MD State Real Estate Practice Exam

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."

Paulo 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?

$15,000 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.

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 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.

In Maryland, how many hours of approved real estate courses must an individual complete before taking the real estate broker's exam?

135 BROKER EXAM

The Maryland Real Estate Commission creates several hearing panels consisting of how many members each?

3

Which of these describes self-dealing?

A licensee sells her own property without informing all parties that she's licensed. Self-dealing is personal interest in a transaction that's not disclosed. It is illegal for a licensee to engage in the brokerage activities of selling or buying a property without disclosing a personal interest in the transaction to all parties.

Which one of the following choices is not protected by federal or Maryland fair housing law protected by local ordnances in Maryland?

Age

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? Antoine Brett Mike Yvonne

Antoine

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

In Maryland, how and when must you present the Consent for Dual agency form to the seller?

As part of the continuing listing agreement and again if a dual agency situation arises and you need the seller to reaffirm her consent

Phyllis has learned that the Maryland Real Estate Commission's real estate professional member from the Eastern Shore is vacating his seat soon. Phyllis has eight years of experience as a salesperson, and she's lived in Ocean City for six years. What else does Phyllis need in order to secure her nomination by the governor?

At least two more years of real estate experience

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 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 $3000, as well as reasonable attorney's fees

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

Brokers, associate brokers, and salespersons

Chandler is a licensed salesperson in a state that doesn't have a reciprocal agreement with Maryland. What must he do in order to qualify for licensure in Maryland?

Chandler needs to complete the same licensure requirements as other Maryland salesperson candidates and submit an irrevocable consent form.

Assuming that the following individuals only carry a real estate license, who is in violation of the foreclosure consultation parameters set forth in PHIFA?

Clint's former buyer client lost her home to foreclosure. When the lender filed a deficiency judgement against her, Clint advised her how to proceed

Bobbi received a notice from the Maryland Real Estate Commission that she was being investigated for failure to properly supervise her affiliated licensees. At her hearing next month, she needs to present evidence to the contrary. Which of the following is NOT considered evidence of reasonable and adequate supervision, as defined by the commission?

Employee Timecards While Bobbi should keep employee timecards for business purposes, they are not adequate evidence that Bobbi was properly supervising employees while they were working

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.

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.

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

Granting property access to a home inspector

Rumi was on vacation in St. Croix when he received a written offer, via email, for his seller client's property, which had been on the market for two months with no offers. He decided to hold onto it until he got back a week later, so he could present it to his client in person. The next day, his seller client called Rumi's office to cancel the listing. When Rumi told the former client that he'd had an offer, she complained to MREC about him. What are the possible penalties Rumi could face?

He could be disciplined by the commission and receive a possible lawsuit for intentional interference.

Stanley, a broker, received notice from the Maryland Real Estate Commission that it was summarily suspending his license. What's the most likely reason that his license was immediately suspended?

He didn't provide the commission with the trust account records

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

The ______ decides if a complaint has merit and should be investigated.

Hearing panel

When Janet, a licensed Maryland salesperson, transfers to a new brokerage, what happens to her license and pocket card?

Her former broker returns them to the commission.

How does a Maryland broker's license renewal differ from a salesperson's license renewal?

Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives.

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.

Which advertisement most likely complies with Maryland's real estate advertising law?

Leslie's ad, which uses her brokerage firm's name and phone number, her firm's logo, and her licensed name and cell phone number. 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 in the ad, the broker's number must also be included.

Linda is the sponsoring broker at Gardner Homes. Which of the following best describes what happens with her license?

Linda displays her license at Gardner Homes

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. A firm's broker is responsible for supervising all licensed and unlicensed members of the firm and is liable for their actions.

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?

Mark cannot file a claim with Guaranty Fund because the property purchased was in Pennsylvania.

Dennis thinks he was discriminated against by a potential landlord in Maryland and wants to file a complaint. Which entity can he contact to do this?

Maryland Commission on Civil Rights Anyone who believes they've been discriminated against regarding housing in Maryland should initiate an inquiry with the MCCR.

The Maryland Real Estate Commission received a complaint claiming Michael, a licensed electrician, was receiving referral fees from Own It Realty Group in exchange for giving sub-par wiring the green light during inspections. What's the maximum penalty MREC can impose upon Michael?

