Ce shop Final Exam

Unless the real estate licensee who posts the ad is otherwise properly licensed, which of these ads violates PHIFA rules in Maryland?

An ad that targets homeowners in danger of foreclosure and indicates the licensee can offer guidance

Who presides over a Maryland Real Estate Commission hearing?

An administrative law judge

When should a prospective buyer receive a copy of the Maryland Residential Property Disclosure and Disclaimer Statement?

Before or at the time the buyer makes a written offer to the seller

In Maryland, which type(s) of licensee must take 15 hours of continuing education every renewal cycle?

Brokers, associate brokers, and salespersons

Which of the following terms must be included in a buyer agency agreement?

Duties and responsibilities of the buyer to the agent

In Maryland, how often must real estate salespersons renew their license?

Every two years

In Maryland, listing agreements and their associated disclosure forms must be kept on file with the broker for a minimum of ______.

Five years

Mike's a busy listing broker. Luna, one of his associated licensees, had a complaint filed against her. Mike was busy with his own clients, and the commission's response deadline came and went without him noticing. The following week Mike received a new complaint—this time, against him. What is the new complaint likely about?

He failed to cooperate with the commission in its investigation.

Jerome let his license expire four years ago when his wife had twins and he decided to become a stay-at-home dad. Now that the twins have started preschool, Jerome would like to resume his real estate practice. What does he have to do in order to reinstate his license?

His license has been expired too long. He has to start the pre-licensing process from scratch.

Which of these parties WOULD need a real estate license in Maryland?

Marsha, an attorney who is selling a client's home, as this is something she typically does as part of her practice

Pamela has had her real estate broker's license for years. Which agency regulates the rules and requirements Pamela must follow to keep her license?

Maryland Real Estate Commission

Landon is the listing agent for Maury's property. Maury is moving out of state for a new job, so the house will be vacant for some time, depending on how long it takes to sell. Maury is pretty adamant about not having a sign in his yard, especially after he moves. Landon follows Maury's wishes, but a month after Maury moved, there hasn't been any movement on the property. Landon places a sign in the yard, hoping it will drum up some interest. Is this okay?

No, Landon shouldn't place a sign on Maury's property without Maury's written permission.

Fumiko hosted an open house for her new seller client. She gave away door prizes to attendees, including pens, mousepads, USB drives, and other items with her brokerage's contact information on them. Did Fumiko do anything wrong?

No. She didn't do anything wrong.

What information about the Guaranty Fund must be included in every Maryland sales contract?

Notice to the buyer of the Guaranty Fund's protection up to $50,000

Sam is an independent contractor Maryland licensee working for B & L Realty. Since Sam is an independent contractor, what supervisory responsibility does Sam's broker have?

Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes.

Susan is a real estate licensee. Her mother is moving to a facility for active seniors and has asked Susan to sell her home. What information does Susan need to disclose to prospective buyers?

She is related to the seller (her mother).

Which of these is NOT a circumstance that would result in a Maryland broker releasing trust money she was holding?

The buyer needed his earnest money back in order to pay the down payment.

What is the goal of the Maryland Real Estate Commission in declaring an area a real estate conservation area?

To curb threats to the racial stability of an area.

The Guaranty Fund paid a consumer's $15,000 claim because of licensee Ben's negligence. Ben is breaking the news to his broker. How's his broker likely to respond?

"Well, since this means your license is suspended, we'll see you back at the office when you reimburse the fund."

A couple years after Meredith closed on her first sale—a condo that her buyer client, Derek, bought after a messy divorce that left him virtually penniless—another licensee, Alex, called her up asking about Derek, who'd just hired Alex to help him buy a mansion worth $4.2 million. "Can he really afford it? He's not being forthcoming about his financial history, and I don't want to waste my time." What should Meredith tell him?

"You know you shouldn't be asking me about this, Alex. I can't break my client's confidentiality."

New Maryland licensees pay a fee into the Guaranty Fund to help maintain it. What is the amount of the fee?

$20

In order to qualify as one of the five real estate professional members of the Maryland Real Estate Commission board, how many years of real estate experience must you have?

10

The Protection of Homeowners in Foreclosure Act (PHIFA) outlines parameters for foreclosure consulting services offered to homeowners who are at least ______ delinquent on their mortgage payments

60 days

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?

