order of any court; (2) public officers while performing their official duties as such; (3) any bank, trust company, or mortgage loan institution organized under the laws of this State or the United States with respect to the management or sale of any property acquired through or in connection with mortgage foreclosures; (4) investment homebuilders with respect to the sale or rental of housing constructed by them; (5) attorneys-at-law who are not regularly engaged in the real estate business and who do not hold themselves out by sign, advertisement, or otherwise as offering to the general public the services authorized to be performed by real estate brokers and pursuant to the Maryland Real Estate Brokers Act; (6) any person holding in good faith a duly executed power of attorney from the actual owner authorizing the sale and conveyance or leasing of any real estate where only 1 such transaction is involved; or (7) any duly licensed auctioneer with respect to sale of real estate at public auction. (Ord. 60-431.)

Baltimore City Code, Article 2, § 13-4 Prohibited conduct – Brokers and salespersons.

§ 13-4. Prohibited conduct – Brokers and salespersons. (a) In general. No real estate broker or salesman shall, or shall attempt to: (1) use any contract form for the listing of property for sale, rent, or exchange or any contract form for the sale, rent, or exchange of property or advertising matter which includes the name of any association or organization of which the broker or salesman is not a member; (2) retain the services of any person as a salesman on a purely temporary or single transaction basis as a means of evading the law regarding the payment of commissions to non-licensed persons on some contemplated transaction; (3) act for more than 1 party in a transaction without the prior knowledge and consent of all parties for whom he acts; (4) refuse or fail within 30 days after demand to account for or to remit any monies coming into his possession which belong to others; (5) refuse or fail to promptly furnish a duplicate copy of all listing contracts to sell or rent property or of any lease or contract or sale when prepared by a real estate broker to all parties to any such contracts or leases; (6) fail to retain a copy of such contracts; (7) fail to disclose to any person with whom the broker or salesman is dealing any material fact or information within the knowledge of the broker or salesman concerning or relating to the property with which the broker or salesman is dealing; (8) make any untrue or misleading statement in any attempt to obtain a listing of real property for sale: (i) knowing such statement to be false or misleading; or (ii) knowing that the broker or salesman making the statement has insufficient knowledge of its truth or falsity to warrant making the statement; (9) accept a listing contract to sell property unless such contract provides for a definite termination date without notice from either party; (10) accept any listing contract which provides for a net return to the vendor leaving the broker or salesman free to sell property and retain any excess over the price named by the vendor; (11) pay or receive any rebate, compensation, or commission from any person whatever, except the seller of the real estate, without the prior knowledge and consent of all parties to the transaction; (12) disregard or violate any of the provisions of the Maryland Real Estate Brokers Act; or (13) have any interest, directly or indirectly, in the purchase of any residential real estate which he or his organization has listed for sale, where such purchase is made during or within 6 months after the termination of such listing. (b) Exceptions to prohibited interest in purchase. (1) Provided, however, that subsection (a)(13) shall not apply in cases in which a broker enters into a listing contract and a simultaneous “trade-in” agreement, whereby the broker or any company, partnership, or corporation in which the broker has any interest, either directly or indirectly, offers a guaranteed price for the listed property within a certain period in order for the seller to purchase another residence, either new or existing housing. (2) Provided, further, that subsection (a)(13) shall not apply in cases in which: (i) the broker or salesman discloses to the seller, in writing, at the time an offer or contract of sale is presented, any interest, direct or indirect, that the broker or salesman has in such offer to purchase the residential real estate which the broker or salesman or his organization has listed for sale; and (ii) the terms of the offer or contract of sale permit the seller to withdraw from same if: (A) the appraised value of the property, as determined within 21 days of the offer or contract of sale by an appraiser who is a member of an appraisal organization affiliated with the Appraisal Foundation or is certified by the Maryland Commission of Real Estate Appraisers as a residential real estate appraiser, is higher than the purchase price as contained in the offer or contract of sale; and (B) the broker or salesperson declines to amend the purchase price in the offer or contract of sale to equal said appraised value. (3) Nothing in this subsection shall prevent a seller from waiving the rights provided for in this subsection in a contract of sale. (c) Clarification. Nothing in this section shall be construed to authorize any such broker or salesman personally to prepare any such legal paper in his practice. (Ord. 90-591; Ord. 60-431.)

Baltimore City Code, Article 2, § 13-5 Prohibited conduct – Brokers, salespersons, and dealers.

