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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0384*
SENATE BILL 384
C3 6lr2303
CF HB 545
By: Senators Watson and Carozza
Introduced and read first time: January 27, 2026
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Real Estate Brokers – Residential Real Estate Transactions – Transaction 2
Brokers 3
FOR the purpose of authorizing a licensed real estate broker, a licensed associate real 4
estate broker, or a licensed real estate salesperson to establish nonagency 5
relationships to act as a real estate transaction broker in a residential real estate 6
transaction under certain circumstances; establishing the duties of a transaction 7
broker in a transaction brokerage; requi ring the State Real Estate Commission to 8
develop a certain standard consent form for a transaction brokerage; and generally 9
relating to transaction brokers and residential real estate transactions. 10
BY repealing and reenacting, with amendments, 11
Article – Business Occupations and Professions 12
Section 17–322(b)(30) and 17–532(a) 13
Annotated Code of Maryland 14
(2018 Replacement Volume and 2025 Supplement) 15
BY adding to 16
Article – Business Occupations and Professions 17
Section 17 –551 through 17 –557 to be under the new part “Part VI. Transaction 18
Brokers” 19
Annotated Code of Maryland 20
(2018 Replacement Volume and 2025 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Business Occupations and Professions 24
17–322. 25
2 SENATE BILL 384
(b) Subject to the hearing provisions of § 17–324 of this subtitle, the Commission 1
may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license 2
if the applicant or licensee: 3
(30) fails to make the disclosure or provide the consent form required by § 4
17–530.2 OR § 17–554 of this title; 5
17–532. 6
(a) [A] EXCEPT AS PROVIDED IN PART VI OF THIS SUBTITLE, A licensee shall 7
comply with the provisions of this section when providing real estate brokerage services. 8
17–549. RESERVED. 9
17–550. RESERVED. 10
PART VI. TRANSACTION BROKERS. 11
17–551. 12
(A) IN THIS PART FOLLOWING WORDS HAVE THE MEANINGS INDICATED. 13
(B) “BROKER” HAS THE MEANING STATED IN § 17–528 OF THIS SUBTITLE. 14
(C) “BROKERAGE AGREEMENT” HAS THE MEANING STATED IN § 17–528 OF 15
THIS SUBTITLE. 16
(D) “CONFIDENTIAL INFORMATION” HAS THE MEANING STATED IN § 17–528 17
OF THIS SUBTITLE. 18
(E) “TIMELY” HAS THE MEANING STATED IN § 17–528 OF THIS SUBTITLE. 19
(F) “TRANSACTION BROKER ” MEANS A LICENSEE WHO PROVIDES REAL 20
ESTATE BROKERAGE SER VICES TO A SELLER AN D A BUYER OR A LESSO R AND A 21
LESSEE IN A REAL ESTATE TRANSACTION BUT DOES NOT REPRESENT EITHER PARTY 22
TO THE TRANSACTION IN AN AGENCY RELATIONSHIP. 23
(G) “TRANSACTION BROKERAGE” MEANS EACH RELATIONSHIP IN WHICH A 24
LICENSEE ACTS AS A TRANSACTION BROKER. 25
17–552. 26
(A) THIS PART APPLIES ONLY TO: 27
SENATE BILL 384 3
