MD Real Estate Exam Practice

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

135

A Maryland salesperson included a personal phone number on an ad. What other piece of information must also be included on the ad?

Broker's office phone number

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 judgment against her, Clint advised her how to proceed.

Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted, and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______.

Demonstrating untrustworthiness or incompetency to act as a real estate broker

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.

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.

What type of license would Sarah be eligible for if she is new to real estate and does not yet have a supervising broker lined up?

Inactive salesperson license

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

In Maryland, transaction records may be stored electronically as long as ______.

Licensees are able to provide a paper copy upon commission request

Kavita is hosting her first open house. She's put out some refreshments, some printouts of the public MLS listing, and a sign-in sheet so she can (hopefully) get some viable buyer leads from the open house attendees. What other document does she need to display?

MREC's open house notice

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

What type of violation are you committing if you're the listing agent for a house and promise the seller $600,000, but assist the buyer in negotiating a better deal without letting the seller know?

Misrepresentation

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.

In Maryland, reasonable and adequate supervision includes a broker's responsibility to make training and educational sessions available to affiliated licensees at least every ______.

Two months

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

60

Which of these parties would be eligible to be one of MREC's consumer members?

Amelia, a retired community college professor who used to teach about home improvement

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

Brokers, associate brokers, and salespersons

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

Designated name of your brokerage firm

Which of the following statements about earnest money deposits is true?

Earnest money must be placed in an escrow account within no more than seven business days after the formation of the contract of sale.

Jennifer is a new licensee in Baltimore City, Maryland. In order to abide by fair housing laws, Jennifer must avoid discriminating against members of which of the following protected classes?

Federally, Maryland-, and Baltimore City-protected classes

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.

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

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

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?

The day of the home inspection

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

Within three years

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?

"There's a provision right here that gives either of us permission to cancel the agreement early."

Because Lisa's agent didn't inform her that she needed to pull a permit to build a deck off the back of her home, she spent $11,000 having it installed, $7,000 having it removed when the homeowners association discovered she didn't pull a permit, and another $5,000 in legal fees fighting her agent in court over it. How much money is she entitled to seek from the Guaranty Fund?

$18,000

Several Maryland licensees have landed themselves on the commission's naughty list, and the Guaranty Fund has paid out a $50,000 claim, a $12,000 claim, and a $45,000 claim in the last week. The fund's balance is now $225,000. How much money does the fund need to recoup through fees collected from every Maryland licensee to get to the required minimum balance?

$25,000

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

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

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

A counter-offer sent 10 days ago with no response

Ebony is a licensed real estate salesperson in Maryland. Which of the following does she NOT need to submit to the commission as part of her license renewal?

A credit report

Which of these describes self-dealing?

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

Which of the following statements is true of a material fact?

A material fact would cause a reasonable person to either act or not act, if that fact were known.

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 ______.

A net listing agreement

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?

Accept a rebate from the laundry machine company.

You just sold your very 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

With whom may Maryland broker Ruthe NOT share her commission?

Adesha, a broker in a state with which Maryland does not allow interstate compensation sharing, once the arrangement is disclosed to both state's commissions

Business is really slow and you've decided to pull in some more clients with a marketing campaign claiming you're the top producing real estate agent in town. What type of violation are you committing?

Advertising in a misleading or untruthful manner

______ must abide by the Code of Ethics enforced by the Maryland Real Estate Commission.

All Maryland real estate licensees

Which licensee has violated Maryland license law concerning the use of unlicensed assistants?

Antonio paid his assistant $100 for staying late one evening to help a client fill out an offer form when Antonio had to leave unexpectedly.

Sam represents a couple who's selling their townhouse in Aberdeen. At an open house, he meets the Greenes and their agent, Mike. Later that day, Mike emails Sam requesting that Sam email him the property disclosure statement. A few days later, the Greenes stop by Sam's office to drop off their offer. A week after that, Sam meets the Greenes at the house to let them and the home inspector in. At which point in this scenario should Sam have disclosed that he represents the seller?

At the open house

Brisco is representing an elderly man who's selling his Severna Park home. When touring the home, Brisco notices it needs a new roof and the heating and cooling systems should be replaced as well. His seller client insists on not disclosing this information, since he needs to sell fast and alerting buyers about the issues will delay the sale. What's Brisco's responsibility regarding disclosure of the property's material facts?

Brisco must make reasonable efforts to learn all material facts and prevent the seller from concealing them.

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 the following is NOT a relief option that the nine-member Maryland Commission on Civil Rights may order if it determines that housing discrimination has occurred?

Criminal action against the party who discriminated

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.

Don, a Maryland licensee, helped Peggy find a home she loved, but there was a sinkhole in the backyard. The seller's agent, Roger, told Don that he and the seller were aware of the sinkhole and it would be repaired. What is Don's ethical responsibility in this case?

Document the information from Roger that the seller was aware of the sinkhole and would repair it.

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

Your client and you just successfully closed on a home. Early on in the transaction you collected an agency disclosure notice. How long do you have to keep the notice on file?

