maryland state exam (incorrect)

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? a."I'm always flexible. If we need to, we'll add an amendment to the agreement granting you permission to cancel early." b."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." c."There's a provision right here that gives either of us permission to cancel the agreement early." d."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." *Listing agreements may not automatically renew and must contain a provision granting either party permission to cancel the agreement early.*

In Maryland, how many hours of approved real estate courses must an individual complete before taking the real estate broker's exam? a.135 b.30 c.60 d.75

135 *The broker license requires 135 hours of approved real estate courses.*

Which party would NOT need a real estate license to perform the following activities in Maryland? a.A daughter whose father granted her power of attorney to sell his home b.A developer who regularly subdivides and sells vacant lots c.A freelance "neighborhood specialist" who is paid to scope out properties for out-of-town parties d.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 *Parties who regularly engage in real estate activities, such as selling lots, etc. typically require a real estate license in Maryland. A person granted a POA to sell a single property doesn't need to be licensed.*

One of the reasons Leeloo got her real estate license was so that she'd have the inside track in purchasing investment properties for her other business as a fix-and-flipper. She's offering on a run-down rowhome in Gaithersburg under her LLC, Fifth Element Homes. What does she need to remember to submit along with her offer? a.A copy of her LLC's operating agreement b.A disclosure that she's a licensed real estate professional and has a personal interest in the sale c.Proof that she is a signatory for the LLC d.The approximate budget for any renovations she plans to make

A disclosure that she's a licensed real estate professional and has a personal interest in the sale *Licensees who are buying property for themselves must disclose, in writing, their licensed status no later than when they submit the offer. Leeloo may need to provide more information about her LLC later, but at this point she only needs to disclose that she's a licensee.*

Charlotte, an associate broker, has finally saved up enough of her commission earnings to buy an oceanfront condo in Ocean City. Assuming that she's made all of the necessary disclosures and included all the necessary paperwork with her offer, what do we know she sent to the seller's agent? a.A bank statement showing she has enough to cover the down payment b.A disclosure that she's a real estate licensee c.An earnest money deposit for at least 5% of the offer price d.A signed receipt showing she received a copy of the condo resale packet.

A disclosure that she's a real estate licensee *Licensees who are buying/renting or selling/leasing property for themselves must disclose, in writing, their licensed status no later than when they submit the offer or list/offer the property for sale.*

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? a.Accept a rebate from the laundry machine company. b.Collect each tenant's rent on the first of the month. c.Maintain the building's landscaping. d.Return security deposits to tenants after they move out.

Accept a rebate from the laundry machine company. *Property managers may not accept any payment, rebate, or profit on expenditures made for an owner without the owner's knowledge and consent.*

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? a.A commission hearing panel b.An administrative law judge c.The chairperson of the Maryland Real Estate Commission d.The state attorney general

An administrative law judge *An administrative law judge presides over commission hearings and makes a recommendation for any disciplinary action, and the three-person hearing panel decides whether to accept that recommendation.*

For sale signs on ground rent properties that show the price of the property must also state which of the following? a.Annual ground rent b.Annual ground rent plus the full cost of capitalization c.Price for which the land could be purchased d.The market value of the property

Annual ground rent plus the full cost of capitalization *If these signs are used, they must show the full cost of capitalization in addition to the annual ground rent.*

Mike, a salesperson with Helping Hand Realty, listed Yvonne's home for sale. Brett, another salesperson with Helping Hand, has a buyer interested in purchasing Yvonne's property. Antoine, Helping Hand's broker, makes sure that both Mike and Brett have re-affirmed their clients' consent to dual agency. Who is the dual agent in this scenario? a.Antoine b.Brett c.Mike d.Yvonne

Antoine *If the same firm represents both parties to a transaction, the broker may appoint a separate intra-company agent to represent each party to the transaction. In this case, the parties get to keep their respective agents, and Antoine is the dual agent.*

Which of the following statements about latent defects is true? a.Any party to a real estate sales transaction who has knowledge of latent defects must disclose them. b.In Maryland, sellers are not required to voluntarily disclose latent defects to prospective buyers. c.Latent defects are material facts that are often uncovered during an ordinary inspection. d.The buyer is responsible for uncovering latent defects through a home inspection.

