Claims against Guaranty Fund

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

        (2)    A claim shall:

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

                1.    a licensed real estate broker;

                2.    a licensed associate real estate broker;

                3.    a licensed real estate salesperson; or

                4.    an unlicensed employee of a licensed real estate broker;

            (ii)    involve a transaction that relates to real estate that is located in the State; and

            (iii)    be based on an act or omission:

                1.    in which money or property is obtained from a person by theft, embezzlement, false pretenses, or forgery; or

                2.    that constitutes fraud or misrepresentation.

    (b)    The amount recovered for any claim against the Guaranty Fund may not exceed $50,000 for each claim.

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

            (i)    the purchase of any interest in a limited partnership that is formed for the purpose of investment in real estate;

            (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

            (iii)    the purchase of commercial paper that is secured by real estate.

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

            (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

            (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.

    (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.


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