real estate exam

The Slathertons are looking at buying a $300,000 property with a 20-year loan at a 6% interest rate. How much would their monthly principal and interest amount be? Plug in the numbers using the amortization chart in your resources to see what the payment per month would be. (Use the amortization chart your lesson instructed you to print out.) $2,149.30 $2,421.65 $2,981.92 $3,1596.30

$2,149.30

Your clients are purchasing a $160,000 home. If they have a down payment of 25% and the bank charges two points at closing, how much are they paying in points? $2,350 $2,400 $2,450 $2,475

$2,400 * $160,000 x .75 = $120,000 (the loan amount after their 25% down payment). Take $120,000 ÷ 1 (point) = $1,200. 2 points then would be $1,200 x 2 = $2,400.

A buyer with a $242,000 loan has a monthly principal and interest payment of $1,317.66. If $1,033.54 is interest, what's the new principal balance after the first payment is applied? $240,682.34 $241,672.12 $241,715.88 $241,976.21

$241,715.88 * if 1033.54 of the 1317.66 is interest that leaves 284.12 for principle subtract 284.12 from 242,000 for a new principle balance of 241715.88

Katherine purchased a property for $255,000, borrowing $242,250. The assessed value of the property is $249,700. The property appraisal came in at $257,000. Which of these amounts is used in calculating the transfer tax? $242,500 $249,700 $255,000 $257,000

$255,000 *Transfer tax is calculated based on the purchase/sales price ($255,000).

The daily property tax rate is $1.23 and closing is August 31. Assuming the buyer owns the property on closing day, and the seller hasn't made any payments, what will the seller owe at closing using the calendar year proration method? Round to the nearest whole dollar. $151 $242 $298 $449

$298

Almanzo is buying a horse farm for $695,000 and put down 15% in earnest money. His closing costs and down payment total $139,000. How much will he need to bring to closing? $20,850 $29,750 $34,750 $39,000

$34,750 * 695,000 x .15= 104,250 -> 139,000-104,250= $34,750

Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. What is the net operating income? $306,384 $345,103 $383,822 $635,513

$345,103 *gross income- operating income (not other expenses)

In which of these situations would a listing be most likely to terminate due to listing agreement expiration? A market with high inventory and low demand A market with low inventory and high demand A moderately-priced home in a neighborhood slated for renewal A moderately priced home sold as-is in a market full of investors

A market with high inventory and low demand

While Martha's paying off her loan, her lender is holding on to something that includes her name, property address, the interest rate on her loan, what the late charge amount would be, and the amount and term of the loan. When her loan is paid off, the lender returns it to Mary, marked paid in full. What is this item? A deed of trust A mortgage An assignment A promissory note

A promissory note

Which of the following is an example of constructive eviction? A landlord locks a tenant out of her unit after she fails to pay her rent for three months. A tenant chooses not to renew a lease when the term expires and moves out. A tenant dies. A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.

A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.

To which of the following borrowers might a lender be most likely to recommend an FHA loan? An investor who intends to use equity in another investment property as his down payment A retired couple interested in downsizing from a large four-bedroom house they own free and clear to a condominium A single stockbroker with a $40,000 down payment and significant assets in a stock portfolio A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores

A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores

What's it called when all parties sign a contract, but before the seller's acceptance is delivered to the buyer? Acceptance Binding acceptance Contract closing Exercise of an option

Acceptance

Carlson presents a real estate purchase client to his clients. Along with the contract are several supplemental documents attached to it. What are these called? Addendums Amendments Pro-rata Querries

Addendums

The owner of a six-unit apartment building is worried that there may be some electrical issues. The owner's leasing agent, Katrina, meets with him to discuss his concerns. What's her responsibility to the owner? Advise him to consult an expert. Call in an electrician and oversee an inspection. Do a quick inspection to see if she spots any problems. Tell the property owner to ignore his suspicions until something happens.

Advise him to consult an expert.

Jeffersontown has a zoning ordinance that requires all properties in a designated historic district to have brick or wood plank facades. No aluminum, cement board, or vinyl siding is allowed. What type of zoning is this? Aesthetic zoning Downzoning Incentive zoning Spot zoning

Aesthetic zoning

What does the Federal Trade Commission consider to be an unfair ad? Any ad or business practice that causes or is likely to cause injury Any ad that is likely to mislead consumers acting reasonably under the circumstances Any ad that makes a health claim Any ad with a claim that's difficult to evaluate

Any ad or business practice that causes or is likely to cause injury * Any ad or business practice that causes or is likely to cause injury is considered an unfair ad, according to the FTC's Unfairness Policy Statement.

Shannon doesn't understand why her agent wants her to add a contingency to her purchase offer. Her agent, Scott, explains that the property is in a transitional neighborhood, and it might be overpriced. What type of contingency is Scott recommending? Appraisal Financing Home sale Inspection

Appraisal

Tristan's offer has been signed by all parties and delivered back to the seller. This means that ______ has occurred. Acceptance Binding acceptance Notarization Personal delivery

Binding acceptance

You represent a buyer in a transaction that includes a 2% cooperating agent commission that will be paid by the seller. Who's your client? Buyer Seller Seller's agent Seller's sub-agent

Buyer

Joan is representing the buyer, Carlton, and Reggie is representing the sellers, Zeb and Teresa Martin. Carlton's Great Aunt Matilda has agreed to pay any portion of Joan's commission the sellers don't cover. Teresa's father, Teddy, has agreed to pay half of the sales commission that will be owed to the listing agent. Which of these statements is true? Carlton and the Martins are the agents' principals in this transaction. Matilda and Teddy are the agents' principals in this transaction. Reggie's clients are Zeb, Teresa, and Teddy. Since she's paying Carlton's share of the commission, Matilda is Joan's client.

Carlton and the Martins are the agents' principals in this transaction.

Which economic principle pertains to how a change in a property affects its value as a whole? Anticipation Conformity Contribution Substitution

Contribution

Darren and Natalie are first-time buyers who have decided to purchase a newly built townhouse. Their agent, Jenner, tells them that the builder must provide a one-year home warranty. Which of the following conditions must be true? Darren and Natalie are getting a USDA rural development loan. Darren and Natalie are using an FHA-insured loan. Darren and Natalie are using conventional financing. Darren and Natalie made an all-cash offer.

Darren and Natalie are using an FHA-insured loan.

The Richards family farm is located on a 10-acre parcel of land, which is very rare to come by in their area. However, the house is rundown and in need of many repairs. Buyers in the area looking for a move-in ready home would need to either look elsewhere or wait several months for the home to be renovated. Which factor is most negatively impacting the value of the Richards' property? Demand Scarcity Transferability Utility

Demand

Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these actions changes the contract from executory to executed? Dierks delivered the earnest money to Morgan's broker. Dierks' lender funded the loan, and closing took place. Dierks's lender approved the mortgage loan. Morgan completed the inspection repairs that Dierks requested.

Dierks' lender funded the loan, and closing took place.

Select the statement that accurately depicts property ownership income tax implications. During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid. First-time home buyers can deduct closing costs paid. Homeowners can deduct depreciation during the ownership stage; investors can't. When homeowners sell their property, they'll need to calculate the depreciable basis on the property.

During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid. * Eligibility for deductions related to property ownership depend on circumstances, and tax questions should always be directed to a qualified expert. In general, homeowners and investors may be eligible to deduct mortgage interest.

Kevin is having an appraisal performed on a piece of property he's interested in buying. He's especially interested in hearing about the estimated rate of return the property could pull. What type of value is he interested in? Assessed value Insured value Investment value Value in use

Investment value

In the eyes of a lender, when financing a residence, what advantage does an investor have over owner-occupied borrowers? Investors always pay cash. Investors are less of a risk. Investors can use rental income to qualify. Investors maintain their property better.

Investors can use rental income to qualify.

In which of these situations is Ronna's fiduciary duty of reasonable skill and care at odds with her duty of obedience? Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer. Ronna's buyer client asked her to keep his financial situation confidential. Ted, Ronna's broker, insisted that she teach a contracts class, even though she's a new agent. Though her customer was adamant, Ronna turned down a commercial listing because it was outside her area of expertise.

Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer.

Which of these is the best definition of real estate? Everything that's not real property Land, plus all things permanently attached to it naturally or artificially Real property, plus all of the interests, benefits, and rights included in ownership The earth's surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects

Land, plus all things permanently attached to it naturally or artificially

Which of the following scenarios best describes a net listing? Carmel is selling her condo for $280,000 and is offering 6% commission to the listing broker. Jason is listing his duplex for $400,000 but reserves the right to find his own buyer and not have to pay a listing commission. Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount. Ralph is selling his townhome for $225,000 and is paying a brokerage fee of $25,000.

Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount.

Which type of antitrust violation occurs when real estate firms agree to divide their market so they don't compete with one another? Group boycotting Market allocation Price fixing Tie-in arrangements

Market allocation

Which of these situations does the Americans with Disabilities Act address? Marcus, a property manager, routinely dismisses rental applications from families with children under the age of 18. Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs. Metro Agents hired an interpreter to assist Spanish-speaking clients with the real estate process. The Golden Gate senior housing center has no exercise or activity center for its residents.

Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs.

Which of the following is an example of commingling? Mixing earnest money with personal funds Mixing two earnest money deposits Paying licensee bonuses from forfeited escrow deposits Using escrow funds to pay business expenses

Mixing earnest money with personal funds

During a site evaluation to determine property value, all of the following factors are important to consider EXCEPT ______. Access to utilities Neighborhood demographics The property's size and shape Topography

Neighborhood demographics

Leigh Ann is a licensee. Her cousin, Carly, is interested in buying a house. Leigh Ann shows Carly how to look for properties online and runs some CMAs for her. When Carly finds a property she likes and asks Leigh Ann to help her make the offer, Leigh Ann decides she should ratify the implied agreement with Carly. What are Leigh Ann's options for accepting an agency relationship after the fact? Continue to assist Carly and have her sign an estoppel certificate. Leigh Ann's only option is to get a signed listing agreement. Prepare an agency agreement or continue to assist Carly with the purchase. Prepare an estoppel certificate and a listing agreement.

Prepare an agency agreement or continue to assist Carly with the purchase.