(1) THE SALE OR LEASE OF REAL PROPERTY IMPROVED BY ONE, TWO, 1
THREE, OR FOUR SINGLE–FAMILY UNITS; AND 2
(2) UNIMPROVED REAL PROPERTY ZONED FOR RESIDENTIAL USE BY 3
THE LOCAL ZONING AUTHORITY OF THE COUNTY OR MUNICI PALITY IN WHICH THE 4
REAL PROPERTY IS LOCATED. 5
(B) THIS PART DOES NOT APPLY TO A LEASE OF 125 DAYS OR LESS. 6
17–553. 7
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , A 8
LICENSED REAL ESTATE BROKER, A LICENSED ASSOCIATE REAL ESTATE BROKER, 9
OR A LICENSED REAL E STATE SALESPERSON MA Y NOT ACT AS A TRANS ACTION 10
BROKER IN THE STATE. 11
(B) IF A LICENSEE OBTAINS THE WRITTEN INFORMED CONSENT OF ALL 12
PARTIES TO A REAL ES TATE TRANSACTION , THE LICENSEE MAY ACT AS A 13
TRANSACTION BROKER FOR BOTH THE SELLER AND THE BUYER OR THE LESSOR AND 14
THE LESSEE IN A REAL ESTATE TRANSACTION. 15
(C) THE WRITTEN CONSENT F OR A TRANSACTION BRO KERAGE SHALL 16
INCLUDE A STATEMENT THAT: 17
(1) AS A TRANSACTION BROKER, THE BROKER DOES NOT REPRESENT 18
EITHER THE SELLER OR THE BUYER OR THE LESSOR OR THE LESSEE AND IT MAY BE 19
ADVISABLE TO SEEK IN DIVIDUAL REPRESENTATION BECAUSE THE INTE RESTS OF 20
THE SELLER AND THE BUYER OR THE LESSOR AND THE LESSEE MAY BE DIFFERENT 21
OR ADVERSE; 22
(2) AS A TRANSACTION BRO KER, THE BROKER OWES ONLY LIMITED 23
FIDUCIARY DUTIES AND OWES THE LIMITED FIDUCIARY DUTIES TO THE SELLER AND 24
THE BUYER OR THE LESSOR AND THE LESSEE AS ESTABLISHED UNDER § 17–556 OF 25
THIS SUBTITLE; 26
(3) A TRANSACTION BROKER MAY NOT DISCLOSE CON FIDENTIAL 27
INFORMATION IN VIOLATION OF § 17–556(D) OF THIS SUBTITLE; 28
(4) THE SELLER OR THE BU YER OR THE LESSOR OR THE LESSEE IS 29
NOT REQUIRED TO CONSENT TO THE TRANSACTION BROKERAGE; 30
(5) THE SELLER AND THE B UYER OR THE LESSOR A ND THE LESSEE 31
HAVE VOLUNTARILY CONSENTED TO THE TRANSACTION BROKERAGE; AND 32
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(6) THE TERMS OF THE TRANSACTION BROKERAGE ARE UNDERSTOOD 1
BY THE SELLER AND THE BUYER OR THE LESSOR AND THE LESSEE. 2
(D) (1) A PARTY TO A REAL ESTA TE TRANSACTION MAY W ITHDRAW 3
CONSENT TO A TRANSAC TION BROKERAGE BY RE QUESTING THE WITHDRAWAL IN 4
WRITING. 5
(2) IN ANY RESIDENTIAL RE AL ESTATE TRANSACTIO N, A 6
TRANSACTION BROKER SHALL WITHDRAW FROM A TRANSACTION BROKERAGE IF A 7
PARTY TO THE TRANSAC TION WITHDRAWS CONSE NT TO THE TRANSACTIO N 8
BROKERAGE IN ACCORDANCE WITH PARAGRAPH (1) OF THIS SUBSECTION. 9
17–554. 10
(A) A LICENSEE WHO PARTICIPATES IN A REAL ESTATE TRANSACTION AS A 11
TRANSACTION BROKER S HALL USE A STANDARD CONSENT FORM THAT IN CLUDES 12
THE INFORMATION SPECIFIED IN § 17–553 OF THIS SUBTITLE. 13
(B) (1) THE COMMISSION SHALL PREPARE AND PROVIDE THE STANDARD 14
CONSENT FORM REQUIRE D UNDER SUBSECTION (A) OF THIS SECTION TO E ACH 15
LICENSEE IN THE STATE. 16
(2) THE STANDARD CONSENT FOR M FOR A TRANSACTION 17
BROKERAGE SHALL BE: 18
(I) WRITTEN IN A CLEAR A ND COHERENT MANNER U SING 19