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

Cheyenne has been working with a buyer, though they don't have a signed agency agreement. When he finds a house he likes, Cheyenne helps him fill out the offer paperwork and submits it to the seller's agent. In what capacity is Cheyenne contributing to this transaction? a.As an agent for the buyer b.As a non-agent for the seller c.As a sub-agent for the buyer d.As a sub-agent for the seller

As a sub-agent for the seller *Since Cheyenne doesn't have an agency agreement with the buyer, she's actually working as a sub-agent for the seller and the seller's broker.*

Which of the following statements about when you must present the Consent for Dual Agency form to the seller is true? a.As part of completing the listing agreement and again if a dual agency situation arises and you need the seller to reaffirm their consent b.Just once—as part of completing the listing agreement to obtain the seller's informed consent for dual agency c.Only if a dual agency situation arises and the seller didn't consent to dual agency representation initially d.Only if you are serving as the dual agent for both the seller and the buyer

As part of completing the listing agreement and again if a dual agency situation arises and you need the seller to reaffirm their consent *You must provide the Consent for Dual Agency form to the client at the time the listing agreement is being signed and again if a dual agency situation arises, assuming the seller consented to dual agency representation initially.*

Adesha made an offer on a three-bedroom townhouse in Hanover on April 5. The sellers accepted her offer on April 6, and all signatures were finalized by April 7. Adesha still hasn't received the property disclosure/disclaimer statement. Until when can Adesha rescind the contract without penalty? a.April 12 b.April 14 c.April 17 d.At any time before she receives the disclosure/disclaimer statement

At any time before she receives the disclosure/disclaimer statement *Sellers should provide buyers with the disclosure/disclaimer before the contract is signed. If they don't, and the parties still enter into the contract, the buyer may rescind the contract any time before receiving the disclosure/disclaimer form.*

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? a.Bob and Janine only b.Suzie and either Bob or Janine c.Suzie, Bob, and Janine d.Suzie only

Bob and Janine only *Licensees must disclose their agency relationship to all unrepresented transaction parties in writing, using the Understanding Whom Real Estate Agents Represent form and making the disclosure no later than the time of the first scheduled face-to-face meeting.*

Jennifer, an experienced Maryland salesperson, hires an unlicensed assistant, Suzanne. Jennifer's on vacation, and in her absence, Suzanne discussed some contract terms with one of Jennifer's clients. Who's responsible for Suzanne's behavior? a.Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined. b.Jennifer is, because she hired Suzanne. c.Jennifer's broker is, because the broker has ultimate responsibility for all brokerage staff. d.Suzanne is, because she knew she was performing tasks that required a license.

Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined. *Even though Jennifer hired and directly supervises Suzanne, the broker shares responsibility because he's charged with supervising all licensed and unlicensed brokerage firm staff.*

Kelly represents the seller of a three-bedroom townhome in Aberdeen. The seller has already consented to dual agency. Joyce, another salesperson at Kelly's firm, has a buyer who's interested in making an offer. What needs to happen next? a.Both parties must affirm consent to dual agency. b.One of the licensees must refer their client to an outside firm. c.The seller has already given consent, so only the buyer must consent to dual agency. d.The seller must sign the dual agency consent form.

Both parties must affirm consent to dual agency. *Even if preliminary consent was given, if a represented buyer makes an offer to purchase property owned by a seller who's represented by the same company, both parties must affirm their dual agency consent.*

Which of the following is NOT true regarding the Maryland Commission on Civil Rights? a.Commission members serve four-year terms. b.The commission is made up of nine members. c.The commission is managed by an executive director. d.The governor appoints members to the commission.