Kristin has been unable to make her mortgage payments. Her property went to auction, but the lender didn't accept the high bid. What stage of the foreclosure process is this property now in? Eviction Foreclosure Pre-foreclosure Real estate owned

Real estate owned

Bob signed a contract to purchase Ingrid's apartment building. Bob decided he didn't want to be a landlord, and Ingrid decided she didn't want to sell and move to Maui. They mutually agreed to cancel the contract and Ingrid returned Bob's earnest money. This is referred to as ______. Assignment Breach of contract Novation Rescission

Rescission

Which of these is an example of practicing within your area of competence? Informing your clients that the odd odor in the property is from an ongoing black mold issue. Recommending that your married clients take title to their new property as joint tenants. Researching the property tax amount that a client will pay on the home he's purchasing. Telling your client that the wood shavings outside the basement window means there are termites in the home.

Researching the property tax amount that a client will pay on the home he's purchasing. *As a licensee, you're expected to be an expert in real estate, not home inspections or the tax-related or legal implications of a purchase or sale. Property tax amounts are a matter of public record, and researching them is within your wheelhouse.

Trina is a licensee at Midtown Homes. Which of these factors indicates that she's classified as an employee? She's eligible to participate in the firms 401k retirement plan. She's required to belong to the National Association of REALTORS®. She works from both her home office and an office the firm provides. The brokerage firm supervises her.

She's eligible to participate in the firms 401k retirement plan. *The one factor that applies only to employees is Marge's eligibility to participate in the firm's 401k retirement plan.

What is TRID? Terminating and Reducing Inappropriate Disclosures TILA-RESPA Integrated Disclosures Timely and Rapid Integrity through Disclosures Truth In Disclosing

TILA-RESPA Integrated Disclosures

Marlon and Leah are interested in buying a home in a new homeowner opportunity area. The 100-year-old row house was renovated and is like new on the inside. The property taxes decreased by more than $5,000 last year. What's the likely reason for this? Introductory rates Seller error Tax abatement Tax reassessment

Tax abatement * A tax abatement program will lower the property taxes on a given property for a set amount of time. This is typically in response to some sort of improvement or rehabilitation, or for some new construction properties.

Katelyn wants to include an inspection contingency in her purchase offer. Her agent explains that the inspection contingency will document which of the following? How much money the sellers will spend on fixing inspection issues The date by which all inspection issues must be addressed The name of the inspector Katelyn will use Whether Katelyn will ignore some of the inspection issues

The date by which all inspection issues must be addressed

Norman, the seller's agent, notices a significant crack in the foundation that the inspector failed to note in the inspection report. Norman decides to keep this information to himself. He really needs to close this deal. Which fiduciary duty has Norman breached? The duty of accounting The duty of disclosure The duty of obedience The duty of reasonable skill and care

The duty of disclosure

Debra's listing agent, Raj, just called to tell her that he'd received an offer on her house and an earnest money check for $4,500. "I'm on my way over to go through the offer with you. I think you'll like it!" Debra's excited, and she knows exactly what she wants to spend that $4,500 on. What's wrong with Debra's thought process? Debra's forgetting that she owes part of these funds to her listing agent. She can't cash the earnest money check until the transaction closes. She hasn't seen the offer, so she doesn't know if she'll accept it and get the earnest money check. The earnest money doesn't belong to Debra. It will be held in an escrow account.

The earnest money doesn't belong to Debra. It will be held in an escrow account.

The Shores are in the process of buying a beautiful 3,000-square-foot home from the Bishops. They've completed all the required paperwork on their loan application. Mary's analyzing the package to determine their ability to repay the loan. She examines the property's value, the property type, and the loan-to-value ratio, among other things. Her recommendation is that the Shores' loan application be approved. What is Mary's role? Member of the loan committee The seller The seller's real estate agent The underwriter

The underwriter

What would happen if you bought a house and later found out that there were unpaid liens against the property? Nothing. The former owner owes the money on the liens. The lien claimants would lose their liens against your property. The unpaid liens could trigger a foreclosure on your property. You would have to assume a loan to pay off the liens.

The unpaid liens could trigger a foreclosure on your property.

What's the relationship between the title search, title insurance policy, and document recording? The title insurance policy schedule of exceptions will include anything that's publicly recorded. Title insurance policies don't cover publicly recorded events. Title insurance policies must be publicly recorded to be legal. Title representatives and attorneys who perform title searches look for documents that are publicly recorded.

Title representatives and attorneys who perform title searches look for documents that are publicly recorded.

Which of the following best describes the purpose of a sales contract? To identify the buyer's agent/buyer agency relationship's terms To identify the landlord/tenant relationship's terms To identify the listing agent/buyer agency relationship's terms To identify the terms of a real estate sales transaction between the seller and the buyer

To identify the terms of a real estate sales transaction between the seller and the buyer

Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks you why it's an issue, how do you respond? It doesn't fit aesthetically with the rest of the house. The extra bedroom is inconsistent with the rest of the neighborhood, reducing its value. You're certain it's not built to code, so Peter shouldn't make an offer on the property. You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

What does a CMA determine? Availability of funding Cost of replacement Cost per square foot Market price range

Market price range

our broker's designated name must be included in all real estate advertising, and it must be ______. First on all advertising In the upper left corner Meaningfully and conspicuously present Represented by a franchise logo

Meaningfully and conspicuously present

Most often, what's the first course of action for disputed home warranty claims? Arbitration Condemnation Litigation Mediation

Mediation

An easement dictates that property owner A gives the right to property owner B to use a portion of the property. Which term describes property A? Domain estate Dominant estate Service estate Servient estate

Servient estate

Which of these is essentially the same as fraud? A misstatement Fact bending Intentional misrepresentation Puffing

intentional misrepresentation

Which of the following describes the amount a lender charges a borrower for using money? Discount point Interest Principal Usury

interest

Which group ensures that community growth is controlled and orderly? HOA Master commission Planning board Zoning board of appeals

planning board

Water buildup, ice damming, and a fascia damaged by moisture are common ______ issues. Chimney Foundation Roof Window

roof

proration of 360 day statutory year calculation

30 days x 12 months

Roger Kelly is signing a listing contract with a client. Which of the following is an acceptable signature on the document? "Roger Kelly" "Roger Kelly, XYZ Real Estate" "XYZ Brokerage" "XYZ Real Estate Team"

"Roger Kelly"

How many feet in a mile?

5280

calculate loan to value (LTVR)

(amount financed)/(property value)x100

calculate amortized loan

(loan amount/1000)X factor= monthly payment of principle interest

calculate housing ratio

(principle+interest+taxes+insurance+association fees)/(monthly gross income)x100

The Smithwicks, your buyer clients, obtained a 90% loan on their new $400,000 home. At closing, they paid $6,150 for points at closing. How many points did they pay? .017 .02 1.7 1.71

1.71

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 Five Seven Six

10

n addition to fines, individuals who violate antitrust laws may face imprisonment for up to what length of time? 10 years 30 days One year Two years

10 years

how many square meters in 1 hectare

10,000

A small duplex sold for $550,000. Each unit can gross $2,500 in monthly rent for the owner, and there are no additional income sources from the property. What's the GRM? 100 110 200 220

110

All lenders have different underwriting standards, but traditionally, the housing debt-to-income ratio has been ______%, with a total debt-to-income ratio of ______ %. 25 to 28; 33 to 36 25 to 33; 28 to 36 28 to 36; 25 to 33 33 to 36; 25 to 28

25 to 28; 33 to 36

How many feet in a yard?

3 feet

A buyer is purchasing a home for $400,000 and is financing $300,000. What is the loan-to-value ratio? 72% 75% 82% 96%

75%

What is a township? A 36-square-mile square formed in the use of the rectangular government survey system A one-square-mile square formed in the use of the rectangular government survey system A permanent reference point used in the measurement of elevations The point of beginning used in a metes and bounds survey

A 36-square-mile square formed in the use of the rectangular government survey system

What is the best description of a deed? A covenant A document to transfer ownership/interest in real estate An abstract of title A recording fee

A document to transfer ownership/interest in real estate

Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank indicates that it's going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the title to the land. What kind of state does Sondra live in? A deed of trust theory state A lien theory state An intermediary theory state A title theory state

A lien theory state

As a result of Maryland Real Estate Commission hearings, who makes recommendations to the commission regarding disciplinary actions? A criminal judge A member of the commission An administrative law judge The executive director

An administrative law judge

Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan? A trustee will hold title until the loan is paid. Their transaction is secured with a mortgage as well. The lender will hold the mortgage, while a trustee will hold the deed of trust until their loan is paid off. The lender will hold the title until the loan is paid off.

A trustee will hold title until the loan is paid.

A property's projected monthly potential gross income is $20,000. The assumed vacancy and loss rate is 5% and operating expenses were expected to be 45% of the property's potential gross income. The property's actual income was $16,000 and expenses were 40% of that income. How did the property's actual net operating income compare to what was projected? Actual net operating income was higher than projected. Actual net operating income was lower than projected. Projected and actual net operating income were equal. You can't determine this from the information provided.

Actual net operating income was lower than projected.

Related to the legal test of a fixture, in the acronym MARIA, what do the two As stand for? Acceptability of the fixture and agreement of the parties Adaptability of item and accessibility to the property Adaptability of item to land's use and agreement of the parties Allowable use and acceptable use

Adaptability of item to land's use and agreement of the parties

Which of the following classes are not protected by federal or Maryland fair housing law, but may be protected by local ordinances in Maryland? Age and lawful income Disability and gender identity Marital status and familial status National origin and sexual orientation

Age and lawful income

Which of the following is true regarding the definition of agency? Agency describes a collaborative effort between multiple parties or units. Agency describes the relationship between the real estate professional and the person or persons being represented Agency describes the relationship between the seller and the buyer in a real estate transaction. Agency is the legal term used for a real estate licensee.

Agency describes the relationship between the real estate professional and the person or persons being represented

______ must abide by the Code of Ethics enforced by the Maryland Real Estate Commission. All citizens of Maryland All Maryland real estate licensees Licensees who are members of REALTOR® associations Salespersons

All Maryland real estate licensees

Which of the following is an example of single agency? A broker acts as a dual agent to one party only. An agent from one firm acts as the agent for the buyer. Two agents from different firms each act as a sub-agent for the other. Two agents from one firm act separately, with one agent representing the buyer and the other representing the seller.

An agent from one firm acts as the agent for the buyer.

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

Annual ground rent plus the full cost of capitalization

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

The fibers of ______ are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer. Asbestos Lead paint Radon Silicone

Asbestos

Burt owns a development company that specializes in constructing new, energy-efficient houses. The best approach for an appraiser to use in the appraisal of Burt's newly built homes is the ______. Appraisal process Cost approach Income approach Sales comparison approach

Cost approach

Which of the following could be an indication of a foundation problem? Crack in a basement wall Doors that open and close easily Lack of moisture in the basement Windows that open and close properly

Crack in a basement wall

What test is the Maria test & Whats M.A.R.I.A stand for?