75,000

Which of these describes self-dealing?

A licensee sells her own property without informing all parties that she's licensed.

Jason has completed 60 hours of Maryland pre-licensing real estate education, met the minimum requirements, and passed his licensing examination. What else does he need in order to receive an active license when applying for licensure?

Affiliation with a supervising broker

As a result of Maryland Real Estate Commission hearings, who makes recommendations to the commission regarding disciplinary actions?

An administrative law judge

Miranda has been charged with mishandling of her client's earnest money deposit. She's collected her supporting documentation and asked her broker to speak on her behalf at her hearing. Who will be presiding over the hearing?

An administrative law judge

For sale signs on ground rent properties that show the price of the property must also state which of the following?

Annual ground rent plus the full cost of capitalization

Which of the following statements about latent defects is true?

Any party to a real estate sales transaction who has knowledge of latent defects must disclose them.

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?

April 20

Gillian filed a complaint with MREC, alleging that her agent, Walter, discriminated against her by not showing her houses in areas that he "didn't think were safe enough for a single woman." Walter responds to the complaint by sending MREC a copy of an email exchange between himself and Gillian in which she appears to agree to the arrangement. A few weeks later, Walter receives notice of a hearing regarding the complaint. What should he do?

Attend the hearing.

Which of these incentives would be legal according to Maryland license law?

Ben runs a "Spring into Summer" ad offering sellers a reduced commission rate for the next three months.

Salesperson Katie represents seller Suzie in a transaction. Bob and Janine are buying Suzie's home, and they're not represented. To whom does Katie need to disclose her agency relationship using the Understanding Whom Real Estate Agents Represent form?

Bob and Janine only

Damon lives in Frederick but is affiliated with a broker in downtown Baltimore. He'd like to affiliate with a broker closer to home but doesn't want to sever his relationship with his current broker. What needs to happen in order for Damon to be able to work for both brokerages?

Both brokers need to send a letter to the commission stating their approval of the arrangement and that there is no conflict of interest.

Ruthe lost her job last year, and she's fallen three months behind on the mortgage payments for her Baltimore home. She seeks the services of Chuck, a foreclosure consultant. Chuck charges Ruthe $1,000 up front, then disappears and fails to return Ruthe's calls. PHIFA permits Ruthe to ______.

Bring a private legal action against Chuck to recover up to $3,000, as well as reasonable attorney's fees

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?

By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure.

When ______ in Maryland, you must submit a statement of affiliation from the new broker and a statement of affiliation termination from the former broker along with your transfer application.

Changing brokers

Which of these payment structures is illegal in Maryland?

Dean, an unlicensed assistant, is paid an extra $50 each time he takes clients on a showing on a licensee's behalf.

In addition to your name, what must be included in any advertising?

Designated name of your brokerage firm

Devon and Courtney both consented to dual agency when they signed their listing agreement with Chad from Crab Shack Homes, the Eastern Shore's premiere vacation home brokerage. But when another licensee from Crab Shack presented Chad with an offer, the couple got cold claws and decided they didn't want the potential conflict of interest with dual agency and withdrew their consent. Which of the following is NOT a potential outcome?

Devon and Courtney will be held to their previous dual agency consent and the transaction will continue unhindered.

What must Maryland sellers provide prospective buyers of homes built prior to 1978, in addition to the appropriate disclosure form?

EPA lead safety pamphlet

Harry, a real estate licensee, tells a seller, "I'll be surprised if you get $100,000 for this place. I won't charge you anything to list it, but anything you get above $100,000 goes to me. Deal?" This is an example of ______.

Entering into a net listing agreement

Demetrius is a real estate salesperson, and his friend Sharlene is a plumber. Just last week, Demetrius recommended Sharlene's services to a buyer client in desperate need of a new toilet for his new home. Unbeknownst to Demetrius, Sharlene's license expired 18 months ago. What Maryland license law violation is Demetrius potentially guilty of?

Failing to verify annually that Sharlene was still licensed

In Maryland, unless a prior business relationship exists, it is illegal to commercially solicit using what means?

Fax machine

In Maryland, you could be fined up to $1,000 per solicitation if you use this method to advertise and a prior business relationship does not exist.