Commission members serve four-year terms. *MCCR is made up of nine governor-appointed members and an executive director who serve six-year terms.*

Which of the following is NOT an example of a legal agency agreement in Maryland? a.Cybill enters into a listing agreement with Antwon and agrees to pay him 5% of the property's purchase price. b.Deirdre enters into a listing agreement with Peter and agrees to pay him all of the sale proceeds in excess of the $250,000 she needs to make off of the sale of her condo. c.Marijka enters into a buyer representation agreement with Timothy and agrees to pay him a flat fee of $3,500 if the listing agent doesn't share the commission. d.Paulo enters into a buyer agency agreement with Danika and agrees to pay her 1% of the purchase price.

Deirdre enters into a listing agreement with Peter and agrees to pay him all of the sale proceeds in excess of the $250,000 she needs to make off of the sale of her condo. *The listing or buyer representation agreement must state the commission amount, in either a specific amount or percentage. Net listings are prohibited.*

Which of the following offers is a Maryland licensee NOT required to present to a client? a.A hard copy of a written offer b.An emailed counter-offer c.A written offer that was emailed d.Details of an oral offer

Details of an oral offer *Licensees must present all written offers and counter-offers to their clients in full, in either hard copy or electronic format.*

One of the things that Tyrone loves being able to do as a licensee is help his friends, family, and business associates with their real estate needs. In which of these situations does Tyrone NOT need to disclose his personal interest in the transaction? a.He's selling a condo in a development where he's a part owner. b.He's selling a home on behalf of another salesperson in his brokerage. c.He's selling his brother's home. d.He's selling the home of his childhood friend.

He's selling the home of his childhood friend. *Licensees must disclose when they're acting on behalf of themselves, an immediate family member, an entity in which they have an ownership interest, or another affiliated licensee/employee of their brokerage or in their team/group.*

Margaret has been working periodically with Bill, a lukewarm prospective buyer who can't seem to make up his mind about what kind of home he wants. Though he's signed the agency disclosure form, they've never signed an agency agreement, but he calls Margaret up every couple of months, tells her what he's looking for, and she sends him some listings. What other duties does Margaret owe Bill? a.Confidentiality and honesty b.Confidentiality and reasonable skill and care c.Fairness and reasonable skill and care d.Honesty and fairness

Honesty and fairness *Bill is Margaret's customer, since they don't have a signed agency agreement. Margaret may perform ministerial acts for Bill and must treat him with honesty and fairness.*

After the seller backed out of the contract at the last minute, Maryland broker Melody determined that the buyer's earnest money, which she'd deposited in her firm's trust account, should be returned to the buyer. She sent certified letters to the buyer and the seller detailing this decision. What happens next? a.If neither party files a protest with the commission within 30 days, she may disburse the funds to the buyer. b.If neither party sends Melody a protest within 14 days, she may disburse the funds to the buyer. c.If neither party sends Melody a protest within 30 days, she may disburse the funds to the buyer as stated in her letter. d.If neither party sends Melody a protest within 30 days, she may disburse the funds to the commission, which will then disburse the funds to the buyer.

If neither party sends Melody a protest within 30 days, she may disburse the funds to the buyer as stated in her letter. *If the broker decides to disburse disputed funds, the broker must give the parties 30 days' notice as to how the funds will be distributed. If no one protests in 30 days, the broker may disburse the funds.*

How does a Maryland broker's license renewal differ from a salesperson's license renewal? a.Brokers have to renew every three years and salespersons have to renew every two years. b.Brokers must take the 15 hours of CE salespersons take, plus an additional three hours of broker supervision coursework. c.Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives. d.There is no difference between license renewals for brokers and salespersons.

Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives. *Like salespersons, brokers must also complete 15 hours of CE, but unlike the salesperson renewal requirements, three of those hours must be in broker supervision (only 1.5 CE hours are electives).*

When a payment is made on your behalf from the Guaranty Fund, what happens to your real estate license? a.It depends upon the situation. b.It is revoked. c.It is suspended. d.Nothing! That is what the fund is for!

It is suspended.