Fixture test. Method Adaptability Relationship Intention Agreement.

Which of these is NOT an example of agency coupled with interest? 1 Carma agrees to list Tera's property for free if Tera signs an agreement to purchase her new home through Carma. 2 Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller. 3 Jeanine agrees to charge no commission from her buyer's purchase of a four-plex if the buyer agrees to pay Jeanine a 3% fee for each unit for which she finds a tenant after the sale. 4 Rhoda loans Carl the money to catch up his mortgage payments in return for a listing agreement to sell Carl's home for a 4% commission.

Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller.

Rogers has been given power-of-attorney over his sister's affairs while she's out of the country in case someone needs to take care of personal or business affairs and she's out of contact. What kind of POA does Rogers likely have? Broad General Restricted Special

General

Nancy just hired her sister, real estate licensee Grace, to list her property. Jason schedules a showing for his client, who's interested in Nancy's property. What needs to take place? Grace doesn't need to do anything special, since she doesn't own the property. Grace must terminate her contract with Nancy, since she can't represent a family member. Grace needs to disclose in writing to Jason and his client that the property is owned by a family member. Grace needs to keep the fact that the property is owned by her sister confidential.

Grace needs to disclose in writing to Jason and his client that the property is owned by a family member.

Anita is a new buyer. Luckily, ______ will help her before the sale and can reimburse her after the sale if a title issue arises. Her buyer's agent Her title insurance Seller credits Seller disclosures

Her title insurance

Thad received multiple offers on his property and is reviewing them with his agent Nora. All of the offers have at least one contingency. Nora recommends that they reject the second offer, because it has a _______ contingency, which is generally the most risky. Appraisal Financing Home sale Inspection

Home sale

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? If neither party files a protest with the commission within 30 days, she may disburse the funds to the buyer. If neither party sends Melody a protest within 14 days, she may 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 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 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.

If neither party sends Melody a protest within 30 days, she may disburse the funds to the buyer as stated in her letter.

Which of the following scenarios accurately describes the similarities between an open listing and an exclusive agency listing? In both types of listings, sellers are required to pay a commission to all of the brokers who list the home. In both types of listings, the broker owes the commission regardless of who sells the property. In both types of listings, the seller who finds the buyer won't owe a commission. In both types of listings, the seller will owe a commission to the broker who brings the buyer.

In both types of listings, the seller who finds the buyer won't owe a commission.

You're a new licensee who's thrilled to be working with five different buyer clients. Under what circumstances is it appropriate for you to determine the earnest money amount for your clients? If the buyer is a first-time buyer. If the buyer is elderly. In none of these circumstances. When the buyer's target is a second home.

In none of these circumstances.

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building? As a joint tenant with rights of survivorship As a tenant in common with Oliver's heirs In severalty In trust

In severalty

o protect your commission, a listing agreement should be ______. In writing Notarized On a form created by the National Association of REALTORS® On an MLS form

In writing

Which of the following would be a description used for real property? Above-ground Free-standing In-ground Movable

In-ground

Which of these scenarios depicts a potentially illegal dual agency arrangement in Maryland? 1 Corrina gives preliminary consent to dual agency when she signs her listing agreement, then re-affirms her consent when an offer is made. 2 Jackson, an associate broker, acts as dual agent and designates two salespersons from the brokerage to represent each party. 3 Parker represents a seller, and Jane, a licensee with another firm, delivers a buyer customer's offer for that seller's property. 4 Sandrine represents the seller in a transaction, and another licensee from her firm represents the buyer. Both parties have consented to dual agency.

Jackson, an associate broker, acts as dual agent and designates two salespersons from the brokerage to represent each party.

Which of the following is a duty of a property manager? Maintaining the property Picking up after tenants' pets Referring all interested tenants directly to the owner Showing the property to potential buyers

Maintaining the property

Stan and Emile are arguing over their shared lot line, since Stan thinks that Emile planted a privet hedge on Stan's property. Stan filed a civil legal action against Emile. What will the court use to determine the actual lot line? Aerial photographs Affidavit from surveyor Legal descriptions of both properties Testimony from long-time neighbors

Legal descriptions of both properties

What's the relationship between the Loan Estimate and the Closing Disclosure? Lenders issue the Loan Estimate to verify the figures detailed on the Closing Disclosure. Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the Loan Estimate. Loan Estimate figures should match Closing Disclosure figures exactly. The Closing Disclosure outlines the lender's responsibilities to the borrower.

Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the Loan Estimate.

Lena's buyer Mindy is making an offer on Leo's house. Which party decides how much earnest money to offer? Lena Leo Leo's agent Mindy

Mindy

All terms and conditions the client authorizes must be specified and included in an offer to sell or buy. When is it acceptable to offer the property under other terms? Never Only when your designated broker approves it Only when you're reasonably certain you can get your client a better deal by doing so Only when you're representing the seller

Never

Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission? No, because Carol is not a real estate licensee. No, because Carol procured the buyer. Yes, because they have an exclusive agency listing agreement. Yes, but she only owes the listing commission.

No, because Carol procured the buyer.

Bo's real estate ad states: "Custom homes for sale with scenic mountain views. Easy financing and low down payments." What else must be included in the ad in order for it to comply with TILA? A full disclosure, including the APR and other loan terms Nothing The number of payments and APR The specific down payment amount and APR

Nothing

A client has asked her agent for a 24-hour notice on showings. The agent knows this will have a negative impact on the number of showings. Which duty is in conflict with reasonable skill and care? Accounting Confidentiality Disclosure Obedience

Obedience

Carrying out a client's instructions describes the duty of ______. Accounting Loyalty Obedience Reasonable skill and care

Obedience

Shari's clients want her to post that there are "no showings on weekends" on the MLS. Shari knows that will significantly cut down on their market exposure. Her duty of reasonable skill and care is in conflict with her duty of ______. Accounting Disclosure Loyalty Obedience

Obedience

Your buyer client, Percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step? Complete a loan application. Obtain a pre-qualification letter. Sign a purchase agreement. Write an offer.

Obtain a pre-qualification letter.

Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer. Kendra is now considering the counter. What role does Kendra have in this scenario? Examiner Executor Offeree Offeror

Offeree

What is an open listing agreement? One in which anyone can find the buyer, but the listing agent still gets paid One in which only the person who finds the buyer gets paid One in which the price is negotiable within a specified range One in which there's no end date

One in which only the person who finds the buyer gets paid

Which type of buyer agency offers the flexibility to work with multiple agents but results in buyers acting on their own behalf since no agent owes fiduciary duties? Exclusive agency Exclusive right to represent Limited agency Open agency

Open agency

Gene, a real estate licensee, prefers to use electronic documents and signatures because it means he doesn't have to track people down to deliver documents or have them signed. Which of these statements is true? Brokerage firms can require that clients accept the use of electronic documents and signatures. Licensees can require clients to accept the use of electronic documents and signatures. Parties to the contract decide whether or not to accept the use of electronic signatures and documents. Some states require the use of electronic documents and signatures in real estate transactions.

Parties to the contract decide whether or not to accept the use of electronic signatures and documents.

Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare? Allow a friend to use his week. Pass the timeshare on to an heir. Purchase an additional week if it becomes available. Try to exchange weeks with another timeshare holder.

Pass the timeshare on to an heir.

Sandra and Dwight are neighbors who share a common driveway, but the driveway is on Dwight's property. What kind of ownership rights does Dwight have of the driveway? Absolute Non-possessory Possessory Temporary

Possessory

What type of arrangement allows the buyer to retain title to the property but places a security interest in the property on behalf of the seller? A straight-term loan Land contract Purchase money mortgage Wrap-around mortgage

Purchase money mortgage *Purchase money mortgages allow the buyer to retain title to the property, but the seller has security interest in the property.

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 So they can pass their license renewal exam To eliminate the risk of misrepresentation To prevent properties from selling for less than market value

So they can competently advise clients about fair market value/price

According to the process appraisers follow, what action is taken first upon being assigned a property for appraisal? Determine the highest and best use. Gather and analyze data. Identify the data that's needed. State the problem.

State the problem

The question, "What's the purpose of this appraisal?" can be answered by this first step of the appraisal process. Determine highest and best use. Estimate land value. Identify data needed. State the problem.

State the problem

Along with property ownership, rights are granted to use the land's physical components. Which right allows a property owner to use or sell the underground resources, such as natural gas and minerals? Air Sub-surface Surface Water

Sub-surface

DeeAnna thought she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ______. Accepting partial performance Rescinding the contract unilaterally Suing for damages Suing for specific performance

Suing for specific performance

Ken, a licensee, has published an ad claiming that he can sell homes for 25% more than any of his competitors. The Federal Trade Commission determined this to be a deceptive ad. What might the FTC require Ken to do as a penalty for his deception? Discontinue publishing any ads for one full year Live up to the claims in his ad within the next six months, or go to prison Pay each client 25% of the sale price for every house he sells Take out new ads correcting the misinformation in his original ad

Take out new ads correcting the misinformation in his original ad

Which of these statements most accurately represents existing federal antitrust legislation? The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly. The Federal Trade Commission Act established the Sherman and Clayton acts to prevent collusive activities that limit competition. The Federal Trade Commission Act prevents one large firm from acquiring another similar firm that would result in a restraint of trade. The Sherman Antitrust Act was passed to supplement the Clayton Act in an effort to prevent mergers that create monopolies.

The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly.

Which of these is NOT a circumstance that would result in a Maryland broker releasing trust money she was holding? The beneficiary of the trust money failed to complete the contract terms. The broker received a court order instructing her to disburse the trust money. The buyer needed his earnest money back in order to pay the down payment. The transaction closed.

The buyer needed his earnest money back in order to pay the down payment.

Trina's property is listed with Avalon Homes. The market is a little slow, and Trina's listing is a high-end home, where sales are even slower. She's had several showings, but no offers. The term of the listing agreement is nearly over. What happens when the termination date is reached? The listing expires and is automatically terminated. Trina can't extend the listing agreement, so she'll have to list with another brokerage firm. Trina owes Avalon whatever compensation was noted in the listing agreement. Trina's agent may still try to sell the property.

The listing expires and is automatically terminated.

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? Only the disclosure statement needs to be included in the final contract. Only the notice form needs to be included in the final contract. The buyer and seller don't need to sign the notice form, the licensees do. The licensees also need to sign the notice form.

