Maryland Real Estate Exam Prep
Questions and Answers- Already Passed
Who appoints members to the Maryland real estate commission?
A. The State Senate
B. The house of Delegates
C. The executive director of the Commission
D. The governor of Maryland ✔✔Answer: The governor of Maryland
Which of the following is true concerning the Maryland Real Estate Commission?
A. Its members are representative brokers from real estate boards or associations through
Maryland
B. It has 5 members
C. It has 4 professional and 5 consumer members
D. 3 out of its members are not real estate licensees and 5 are ✔✔Answer: 3 out of its members
are not real estate licensees and 5 are
What must be included in advertising by a broker?
A. the name of the broker’s Realtor board or association or Realtist organization
B. The legal name of the licensed real estate broker
C. the designated name of that broker as registered with the Commission
D. the name of the licensee who listed the property ✔✔Answer: the designated name of that
broker as registered with the commission
Which of the following is NOT required in advertising for a team?
A. The advertisement must follow branch office and company wide requirements
B. The advertisement must contain the name of at least one licensee on the team
C. The advertisement must contain the name of the team leaser
D. the advertisement must include the phone number of the office out of which the team works
✔✔Answer: the advertisement must contain the name of the team leaser
Whom may use a listing agreement form published by a multiple listing service?
A. any licensee
MARYLAND REAL ESTATE EXAM PREP
(2022/2023) GRADED A+
Which of the following does NOT end presumed buyer representation? ✔✔The licensee working
with prospects fails to present a disclosure of representation form
Does Maryland have dower laws? ✔✔no
Dual agency is permitted only in brokerage firms consisting of three or more licensee ✔✔true in
maryland
In which of the following situations does an act of real estate brokerage require a real estate
brokerage license? ✔✔A person charges a modest consulting fee to guide his friend in the sale of
a home
Which is not necessary for a valid contract? ✔✔due date
Licensees do NOT need to do which of the following to be “qualified real estate agents” and be
eligible to use Schedule C-Self-Employed when filing federal tax returns? ✔✔Be free from their
broker’s control of how their work is done
Which is TRUE of employees of the Commission? ✔✔They include an executive director and
field inspectors
cooperating agents ✔✔-A cooperating agent who brings in a buyer has fiduciary duties to the
seller/owner
- Cooperating agents can represent the buyer
-Cooperating agents are sub-agents of the listing broker
After getting a license, how often must you take Continuing Education classes? ✔✔every 2 years - 15 hours
Where does fees paid for by Maryland real estate licenses go? ✔✔The State Real Estate
Commission Fund
What term means “going to the state?” ✔✔escheat
Who can hold standard licenses to provide Maryland residential real estate brokerage services?
✔✔individuals
Maryland Real Estate Practice Exam
Already Graded A
Maryland real estate license law is administered by the ✔✔Maryland Real Estate Commission
How are members of the Real Estate Commission selected? ✔✔By the Governor, with the
advice and consent of the state senate and the advice of the Secretary of Labor, Licensing, and
Regulation.
What is the total number of Real Estate Commissioners in Maryland? ✔✔nine
What is the total number of members who hold real estate licenses on the Real Estate
Commissioners in Maryland? ✔✔five
What is the total number of consumer members on the Real Estate Commissioners in Maryland?
✔✔four
A professional member of the commission must have been ✔✔licensed as a real estate broker,
associate, or salesperson for at least ten years and residents in area which appointed for five
years immediately before appointment
Maryland Real Estate Study Guide (40
Questions with Certified Solutions)
- Licensee Commissioner Must be licensed for at least ✔✔10 YEARS
- Area Representative of the Real Estate Commission must have ✔✔Lived in area for 5
YEARS - Commission must provide a copy of the Code of Ethics to each licensee on the website
every ✔✔2 YEARS - Commission must provide a copy of Regulations to each licensee on the website every
✔✔2 YEARS - Commission must submit an annual report to the secretary how often? ✔✔ANNUALLY
- MD Real Estate Commission’s Hearing Panel’s Must Consist of ✔✔3 ELECTED
MEMBERS with at least 1 licensee or 1 non-licensee - MD Real Estate Commission Meetings are held how often? ✔✔Once a Month
- Minimum Age to obtain a salesperson and brokers license is ✔✔18 YEARS OLD
- Must be active as a salesperson for at least how many years to obtain a brokers license?