James is a real estate licensee in Maryland. A complaint has been brought against James by the Commission on Civil Rights for a fair housing violation. Which of the following is true? a.James could be fined, but will definitely keep his license. b.James could be sanctioned by both the Commission on Civil Rights and the real estate commission. c.The Civil Rights Commission could revoke James' real estate license. d.The Commission on Civil Rights cannot bring a civil action against James.

James could be sanctioned by both the Commission on Civil Rights and the real estate commission. *James could be sanctioned by both the Commission on Civil Rights and the real estate commission (if someone files a similar complaint with that commission). The Commission on Civil Rights could bring a civil action against James, as well as fine him.*

In Maryland, transaction records may be stored electronically as long as ______. a.Licensees are able to provide a paper copy upon commission request b.The electronic storage system has unlimited capacity c.The storage system used is on the commission's approved systems list d.They're stored for at least six years

Licensees are able to provide a paper copy upon commission request *Records may be stored electronically, but licensees must provide a paper copy of any record the commission requests.*

Which of the following is NOT true regarding compensation and Maryland licensees? a.Licensees may not accept compensation from more than one transaction party without all parties' knowledge. b.Licensees may not share commissions with licensees in other states, even if their brokers know about it. c.Licensees may offer prizes at open houses. d.Unlicensed assistants may not be paid on a commission/contingency basis.

Licensees may not share commissions with licensees in other states, even if their brokers know about it. *Licensees may share commissions with licensees in other states, as long as that state also allows intra-state compensation sharing.*

Fabio just received his broker's license and is striking out on his own after 15 years as a salesperson. He's registered his firm with the commission and is setting up his firm's bank accounts. What must he make sure to do in order to comply with Maryland law regarding trust accounts? a.Maintain the accounts at a bank within 25 miles of his main office. b.Maintain the accounts at a federally insured financial institution in Maryland. c.Name himself and at least one other person as signatories on the trust account. d.Open an interest-bearing account to hold trust funds.

Maintain the accounts at a federally insured financial institution in Maryland. *Maryland brokers who hold trust funds must maintain a non-interest-bearing checking or savings account designated solely to hold trust money and separate from their other accounts. The financial institution must be federally insured and in Maryland.*

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? a.Explain to the seller that unless the disclosure is acknowledged, the transaction cannot continue. b.Make note of the seller's refusal on the agency disclosure, being sure to include the date when you presented it to the person. c.Tell the seller that they are required by law to sign the form. d.Throw up your hands in disgust and storm out of the room.

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

Which choice correctly identifies the classes that Maryland protects in addition to the seven federally protected classes? a.Age, disability, and employment status b.Disability, sexual orientation, and gender identity c.Familial status, marital status, and sexual orientation d.Marital status, sexual orientation, gender identity, and source of income

Marital status, sexual orientation, gender identity, and source of income *Maryland fair housing law recognizes race, color, religion, sex, familial status, national origin, marital status, sexual orientation, gender identity, disability, and source of income.*

Mark lives in Maryland and purchased property in Pennsylvania. His real estate agent gave him poor advice, which cost him $52,000. Which of the following is true? a.Mark can file a claim with the Guaranty Fund, but he can only recover $50,000 of his loss. b.Mark can file a claim with the Guaranty Fund to recover his loss. c.Mark can file a claim with the Guaranty Fund to recover his loss, but only after he has exhausted other methods. d.Mark cannot file a claim with the Guaranty Fund because the property purchased was in Pennsylvania.

Mark cannot file a claim with the Guaranty Fund because the property purchased was in Pennsylvania. *All claims against the Guaranty Fund must be related to real estate located in Maryland.*

Padma's buyer client made an offer on Tom's seller client's home, which the seller countered. Padma's client sent another counter-offer back to the seller on Monday. On Tuesday, Tom called Padma to tell her that the seller was accepting her client's offer, and he'd send over the signed paperwork on Thursday. Padma called her client to tell him the good news, but he told her he'd rather back out of the contract entirely. Can the buyer back out? a.No. A counter-offer is binding until it's rejected by the other party (in this case, the seller). b.No. A counter-offer is considered accepted when the offer is signed and the offeror (in this case, the buyer) is notified. c.Yes. The buyer can back out of the counter-offer at any point before it's signed. d.Yes. The offeror of a counter-offer has an exclusive right to rescind the offer at any time.