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

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

John and Michelle received a general warranty deed when they purchased their house from Ted. A couple of months after they moved in, their neighbor, Bryant, drove his four-wheeler across their property to access the lake front. John discovered that Ted and Bryant agreed to an easement over Ted's property several years earlier. Which general warranty deed covenant does this represent? The covenant against encumbrances The covenant of further assurances The covenant of quiet enjoyment The covenant of seisin

The covenant against encumbrances

What title guarantees will Jody have if her property is deeded to her after a foreclosure? The covenant against encumbrances The covenant of further assurances The covenant of quiet enjoyment The covenant of seisin

The covenant of seisin *Foreclosed property may be conveyed with a referee's deed, which offers only the covenant of seisin.

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 ______. August 28 (the same date that broker's license must be renewed) July 28 (one month before her broker's license must be renewed) September 29 (one month after her broker's license must be renewed The date printed on her license

The date printed on her license

Marge works for Morgan Realty as a transaction coordinator. Which of these factors may cause the IRS to classify an Marge as an employee? Marge is required to belong to the local REALTORS® association. Marge works the hours she chooses. The firm doesn't provide any benefits to Marge. The firm pays Marge a salary.

The firm pays Marge a salary.

Which of the following statements about the number of contingencies in a sales contract is true? Every sales contract should contain a minimum of three contingencies. The inclusion of numerous contingencies makes it less likely that the buyer's offer will be accepted. The more contingencies, the better, from the seller's perspective. The number of contingencies is directly related to the cost of the home. The higher the asking price, the greater number of contingencies.

The inclusion of numerous contingencies makes it less likely that the buyer's offer will be accepted.

Stan is a home inspector who's evaluating a home for potential buyers. He pointed out that neither of the two bathrooms had vent fans installed. Why is this a potential problem that will be noted on the inspection report? Bathroom fans can mitigate lead paint particles. Bathroom fans vent radon to the exterior of the home. The lack of air circulation in a moist room can lead to mold growth. Unseemly smells located that close to the kitchen are a problem.

The lack of air circulation in a moist room can lead to mold growth.

When a mortgage is used as a security instrument, who holds the mortgage and the promissory note? The borrower holds the mortgage, and the lender holds the note. The borrower holds the mortgage and the note. The lender holds the mortgage, and the borrower holds the note. The lender holds the mortgage and the note.

The lender holds the mortgage and the note.

The Maryland Real Estate Commission may discipline brokers who do not reasonably and adequately supervise their affiliated licensees. Which of the following does the commission NOT consider in determining whether supervision was reasonable and adequate? The number of affiliated licensees The number of branch offices and managers in each office The number of mandatory work hours expected of independent contractors The types of real estate activities the firm performs

The number of mandatory work hours expected of independent contractors

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

Two months

As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this? Implied Incomplete Valid Voidable

Voidable

The federal Fair Housing Act includes protections for people with disabilities. It requires multi-family buildings constructed for occupation after March 13, 1991 to have seven special features. Which of the following is one of those features? Bathtubs with low sides for easier access Emergency call buttons in all units Ramps at all exterior doors Unit and internal doors that are usable by persons in wheelchairs

Unit and internal doors that are usable by persons in wheelchairs

Clay is interested in purchasing a condo about a mile from the city center. He went to the city records office to review everything that was filed by the condo developer. In the condominium declaration, he sees how ownership of the common areas is shared among the ________. Association officers Developers Investors Unit owners

Unit owners

Picture a drawing of a section of land. Where is Township 1 located? Lower left (SE) corner Lower right (SW) corner Upper left (NW) corner Upper right (NE) corner

Upper right (NE) corner

In contract law, undue influence differs from duress in that duress includes ______. Deception Fraud Trickery Use or threat of force

Use or threat of force

Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law? Disclosing in writing to all parties in a transaction that the licensee isn't a licensed attorney, so there's no licensee liability Having a designated broker review and notarize all completed contracts Having a designated broker write all contracts from scratch to make them specific to each transaction Using approved fill-in-the-blank forms

Using approved fill in the blank forms

What's usury? The duty a borrower owes a lender The duty a lender owes a borrower The permitted use of a leased property When a loan's interest rate is higher than the maximum allowable rate

When a loan's interest rate is higher than the maximum allowable rate

The property management ______ cements the agency relationship between the property manager and the owner. Addendum Agreement Lease Waiver

agreement

calculate interest rate

annual interest rate/ loan balance= interest rate

Several brokerages in a certain area agree to stop running advertisements in a local publication. What type of antitrust violation is this? Group boycotting Market allocation Price fixing Tie-in arrangement

group boycotting

calculate equity

homes appraised value - loan debt= equity

calculate loan origination fee

loan amount x origination date (divide a % by 100)

calculate annual interest rate

loan balance x interest rate= annual interest rate

When agents put their clients' interests ahead of their own, this describes the duty of ______. Accounting Loyalty Obedience Reasonable skill and care

loyalty

calculating net to seller

net to seller= sales price x (100%-commission)

Samuel and Yoshi have worked at the same firm for a few months and get along well. Samuel mentions he has a credit score in the low 800s. Yoshi, who's just starting out, persuades Samuel to sign for a loan to help Yoshi buy a property, since his credit isn't good enough. Yoshi promises to make the mortgage payments, but two months after the deal closes, Yoshi moves across the country. Samuel's now stuck with a $400,000 mortgage. What type of scheme is this? Equity skimming Inflated appraisal Silent second Straw buyer

straw buyer

Along with property ownership, rights are granted to use the land's physical components. Which right allows a property owner to use or sell the underground resources, such as natural gas and minerals? Air Sub-surface Surface Water

sub-surface

Which type of pest may make mud tubes—tunnels that run along your walls—or shed tiny wings? Carpenter ants Fire ants Powder post beetles Termites

termites

Which of the following statements is the best definition of "yield" in the mortgage industry? The amount of interest the borrower pays up front The amount of money a loan makes over time The money the borrower must pay in closing fees The ratio of the down payment to the loan amount

the amount of money a loan makes over time

If there is some kind of defect on a property's title, what effect does this level of transferability have on the property's value? The value falls. The value remains unchanged. The value rises. Transferability has no effect on value.

the value falls

Your clients want to include multiple contingencies in their offer. If you know it's a competitive bidding situation, you say, ______. "Contingencies kill deals." "Great idea. This will help our offer stand out." "Let's evaluate which contingencies matter most to you and consider omitting the rest." "To be competitive, you should remove all contingencies."

"Let's evaluate which contingencies matter most to you and consider omitting the rest."

You're on a planning board that's discussing how to keep the city more livable by reducing building density. The subject of bulk zoning comes up. What is your response? "That applies to commercial areas only." "That's a great way to meet our objectives." "That's crazy. We're trying to reduce density, not increase it." "That will work for residential areas, but what about commercial?"

"That's a great way to meet our objectives."

A couple years after Meredith closed on her first sale—a condo that her buyer client, Derek, bought after a messy divorce that left him virtually penniless—another licensee, Alex, called her up asking about Derek, who'd just hired Alex to help him buy a mansion worth $4.2 million. "Can he really afford it? He's not being forthcoming about his financial history, and I don't want to waste my time." What should Meredith tell him? "I can only tell you what his financial situation was at the time that I represented him." "That seems odd, Alex. I don't know how he'd come up with so much money in such a short amount of time." "Why don't you have your lender friend pull his credit report?" "You know you shouldn't be asking me about this, Alex. I can't break my client's confidentiality."

"You know you shouldn't be asking me about this, Alex. I can't break my client's confidentiality."

our clients are looking at buying a $200,000 property with a 30-year loan at a 5% interest rate. How much would their principal and interest payment be per month? Plug in the numbers using the amortization chart in your resources see what the payment per month would be. Remember: The monthly payment multiplier is per $1,000 of the mortgage. $1,001.32 $1,073.64 $1,296.21 $1.347.91

$1,073.64

A buyer with a 20-year, $419,000 loan at a 4.25% interest rate has a monthly principal and interest payment totaling $2,594.59. If $1,483.95 is interest, how much is applied toward principal each month? $1,110.64 $1,246.10 $1,578.57 $1,780.75

$1,110.64

A buyer has a 15-year, $250,000 loan with a 5.5% interest rate. How much of the first monthly payment is interest? $1,145.83 $13,750.28 $1,388.89 $916.67

$1,145.83 *($250,000 x 0.055) ÷ 12 = $1,145.83

Your client Faye is buying a condo downtown for $565,000 and financing 60% of the purchase. Her lender is charging a one-point loan origination fee and two discount points. Can you help Faye calculate the dollar amount for points she's going to pay on her loan? $10,170 $16,950 $4,520 $6,780

$10,170 * a point is 1% of the loan amount Fayes loan amount is 60% of the sales price or 339,000 (565,000 x .60) her lender is charging 3 points Toal or 3% of the loan amount that comes out to be 10,170 (339,00 x 0.03)

Stu's seller client, Gabi, wants to figure out how much equity she has in the home she's selling. Gabi paid $200,000 eight years ago and made several great renovations over the years. She still owes $125,000. Stu calculates that comparable home values in her area have risen about 15% since Gabi bought. Assuming Stu pulled appropriate comps, about how much equity does she have? $105,000 $155,000 $205,000 $230,000

$105,000

Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his conventional loan, and he owes 5% of the purchase price in closing costs. How much money should he bring to closing? $106,250 $156,250 $31,250 $81,250

$106,250 * conventional loans often require 20% down to avoid PMI (125,000) and Nico has paid 50,000 deposit (625,000 x .08) closing costs 31,250 (625,000 x .05) he needs 106,250 (125,000-50,000)+31250

If Hal sold his client's listing for $230,000, but it appraised at $200,000 and the buyers agreed to put the extra $30,000 down, what will Hal's commission be if he charged 5%? $10,000 $11,500 $13,500 $16,000

$11,500

If Hal sold his client's listing for $230,000, but it appraised at $200,000 and the buyers agreed to put the extra $30,000 down, what will Hal's commission be if he charged 5%? $10,000 $11,500 $13,500 $16,000

$11,500

A property has a market rental income potential of $20,000 per month. The vacancy and loss rate is 5%. Operating expenses are expected to be 45% of the property's total income potential. The owner's monthly mortgage payment is $5,000. What is the annual net operating income that would be reported on the operating budget? $120,000 $132,000 $228,000 $240,000

$120,000

The gross income multiplier for an area is 12x. If the estimated annual rent is $10,000, what's the property's estimated value? $10,000 $100,000 $12,000 $120,000

$120,000

Cheryl and Roberto just signed a contract for Cheryl to buy Roberto's house for $235,000. Roberto owes $48,750 on his current mortgage, he's going to replace the old furnace ($800), he's agreed to pay 3% toward closing costs, and he'll pay a 6% commission to his agent. How much in whole dollars will he have left to put down on the condo he wants to buy? $164,300 $164,771 $167,696 $168, 688

$164,300 *Robertos closing cost will be 7,050(235,000 x 0.03) & commission will be 14,100 (235,000 x 0.06) subtract those 2 amounts the furnace cost (800) & the mortgage loan pay off (48,750) from 235,00 to get 164,300

Gabi owns one parcel measuring one square mile and another parcel measuring one mile x half a mile. She combined the parcels and sold them for $2.5 million. What price per acre did she receive for the land? $1,953.13 $2,604.17 $3,125.00 $3,906.25

$2,604.17 One square mile is 640 acres. The area of the second parcel is 5,280' x 2,640' = 13,939,200 sq. ft. Divide that by 43,560 (sq. ft. in an acre) to get 320 acres. 640 + 320 = 960 acres. $2.5 million divided by 960 acres = $2,604.17 per acre.