Fax machine

In Maryland, the Protection of Homeowners in Foreclosure Act describes the role of and sets guidelines for the actions of ______.

Foreclosure consultants

Dexter has been managing Holly's 10-unit apartment building for five years. Holly's on vacation in Europe for a month, but before she left she approved Dexter's plan to sell six of the building's washing machines in order to buy new ones. Dexter got a great deal from the hardware store because his cousin is the manager and there ended up being a surplus of $1,000. Dexter deposited the surplus into his personal account as a bonus to himself for striking such a good deal. What did Dexter do wrong?

He didn't get Holly's approval before pocketing the profits from the sale of the washers.

You decide to take the earnest money deposit you've been given and place it in your personal account until it is needed at closing. Failing to properly safeguard and deposit an earnest money check is an example of what type of violation?

Improper handling of trust money

You're a real estate licensee in Maryland. You're walking through a property with a new seller client. The seller tells you that the property is serviced by the public sewer system, but when walking up the drive you noticed the access hatch for a septic system. What should you do?

Inquire about the homeowner's claim to ensure the property really is on public sewer.

Beverly's broker, Marquis, has assigned her to represent the seller in an in-house transaction. Beverly's colleague, Tyrone, will be representing the buyer. What's Beverly's role in this transaction?

Intra-company agent

Which of the following is NOT a penalty that the Maryland Real Estate Commission may impose upon a licensee who violated the Maryland Code of Ethics?

Jail time

Janet is a 20-something salesperson at a small country brokerage. She enjoys her job but longs for the city life. She would like to change brokerages. Which of the following is true?

Janet will need to submit a transfer application to the commission.

Shelby listed her seller client's condo on April 4. It went under contract May 16. That contract fell through on May 29. The listing agreement expired on July 4, with no other offers or contracts. On what date does the five-year record-retention clock start ticking?

July 4

Lapis is training her new unlicensed assistant, Heidi, and they've come to the subject of recordkeeping. Which of these points is true?

Lapis must keep her transaction records on file for at least five years.

Ellen just completed a whirlwind continuing education marathon, taking all 15 of her required CE hours in the span of one weekend with a company called Last Minute Real Estate Education. It's just in the nick of time, too: Ellen's license is set to expire the following week. How will the CE hours get reported to the commission?

Last Minute Real Estate Education must electronically submit Ellen's completion data to the commission.

Artie, a real estate licensee, is a convicted felon, and although he served his time, he has had some administrative sanctions that call into question his trustworthiness to serve the public. What is the maximum sanction the MREC may impose?

License revocation

You are the buyer's agent and are meeting with the unrepresented seller for the first time. You present the seller with the Understanding Whom Real Estate Agents Represent form and explain that you represent the buyer. You then ask the seller to acknowledge receipt of the agency disclosure, but the seller refuses to sign the form. What do you do?

Make note of the seller's refusal on the agency disclosure, being sure to include the date when you presented it to the person.

Maryland licensee Clint operates as an independent contractor associated with Red Hat Properties and its broker, Margaret. Which of these statements is true about Margaret's supervisory responsibility and liability for Clint's actions?

Margaret is responsible for and can be disciplined based on Clint's actions.

Real estate licensees in Maryland who are found guilty of violating the Maryland Code of Ethics will be penalized by which regulatory body?

Maryland Real Estate Commission

Which of these unlicensed assistants may NOT be compensated for their activities in Maryland?

Michael, who shows properties when salesperson Janine is out of town.

Roger is an unlicensed assistant in Dave's Maryland office. He performs tasks for several of the firm's licensees. Katherine is a licensed assistant, and she performs tasks for three of the firm's independent contractor licensees. The firm's broker, Michaela, has her own licensed assistant. Which of these statements best represents Michaela's liability for the acts of all these assistants?

Michaela is responsible for all licensees and employees associated with the firm.

Carmelita is a licensee selling a condo. She has the owner's permission to place a for sale sign in front of the unit. As she pounds the sign into the ground, a condo board representative approaches her and informs her that condo regulations forbid signage. Can Carmelita come back later and place the sign anyway?

No, she must conform to condo regulations.

Dante lives in Maryland and purchased property in Pennsylvania. His real estate agent lied to him about a material defect, and it ended up costing Dante $52,000. Can Dante file a claim against the Guaranty Fund?