§ 13-5. Prohibited conduct – Brokers, salespersons, and dealers. In transactions involving residential real or leasehold properties, no real estate broker, salesman, or dealer shall or shall attempt to: (1) pursue a continued flagrant course of misrepresentation or make any false promises directly or through agents, salesmen, advertising, or otherwise; (2) make any misleading or untrue statements in advertising residential real or leasehold property including: (i) advertising for sale or rent as an agent or broker without disclosing in such advertising the name of the advertiser or the fact that he is an agent or broker; or (ii) where any such advertising is published over the name of a licensed real estate salesman, failing to disclose in such advertising the name of the broker for whom such salesman is licensed to represent; (3) solicit or induce any party to a contract lease or agreement to break such contract for the purpose of substituting a new contract lease or agreement when such soliciting or inducing is motivated by anticipated personal gain; (4) guarantee or authorize or permit any person to guarantee future profits which may result from the resale of residential real or leasehold property; (5) solicit or offer for sale residential real or leasehold property by: (i) offering “free lots”, conducting lotteries or contests, or offering prizes for the purpose of influencing a purchase or prospective purchaser of residential real or leasehold property; or (ii) advertising or offering “free appraisals” unless the advertiser is equipped and stands ready to appraise real estate to any person requesting such an appraisal free of charge, regardless of the purpose for which such appraisal is requested; (6) make any untrue or misleading statements to induce the sale of residential real or leasehold property, whether to the person making the representation or to any other person: (i) knowing such statements to be false or misleading; or (ii) knowing that the maker of the statement has insufficient knowledge of its truth or falsity to warrant making the statement; (7) if one of the purposes of the solicitation or attempted solicitation would be to change the racial composition of a neighborhood, solicit the listing of residential properties for sale or lease by: (i) in person, door-to-door solicitation; (ii) telephone solicitation; or (iii) mass distribution of circulars; (8) whether or not acting for monetary gain, knowingly induce another person to sell or rent a dwelling or otherwise transfer real estate or knowingly discourage another person from buying real estate by: (i) making representations about the entry or prospective entry into a neighborhood of individuals of a particular race, color, sex, religion, ancestry, sexual orientation, physical or mental disability, familial status, or national origin; (ii) making representations about the existing or potential proximity of real property owned or used by individuals of a particular race, color, sex, religion, ancestry, sexual orientation, physical or mental disability, familial status, or national origin; or (iii) representing that the existing or potential proximity of real property owned or used by individuals of a particular race, color, sex, religion, ancestry, sexual orientation, physical or mental disability familial status, or national origin will or may result in: (A) the lowering of property values; (B) a change in the racial, religious, or ethnic character of the block, neighborhood, or area; (C) an increase in criminal or antisocial behavior in the area; or (D) a decline in the quality of schools serving the area; or (9) provide financial assistance by loan, gift, or otherwise to another person if the real estate broker, salesman, or dealer has actual knowledge that the financial assistance will be used in a transaction that results from a violation of item (8) of this section. (Ord. 91-666; Ord. 68-051; Ord. 66-754; Ord. 60-431.)

Baltimore City Code, Article 2, § 13-6 Prohibited conduct – Salespersons.

§ 13-6. Prohibited conduct – Salespersons. No real estate salesman shall: (1) accept a commission or valuable consideration as a real estate salesman for the performance of any act as a real estate salesman from any person except the real estate broker named in his license; or (2) represent or attempt to represent any other real estate broker as a real estate salesman without the knowledge and consent of the broker named in his license. (Ord. 60-431.)

Baltimore City Code, Article 2, §§ 13-7 to 13-8 {Reserved}

Baltimore City Code, Article 2, § 13-9 Penalties.

§ 13-9. Penalties. (a) In general. A violation of the provisions of this subtitle shall be a misdemeanor and any person convicted thereof shall be subject to a fine of $100 and not more than $500 or to imprisonment of not more than 60 days or to both such fine and imprisonment at the discretion of the court. (b) Corporations, partnerships, etc. (1) Where an offense is committed by 1 or more individuals acting for a corporation, it shall be deemed to be the offense of both the corporation and the individual. (2) Where the offense is committed by 1 or more individuals acting in behalf of a partnership or association, it shall be deemed to be: (i) the offense of the partnership or association and the individual; and (ii) the personal offense of any partner or associate who aids, abets, directs, counsels, and/or knowingly participates therein. (Ord. 60-431.)

Source: City of Baltimore Department of Legislative Reference, City of Baltimore Law Library (codes.baltimorecity.gov; Open Law Library bulk XML)URL: https://codes.baltimorecity.gov/us/md/cities/baltimore/code/2/13Fetched: 10/25/2026