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? $10,000 $15,000 $20,000 $5,000

$20,000 *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.

Your buyer client Heather just signed a purchase agreement for a $520,000 home. The LTVR is 60%. How much is Heather putting down on the purchase? $208,000 $220,000 $300,000 $312,000

$208,000

A buyer with a $250,000 loan has a monthly principal and interest payment of $2,042.71. If $1,145.83 is interest, what is the new principal balance after the first payment is applied? $247,957.29 $248,854.17 $249,103.12 $250,000.10

$249,103.12

If an appraiser has found the value of a property to be $250,000 using a cap rate of 10%, what was the property's net operating income? $10,000 $2,500 $25,000 $2.5 million

$25,000

Henry submits an offer on a condo and includes an earnest money check for 10% of his offer, which the seller accepts. He brings to closing a cashier's check for $34,450 comprising the balance of his 20% down payment and $7,950 in closing costs. What's the condo's purchase price in whole dollars? $265,000 $344,500 $132,500 $88,333

$265,000 *Subtract closing costs from cashier's check amount to find down payment balance ($34,450 - $7,950 = $26,500), which equals the earnest money (total down payment is 20%). Divide earnest money by 10% to find purchase price ($26,500 ÷ .1 = $265,000).

Your seller client has an offer for $300,000. If the agreed-upon commission is 5%, what is net to seller before any other costs are taken into account? $280,000 $285,000 $290,000 $295,000

$285,000

The daily property tax rate is $1.23 and closing is August 31. Assuming the buyer owns the property on closing day, and the seller hasn't made any payments, what will the seller owe at closing using the calendar year proration method? Round to the nearest whole dollar. $151 $242 $298 $449

$298

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee? $3,200 $3,600 $4,000 $800

$3,200

A buyer has a 30-year, $750,000 loan with a 5.75% interest rate. How much of the first monthly payment is interest? $10,869.57 $3,500.93 $3,593.75 $3,750.27

$3,593.75

Bob and Mary are financing $180,500 for a new home. Their lender will approve an interest rate of 5% if Bob and Mary pay two discount points at closing. How much will this cost them? $180.50 $32,000 $3,610 $9,025

$3,610

A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell? $150,000 $300,000 $315,789 $450,000

$315,789 *In order to calculate this, start with 100% minus a 5% commission, which is 95% or .95. Take $300,000 and divide this amount by .95.

A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%. How much is the buyer financing? $320,000 $360,000 $400,000 $80,000

$320,000

A buyer with a $350,000 loan has a monthly principal and interest payment of $2,102.36. If $1,801.23 is interest, what's the new principal balance after the first payment is applied? $340,987.46 $347,897.64 $348,198.77 $349,698.87

$349,698.87 *If $1,801.23 of the $2,102.36 is interest, that leaves $301.13 for principal. Subtract $301.13 from $350,000 for a new principal balance of $349,698.87.

Sandra is purchasing a home for $200,000 and provides a $3,000 earnest money check to the seller. Her closing costs and down payment total $7,000. Assuming that Sandra is financing the purchase, how much should she bring to the closing? $2,000 $3,000 $4,000 $5,000

$4,000

Your client Frank is interested in selling a 54,450-square-foot lot. A comparable property in the vicinity sold for $3,500 per acre. What would be reasonable list price for Frank's property? $3,500 $4,375 $4,955 $5,250

$4,375

Dale and Barbara, your buyer clients, aren't thrilled about the current interest rates on home loans. They opt to pay two discount points to their lender to bring down their monthly payment. They're financing $235,000 on their new $400,000 home, so how much can they expect to pay for points at closing? $2,350 $3,300 $4,700 $8,000

$4,700 *A point is 1% of the loan amount. Dale and Barbara's loan is $235,000, and they're paying two points (2%) at closing, which comes to $4,700 ($235,000 × 0.02).

Esme buys Steve's beach townhouse for $475,000. The transfer tax in the area is $2.00 for the first $1,000 and $0.10 for each additional $100. Calculate what Steve will pay for the transfer tax at closing. $474 $4,742 $476 $49.40

$476 *The first $1,000 is $2.00. The transfer tax for the remaining $474,000 will multiplied by .001 ($0.10 for each additional $100). So the total transfer tax will be $476 ([$474,000 x .001] + $2).

Whitney and Justin are about to close on their refinance, and their loan amount is $362,000. They are paying a 1.5% origination fee. How much will their origination fee be? $1,500 $5,100 $5,430 $6,200

$5,430 * 362,000 x 1.5 (or .015)

A buyer is securing a home loan for $500,000. The state mortgage recording tax rate is $0.115 per $100. What's the mortgage recording tax? $115 $500 $570 $575

$575 *At a rate of $0.115 per $100, the mortgage recording tax amount is $575 ($500,000 x 0.00115).

buyer is purchasing a property for $500,000. He has a down payment of $50,000 and is financing the rest. What's the amount of the loan origination fee if the lender charges one-and-a-half points? $5,000 $6,750 $750 $7,500

$6,750

A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What's the total amount of interest he'll pay over the course of the loan? $1,108,292.40 $500,000 $608,292.40 $750,000

$608,292.40 *First, multiply the monthly payment by the total number of payments. Then subtract the original loan value: $3,078.59 x 360 = $1,108,292.40 ‒ $500,000 = $608,292.40

Roland's farm land is assessed at 1.5 million dollars and the improvements for $500,000. At a tax rate of 4 mills, how much are Rolan's monthly taxes? $6,667.00 $667.00 $8,000.00 $80,000.00

$667.00

You're working with a buyer who's purchasing a home that appraised at $80,000. The buyer is obtaining a 90% loan, and the lender will charge a one-point origination fee at closing. How much will the loan origination fee be? $712 $720 $728 $800

$720

A homeowner has $80,000 of principal left to pay on her mortgage. Her home was recently appraised at $156,000, which is $13,000 more than what she purchased it for. How much equity does she have in her home? 100% $13,000 $76,000 $80,000

$76,000

A parcel of land measures one half mile by 3,000 feet. If price per acre is $4,200, what's the list price for this parcel? $1,527,273 $752,066 $756,000 $763,560

$763,560 *Area = length x width. One mile = 5,280 feet. The area of this parcel is 7,920,000 s.f. ([5,280 ÷ 2] x 3,000). One acre = 43,560 s.f. The parcel is 181.8 acres (7,920,000 ÷ 43,560). So, the list price is $763,560 ($4,200 x 181.8).

A buyer with a 30-year, $750,000 loan at a 5.75% interest rate has a monthly principal and interest payment totaling $4,376.80. If $3,593.75 is interest, how much is applied to principal? $251.66 $3,593.75 $4,376.80 $783.05

$783.05 *$4,376.80-$3,593.75

Buyer Maria and seller Doug are closing on June 1. Maria's mortgage loan is $927.86, and $871.86 will go to interest in the first month. Maria will have to pre-pay interest for June using the 360-day proration method. What will her prepaid interest cost be at closing? $842.74 $871.80 $896.97 $927.90

$842.74 *Calculate the daily interest rate for 30 days ($871.86 ÷ 30 = $29.06). Because Doug owns the closing day, Maria will pre-pay interest for 29 days, June 2 - 30, so $842.74 ($29.06 x 29).

Alistair bought a townhouse for $285,900. He got a 90% loan and the lender charged him 3-1/2 discount points. How much did Alistair pay in discount points? $1,000.65 $10,006.50 $9,005.85 $9,585.00

$9,005.85 *The sales price is $285,900, and 90% of that (aka our loan amount) is $257,310. The discount amount is 3-1/2 points, (.035) multiplied by $257,310 = $9,005.85.

Gabe's home has an assessed value of $172,000, and his tax rate is .55%. What are the annual taxes? $1,125 $1,265 $935 $946

$946

A rental property owner purchased a property for $400,000 and pays $36,000 in ownership expenses, plus $30,000 in operating expenses. The owner would like to achieve an ROI of 8%. What's the minimum annual rent that would accomplish this? $38,880 $71,280 $98,000 You can't determine this from the information provided.

$98,000 *Minimum rent = Operating expenses + Owner expenses + ROI Margin. ROI margin is the owner's initial investment x ROI. In this example $32,000 ($400,000 x .08). The minimum rent to achieve the owner's goals is $98,000.

calculate total debt ratio

(total of monthly obligations/monthly gross income)x100

Generally, what's the common range for loan origination fees? 1% to 3% 1% to 5% 2% to 5% 3% to 5%

1% to 3%

A 20-unit apartment building sells for $5 million. The property can bring in $400,000 in annual gross income. What is the gross income multiplier (GIM)? 0.125 125 1.25 12.5

12.5

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

135

how many square inches in a foot?

144

A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. How many payments will the borrower make over the course of the loan? 15 180 240 360

180 *12x15

How many acres are in a parcel described as, "The E 1/2 SE 1/4 NE 1/4 Section 3, Township 4 North, Range 2 East of the 6th PM"? 160 20 40 80

20 *This legal description defines half of a quarter-quarter section. A quarter-quarter section is 40 acres; half of a quarter-quarter section is 20 acres. Alternatively, multiply the three fractions' denominators (2 × 4 × 4) and divide into 640 (640 ÷ 32 = 20).

proration of calandar day

365 days

How many square feet are in an acre?

43,560

he Protection of Homeowners in Foreclosure Act (PHIFA) outlines parameters for foreclosure consulting services offered to homeowners who are at least ______ delinquent on their mortgage payment. 30 days 45 days 60 days 90 days

60 days

How many acres are in a square mile?