No, the property purchased was in Pennsylvania.

Sylvia's buyer client didn't have a copy of the property disclosure/disclaimer statement before he made an offer on a property. Now, a week after the offer was accepted, the seller's agent finally gives Sylvia a copy of the statement, and she sees that the home is riddled with defects. Not surprisingly, her buyer client wants to back out of the offer. What violation has Sylvia possibly committed?

Not protecting her client's interests by ensuring he had a copy of the disclosure/disclaimer statement before he made an offer

Which of the following does NOT qualify as a ministerial act under Maryland law?

Offering earnest money deposit advice

Which of the following scenarios depicts the illegal handling of trust funds in Maryland?

On Friday, Shanice deposited her client's earnest money check in her personal account to keep it safe until she could transfer it to her brokerage's escrow account on Monday.

Which of the following statements about counter-offers is true?

Once a counter-offer has been made, the prior offer is cancelled.

Joanne's a new licensee, and her broker has suggested that she attend a meeting of the Maryland Real Estate Commission to learn more about how the commission works. If it's December 1, and she's trying to go before the end of the year, how many more meetings are available for her to attend?

One; MREC meets once a month (12 times per year).

What's it called when a licensee tries to induce sales by predicting a decline in market value?

Panic selling

Phyllis is a real estate salesperson in Maryland. The commission recently summarily revoked her license because of fraudulent conduct. Which of the following is true?

Phyllis may request a hearing to appeal the summary revocation.

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?

Present it to his client.

A real estate professional in Maryland is legally permitted to take which of these actions?

Prohibit a family of 10 from renting a unit with a capacity of two people

Antonio feels that his agent did not act in his best interests when she waited nearly a week to present an offer to him. His agent argues that she held onto the offer because it was $15,000 less than list price and she wanted to see if a better offer came in before the weekend. Which section of the Maryland Code of Ethics did Antonio's agent possibly violate?

Relations to the client

Rhetta received the lead-based paint inspection report for the two-bedroom condo she's purchasing. The report found evidence of lead-based paint in the living room, dining room, and kitchen. Within the 10-day deadline, Rhetta made sure to send the sellers a copy of the report, an itemization of the hazards, and guidelines on how the sellers should abate them. What's wrong with this scenario?

Rhetta only has five days in which to send the sellers this information.

Beverly was so proud of the comparative market analysis (CMA) she'd put together for her seller client, Jonathon. The first page was simple: a large photo of his property with the address printed underneath. The rest of the CMA was spotless: She'd found four excellent comparable properties, included plenty of information about them, and was confident that Jonathon would love the suggested list price she arrived at. What did Beverly do wrong?

She didn't include a written statement on the CMA's first page that clarified that it wasn't an appraisal.

Rosalie's buyer client, Emmett, lost $10,000 in earnest money when his contract fell through due to a tiny change in Maryland law that went into effect the previous month. When she received a notice of Emmett's complaint to MREC, Rosalie argued that she'd renewed her license the previous year, so hadn't taken her legislative update CE for her next renewal yet and wasn't responsible for the legal oversight. Which, if any, of the Maryland Code of Ethics guidelines has Rosalie potentially violated?

She failed to keep informed of new real estate law or changes to real estate requirements.

Shanice got her real estate license just in time to help her father sell the condo they jointly own in Harbor East in Baltimore. Even better, another agent in her brokerage found a buyer, so they were able to keep the commission within the brokerage. Shanice made sure that both parties were fully aware of and consented to the dual agency arrangement in writing. What is Shanice forgetting?

She forgot to disclose that she has ownership interest in the property.

MREC received a complaint from Rose, stating that licensee Stan had placed a sign on her property without her permission. As a result, she received a $250 fine from her homeowners association for illegal signage. MREC notified Stan and his broker about the complaint, and Stan's broker responded by sending a copy of an email from Rose, stating that the firm could have a sign installed. As a result, the hearing panel dismissed the claim. What can Rose do now?

She is out of luck and won't be able to request further action from MREC

Why does the Maryland Code of Ethics require that licensees stay abreast of current market conditions?

So they can competently advise clients about fair market value/price

How do you change your supervising broker in Maryland?

Submit a statement of affiliation from the new broker and a statement of affiliation termination from the former broker along with your transfer application to the commission.

