Section 17-404 - Claims against Guaranty Fund.
§ 17-404. Claims against Guaranty Fund.
(a) In general.-
(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) Limitation on recovery.- The amount recovered for any claim against the Guaranty Fund may not exceed $25,000 for each claim.
(c) Excluded claims.-
(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) Limitations period.- 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.
[An. Code 1957, art. 56A, § 4-404; 1989, ch. 3, § 1; 1994, ch. 3, § 13.]