640

A strip mall valued at $850,000 has a $67,500 annual net operating income. What is the capitalization rate for the strip mall? 12.59% 7.9% 8.67% 9.2%

7.9% *The cap rate formula is: net operating income ÷ value = rate (I ÷ V = R). So $67,500 ÷ $850,000 = .079 or 7.9%. This formula can work in reverse as well: value (purchase price) × cap rate = net operating income (V × R = I).

What's the rate of capitalization of a property generating net property income of $25,000 per year that's valued at $312,500? 10% 12% 6% 8%

8%

How many acres are in a parcel described as, "The S 1/2 NW 1/4 Section 3, Township 4N, Range 2W of the 6th PM"? 160 20 40 80

80 *This legal description defines half of a quarter section. A quarter section is 160 acres. Half of that is 80 acres. Alternatively, multiply the two fractions' denominators (2 × 4) and divide into 640 (640 ÷ 8 = 80).

Margie needs to know the square footage for the first floor of the condo her client is interested in buying. The kitchen is 10 feet by 15 feet, the living/dining combo is 20 feet by 25 feet, and the office and bedroom are each 10 feet by 10 feet. What's the total square footage? 2,200 square feet 3,000 square feet 750 square feet 850 square feet

850 square feet *Find the area of each room to get its square footage, then add the square footage of all four rooms. Kitchen = 150 sq. ft.; living/dining = 500 sq. ft.; office = 100 sq. ft.; and bedroom = 100 sq. ft. = 850 square feet.

Lynette purchased a property under a bargain and sale deed. Which statement best describes the covenants Lynette's deed provides? A bargain and sale deed does not come with any covenants of warranty. A bargain and sale deed may come with or without covenants of warranty. A bargain and sale deed provides the same covenants as a general warranty deed. The bargain and sale deed includes all covenants except the covenant of warranty.

A bargain and sale deed may come with or without covenants of warranty.

An abandoned or otherwise unused commercial or industrial site with suspected contaminants is known as what? A brownfield A Brown Zone A space that cannot be used A special use landfill

A brownfield

Which of these written counter-offers would the offeror be able to withdraw? A counter-offer sent 10 days ago with no response A counter-offer that the offeree signed and put in the mail after her agent called to tell the offeror's agent that it was coming A counter-offer that the offeree signed and returned to the offeror A counter-offer that the offeree verbally accepted

A counter-offer sent 10 days ago with no response

Which party would NOT need a real estate license to perform the following activities in Maryland? A daughter whose father granted her power of attorney to sell his home A developer who regularly subdivides and sells vacant lots A freelance "neighborhood specialist" who is paid to scope out properties for out-of-town parties 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

Which of these statements best represents what happens after a federal fair housing complaint is made? A fair housing specialist will review the complaint. An official housing discrimination complaint will be filed, and a fair housing specialist will be assigned to the case. FHEO will contact the alleged perpetrator to gather information. HUD will review the complaint to determine if it's valid.

A fair housing specialist will review the complaint.

How's interest defined as it's related to a mortgage loan payment? A fee paid to lenders for the use of their money A fee to keep other borrowers from taking interest in your property and buying it out from under you Extra money paid to cover any unexpected bank fees Random charges

A fee paid to lenders for the use of their money

Which one of the following scenarios describes an adverse condition that would need to be disclosed? A hail storm damaged some shingles last year. The county offers a homestead exemption. The furnace is three years old. The school across the street is adding full-day kindergarten next year.

A hail storm damaged some shingles last year.

Which of the following statements is true about zoning classifications? A home business would be considered an accessory use. A residential property may only have one use. Condos are always commercial property. Multi-family housing is zoned commercial.

A home business would be considered an accessory use.

Lamar closes on his new home next week. It's a 37-year-old split level, so his agent asked if he's interested in purchasing a home warranty. "Why would I need a warranty?" he wondered. "Didn't the home inspection identify all of the issues?" What's the agent's best response to Lamar's question? A home warranty covers things the inspection didn't address, like appliances, as well as structural issues that occur within the first year. Buying a home warranty almost guarantees you won't have any issues! If you purchase a home warranty and something breaks, you can sue the seller. The inspection is only as good as the inspector, and there is no guarantee that the inspector found all potential issues.

A home warranty covers things the inspection didn't address, like appliances, as well as structural issues that occur within the first year

Which of these is an example of usury? A borrower does not pay back a loan on time. A borrower uses the funds received from a lender. A lender charges a borrower an interest rate that is excessively high. A private lender provides a borrower with money for a real estate purchase.

A lender charges a borrower an interest rate that is excessively high.

According to the Code of Ethics, which of these statements is most accurate when accepting compensation? A licensee shall not accept compensation directly from more than one party to a transaction. A licensee shall not accept compensation from anyone. A licensee shall not accept compensation from more than one party to a transaction without consent from the client. A licensee shall not accept compensation from more than one party to a transaction without the full knowledge and consent of all parties.

A licensee shall not accept compensation from more than one party to a transaction without the full knowledge and consent of all parties.

Which statement best describes an adjustable rate mortgage? A loan with a rate that fluctuates based on the economic index to which it is tied Debt that is paid off by making periodic payments mostly consisting of interest and principal Mortgage where only interest is paid until the end of the term, when the principal is paid This is a fixed-rate mortgage where the monthly payments increase over time according to a set schedule

A loan with a rate that fluctuates based on the economic index to which it is tied

A property's rental income for the month was $16,000 and expenses were 40% of that income. The property's owner has a $5,000 monthly mortgage payment. What would the profit and loss statement show for the month? A monthly cash flow of $4,600. A monthly cash flow of $5,000. A monthly cash flow of $9,600. You can't determine this from the information provided.

A monthly cash flow of $9,600. *Similar to the cash flow report, the profit and loss statement shows actual income received and expenses paid. However, the profit and loss statement doesn't include the owner's financial activities (such as the mortgage). This property had a profit of $9,600 for the month ($16,000 - $6,400).

Which of the following is an example of an easement? A path providing neighborhood access to a pond cuts through part of Hillary's property. Michael installed a basketball hoop next to his driveway, six inches outside his property. The city seized a formerly private parcel of land for public use. The state took ownership of Don's property when no heirs could be located following his death.

A path providing neighborhood access to a pond cuts through part of Hillary's property.

Frontage (or front foot) refers to what? A property's boundary line that's adjacent to a road or waterway A property's cost per foot A property's depth (from the front to the rear) A property's perimeter

A property's boundary line that's adjacent to a road or waterway *A frontage or front foot refers to a property's boundary line that's adjacent to a street, road, or waterway.

Title insurance covers claims by individuals who live or lived on the property in question, as long as what's in place? An affidavit from the resident Approval from the current owner A public record of tenancy A tenant add-on insurance policy

A public record of tenancy

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. Collect each tenant's rent on the first of the month. Maintain the building's landscaping. Return security deposits to tenants after they move out.

Accept a rebate from the laundry machine company.

What does the Federal Trade Commission regulate? Advertising Commission disbursements Federal real estate transactions Listing trades

Advertising

Jason has completed 60 hours of Maryland pre-licensing real estate education, met the minimum requirements, and passed his licensing examination. What else does he need in order to receive an active license when applying for licensure? Affidavit of signed consent and approval Affiliation with a supervising broker An additional 20 hours of education An irrevocable consent form

Affiliation with a supervising broker

Buyer Daphne and seller Kurt signed a sales contract with a definite closing date of May 15. Daphne then learned that she needs to move the closing date to June 15. She'll accomplish this with an ________ to the sales contract. Addendum Amendment Annotation Appendix

Amendment

The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is satisfactory to both parties, what will they use to document this? Addendum Amendment Annotation Appendix

Amendment

Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the contract they sign, Jim is identified only as "the neighbor." Which statute or contract element does this violate? A lease option An act of waste An estate at sufferance A possessional prerogative

An act of waste

Who presides over a Maryland Real Estate Commission hearing? A criminal judge A member of the real estate commission An administrative law judge The executive director

An administrative law judge

What is a special flood hazard area? A basement An area where flood insurance is mandatory Areas that have flooded in the last two years A sloped property

An area where flood insurance is mandatory

A fence that's placed two feet onto a neighbor's property line meets the legal definition of _______. A conveyance An easement An encroachment A seisin

An encroachment *A physical intrusion onto another person's property is an encroachment.

Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer. What will happen to the check now? An escrow agent will hold the funds in a trust account until the agreement's terms are satisfied. Her agent will hold the check in the firm's operating account until Jeung's offer is accepted. Jeung's agent will transfer the funds to the seller. The seller's agent will deposit the funds in his operating account until closing.

An escrow agent will hold the funds in a trust account until the agreement's terms are satisfied.

How might the lengthy purchase process for a short sale or foreclosure impact a buyer's financing? An existing interest rate lock may expire before the transaction is ready to close. Lenders won't lock in an interest rate because of the distressed nature of the sale. The lender may not be willing to finance a short sale or foreclosure. The purchase price may increase over time.

An existing interest rate lock may expire before the transaction is ready to close.

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? 10 days from the home inspection date April 15 April 20 May 10

April 20

Ray purchased a new home and soon discovered an issue with one of the windows. He filed a claim with the warranty provider, but it was denied. After mediation, the issue still remains unresolved. What is the most common next step? Arbitration A second round of mediation Condemnation Litigation

Arbitration *Warranties will detail the course of action if a claim is disputed. Most often, mediation occurs first, then arbitration. The arbitration decision is generally binding and final. The disputed claim process seeks to avoid or limit litigation.

What are improvements with regard to property? Another name for a building permit Artificial attachments to land that include items such as fencing, buildings, and walkways Natural fixtures that are part of the land and that enhance its value The right to increase the value of a property

Artificial attachments to land that include items such as fencing, buildings, and walkways

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? As an agent for the buyer As a non-agent for the seller As a sub-agent for the buyer As a sub-agent for the seller

As a sub-agent for the seller

Which of the following would make the "Choose Your Neighbor" flyer an allowable strategy for finding prospective buyers? As part of a comprehensive marketing strategy that doesn't limit or restrict potential buyers For property located in a gated community For rural properties greater than 20 acres With seller consent

As part of a comprehensive marketing strategy that doesn't limit or restrict potential buyers

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

Margot and Steve owned several rental properties at the time of their divorce. The divorce decree gave ownership to Margot in return for a cash payment by Steve. Fast forward six years, and Margot is ready to sell the properties. She soon discovers, though, that Steve's name is still on the title. What's her best course of action? Ask Steve to generate quit-claim deeds on the properties. File a suit to quiet title. Show the title company a copy of the divorce decree granting her ownership. Take Steve back to court to force him to turn the properties over to her.