Nothing. MREC doesn't have jurisdiction over licensed electricians. MREC has the power to investigate and discipline real estate licensees and those who practice real estate without a license. MREC doesn't have jurisdiction over Michael, but you can be sure that Own It Realty Group is now on its radar.

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?

Only offers A, C, and D, since they're in writing Licensees must present all written offers and counter-offers to their clients in full, in hard copy or electronic format. Since offer B isn't in writing, Monique isn't required to present it, but it would be prudent for her to request it in writing.

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?

Retaliation against parties who file a discrimination complaint is illegal.

Dorothy, a Maryland broker, deposited her buyer client's earnest money funds a month ago. The seller backed out of the contract two days before closing and claimed she was owed the earnest money because of the time the property had been taken off the market during contract negotiations. The buyer wants his earnest money back. Which of the following is NOT an option that Dorothy has regarding the dispute?

She can file with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed

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? 1. Her license and her broker's licenses are suspended for 15 days. 2. She has to pay a $5,000 fine. 3. She must place a retraction in any publication that featured her ad. 4. She's required to take additional fair housing classes.

She must place a retraction in any publication that featured her ad.

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.

Which of the following is one of the buyer's responsibilities as stated in the Maryland exclusive buyer agency agreement?

The buyer must work exclusively with the broker during the term of the agreement.

After 15 years of building her business as a salesperson, Estrella has gotten her broker's license and s 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

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.

Seo-yun completed all of her Maryland salesperson licensure requirements and submitted her documentation and licensing fees to the commission. A few days later, her broker presented her with her new license. What's wrong with this scenario?

The license should've also come with a pocket card

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

Keisha is a real estate salesperson in Maryland. She's got a new listing and is anxious to advertise it for sale. What must she have first so she can do this?

The owner's permission to advertise the property

The Maryland Code of Ethics is divided into three sections: relations to ______, relations to clients, and relations with other licensees.

The public

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 Salespersons are required to complete 15 hours of continuing education (CE) during every two-year renewal period, consisting of: three hours each of legislative updates, agency, and ethics (including professionalism), 1.5 hours of fair housing, and 4.5 hours of electives.

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 PHIFA sets guidelines for foreclosure consulting services offered to owners who are at least 60 days delinquent on their mortgage payments. Certain foreclosure consultation services require additional licensure outside of a typical real estate license.

Which of these written counter-offers would the offeror be able to withdraw?

A counter-offer sent 10 days ago with no response Written offers and counter-offers may be withdrawn until accepted. Acceptance is effective upon notification to the offeror (as long as the document is signed).

Charlotte, an associate broker, has finally saved up enough of her commission earnings to buy an ocean front 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 disclosure that she's a real estate licensee

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.

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?

Ron should make sure that Tammy understands her rights and obligations regarding the property disclosure/disclaimer statement

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. Licensees must include a specific "Competitive Market Analysis Disclosure" statement conspicuously and on the CMA's first page. The exact wording of the statement can be found in the "Relations to Clients" section of the Maryland Code of Ethics.

Which of these scenarios does NOT accurately reflect the MREC complaints and investigations process?

Upon reviewing a complaint against licensee Derek, an administrative law judge deemed it worthy of further investigation

If a license expires due to nonrenewal, it must be reinstated within what time period?

Within three years

Jorge's firm has just been assigned as the listing brokerage for a foreclosed condo unit in Jorge's own building. Jorge knows that given the unit's condition, it's bound to sell for far less than market value of a nicer unit such as his. Worried that the new listing will bring down his unit's value, Jorge quickly lists his unit at current market price and sells it before the foreclosed listing hits the market—at a price $100,000 less than Jorge sold his unit for. Has Jorge done anything wrong?

Yes, Jorge has engaged in self-dealing

First Baptist Church in Annapolis owns two apartments next door to the church, which used to be housing for their ministerial staff. It does not rent to non-Baptists. Is this legal?

Yes, as long as it does not discriminate based on race, color, national origin, or familial status.

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? No. It's the listing agent's responsibility to make sure the listing is accurate, and this mistake could provide Kate with leverage in negotiations. No. It's likely that there's just a larger unit that Kate is unaware of. Yes, but only if Kate's client is interested in the unit. Yes. At the very least this is likely an innocent mistake, but at worst it's intentional misrepresentation.

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