MD Real Estate Exam Questions

Which of the following is NOT an example of legal dual agency in Maryland? A) Chet, the managing broker, represents a seller and designates one of his associated salespersons, Chanice, to represent the buyer in the same transaction. B) Damon, an associate broker with Sunshine Realty, represents the property seller, and Jake, a salesperson at the same firm, represents the property buyer. C) Patrice, the office manager of Nest Egg Homes, appoints salesperson Sharlene to represent the seller and salesperson Butch to represent the buyer of a property listed with Nest Egg. D) Ruthe, an associate broker with Fortunata Realty, represents a property seller, and Lisa, another associate broker at the same firm, represents that property's buyer.

A) Chet, the managing broker, represents a seller and designates one of his associated salespersons, Chanice, to represent the buyer in the same transaction.

Which of these parties could NOT file a claim with the Guaranty Fund? A) Devon, a broker who lost $10,000 when a seller client demanded that Devon pay to have her home staged, then cancelled the listing a week later when the house hadn't sold B) Raul, who lost $68,000 in a real estate pyramid scheme initiated by a long-time broker C) Regina, a buyer who accrued $15,000 in repair costs because her agent didn't tell her that the roof leaked D) Yashika, a buyer who lost $26,000 when her checking account was hacked after her agent's assistant lost her earnest money check

A) Devon, a broker who lost $10,000 when a seller client demanded that Devon pay to have her home staged, then cancelled the listing a week later when the house hadn't sold

Artie, a real estate licensee, is a convicted felon, and although he served his time, he has had some administrative sanctions that call into question his trustworthiness to serve the public. What is the maximum sanction the MREC may impose? A) License revocation B) License suspension C) One year in prison D) Three years in prison and license revocation

A) License Revocation

Unless the real estate licensee who posts the ad is otherwise properly licensed, which of these ads violates PHIFA rules in Maryland? A) An ad that targets first-time homebuyers who are eligible for VA loans B) An ad that targets homeowners in danger of foreclosure and indicates the licensee can offer guidance C) An ad that targets individuals who are age 55 or older and may qualify for a reverse mortgage D) An ad that targets low-income individuals in need of down payment assistance

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

Daniel has several properties listed around town. He receives a call from a prospective buyer who is very interested in one of the properties and wants to schedule a showing. What should Daniel do? A) Assume the buyer understands that Daniel is the seller's agent. B) Disclose his agency relationship with the seller to the prospective buyer. C) Refer any questions about the property to the seller. D) Schedule the showing.

B) Disclose his agency relationship with the seller to the prospective buyer.

Which of the following statements about earnest money deposits is true? A) Earnest money is rarely the subject of lawsuits against real estate licensees and their brokers. B) Earnest money must be placed in an escrow account within no more than seven business days after the formation of the contract of sale. C) The amount of earnest money is non-negotiable. D) The seller specifies the amount of earnest money the buyer will deposit and when the deposit will be made.

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

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.

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

Amelia's portfolio is on fire! She's got four upcoming listings and each of them will list for at least $500,000. Before she can count her commissions, though, she's got some paperwork to get through. Since she wants to stay on the right side of the Maryland Property Condition Disclosure Law, which of these sellers does Amelia need to remind about completing the Residential Property Disclosure/Disclaimer Statement? A) Bryce, who, as the executor of his deceased mother's will, is selling her house B) Erica, who's selling her five-unit apartment building to an investor who will be converting it to retail space C) Mikey, an investor who's selling a property that he converted into a three-unit apartment building D) Tessa, who represents a lender that's selling a foreclosed four-bedroom ranch-style home that sits on three acres

C) Mikey, an investor who's selling a property that he converted into a three-unit apartment building

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.

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

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? A) A summary of typical roofing charges so her client can compare it to the contractor's work estimate B) Nothing C) The link to the Maryland Home Improvement License Search on the DLLR website D) The name of at least one other contractor so her client can get multiple bids for the work

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

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.

C) Yes, but Phoebe may request a hearing to appeal the revocation.

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.

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

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? A) 10 B) Five C) Seven D) Zero

D) Zero

Commingling

Illegally mixing deposits or monies, collected from a client, with one's personal or business account. Taking money out too soon or putting it into escrow too late (10 banking days).

PHIFA

PHIFA defines the role of foreclosure consultants and details what actions they can and cannot do in practice. Penalties for violating the act can be as much as three years in prison or a $10,000 fine.

Guaranty Fund

The Guaranty Fund is a fund set aside for consumer use if a member of the public is financially harmed by actions of a licensee

he Maryland Real Estate Commission creates several hearing panels consisting of how many members each? A) 10 B) Five C) Nine D) Three

Three