✔✔3 YEARS - Term of Brokers, Associate Brokers and Salespersons License before Expiration? ✔✔2
YEARS - Renewal of license mailed to licensee is at least how long before expiration? ✔✔1
MONTH: 30 days - Minimum amount of hours of Continuing Education Requirements are ✔✔15 hours
- Continuing Education Requirements of the 15 Hours include ✔✔1.5 Fair Housing
3 Legislative
3 Code of Ethics, Predatory Lending and Flipping
3 Principles of Agency and Disclosure
Maryland Real Estate (Law) Practice
Exam Already Passed
When a salesperson whose license has not been renewed negotiates a sale of real property, who
is the commission payable to?
a. the broker only
b. no one
c. the salesperson only
d. the broker and the salesperson according to prior agreement ✔✔b. no one
If a salesperson license is issued on January 2, 2016, when will it expire?
a. January 2, 2016
b. September 2, 2016
c. April 1, 2016
d. March 31, 2016 ✔✔a. January 2, 2016
When prospective purchasers first arrive at a brokerage office to find a house to buy, how does
the Brokers Act require them to be treated?
a. as customers
b. as clients
c. as agents
d. as factors ✔✔b. as clients
Which of the following is TRUE of salespersons’ real estate licenses?
a. they must be placed and kept in a safe place chosen by the salespersons
b. they are to be carried by the salespersons when performing acts of real estate brokerage
c. they must be retained in their broker’s offices
d. they must be maintained in personnel files by their brokers ✔✔c. they must be retained in
their broker’s offices
What is the maximum amount that a claimant may receive from the Guaranty Fund on losses
from one transaction?
a. an unlimited amount
b. $250,000
c. $50,000
d. $25,000 ✔✔c. $50,000
Under the Junk Fax Prevention Act, which of the following is TRUE of persons who send faxes?
a. they need not provide a way for the recipients to opt out of getting more faxes
b. they may use recipient addresses they receive from a fax-spamming company
c. they may send faxes only between 9:00 am and 5:00 pm
d. they must have an established business relationship with the recipients ✔✔d. they must have
an established business relationship with the recipients
MD Real Estate Exam- State Portion
Already Graded A
Inactive Status ✔✔associate real estate brokers and real estate salesperons that are no longer
affiliated with licensed real estate brokers and their license certificates and pocket cards are
returned to the Commission.
An inactive license ✔✔expires 3 years from the date it was placed on inactive status
Commission pays any penalty collected to ✔✔General Fund of the State
Instead of, or in addition to, suspension or revocation, for any violation of the Brokers Act (Title
17), the Commission may impose a penalty for a first violation ✔✔not exceeding $5,000
Instead of, or in addition to, suspension or revocation, for any violation of the Brokers Act (Title
17), the Commission may impose a penalty for a second violation ✔✔not exceeding $15,000
Instead of, or in addition to, suspension or revocation, for any violation of the Brokers Act (Title
17), the Commission may impose a penalty for a third violation ✔✔not exceeding $25,000
MD Real Estate PSI exam (2022/2023)
Already Passed
home equity loan ✔✔A loan under which a property owner uses the property as collateral and
can then draw funds up to a prearranged amount against the property. Also called a home equity
line of credit, or HELOC.
home inspection ✔✔A thorough visual survey of a property’s structure, systems, and site
conditions conducted by a professional.
Home Mortgage Disclosure Act ✔✔A federal law, implemented at its creation by Regulation C
of the Federal Reserve, that requires lenders to annually disclose the number of loan applications
and loans made in certain areas to avoid the practice of redlining. On July 21, 2011 the rulemaking authority of the law was transferred to the Consumer Financial Protection Bureau.
homeowners insurance ✔✔Insurance that covers a residential real estate owner against financial
loss from fire, theft, public liability and other common risks.
homestead ✔✔Land that is owned and occupied as a family home. In many states, a portion of
the area or value of this land is protected or exempt from judgments for debts other than those
secured by the property.
Housing for Older Persons Act of 1995 HOPA ✔✔HOPA Amended the Fair Housing Act to
provide that housing intended for persons aged 55 or older no longer needs to have significant
facilities and services designed for the elderly.
