Maryland Real Estate Exam Questions
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.” CORRECT ANSWERS 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. CORRECT
ANSWERS 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 CORRECT ANSWERS 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. CORRECT ANSWERS 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 CORRECT ANSWERS 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. CORRECT ANSWERS 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. CORRECT
ANSWERS 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
- Only offers A, C, and D, since they’re in writing CORRECT ANSWERS Only offers A,
C, and D, since they’re in writing
In which of the following settings is a prize offering permitted in Maryland?
- Buyer education seminar
- Closing
- Listing presentation
- Open house CORRECT ANSWERS 1. Buyer education seminar
Which of these documents does NOT establish an agency relationship between a client
and a licensee? - Brokerage agreement
- Buyer representation agreement
- Listing agreement
- Purchase agreement CORRECT ANSWERS 4. Purchase agreement
Ben and Leslie received their finalized purchase contract on April 10, just moments after
the sellers put their final signatures on it. Ben and Leslie decided that since the home
they’re buying was built in 1920, they’d like to have it inspected for lead-based paint.
When is the latest that the couple can have the inspection performed if they want to be
able to back out of the contract? - 10 days from the home inspection date
- April 15
- April 20
- May 10 CORRECT ANSWERS 3. April 20
Blaire apparently hasn’t learned her lesson. She paid a $5,000 penalty when MREC
found her guilty of misrepresentation, a $10,000 penalty when she was found guilty of
placing a for sale sign in someone’s yard without permission, and now she’s committed
three more violations by placing a series of discriminatory ads. What’s the maximum
penalty MREC can levy for these new violations? - $100,000
- $25,000
- $50,000
- $75,000 CORRECT ANSWERS 4. $75,000
License law violators may incur penalties of $5,000 for the first violation, $15,000 for the
second violation and up to $25,000 per violation after three or more violations.
Phoebe’s New Jersey real estate license was revoked after she was convicted of
intentional misrepresentation. When the Maryland Real Estate Commission learns of
this, it summarily revokes her Maryland salesperson’s license. Does it have the power to
do this? - No. MREC may not revoke a license before the licensee has a chance to present her
case at a hearing. - No. MREC would have to prove that she has violated Maryland license law in order to
revoke her Maryland license. - Yes, but Phoebe may request a hearing to appeal the revocation.
- Yes. Revocation in another state automatically means her Maryland license must be
revoked. CORRECT ANSWERS Yes, but Phoebe may request a hearing to appeal the
revocation.
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