No. A counter-offer is considered accepted when the offer is signed and the offeror (in this case, the buyer) is notified. *Offers and counter-offers may be withdrawn until accepted. Acceptance is effective upon notification to the offeror.*

Maryland salesperson Seema is new to the real estate business, and she's having trouble getting her sales off the ground. She's considering offering some incentives. Which of the following incentives would be legal according to the Maryland Code of Ethics? a.Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days b.Offering a 1% reduction in her commission rate to the first 10 seller clients who list with her c.Offering to buy a washer/dryer set for the first 10 buyer clients who sign on with her d.Offering to waive the administrative fee for the first 10 buyers who sign on with her

Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days *Licensees may not use contests or offer prizes to induce a consumer to enter into a brokerage agreement or to influence a buyer to make an offer on a particular property. Incentives may be offered provided they are available to all on the same basis.*

Which of these documents does NOT establish an agency relationship between a client and a licensee? a.Brokerage agreement b.Buyer representation agreement c.Listing agreement d.Purchase agreement

Purchase agreement *The purchase agreement doesn't establish agency; it outlines the agreement between the seller and buyer.*

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? a.Condos aren't subject to lead-based paint disclosure or abatement law, so Rhetta will have to mitigate this hazard herself. b.Rhetta only has five days in which to send the sellers this information. c.Rhetta should've included photos of affected areas and the original report, not a copy. d.Rhetta should've sent this information to the condo board, not the sellers, since it's the board's responsibility to abate the lead hazards.

Rhetta only has five days in which to send the sellers this information. *Buyers have five days from the time they receive the report to send a copy of the report, plus a written itemization of the hazards, and how they must be abated to the seller.*

Ron prides himself on providing his buyer clients with consistently stellar representation. His latest buyer client, Tammy, is purchasing a fixer-upper on Walnut Street, just a stone's throw from the railroad tracks. What's Ron's responsibility regarding making sure Tammy is informed about the property's condition? a.Ron is off the hook here; it's the listing agent's responsibility to make the property disclosure/disclaimer statement available to Tammy. b.Ron must ensure that Tammy receives the property disclosure/disclaimer statement within 10 days of making her offer. c.Ron should make sure that Tammy understands her rights and obligations regarding the property disclosure/disclaimer statement. d.Ron should perform a walk-through inspection of the property and document any defects he sees on the property disclosure/disclaimer statement.

Ron should make sure that Tammy understands her rights and obligations regarding the property disclosure/disclaimer statement. *While listing agents should make the disclosure/disclaimer statement available to buyers, Ron's not off the hook; he needs to make sure that Tammy not only receives it, but also that she understands her rights and obligations regarding it.*

Which of these licensees is correctly following MREC guidelines for hosting an open house? a.Fabrizio displays his real estate license and wears a name tag. b.Luke makes sure that all attendees sign an Understanding Whom Real Estate Agents Represent form. c.Shawna displays the MREC notice informing consumers that she represents the seller. d.Shelby makes sure to place a warning next to the plate of cookies she's put out, informing attendees that they contain peanuts.

Shawna displays the MREC notice informing consumers that she represents the seller. *Licensees hosting an open house must display an MREC-mandated notice advising consumers that the licensee represents the seller and warning visitors not to discuss with the agent anything they wouldn't want the seller to know.*

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? a.She can appeal the hearing panel's decision. b.She can seek damages, including emotional distress and attorney's fees, from the Guaranty Fund. c.She can wait six months and then file another claim. d.She is out of luck and won't be able to request further action from MREC.