HUD-1 ✔✔A form that was formerly used to itemize fees and services charged to a borrower
and seller during a real estate transaction.
hydraulic fracturing (fracking) ✔✔The process used to extract natural gas from the deep layers
of rock in which it is embedded.
hypothecation ✔✔To pledge property as security for an obligation or loan without giving up
possession of it.
immobility ✔✔The fact that property cannot be relocated to satisfy demand where supply is low,
nor can buyers always relocate to areas with greater supply.
implied agency ✔✔If the actions of the parties imply that they have mutually consented to an
agency relationship, an implied agency relationship is formed.
implied agreement ✔✔A contract under which the agreement of the parties is demonstrated by
their acts and conduct.
implied contract ✔✔A contract under which the agreement of the parties is demonstrated by
their acts and conduct. (see implied agreement)
implied warranty of habitability ✔✔A theory in landlord/tenant law in which the landlord
renting residential property implies that the property is habitable and fit for its intended use.
impound accounts ✔✔An account that the mortgage lender may require a borrower to have to
accumulate funds to pay future real estate taxes and insurance premiums.
improvement ✔✔1. Any structure, usually privately owned, erected on a site to enhance the
value of the property (e.g., a building, fence, or driveway).
Maryland real estate law practice test
100% pass
personal property ✔✔maryland license law construes a lessee’s interest under the terms of a lease
bonding requirement for real estate sales people and brokers in Md ✔✔no bond required for
salespeople and/or brokers
the act of steering or blockbusting is ✔✔illegal in the state if md
company’s escrow account ✔✔where all funds received by a salesperson for the account of
others must be deposited by the broker
md real estate commission consists of ✔✔appointed members from the real estate industry and
consumers
nonresidents of md who apply for licensure must ✔✔conform to all requirements of the licensure
act
Maryland Real Estate Exam Questions
and Answers 100% Correct
Nancy, a broker in Annapolis, is going over the listing agreement with her new client, Josie, who
asks, “What if I need to cancel the agreement early?” What should Nancy tell her?
- “I’m always flexible. If we need to, we’ll add an amendment to the agreement granting you
permission to cancel early.” - “Listing agreements in Maryland must be for a definite amount of time. If it would make you
more comfortable, we can set the expiration date for one month, then have it automatically renew
unless you decide to cancel.” - “There’s a provision right here that gives either of us permission to cancel the agreement
early.” - “You may cancel early. But per Maryland law, since listing agreements must have a definite
termination date, if you do cancel I’ll have to charge you a nominal cancellation fee.” ✔✔3.
“There’s a provision right here that gives either of us permission to cancel the agreement early.”
Sheila filed a discrimination complaint against her landlord. She’s worried that when he finds out
about her complaint, he’s going to evict her. However, he knows not to evict her just because she
filed a complaint. Why? - He must wait to evict her until after the complaint has been investigated.
- Landlords must wait 180 days to evict parties who file a discrimination complaint.
- Parties who file a discrimination complaint may not be evicted for any reason.
- Retaliation against parties who file a discrimination complaint is illegal. ✔✔4. Retaliation
against parties who file a discrimination complaint is illegal.
For sale signs on ground rent properties that show the price of the property must also state which
of the following? - Annual ground rent
- Annual ground rent plus the full cost of capitalization
- Price for which the land could be purchased
- The market value of the property ✔✔2. Annual ground rent plus the full cost of capitalization
Raul, a broker licensed in Maryland, has just signed on to manage a landlord’s 15-unit apartment
building. Which of the following tasks may Raul NOT perform without the owner’s express
knowledge and consent? - Accept a rebate from the laundry machine company.
- Collect each tenant’s rent on the first of the month.
- Maintain the building’s landscaping.
- Return security deposits to tenants after they move out. ✔✔1. Accept a rebate from the
laundry machine company.
In Maryland, transaction records may be stored electronically as long as __.
- Licensees are able to provide a paper copy upon commission request
- The electronic storage system has unlimited capacity
- The storage system used is on the commission’s approved systems list
- They’re stored for at least six years ✔✔1. Licensees are able to provide a paper copy upon
commission request
Jim’s had one heck of a time getting his latest listing sold. His seller client nitpicked every single
item that the buyers asked her to repair after the home inspection. She was about to let the deal
fall through over it until Jim offered to rebate 0.5% of his commission back to the seller. Does
Maryland license law permit Jim to do this? - No. Licensees aren’t permitted to pay (or rebate) compensation to unlicensed individuals.
