Before you read
Test yourself first: 5 questions
Question 1 of 5
If the Maryland Real Estate Commission finds a licensee violated the license law, it may impose which of the following?
Answer: B. MREC may discipline licensees through reprimand, license suspension or revocation, and civil monetary penalties; criminal punishment requires the courts, not the Commission.
Question 2 of 5
If the Maryland Real Estate Commission receives a complaint alleging that a licensee violated the license law, the Commission's typical first step is to:
Answer: B. The Commission investigates complaints and, where appropriate, conducts an administrative hearing at which the licensee receives notice and an opportunity to be heard before discipline is imposed. It cannot revoke a license without due process, jail a licensee, or send complaints straight to an appellate court.
Question 3 of 5
After a disciplinary hearing, which of the following sanctions is within the Maryland Real Estate Commission's authority against a licensee found to have violated the license law?
Answer: B. As an administrative agency, the Commission may discipline licensees by reprimand, suspension, or revocation of the license and may impose civil monetary penalties. It cannot impose criminal imprisonment or award punitive damages; those are functions of the courts.
Question 4 of 5
A licensee who is dissatisfied with a final disciplinary decision of the Maryland Real Estate Commission generally has what recourse?
Answer: B. A licensee aggrieved by a final administrative decision of the Commission may seek judicial review in the appropriate Maryland court, consistent with the state's Administrative Procedure Act. Commission decisions are not unreviewable, and neither a private trade association nor re-taking the exam can overturn discipline.
Question 5 of 5
A Maryland salesperson accepts a referral fee from an unlicensed person for steering a buyer to that person's services. Under Maryland license law, this conduct is best characterized as:
Answer: B. Maryland license law prohibits paying or receiving compensation for real-estate brokerage services to or from unlicensed persons (with narrow exceptions). Improperly sharing or accepting compensation tied to brokerage activity with an unlicensed person is prohibited conduct that exposes the licensee to discipline by the Commission.
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What you need to know
Where a violation is proven, MREC may reprimand the licensee, suspend or revoke the license, and assess civil penalties. Grounds for discipline include fraud, misrepresentation, dishonest dealing, and commingling client funds. Maryland also funds a Real Estate Guaranty Fund that can reimburse consumers for losses caused by a licensee's fraud or conversion, subject to statutory caps.
Maryland License Discipline & Enforcement: FAQs
Is Maryland License Discipline & Enforcement on the real estate exam?
Yes. State License Law is a scored domain on the Maryland real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Maryland test this differently?
Maryland applies its own license law on top of the national portion. This page covers the Maryland rules specifically, which is what the state section of your exam tests.
