Maryland Business Occupations and Professions Section 17-407

      (a)      The Commission shall act promptly on a claim made under this subtitle.

      (b)      Upon receipt of a claim, the Commission shall:

            (1)      forward a copy of the claim:

                  (i)      to each licensee alleged to be responsible for the act or omission giving rise to the claim;

                  (ii)      to each unlicensed employee alleged to be responsible for the act or omission giving rise to the claim; and

                  (iii)      if the licensee alleged to be responsible for the act or omission giving rise to the claim is an associate real estate broker or a real estate salesperson, to each real estate broker with whom the associate real estate broker or the real estate salesperson is affiliated; and

            (2)      request from each of those individuals a written response within 10 days to the allegations set forth in the claim.

      (c)      (1)      The Commission:

                  (i)      shall review the claim and any response to the claim; and

                  (ii)      may conduct an investigation of the claim.

            (2)      On the basis of its review and any investigation that the Commission conducts, it shall:

                  (i)      issue a proposed award under subsection (d) of this section;

                  (ii)      set the matter for a hearing; or

                  (iii)      if the claim is frivolous, made in bad faith, or legally insufficient, dismiss the claim.

      (d)      (1)      (i)      If a claimant's total claim arising from the conduct of one licensee does not exceed $3,000, the Commission may issue a proposed order to either pay the claim in whole or in part or to deny the claim.

                  (ii)      The Commission shall send the proposed order to the claimant and the licensee by personal delivery or by both regular and certified mail, return receipt requested.

                  (iii)      The proposed order shall be sent to the licensee at the most recent address on record with the Commission.

            (2)      (i)      Within 30 days after the date of personal service of the proposed order or receipt of the proposed order by certified mail, the licensee or the claimant may request in writing a hearing before the Commission or file written exceptions to the proposed order issued under paragraph (1) of this subsection.

                  (ii)      On receipt of a written request for a hearing or written exceptions to the proposed order in accordance with subparagraph (i) of this paragraph, the Commission shall schedule a hearing on the claim.

                  (iii)      If a hearing is not requested or if timely exceptions are not filed to the proposed order, the proposed order shall become a final order of the Commission.

      (e)      At any claim hearing, the burden of proof shall be on the claimant to establish the validity of the claim.