WORDS WITH COMMON AND EVERYDAY MEANINGS; 20
(II) APPROPRIATELY DIVIDED AND CAPTIONED BY THE VARIOUS 21
SECTIONS; AND 22
(III) PRINTED IN AT LEAST 12 POINT TYPE. 23
17–555. 24
THIS PART DOES NOT PR OHIBIT A TRANSACTION BROKER AND THE PARTI ES 25
TO A REAL ESTATE TRANSACTION FROM ENTERING A BROKERAGE AGREEMENT THAT 26
IMPOSES ON A LICENSE E DUTIES AND OBLIGAT IONS IN ADDITION TO THE DUTIES 27
AND OBLIGATIONS SPECIFIED IN § 17–556 OF THIS SUBTITLE. 28
17–556. 29
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(A) A TRANSACTION BROKER S HALL COMPLY WITH THE PROVISIONS OF 1
THIS SECTION WHEN PROVIDING REAL ESTAT E BROKERAGE SERVICES IN A 2
TRANSACTION BROKERAGE. 3
(B) A TRANSACTION BROKER: 4
(1) DOES NOT REPRESENT E ITHER PARTY TO THE R EAL ESTATE 5
TRANSACTION IN AN AGENCY CAPACITY; BUT 6
(2) AS ESTABLISHED UNDER THIS SECTION , OWES LIMITED 7
FIDUCIARY DUTIES TO EACH PARTY TO THE REAL ESTATE TRANSACTION. 8
(C) A TRANSACTION BROKER SHALL: 9
(1) ACT IN ACCORDANCE WI TH THE TERMS OF THE BROKERAGE 10
AGREEMENT; 11
(2) FACILITATE A SALE OR A LEASE OF REAL ESTATE IN ACCORDANCE 12
WITH THE TERMS OF THE BROKERAGE AGREEMENT OR OTHER TERMS ACCEPTABLE 13
TO THE PARTIES TO THE REAL ESTATE TRANSACTION; 14
(3) UNLESS OTHERWISE SPECIFIED IN THE BROKERAGE AGREEMENT, 15
PRESENT IN A TIMELY MANNER ALL WRITTEN OFFERS OR COUNTEROFFERS TO AND 16
FROM THE PARTIES TO THE TRANSACTION; 17
(4) DISCLOSE TO THE PARTIES TO THE TRANSACTION ALL MATERIAL 18
FACTS AS REQUIRED UNDER § 17–322 OF THIS TITLE; 19
(5) TREAT ALL PARTIES TO THE TRANSACTION HONE STLY AND 20
FAIRLY AND ANSWER ALL QUESTIONS TRUTHFULLY; 21
(6) IN A TIMELY MANNER A CCOUNT FOR ALL TRUST MONEY 22
RECEIVED; 23
(7) EXERCISE REASONABLE CARE AND DILIGENCE; AND 24
(8) COMPLY WITH ALL: 25
(I) REQUIREMENTS OF THIS TITLE; 26
(II) APPLICABLE FEDERAL, STATE, AND LOCAL FAIR HOUSI NG 27
LAWS AND REGULATIONS; AND 28
6 SENATE BILL 384
(III) OTHER APPLICABLE LAWS AND REGULATIONS. 1
(D) UNLESS A PARTY TO THE REAL ESTATE TRANSACT ION CONSENTS IN 2
WRITING TO THE DISCL OSURE, A TRANSACTION BROKER MAY NOT DISCLOSE 3
CONFIDENTIAL INFORMATION ABOUT OR RECEIVED FROM THE PARTY TO: 4
(1) THE OTHER PARTY TO THE REAL ESTATE TRANSACTION; 5
(2) A LICENSEE ACTING AS THE AGENT OF THE OTHER PARTY; OR 6
(3) ANY OTHER REPRESENTATIVE OF THE OTHER PARTY. 7
(E) A TRANSACTION BROKER DOES NOT HAVE A DUTY TO: 8
(1) CONDUCT AN INDEPENDENT INSPECTION OF THE REAL PROPERTY 9
IN A REAL ESTATE TRANSACTION; 10
(2) INDEPENDENTLY EXAMIN E THE RESPECTIVE FIN ANCIAL 11
CONDITIONS OF THE PARTIES TO A REAL ESTATE TRANSACTION; OR 12
(3) INDEPENDENTLY VERIFY THE ACCURACY OR COMP LETENESS OF 13
STATEMENTS MADE BY: 14
(I) A PARTY TO A REAL ESTATE TRANSACTION; 15
(II) ANY LICENSEE ACTING AS THE AGENT OF A PARTY; OR 16
(III) ANY OTHER REPRESENTATIVE OF A PARTY. 17
17–557. 18
(A) A TRANSACTIONAL BROKER AGE COMMENCES AT THE TIME THAT A 19
TRANSACTION BROKER A ND THE PARTIES TO TH E REAL ESTATE TRANSA CTION 20