She is out of luck and won't be able to request further action from MREC. *Since the hearing panel found no merit to Rose's case, it's rejected the claim, and Rose may not file an appeal. Guaranty Fund claims are considered separately, but only actual monetary damages may be claimed.*

Aurelia is a relatively new salesperson who has been accused of discriminating against minorities in her real estate advertising. Which of the following is NOT a possible outcome if she's found guilty? a.Her license and her broker's licenses are suspended for 15 days. b.She has to pay a $5,000 fine. c.She must place a retraction in any publication that featured her ad. d.She's required to take additional fair housing classes.

She must place a retraction in any publication that featured her ad. *Penalties for violations include: fines, repayment of commission, license suspension/revocation, and requirements to take additional education. A broker's license may also be endangered if one of the broker's associated licensees commits a violation.*

During a particularly grueling and heated negotiations process, Roz, who's representing the buyer, notices the seller coming down the aisle toward her at the grocery store. Roz has just heard from her buyer client that he's willing to budge on a couple of home inspection repair issues. What should Roz do? a.Inform the seller about her buyer client's decision, but only if she has it in writing. b.Let the seller know the good news in an effort to dispel some of the animosity between the parties. c.Smile and greet the seller, engage in small talk as needed, but not mention the buyer's decision. d.Tell the seller about her buyer client's decision and ask that the seller relay that information to her agent.

Smile and greet the seller, engage in small talk as needed, but not mention the buyer's decision. *The Maryland Code of Ethics states that negotiations about a property listed with a broker should be carried on solely with that listing broker (not the seller directly). Roz should communicate her buyer's decision directly to the seller's agent.*

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? a.The chamber of commerce b.The Guaranty Fund c.The Maryland Real Estate Commission d.The state attorney general

The Maryland Real Estate Commission *Even if Ruthe wishes to seek damages from the Guaranty Fund, she must file the complaint through the Maryland Real Estate Commission. Complaints must be filed within three years of the transaction date.*

What item(s) must be included on ALL real estate advertising in Maryland? a.The broker's/company's name b.The broker's/company's name and address c.The broker's/company's name and license number d.The broker's/company's name and phone number

The broker's/company's name *All advertising must include the broker's or company's name as it appears on the licensee's license. A logo alone doesn't suffice. If a salesperson or associate broker includes their phone number, the broker's number must also be included.*

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? a.Estrella must include her name, her picture, and either her business's phone number or address. b.She doesn't need to worry about complying, since business cards aren't considered advertising in Maryland. c.She needs to include her name, her business's phone number, and her license number. d.The cards must include her name as it appears on her license.

The cards must include her name as it appears on her license. *Business cards are considered advertising and should include the licensee's and broker's/brokerage's name (as licensed). It's also prudent to include your phone number or email address, but not required.*

Bella perused the listing agreement her new seller client had just signed. Looking it over, she realized that they'd forgotten to fill in one item that's required in Maryland listing agreements. What was missing? a.The amount of earnest money the seller requires b.The commission amount c.The most recent property tax amount d.The seller's preferred closing date

The commission amount *The listing or buyer representation agreement must state the commission amount, in either a specific amount or a percentage. Net listings are prohibited.*

DeShawn has been licensed as a salesperson in Maryland for 18 months. Which of the following statements is true about his upcoming license renewal? a.DeShawn must complete 18 hours of continuing education in order to qualify for renewal. b.DeShawn must complete his continuing education at least 14 days before his license's expiration date. c.Since this is his first renewal period, DeShawn only needs to complete 12 hours of continuing education. d.The commission will send DeShawn a renewal reminder at least 60 days before his license's expiration date.

The commission will send DeShawn a renewal reminder at least 60 days before his license's expiration date. *All licensees must complete 15 hours of CE during each two-year renewal period. Licensees are sent a renewal reminder at least 60 days before their license expiration date.*

According to Maryland disclosure guidelines, upon which of the following events is it NOT appropriate to give the buyer the opportunity to review the seller's disclosure/disclaimer statement? a.The day of the home inspection b.When the buyer expresses interest in purchasing the property c.When the buyer makes an offer d.When the property goes on the market

The day of the home inspection *The seller is required to provide the buyer with the Maryland Residential Property Disclosure and Disclaimer Statement on or before the day the buyer signs the purchase offer. By the time the home inspection occurs, the contract has already been signed.*

Which of the following is NOT cause for the Maryland Real Estate Commission to summarily suspend a licensee's real estate license? a.The licensee fails to disclose personal interest in a transaction. b.The licensee fails to promptly account for trust funds. c.The licensee fails to provide trust fund account records to the commission. d.The licensee is convicted of a felony.