- No. The commission rate written into the listing agreement is binding.
- Yes, as long as he documents the commission reduction in writing and discloses it to all
parties. - Yes, but only if the listing agreement is also updated to reflect the new commission rate. ✔✔3.
Yes, as long as he documents the commission reduction in writing and discloses it to all parties.
After 15 years of building her business as a salesperson, Estrella has gotten her broker’s license
and is striking out on her own. She’s creating new business cards, and it’s been so long since she
had to do them on her own, she’s double-checking that they comply with Maryland real estate
advertising law. What does she need to be sure to include?
- Estrella must include her name, her picture, and either her business’s phone number or address.
- She doesn’t need to worry about complying, since business cards aren’t considered advertising
in Maryland. - She needs to include her name, her business’s phone number, and her license number.
- The cards must include her name as it appears on her license. ✔✔4. The cards must include
her name as it appears on her license.
Monique received four offers on her client’s listing. Offer A is a written offer that the buyer’s
agent dropped off at Monique’s office. Offer B is an offer that the buyer’s agent communicated to
Monique over the phone. Offer C is a written offer that Monique received via email. Offer D is a
written counter-offer from a buyer that Monique’s client countered earlier in the week. Which
offers must Monique present to her client? - All of them
- Only offer D, since it’s a counter-offer
- Only offers A, B, and C, since they supersede a counter-offer
PSI Real Estate Exam (MD State Portion)
Latest 2023 Graded A+
Real Estate brokerage is govern by: ✔✔1. Satutory Law – Brokers Act “Title 17”
- Administrative Law – Code of Maryland Regulations (COMAR)
Regulation is enacted and enforced by MD Real Estate Commission (MREC)
Brokerage Services: ✔✔For consideration:
- Selling, buying, exchanging, or leasing any real estate or collecting rent
- Assisting to locate/obtain for purchase/lease any residential real estate
- Serving as a consultant
Engage regularly in a business of… - Dealing/lease/option in real estate
- Promoting the sale of real estate through a listing in a publication
- Subdivides land located in any state into lots and then selling those lots
Transfer of Affiliation ✔✔- Apply to commission for transfer from one broker to another,
after obtaining from the new broker a commitment
- Need a statement confirming termination from former broker or themselves.
Advisable but not required by law the former broker be informed of the details of the transfer.
Continuing education sales associate ✔✔15 clock hours, a clock hour is 50 minutes of actual
instruction on a 60 minute course.
Must renew license every 2 years from date you activate your license, required CEU’s: - 3 Agency
- 3 Ethics, Flipping, Predatory Lending
- 3 Legislative
- 1.5 Fair Housing
- 4.5 Your choice
Total 15 hours
Commission issues three levels of license for individuals and… ✔✔Broker, associate broker and
salesperson
it issues certificate for branch manager and registers time-share developers.
Commission has subtypes of each level ✔✔Resident, non-resident, reciprocal or temporary, for
commercial,
Associate Broker and sales person license include from subtypes ✔✔Resident, non-resident and
reciprocal
Maryland has reciprocal license with ✔✔Pennsylvania and Oklahoma
General agents ✔✔Are sales persons and associate brokers
Special Agents ✔✔Brokers are special agents to their clients
Persons not subject to the Brokers act when performing acts of RE Brokerage title 17 ✔✔17102
- Persons acting under a judgement or court order
- Public officers performing duties of their office
- Landlords or owners of any real estate, unless their primary business is providing real estate
brokerage services - Persons engaging in a single transaction selling or leasing real estate, or by *power of attorney
*for the owner - Auctioneers
- Persons acting as receivers, trustees, personal representatives, or guardians
Persons who must conform to the brokers act but are not required to hold brokerage license ✔✔-
Financial institutions for foreclosure - Lawyers who do not regularly engage in the real estate business
- Home builders
- Agents of a licensed real estate broker property manager
- Persons who negotiate the sale, lease or transfer of business when the sale does not include any
interest in real property other than the lease of the property - Owners who subdivide and sell not more than six lots of their own unimproved property in one
calendar year. If they or their family have owned the property for more than 10 years there is no
limit.
Maryland Realestate commission consists of ✔✔9 members,