Level 7 Quiz
Which of the following is an example of puffery?
"I love this house, and I know it will appreciate better than the average house its size!"
Roger Kelly is signing a listing contract with a client. Which of the following is an acceptable signature on the document?
"Roger Kelly"
In order to maintain the Guaranty Fund, new licensees pay a one-time fee of ______ into the fund.
$20
When a claimant receives an award from the Guaranty Fund, the maximum amount they can receive is _______________ for a single transaction.
$50,000
According to the Code of Ethics, which of the following statements is most accurate when accepting compensation?
A licensee shall not accept compensation from more than one party to a transaction without the full knowledge and consent of all parties.
Who is behaving unethically in the following scenarios?
A licensee who doesn't show potential buyers a home which meets their criteria, but for which he feels they aren't culturally right
Which of the following statements is true of a material fact?
A material fact would cause a reasonable person to not take an action that would otherwise be taken, or take an action that would otherwise not be taken.
You just sold your first house! You decide to cash the commission check directly and then give the remainder to your affiliate broker. What type of violation have you just committed?
Accepting commissions other than through your broker
What may happen when the Guaranty Fund's balance falls below $250,000?
All licensees may be required to pay a nominal fee at renewal time.
As a result of Real Estate Commission hearings, who makes recommendations to the Commission regarding disciplinary actions?
An administrative law judge
Who presides over a real estate commission hearing?
An administrative law judge
Which of the following is an example of self-dealing?
An agent purchases a listing through his cousin, but does not inform the seller.
Broker Zeke is busy and doesn't have time to go to the bank, so he deposits his client's earnest money funds into his personal account. He plans to move the funds to the appropriate account within a week. This violation is an example of ________.
Commingling
Licensees' ethical duties to the public include not naming false consideration, staying informed about real estate issues, and ___________________________.
Completing paperwork accurately
Who can file a claim against the Guaranty Fund?
Consumers who suffer monetary damages as a result of a licensee's actions
What happens to ethical complaints about licensees once they are received by the Department of Labor, Licensing and Regulation?
Each complaint is reviewed to determine whether it falls within the Commission's jurisdiction.
A buyer client is preparing an offer on a property. He wants to make sure his offer stands out above all others and is accepted, so he discusses waiving the inspection contingency. What should the agent do?
Encourage the buyers to get an inspection. If they still want to waive it, put it in writing that you advised against waiving the inspection and have the buyers sign it
When consumers have actual financial losses due to the actions of a licensee, they can file a claim with the Guaranty Fund. What must they do first?
Exhaust all other options to collect the money
Members of the Real Estate Commission Board serve terms of how many years?
Four
In the example with the sinkhole in the backyard, what did Don, the licensee, do wrong?
He didn't document the information from the seller's agent, Roger, that he and the seller were aware of the sinkhole and would repair it.
What organization conducts an investigation when a complaint is filed against a licensee?
Investigative Services
Lenny is the listing agent for a property built in 1901. Old homes are very desirable in this area, and Lenny is expecting a fair amount of interest at the planned open house and multiple offers. Which action best demonstrates good faith for this scenario?
Lenny presents all formal written offers as they come in, discussing the merits and drawbacks of each, but ultimately letting the owner decide what action to take.
Broker Joseph tells his client that a property is zoned as residential, even though he knows it is zoned as commercial. This violation is an example of ________.
Making a substantial and willful misrepresentation
Shaina has hired Jerry to assist her with finding a new home, and just found out that his real estate license was revoked. Where can Shaina go to file a complaint against Jerry?
Maryland Real Estate Commission Web site
What type of violation are you committing if you're the listing agent for a house and promise the seller $500,000, but assist the buyer in negotiating a better deal without letting the seller know?
Misrepresentation
Monica is a listing agent for her friend, Brian. She and Brian met when they both began attending a support group for those living with HIV. Which of the following best represents an action Monica should take?
Monica cannot tell others about Brian's HIV status.
Ethical complaints that are made against another licensee to the Department of Labor, Licensing and Regulation _______________________.
Must include supporting documentation
Mark lives in Maryland and purchased property in Pennsylvania. His real estate agent gave him poor advice, which cost him $52,000. Do this rule apply?
No because it has to be only in Maryland
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 has 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 should not place a sign on Maury's property without Maury's written permission.
Licensees' ethical duties to the public include _________________, staying informed about real estate issues, and completing paperwork accurately.
Not naming false consideration
What type of ownership interest must be disclosed in writing to all parties?
Only property held by the licensee, the licensee's immediate family member, or an entity in which the licensee has an ownership interest
A licensee can contact sellers who are under an exclusive listing agreement with another agent in order to do which of the following?
Only to arrange a showing to a buyer
Under what conditions can a licensee contact sellers who are under an exclusive listing agreement with another agent?
Only to arrange a showing to a buyer
The Maryland Code of Ethics is divided into three sections: relations to the public, relations to clients, and relations to _________________.
Other licensees
Brandon is the listing agent for Jane's property. After a couple of weeks on the market, two formal written offers come through. One is for well below the listing price and another is a bit closer, but still under the list price. What should Brandon do with the offers?
Present both offers to Jane.
Real Estate Commission hearings are ____________.
Public
Consumers may file complaints about a licensee with what organization?
Real Estate Commission
Hank is a real estate licensee working for an investor. He can perform all of these actions EXCEPT ___________.
Recommend a specific investment
Which of the following recommendations is okay for a real estate licensee to make and still be acting within their scope of expertise?
Recommend that buyers obtain professional home inspections
Which of the following is not only an ethical violation but also a federal crime?
Steering
Your license will be ___________ if a claim is made from the Guaranty Fund on your behalf.
Suspended
Jasmine is in the market for a new property for her, her partner, and their young child. Tanner is Jasmine's agent and has shown her several properties. Even though several properties meet the criteria his client is seeking, Tanner has intentionally weeded out properties close to the local college campus, as he doesn't think the location would be suitable for a family with young children. What, if anything, has Tanner done wrong?
Tanner has discriminated against Jasmine using familial status as a reason for not showing her properties.
In order to qualify as one of the five real estate professional members of the Real Estate Commission board, how many years of real estate experience must you have?
Ten
All real estate licensees in Maryland must abide by the Code of Ethics enforced by _______________________.
The Maryland Real Estate Commission
________________ enforces the Code of Ethics.
The Maryland Real Estate Commission
Which of the following is true of the harm caused to a person relying on false information?
The harm can be physical or monetary.
One element of misrepresentation is that _____________.
The person making the false statement knew it was false (or should have known).
Which of the following is true about Real Estate Commission hearings?
They are public
What actions can licensees take related to signs?
They can place signs on an owner's property with the owner's written consent.
Mary is preparing a purchase offer for her buyer client. It's a pretty standard offer, a little below list price with the seller paying a little toward the buyer's closing costs. Mary uses a standard form used in her brokerage firm and fills in the blanks based on the current situation. Is this okay?
Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney).
After making a listing presentation to a prospective seller client, you learn they are meeting with a few more licensees before deciding which licensee gets their listing. You know these competitors. Which action best demonstrates good faith?
You tell the seller you hope they'll decide to work with you.
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?
Your license will be suspended and can't be reinstated until you pay back the fund plus interest.
In order to qualify as one of the four appointed consumer members of the Real Estate Commission board, how many years of experience must you have as a real estate licensee?
Zero