The licensee fails to disclose personal interest in a transaction. *MREC may summarily suspend a license if the licensee is convicted of a felony, or if the licensee fails to: promptly account for trust funds, provide trust fund records, or disclose to the commission that the licensee has been convicted of a felony.*

What is the goal of the Maryland Real Estate Commission in declaring an area a real estate conservation area? a.To curb threats to the racial stability of an area. b.To preserve the historical architecture in an area. c.To prevent further destruction of an environmentally compromised area. d.To protect the wildlife in a residential community that borders an environmentally protected area.

To curb threats to the racial stability of an area. *The commission may suspend real estate advertising or solicitation in a conservation area for up to 24 months. The suspension is designed to prevent panic selling, blockbusting, or reduced market values that may occur without such a suspension.*

Which of these scenarios does NOT accurately reflect the MREC complaints and investigations process? a.Finding no evidence of misconduct, the hearing panel reviewing Monica's complaint dismissed the claim. b.The hearing panel decided against the administrative law judge's recommendation to suspend Swaroop's license. c.The hearing panel forwarded Charlene's complaint against licensee Todd to Investigative Services for further inquiry. d.Upon reviewing a complaint against licensee Derek, an administrative law judge deemed it worthy of further investigation.

Upon reviewing a complaint against licensee Derek, an administrative law judge deemed it worthy of further investigation. *The hearing panel reviews complaints, dismissing invalid claims and forwarding valid ones to Investigative Services. If warranted, an ALJ will preside over a hearing and then make a recommendation to the hearing panel regarding disciplinary action.*

If a license expires due to nonrenewal, it must be reinstated within what time period? a.Within 30 days b.Within one year c.Within three years d.Within two years

Within three years *When a license expires due to nonrenewal, it can be reinstated within three years of the last valid expiration date.*

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? a.No. MREC may not revoke a license before the licensee has a chance to present her case at a hearing. b.No. MREC would have to prove that she has violated Maryland license law in order to revoke her Maryland license. c.Yes, but Phoebe may request a hearing to appeal the revocation. d.Yes. Revocation in another state automatically means her Maryland license must be revoked.

Yes, but Phoebe may request a hearing to appeal the revocation. *MREC may summarily (immediately and prior to a hearing) revoke a license if the licensee is convicted of a serious license law violation and the appeals process has been exhausted, or if the licensee has a license in another jurisdiction revoked.*

Brooke listed a home and the listing agreement detailed a 5% commission to be split equally with any cooperating agents. A week later, Brooke received an offer for $5,000 less than list price from Sam Crane, an agent that Brooke doesn't really care for given his overly aggressive negotiation style. She advises her client to decline the offer, saying it's only the first week and they'll likely get a better offer soon. Has Brooke violated any provisions of the Maryland Code of Ethics? a.No, if she knows that Sam will be hard to work with, she should protect her client. b.No, she's wise to advise the seller to not accept a less-than-listing offer so soon into the listing period. c.Yes, she failed to disclose the shared commission to Sam. d.Yes, she must cooperate with other brokers if it's in the seller's interest, and depending on the other offer terms, this deal might be.