Five years

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

Foreclosure consultants

Chester is moving on up! He and his wife are ready to sell their condo and purchase a new place. Chester is a real estate licensee and will list the property himself. What must Chester disclose to prospective buyers?

He owns the property.

MREC's five-member hearing panel reviewed Rachel's complaint against David, a supervising broker of a 10-member firm. The panel then forwarded the claim to Investigative Services, which determined that a hearing was necessary. MREC gave both Rachel and David 10 days' notice before the hearing, to which they each brought their attorneys. What's wrong with this scenario?

Hearing panels have three members.

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?

Honesty and fairness

Identify which of these actions is a prohibited activity for a real estate licensee in Maryland.

Increasing the rent and security deposit for a family with seven children.

A property is listed as having four bedrooms and two-and-a-half bathrooms. However, when showing your buyer clients the property, you only count three bedrooms. As their agent, what should you do as part of your due diligence?

Investigate this discrepancy.

Isabelle just took on a new listing, in which the owner is selling because a new freeway is being built right behind the house. The owner is concerned about the noise and other activity the freeway will bring, but doesn't want prospective buyers to know this. Which action best demonstrates good faith in this scenario?

Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.

Broker Pat was so busy enjoying her semi-retired life that she failed to supervise new salesperson Dina adequately and Dina engaged in unintentional discrimination. What might happen to Pat's license?

It could be suspended or revoked.

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?

James could be sanctioned by both the Commission on Civil Rights and the real estate commission.

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.

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?

Maintain the accounts at a federally insured financial institution in Maryland.

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.

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

Betsy and Josh want to file a complaint against a real estate licensee whom they feel misrepresented them in the sale of their Maryland home. With what organization can they file a complaint?

Maryland Real Estate Commission

Your broker's designated name must be included in all real estate advertising, and it must be ______.

Meaningfully and conspicuously present

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.

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?

No. A counter-offer is considered accepted when the offer is signed and the offeror (in this case, the buyer) is notified.

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

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).

Under what conditions can licensees contact sellers who are under an exclusive listing agreement with another agent?

Only to arrange a showing to a buyer

In which of the following settings is a prize offering permitted in Maryland?

Open house

Assuming that each of these foreclosure consultants is properly licensed, who is violating the Protection of Homeowners in Foreclosure Act?

Pedro charges clients a $500 retainer fee when he signs on to provide foreclosure consultation services.

In addition to sanctions imposed by the Maryland Real Estate Commission, serious violations of real estate license laws can result in what?

Prison sentence

Which of these documents does NOT establish an agency relationship between a client and a licensee?

Purchase agreement

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

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.

Peter represents an owner who's selling an investment property. The property is listed at $245,000, which Peter knows is too high. He encourages his business partner, Mel, to offer $235,000 and convinces the seller to take it. After closing, Peter and Mel flip the house and make a handsome profit. What illegal activity has Peter engaged in?

Self-dealing

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.

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?

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

An administrative law judge presided over Sabine's misconduct hearing. Sabine presented several documents indicating she was an excellent licensee, including notarized statements from three of her clients. However, the ALJ found evidence of misconduct and recommended that Sabine be required to take an additional three hours of CE in ethics. What happens next?

The MREC hearing panel decides whether or not to accept the ALJ's recommendation.

What item(s) must be included on ALL real estate advertising in Maryland?

The broker's/company's name

Who is required to sign and date the MAR's "Notice to Buyer and Seller of Buyer's Rights and Seller's Obligations under Maryland's Single Family Residential Property Condition Disclosure Law" form?

The buyer, seller, and their agents

Which of the following is a true statement about possible penalties imposed by the commission for a violation of the Maryland Code of Ethics?

The commission may reprimand, impose fines, and suspend and/or revoke licenses, but it may not impose prison sentences.

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 30 days before his license's expiration date.

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.

A prospective buyer is curious why a previous owner is selling such a perfect home. The Maryland licensee knows that the previous owner recently died due to complications from AIDS. How should the licensee respond to the prospective buyer's inquiry?

The licensee can't disclose that a previous owner had HIV or AIDS.

Bridget represents Colin, who's buying Hugh's house. Darcy represents Hugh. Hugh completed and signed the Residential Property Disclosure/Disclaimer Statement, and Colin reviewed and signed it. Hugh and Colin also signed the Section 10-702 notice form, and their agents made sure a copy of the form and the disclosure statement were included in the finalized contract. What's missing from this scenario?

The licensees also need to sign the notice form.

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

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.

Lee, a Maryland licensee, has a buyer client who asks for recommendations for home improvement contractors. Lee gives her client a list of recommended contractors, which includes the date that she last checked each contractor's license status on the Maryland Home Improvement Commission's website. At least how often must Lee check the license status of the providers that she recommends?

Yearly

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.

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.

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?

You follow the owner's wishes because the suicide and haunting don't need to be disclosed.

In order to qualify as one of the four appointed consumer members of the Maryland Real Estate Commission, how many years of experience must you have as a real estate licensee?

Zero