New licensee Joey is reconciling his bank statement and identifies a $20 deficit that he can't account for. Which initial licensing fee has he likely forgotten about?

The $20 Guaranty Fund fee

A seller client found out three days after closing that the woman who bought his condo was his seller agent Hannah's mother. Hannah never disclosed this to him. He wants to file a complaint against her, claiming she violated the Maryland Code of Ethics. With which entity should he file his complaint?

The Maryland Real Estate Commission

Jerry is a new licensee and he's excited to be creating some advertising. When he does this, what must he remember about including his brokerage's designated name in his advertising?

The brokerage's designated business name must be meaningfully and conspicuously present.

Whose responsibility is it to ensure that a prospective buyer receives a copy of the Maryland Residential Property Disclosure and Disclaimer Statement prior to the buyer making a written offer to the seller?

The buyer's broker and the seller's broker

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?

The cards must include her name as it appears on her license

DeShawn has been licensed as a salesperson in Maryland for 18 months. Which of the following statements is true about his upcoming license renewal?

The commission will send DeShawn a renewal reminder at least 60 days before his license's expiration date.

Silvio's buyer client Donna is new to the area and asked him if he could recommend any contractors to install new windows and doors in her new home. Silvio checked the DOL website to make sure the contractor was still licensed, then gave Donna the contractor's contact information. What else does he need to give Donna?

The date Silvio verified the contractor's licensure and the link to the DOL website where Donna can perform a license search

Maryland salesperson Claire has been licensed for a little over a year. She's a bit of an overachiever, so she's already completed 12 hours of her required continuing education. Her broker Darnell's license is renewing on August 28. Claire must make sure that her license is renewed by ______.

The date printed on her license

Justine's seller client needs to repair the property's roof, and Justine has recommended a contractor to her. In addition to the contractor's name and the date that Justine verified his registration with the Maryland Home Improvement Commission, what else does Justine need to give her seller client?

The link to the Maryland Home Improvement License Search on the DLLR website

Licensed property managers in Maryland must maintain related records for at least five years, beginning on the date ______.

The property management agreement terminates

Tiara's Maryland salesperson's license is going to expire next week if she doesn't complete all of the required continuing education hours. She's completed three hours of agency, three hours of legislative updates, 1.5 hours of fair housing, and three hours of electives. What other coursework does she need to complete in order to renew her license?

Three hours of ethics (including professionalism) and 1.5 more hours of electives

Which of these is NOT a material fact requiring disclosure in Maryland?

Timothy is moving out of his neighborhood because his neighbors host raucous parties at all hours of the night.

Ned is a Maryland listing agent who has learned of a material fact related to the transaction. To whom and when must he disclose this information?

To all parties as soon as possible

Paul is hoping to purchase a townhouse in Locust Point in Baltimore, and Shelly, a salesperson, is helping him fill in the blanks on the contract form before he makes his offer. Though Shelly doesn't have an agency agreement with Paul, she knows she'll still get paid since the seller has agreed to compensate sub-agents. What else does Shelly need to do?

Use the agency disclosure form to inform Paul that she's a sub-agent and technically represents the seller.

LaTonya represents the seller of a property that's got an interested buyer. She's emailing the buyer, who's unrepresented, some documentation based on some questions he had and has included the Understanding Whom Real Estate Agents Represent form so she can disclose her agency relationship with the seller. Is this permissible?

Yes, LaTonya may disclose her agency relationship through whatever medium is used when first contacting the unrepresented party.

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?

Yes, as long as he documents the commission reduction in writing and discloses it to all parties.

Kate's client is looking for a condo with at least 2,500 finished square feet. She finds a listing that's advertised as 2,200 square feet, but Kate lives in the same condo community and knows that even the largest unit is only 1,800 square feet. Should she alert the listing agent?

Yes. At the very least this is likely an innocent mistake, but at worst it's intentional misrepresentation.

Halbert's license was summarily suspended after he was convicted of felony embezzling. He'd like the chance to appeal the decision. Can he?

Yes. He has the right to plead his case in front of the commission.

In addition to serving as the listing agent for several clients, your own house is also on the market. You receive a call from another licensee who wants to show her buyer client your house. What must you immediately disclose to the buyer's agent and buyer?

You own the property.