Yes, she must cooperate with other brokers if it's in the seller's interest, and depending on the other offer terms, this deal might be. *When it's in their seller client's interest, licensees must cooperate with other brokers and share commissions as previously agreed.*

Shawn and his life partner, Dennis, recently put an in an offer on a home. The seller tells his agent to reject the offer, because he won't sell to "gays." Are Shawn and Dennis protected under fair housing laws? a.No. There is no federal or state fair housing protection based on a person's sexual orientation. b.Yes, under both federal and state fair housing laws c.Yes, under federal fair housing laws d.Yes, under state fair housing laws

Yes, under state fair housing laws *Maryland's state fair housing laws prohibit discrimination based on the protected class of sexual orientation; federal fair housing laws do not offer such protection.*

Halbert's license was summarily suspended after he was convicted of felony embezzling. He'd like the chance to appeal the decision. Can he? a.No. Appeals are only granted for temporary suspensions. b.No. Only license revocations can be appealed. c.Yes, but only after 30 days. d.Yes. He has the right to plead his case in front of the commission.

Yes. He has the right to plead his case in front of the commission. *Licensees whose licenses have been summarily suspended or revoked have the right to a prompt hearing before the commission.*

You recently listed an historic home more than 100 years old, which was the site of a suicide many years ago. A spirit is believed to roam the grounds, but the current owner doesn't want this shared with prospective buyers. Which action best demonstrates good faith? a.You follow the owner's wishes because the suicide and haunting don't need to be disclosed. b.You tell the owner you don't have to disclose that the property was the site of a suicide, but do need to disclose the ghost. c.You tell the owner you don't have to disclose the ghost, but do need to tell buyers that a suicide occurred on the property. d.You tell the owner you must disclose whether a property was the site of a suicide or homicide.

You follow the owner's wishes because the suicide and haunting don't need to be disclosed. *Good faith means properly disclosing material facts. Usually, you don't need to disclose ghosts, suicides, or homicides related to the property unless the prospective buyer asks you directly about them.*

What happens to you if you're involved in a case and can't pay the judgment amount, and the consumer is awarded money from the Guaranty Fund? a.Nothing! That is what the fund is for! b.You can continue to practice real estate but must pay back the money to the fund at 10% interest. c.You must pay back the money from the fund at 30% interest from your real estate commissions. d.Your license will be suspended and can't be reinstated until you pay back the fund plus interest.

Your license will be suspended and can't be reinstated until you pay back the fund plus interest. *Your license will be suspended and can't be reinstated until you pay back the fund plus interest and make formal application for reinstatement.*

In order to qualify as one of the ______ real estate professional members of the Maryland Real Estate Commission, you must have 10 years of real estate experience as a licensee. a.five b.seven c.six d.ten

five *In order to qualify as one of the five real estate professional members of the board, you must have at least 10 years of real estate experience as a licensee prior to your appointment. This requirement does not apply to the four appointed consumer members of the board.*

Charlie and his girlfriend, Frankie, are buying a house together. Having found the perfect home, they made an offer without first having seen the seller's property disclosure/disclaimer statement. The statement arrived two days after they entered into the contract with the seller. How many days do Charlie and his girlfriend have to rescind their offer if they find something in the disclosure that makes them uncertain about the property? a.five days b.seven days c.ten days d.three days

five days

Which two Maryland protected classes, while not specified in federal fair housing law, may still qualify for protection under the federal Fair Housing Act under certain circumstances? a.age & marital status b.gender identity & marital status c.marital status & sexual orientation. d.sexual orientation & gender identity

sexual orientation & gender identity *Sexual orientation and gender identity are considered protected classes in Maryland, and in certain circumstances, these categories may qualify for protection under other federally protected classes, depending on the basis of the discrimination.*

The Maryland Code of Ethics is divided into three sections: relations to ______, relations to clients, and relations with other licensees. a.financial organizations b.other professions c.sponsoring brokers d.the public

the public *The code is divided into relations to the public, relations to clients, and relations to other licensees.*

In Maryland, reasonable and adequate supervision includes a broker's responsibility to make training and educational sessions available to affiliated licensees at least every ______. a.quarter b.six months c.two months d.two weeks

two months *Brokers must make training available to affiliated licensees at least every two months. In addition, brokers must provide affiliated licensees with access to experienced personnel to review and discuss contracts, advertising, and other needs.*