Maryland Real Estate Exam Flashcards

Maryland Real Estate Exam Flashcards Which of these licensees has NOT shown cause for immediate suspension of his or her license?1. Luis has been working for two brokers at the same time.2. Patrick has misplaced three clients' earnest money checks in the past month.3. Phoebe is convicted of felony fraud involving her brokerage's finances.4. When the commission performed a records audit, Annalise wasn't able to account for trust funds she deposited two years ago.

• Luis has been working for two brokers at the same

time.The commission may, pending a hearing, immediately suspend a license if the licensee fails to properly account for trust funds or provide transaction documents upon commission request or is convicted of a felony.Which of the following classes are not protected by federal or Maryland fair housing law, but may be protected by local ordinances in Maryland?1. Age and lawful income2.Disability and gender identity3. Marital status and familial status4. National origin and sexual orientation

• Age and lawful incomeAge and lawful income are

classes that are not protected for housing discrimination at the federal or state level in Maryland, but may be protected at the local level.Fresh out of community college and newly licensed as a real estate salesperson, Ben just took on a short sale as his first listing. Ben told his broker, Janine, that he could handle the transaction and had just advised his seller client that he could do it with minimal damage to the client's credit rating. Janine immediately took Ben off the listing and assigned it to a more experienced licensee. Why?1. By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure.2. New salespersons aren't permitted to take on listings until after the 90-day probationary period.3.Salespersons must get their broker's permission before accepting a short sale listing or offering on a short sale property.4. Short sales may only be listed by brokers or associate brokers.By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure.The Protection of Homeowners in Foreclosure Act prohibits real estate licensees (unless they're further licensed) from predicting the credit effects of a short sale/foreclosure, the benefits of a strategic default, or how to avoid a deficiency judgment.Broker Pat was so busy enjoying her semi-retired life that she failed to supervise new salesperson Dina adequately and Dina engaged in unintentional discrimination. What might happen to Pat's license?1. If Dina's license is revoked, Pat's is automatically suspended.2. If Dina's license is suspended, Pat's is automatically suspended as well.3. It could be suspended or revoked.4. Nothing. Only Dina's license is in danger.It could be suspended or revoked.Dina will likely be disciplined for the unintentional discrimination she engaged in, and Pat's license is also in danger for failing to adequately supervise an affiliated licensee. Both licensees can potentially be fined as much as $5,000 per violation.Roger Kelly is signing a listing contract with a client. Which of the following is an acceptable signature on the document?"Roger Kelly""Roger Kelly, XYZ Real Estate""XYZ Brokerage""XYZ Real Estate Team" "Roger Kelly"

What information about the Guaranty Fund must be included in every Maryland sales contract?1. Notice that the Guaranty Fund's minimum balance is $250,0002.Notice to the buyer of the Guaranty Fund's protection up to $50,0003. Notice to the buyer that licensees are exempt from having Guaranty Fund claims placed against them4.The website and office address where consumers may go to file a written Guaranty Fund claim Notice to the buyer of the Guaranty Fund's protection up to $50,000Sales contracts must include a written notice to the buyer of the Guaranty Fund's protection up to $50,000.Which of these is NOT a power of the Maryland Real Estate Commission?1. Adopt reasonable bylaws and regulations regarding real estate practice and licensee conduct2. Impose jail sentences of up to six months on licensees who commit multiple serious license law violations3. Investigate complaints against real estate licensees or unlicensed individuals who are allegedly practicing real estate4. Oversee license application, issuance, and renewal impose jail sentences of up to six months on licensees who commit multiple serious license law violationsPenalty-wise,

MREC may: suspend/revoke licenses, seek injunctions

against violators, subpoena witnesses for hearings, and levy civil penalties of as much as $25,000. MREC may refer possible criminal matters to the authorities for prosecution.Kent's seller client's home just went under contract on Tuesday. Just as he's hanging the "under contract" sign in the yard, he gets an email alert from a different buyer's agent with a new offer attached. What should Kent do with the offer?1. Advise your seller to accept it as a back-up offer.2. Hold onto it in case the current contract falls through.3. Present it to his client.4. Reply to the buyer's agent that the property is under contract, so it's too late to make an offer.

• Present it to his client.

aulo failed to disclose a leaking roof to his buyer client, and a few soggy months later, MREC found him guilty of his second license law violation in three years. What's a likely civil penalty the commission will levy against him?$10,000$15,000$20,000$5,000 $15,000License 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.hich party would NOT need a real estate license to perform the following activities in Maryland?1. A daughter whose father granted her power of attorney to sell his home2. A developer who regularly subdivides and sells vacant lots3.A freelance "neighborhood specialist" who is paid to scope out properties for out-of-town parties4. An attorney who practices real estate as part of her regular duties

• A daughter whose father granted her power of attorney

to sell his home Ruthe is fed up with her agent's lazy and irresponsible behavior. On top of his usual incompetence, her checking account was just hacked because he misplaced her $10,000 EMD check. She's lost $5,000 and has to pay $50 in bank fees, too. With which entity should she file a complaint?1. The chamber of commerce2. The Guaranty Fund3. The Maryland Real Estate Commission4. The state

attorney general

• The Maryland Real Estate Commission

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?1. "I'm always flexible. If we need to, we'll add an amendment to the agreement granting you permission to cancel early."2. "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."3. "There's a provision right here that gives either of us permission to cancel the agreement early."4. "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."

• "There's a provision right here that gives either of us

permission to cancel the agreement early." 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