Ask Steve to generate quit-claim deeds on the properties.

Assuming that dual agency is legal where these scenarios occur, and the licensees' brokerages permit it, which of these situations demonstrates illegal dual agency? At an open house Tom is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer. Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about representing her in the purchase of Juan's house. Jarrod obtains Juan and Alaina's consent to dual agency. Kady's firm uses representation agreements that, when signed, provide consent to dual licensee dual agency. Kady's buyer makes an offer on one of Kady's colleague's listings. Levi's customer, Renee, wants to make an offer on Levi's seller client's home. Levi presents Renee's offer to his client.

At an open house Tom is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.

Which of these is an example of illegal market allocation? 1 Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes. 2 Christopher's brokerage firm decides to focus on listings in the $350,000 to $475,000 price range. 3 Lamborn Realty Group and Your Choice Real Estate each discuss with their licensees where the most lucrative deals can be found. 4 Three agents in Jonathan's firm agree to focus on the specific neighborhoods in which they live so they're more knowledgeable about listings in those areas.

Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes

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? Bob and Janine only Suzie and either Bob or Janine Suzie, Bob, and Janine Suzie only

Bob and Janine only

When considering loan risk, which two items will lenders consider in equal measure? Borrower and property Credit and employment Debt and income Loan and value

Borrower and property

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? Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined. Jennifer is, because she hired Suzanne. Jennifer's broker is, because the broker has ultimate responsibility for all brokerage staff. 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.

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 of the arrangement and that there is no conflict of interest. He can't work for more than one broker at a time. He needs to send the commission a letter requesting dual licensure. He needs to submit proof to the commission that both brokerages will benefit from his dual licensure.

Both brokers need to send a letter to the commission stating their approval of the arrangement and that there is no conflict of interest.

Why is it important for a buyer to know if any easements or encroachments exist on a property? Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value. Both easements and encroachments are illegal. The buyer could end up in court. It helps determine special assessment levies. The buyer will have to remove these before the property can be re-sold.

Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value.

When Gillian looked at the legal description of the property she was interested in purchasing, she read the following: "Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what does "Beginning at the corner of State Route 61 and Hallowell Road" represent? A benchmark Bounds Metes Monuments

Bounds

Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and they added their signatures. Which of the following statements is correct? Breanna accepted the offer Kathy made. Kathy accepted the offer Breanna made. The contract is invalid. The contract is valid but unenforceable.

Breanna accepted the offer Kathy made.

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 $1,000, though Chuck cannot be required to pay her attorney's fees Bring a private legal action against Chuck to recover up to $3,000, as well as reasonable attorney's fees Bring a private legal action against Chuck to recover up to $500, though Chuck cannot be required to pay her attorney's fees Do nothing, as a private action cannot be brought against a foreclosure consultant

Bring a private legal action against Chuck to recover up to $3,000, as well as reasonable attorney's fees

Which of the following statements about independent contractors and taxes is true? Brokers don't withhold income or Social Security taxes for independent contractors. Brokers withhold income and Social Security taxes for independent contractors. Independent contractors don't pay income or Social Security tax. The IRS doesn't tax independent contractors.

Brokers don't withhold income or Social Security taxes for independent contractors.

In Maryland, which type(s) of licensee must take 15 hours of continuing education every renewal cycle? Associate brokers only Brokers, associate brokers, and salespersons Brokers only Salespersons only

Brokers, associate brokers, and salespersons

Olivia owns lakefront property and therefore holds littoral rights to use the water as she sees fit because she owns up to the average high-water mark. Which of the following is she NOT permitted to do under her littoral rights? Build a dam to create a bigger beach area on her frontage. Install buoys to create a swimming area. Launch her boat from her dock. Put up a water volleyball net next to her shoreline.

Build a dam to create a bigger beach area on her frontage.

Sam's kids talked him into putting up the basketball hoop that their grandparents got them for Christmas. On a quiet Saturday afternoon, Sam is busy nailing the backboard to the front of their garage facing the street when one of the officers of the homeowners association walks by. "I'm so sorry," she says, "but you'll have to take that down. Basketball hoops in direct view of the street are prohibited." What is in place in Sam's subdivision that would prohibit this? CC&Rs Deed warranty Law Regulation

CC&Rs

you're showing a house when you notice piles of what looks like sawdust outside near the basement windows. This may be evidence of ______. Carpenter ants Fire ants Ladybugs Powderpost beetles

Carpenter ants

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. Chandler needs to pass both the national and Maryland licensing exams and submit an irrevocable consent form. Chandler needs to receive commission approval before completing any licensure requirements. Chandler only needs to pass the Maryland portion of the licensing exam and provide the name of the Maryland broker with whom he'll be affiliating once licensed.

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

Which act was the first to prohibit any exceptions for discrimination based on race or color? Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing for Older Persons Act of 1995

Civil Rights Act of 1866

Which of the following is true about the security of your clients' information? Client data can be compromised if the brokerage's computer system is compromised. Data security is one-size-fits-all. Poor record retention ensures data security. There is nothing a licensee can do to safeguard client data.

Client data can be compromised if the brokerage's computer system is compromised.

Which of these helps a licensee determine an appropriate listing price range? Appraisal Comparative market analysis Creative market analysis Proforma

Comparative market analysis

Margaret has received her Closing Disclosure from the lender. To best protect her interests, what should she do with it? Compare it to the Loan Estimate. File it with her mortgage papers. Take it to the closing. Use the information to compare loan costs with those of other lenders.

Compare it to the Loan Estimate.

Four years ago, licensee Gustav assisted a buyer in her purchase of a foreclosed three-bedroom townhome in Hanover. The buyer recently called Gustav, telling him that she filed a complaint with MREC, claiming that Gustav knew the plumbing was faulty, but didn't disclose this to her. As a result, she's racked up more than $35,000 in plumbing bills since her home purchase. Panicked, Gustav begins searching for the transaction file until his broker tells him he can stop. Why? Because the property was a foreclosure and therefore sold "as-is," Gustav was exempt from disclosing that the plumbing was faulty. Complaints must be filed within three years of the transaction date, and this sale took place four years ago. MREC doesn't have jurisdiction in this case; the buyer needs to contact the Guaranty Fund. Records only need to be maintained for three years in Maryland; after that point, no complaints may be made against a licensee.

Complaints must be filed within three years of the transaction date, and this sale took place four years ago.

Quentin brought an application before city council to build a shopping mall on 17 acres south of town that currently don't have a zoning designation. The council referred him to the planning commission, which will review the application in light of the city's ________. Comprehensive plan Economic development plan Health and sanitation ordinances Zoning ordinances

Comprehensive plan

To make valid computations of adjustments for the market comparison approach to value, elements of comparison must be applied in a specific order. Which of these elements has the highest priority? Conditions of sale Location Market conditions Physical characteristics

Conditions of sale

You have a client who travels a lot and wants to feel extra safe and secure at home. Maintaining a house and yard isn't her idea of fun, and neither is fending off door-to-door solicitation. What type of homeownership would most likely fit her lifestyle? Condo Duplex Single-family dwelling Townhome

Condo

Daniel had a great experience with his apartment and landlord until about three months ago, when the plumbing in the unit above started leaking into his apartment. The landlord keeps saying he'll fix it but hasn't, and now Daniel has mold growing on two walls. Daniel is moving out before his lease has expired, due to ________. Actual eviction Constructive eviction Mutual agreement Termination

Constructive eviction

Which of the following is true about ownership or title to a property? Constructive notice to the public of real property ownership occurs when the deed is recorded. The last to record has priority. The seller is responsible for paying for owner's and lender's title insurance. Title isn't finalized until the deed has been recorded.

Constructive notice to the public of real property ownership occurs when the deed is recorded.

Broker Barry has just received a letter from MREC informing him that one of Barry's associated licensees, Pat, has had a complaint filed against him. What information is NOT included in this letter? A copy of the complaint A list of charges A list of potential penalties Contact information for MREC's legal hotline

Contact information for MREC's legal hotline

Which of the following loans may require compliance with Appraiser Independence Requirements? Commercial Conventional FHA VA

Conventional

Which of these situations represents the illegal practice of blockbusting? 1. Celia, a licensee, distributed a flyer in several neighborhoods, claiming that gentrification of those neighborhoods will increase property values. 2. Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values. 3. Estelle, a broker, warns potential clients about the upcoming zoning change in a neighborhood that is currently zoned as residential. 4. Kian, a mortgage broker, refuses to underwrite mortgage applications from applicants who are Hispanic or Asian.

Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values.

Which one of these is an example of the doctrine of estoppel? Corrie shows Marvin several properties and prepares CMAs for each. She assists him in making an offer on one. He becomes difficult to work with, and she then says she's not his agent because they don't have a signed agency agreement. Josie represents Carmine in his search for a rural property. Josie shows Carmine a property that's perfect, but she never hears from Carmine again. She then discovers that Carmine bought the property directly from the seller. Roark tells all his buddies at coffee that he's getting $600 a month rent out of his old barn. His best friend just shakes his head, knowing that Roark is only getting half that amount. Tonya tells Kinsey that she's a licensed agent and proceeds to represent Kinsey as a buyer's agent. Kinsey later discovers that Tonya isn't licensed.

Corrie shows Marvin several properties and prepares CMAs for each. She assists him in making an offer on one. He becomes difficult to work with, and she then says she's not his agent because they don't have a signed agency agreement.

With the cost approach to value, what is the reproduction cost? Cost of the materials used in construction Cost to build a functionally equivalent improvement Cost to build an exact replica of the subject, with the same materials and deficiencies Cost to buy the property

Cost to build an exact replica of the subject, with the same materials and deficiencies

Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do? Create a contract addendum with the required language. Create a contract amendment with the required language. Create a counter-offer to present to the buyers. Terminate the contract on Becky and Don's behalf.

Create a contract amendment with the required language.

Which of these payment structures is illegal in Maryland? Beatrix, an unlicensed assistant, is paid an hourly wage for assisting salesperson Toby. Cecily, a broker, is paid a $10,000 bonus each time the firm exceeds its quarterly sales goals. Dean, an unlicensed assistant, is paid an extra $50 each time he takes clients on a showing on a licensee's behalf. Maddox, a salesperson, splits his commissions 50/50 with his broker.

Dean, an unlicensed assistant, is paid an extra $50 each time he takes clients on a showing on a licensee's behalf.