ENTER INTO A BROKERAGE AGREEMENT AND SHALL CONTINUE UNTIL: 21
(1) THE COMPLETION OF PERFORMANCE IN ACCORDANCE WITH THE 22
BROKERAGE AGREEMENT; OR 23
(2) THE EARLIER OF: 24
(I) ANY DATE OF EXPIRATI ON AS AGREED ON BY T HE PARTIES 25
IN THE BROKERAGE AGR EEMENT OR IN ANY AME NDMENTS TO THE BROKERAGE 26
AGREEMENT; 27
SENATE BILL 384 7
(II) ANY MUTUALLY AGREED ON TERMINATION OF TH E 1
TRANSACTION BROKERAGE; 2
(III) A DEFAULT BY ANY PAR TY UNDER THE TERMS O F THE 3
BROKERAGE AGREEMENT; OR 4
(IV) A TERMINATION UNDER § 17–553(D) OF THIS SUBTITLE. 5
(B) THE BROKERAGE AGREEMENT BETWEEN A TRANSACTION BROKER AND 6
THE PARTIES TO THE REAL ESTATE TRANSACTION SHALL: 7
(1) HAVE A DEFINITE TERM INATION DATE THAT IS EFFECTIVE 8
AUTOMATICALLY WITHOUT NOTICE FROM ANY PARTY; 9
(2) STATE THE AMOUNT OF COMPENSATION TO BE P AID TO THE 10
TRANSACTION BROKER; 11
(3) STATE WHETHER THE TRANSACTION BROKER IS AUTHORIZED TO 12
COOPERATE WITH OTHER BROKERS AND SHARE CO MPENSATION WITH THE OTHER 13
BROKERS AND THE AMOUNT OF THE COMPENSATION DESCRIBED AS A PERCENTAGE 14
OF THE PURCHASE PRIC E, A SPECIFIC DOLLAR AM OUNT, OR A COMBINATION OF 15
BOTH; 16
(4) EXPLAIN THE EVENTS O R CONDITIONS THAT WI LL ENTITLE THE 17
TRANSACTION BROKER TO A COMMISSION OR OTHER COMPENSATION; 18
(5) CONTAIN A PROVISION FOR THE CANCELLATION OF THE 19
TRANSACTION BROKERAG E BY EITHER A PARTY TO THE TR ANSACTION OR THE 20
TRANSACTION BROKER O R BY MUTUAL AGREEMEN T OF THE PARTIES TO THE 21
TRANSACTION AND THE TRANSACTION BROKER; AND 22
(6) CONTAIN A CLEAR AND PROMINENT STATEMENT THAT A 23
TRANSACTION BROKER I S NOT AN AGENT OF AN D DOES NOT REPRESENT EITHER 24
PARTY TO THE TRANSACTION , AND IF A PARTY TO TH E TRANSACTION WOULD 25
PREFER A LICENSEE TO ACT AS AN AGENT OF AND REPRESENT THE PARTY AND THE 26
PARTY’S INTERESTS DURING T HE TRANSACTION , THE PARTY SHOULD CON SIDER 27
ENTERING A BROKERAGE AGREEMENT WITH A LIC ENSEE TO ACT AS A SELLER’S 28
AGENT OR A BUYER’S AGENT. 29
(C) EXCEPT AS OTHERWISE PROVIDED IN THE BROKERAGE AGREEMENT, A 30
TRANSACTION BROKER SHALL HAVE NO FURTHER DUTIES OR OBLIGATIONS TO THE 31
PARTIES TO THE REAL ESTATE TRANSACTION A FTER THE TERMINATION , 32
8 SENATE BILL 384
EXPIRATION, OR COMPLETIO N OF PERFORMANCE OF THE TRANSACTION 1
BROKERAGE, EXCEPT TO ACCOUNT FO R ALL TRUST MONEY IN THE LICENSEE ’S 2
POSSESSION IN ACCORDANCE WITH THIS TITLE. 3
(D) THE PAYMENT OR PROMIS E OF PAYMENT OF COMP ENSATION TO A 4
LICENSED REAL ESTATE BROKER BY A SELLER, LESSOR, BUYER, OR LESSEE, OR BY 5
A LICENSEE ACTING FOR A SELLER, LESSOR, BUYER, OR LESSEE: 6
(1) IS NOT DETERMINATIVE OF WHETHER A TRANSAC TION 7
BROKERAGE HAS BEEN CREATED OR EXISTS; AND 8
(2) DOES NOT CREATE OR D ETERMINE THE EXISTEN CE OF A 9
TRANSACTION BROKERAG E BE TWEEN A TRANSACTION BROKER AND A SELLER , 10
LESSOR, BUYER, LESSEE, OR LICENSEE. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2026. 13