Prudence just finished paying off the debt on her loan, so the lender released the property's title to her. What clause in her mortgage stipulates this? Acceleration Alienation Defeasance Due on sale

Defeasance

Which of the following is NOT an example of a legal agency agreement in Maryland? Cybill enters into a listing agreement with Antwon and agrees to pay him 5% of the property's 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. 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. 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.

Which of these scenarios does NOT require a Maryland licensee to disclose their licensed status? Carol's brother is representing Carol in her purchase of a condo in Columbia. Deirdre just put her niece's house on the market. Pat is selling a property that his investment company flipped. Paul has listed his parents' Ocean City beach house for sale.

Deirdre just put her niece's house on the market.

Mario lives in a state that requires an abstract of title for property conveyance. The chain of title is broken approximately 50 years prior to the current date. Which of these properly identifies the status of Mario's title? As long as the chain of title is traceable for at least the past 30 years, Mario will have marketable title. Depending on his state's laws, Mario may have marketable title. Mario will have to perform his own research to find information necessary for repairing the broken link. Unless the chain of title can be tracked back to its beginning, Mario won't have marketable title.

Depending on his state's laws, Mario may have marketable title

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

Details of an oral offer

Which task is NOT the responsibility of an escrow officer? Determine how earnest money is to be distributed in case of a dispute. Manage transaction documents from all parties. Prepare closing documents and manage the closing meeting. Verify funding of the buyer's loan.

Determine how earnest money is to be distributed in case of a dispute.

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? Crab Shack may terminate the listing agreement. Devon and Courtney may terminate their agency relationship with Crab Shack and find another broker. Devon and Courtney will be held to their previous dual agency consent and the transaction will continue unhindered. The buyers may find another broker to represent them.

Devon and Courtney will be held to their previous dual agency consent and the transaction will continue unhindered.

Which of these parties could NOT file a claim with the Guaranty Fund? 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 Raul, who lost $68,000 in a real estate pyramid scheme initiated by a long-time broker Regina, a buyer who accrued $15,000 in repair costs because her agent didn't tell her that the roof leaked Yashika, a buyer who lost $26,000 when her checking account was hacked after her agent's assistant lost her earnest money check

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

Informing parties of material facts related to a transaction describes the duty of ______. Accounting Disclosure Loyalty Reasonable skill and care

Disclosure

The Truth in Lending Act requires lenders to make certain ______ to consumers. Concessions Disclosures Loans Rates available

Disclosures

Derrick just bought his first condo, and he's ready to crack the champagne. Which of the following will Derrick be able to deduct from his income for tax purposes? Closing costs Discount points Down payment Transfer fees

Discount points

Which of the following is most likely to have an extremely negative effect on the time and cost of a development project? CERCLA's policy of strict liability Discovery of hazardous materials on the project site FHA's minimum building standards Proximity of the project site to public transportation

Discovery of hazardous materials on the project site

What happens when two fiduciary duties conflict? For instance, your clients ask you not to show their property on evenings and weekends, when most showings occur. To obey (a fiduciary duty) means to fail in reasonable skill and care (another fiduciary duty). What should you do? Discuss the issue with your clients and let them decide. Obey. It always trumps reasonable skill and care. Refuse to work with these unreasonable clients. Wait until your clients are out of town, then show the property.

Discuss the issue with your clients and let them decide.

What's the role of the mortgage contingency in a sales contract? Describe seller financing options if the buyer isn't pre-qualified for a mortgage. Describe the lender and interest rates the buyer will use when purchasing the property. Document the seller's credit rating and pre-approved purchase price. Document the type of and timeline for financing, and outlines what to do if financing falls through.

Document the type of and timeline for financing, and outlines what to do if financing falls through.

The Town of Petersville has just decided to restrict density in one area of town that previously allowed a higher density. This is known as ______. Aesthetic zoning Density zoning Downzoning Reduction zoning

Downzoning

Three days ago, there was a severe thunderstorm in Shirley's town. Today, there's still a large puddle of water on her property, but it doesn't appear the neighboring properties have any puddles. This could indicate a(n) ______ problem. Drainage Easement Encroachment Foundation

Drainage

Which of the following Maryland properties would require a lead disclosure? Commercial building built in 1960 Duplex built in 1959 Duplex built in 1979 Single-family home built in 1999

Duplex built in 1959

Which of the following terms must be included in a buyer agency agreement? An automatic renewal clause A two-year termination Duties and responsibilities of the buyer to the agent Standardized real estate commission

Duties and responsibilities of the buyer to the agent

What must sellers provide prospective buyers of homes built prior to 1978, in addition to the appropriate disclosure form? EPA lead safety pamphlet List of reputable home improvement contractors Verbal assurance that the home is lead-free before offering it for sale Written proof that the home is lead-free

EPA lead safety pamphlet

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

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

Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would lie, it was determined that he would need an easement because his driveway would spill over onto the adjacent lot by a few feet. What type of easement is this? Easement appurtenant Easement by necessity Easement by prescription Easement in gross

Easement appurtenant

Whose responsibility is it to ensure that a prospective buyer receives a copy of the Maryland Residential Property Disclosure and Disclaimer Statement prior to the buyer making a written offer to the seller? Either the buyer's or seller's broker The buyer's broker only The seller only The seller's broker only

Either the buyer's or seller's broker

What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach? Broad and specific Components and measures Elements and units General and detailed

Elements and units

Smalltown is building a new interstate exchange to facilitate access to shopping and restaurants. In order to do so, it purchased two homes and tore them down so the ramps to and from the interstate could be constructed. What principal allowed Smalltown to do this? Abandonment Doctrine of laches Eminent domain Escheat

Eminent domain

Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property? Easement Eminent domain Encroachment Necessity

Encroachment

Seth owns a property on a small island with six other property owners. Recently, Seth built a fishing pier along the water's edge; however, the pier is actually on his neighbor's property, which Seth has no rights to. What might this be an example of? Easement Encroachment Estate Eviction

Encroachment

Derrick was thrilled to find out that the land he purchased includes several small caves. He's been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so? Disposition Enjoyment Exclusion Possession

Enjoyment

Ted is in foreclosure but has some equity in his property. An investor suggests that Ted enter into a sales contract with him for a substantially higher price than the investor would actually be paying. The investor pockets the cash and allow the house to be foreclosed on. What sort of scheme is this? Equity skimming Inflated appraisal Silent second Straw buyer

Equity skimming

A buyer, hoping to beat out all other offers, included a clause in the offer that reads, "Buyer to beat all competing offers by $1,000 up to a price of $700,000. Seller to provide copies of competing offer to buyer on acceptance." What type of offer is this an example of? Bad Dynamic Elevator Escalator

Escalator

The state's claim to property when a property owner dies, leaving no will, heirs or creditors, is the power of ______. Condemnation Eminent domain Escheat Taking

Escheat

In Maryland, how often must real estate salespersons renew their license? Every three years Every two years Every two years in even years Every year

Every two years

What's the best definition of personal property? Artificial attachments to land that include things such as fencing, buildings, and walkways Everything that's not real property Land Property that's fenced

Everything that's not real property

Ricky Nubbins is three months behind in his rent and has received several reminders from the landlord that the rent is past due. As a result, the landlord has begun working through proper channels to legally end Ricky's lease before the contract end date. The landlord is terminating his lease through ______. Abandonment Eviction Expiration Mutual agreement

Eviction

The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales contract. What type of contract do the Nettles and the Briars have? Executed Executory Unilateral Voidable

Executory

Lauren obtained a loan that's insured and that only required a down payment of 3.5%. Which of these is most likely the type of loan Lauren has? Conventional FHA Home equity line of credit VA

FHA

Farm families financing the purchase of properties in rural areas may be able to obtain financing through this government agency if they meet certain criteria, such as income requirements. Department of Veterans Affairs Environmental Protection Agency Farm Service Agency Federal Housing Authority

Farm Service Agency

Which act created an agency to investigate antitrust practices? Attorney General Act Clayton Act Federal Trade Commission Act Sherman Antitrust Act

Federal Trade Commission Act

Local authorities lack police power over which of the following? Budgeting Federal government construction projects Subdivision development Zoning

Federal government construction projects

While working with a buyer client, Jeffrey filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was "fully protected" and would get her earnest money back if the sale didn't close. He encouraged her to hire an attorney to review the contract and addendum, and invoiced her for a nominal $15 fee to prepare transaction documents. Which of these tasks would NOT be considered unauthorized practice of law? Charging a fee for preparing legal documents Drafting an addendum Filling in the contract blanks Interpreting contract provisions

Filling in the contract blanks

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 Four years Three years Two years

Five years

Discoloration along walls and sagging or uneven floors can be signs of ______. Electrical issues Fire damage Flood damage Wind damage

Flood damage

Katy's home that was listed for sale was destroyed by fire. Under which of these methods will her listing agreement terminate? Completion Expiration Force of law Mutual agreement

Force of law

Another term for a valuation is ______. Assessment Comparative market analysis Evaluation Formal appraisal

Formal appraisal

Which of these scenarios is an example of two parties rescinding a contract? A sales transaction falls through when Nora, the buyer, doesn't qualify for financing. Bobby, the buyer, makes an offer on a house that doesn't meet the appraisal contingency. He cancels the sale. Sally, the seller, sells her property to two different buyers. Both buyers sue Sally for specific performance. Sherman, the seller, decides not to sell his condo after all. Fortunately, his buyer, Alice, decided to join the Peace Corps. They mutually agree to cancel the sale with no penalty on either side, and each signs paperwork to this effect.

Fortunately, his buyer, Alice, decided to join the Peace Corps. They mutually agree to cancel the sale with no penalty on either side, and each signs paperwork to this effect.

HUD received a complaint from Jameel, an Annapolis resident who claimed that his landlord evicted him when she found out he was gay. What will HUD likely do with this complaint? Forward it to the Maryland Commission on Civil Rights. Forward it to the Maryland Real Estate Commission. Investigate it and report the findings to Jameel within 180 days. Investigate it and report the findings to the Maryland Real Estate Commission within 180 days.

Forward it to the Maryland Commission on Civil Rights.

Frances collected an earnest money check from her client, but didn't have an opportunity to deliver it to the escrow agent before close of business on Friday. For safekeeping, she deposited it into her personal checking account over the weekend and wrote the escrow agent a new check on Monday morning. Which of these statements is true? Frances is guilty of commingling. Frances is guilty of commingling and conversion. Frances is guilty of conversion. Frances is guilty of fraud.

Frances is guilty of commingling.

Which of the following is an example of an agent exercising the duties owed to customers and other parties? Ari didn't present the buyer's offer to the seller, since it was a lowball offer. Francine disclosed information about the flooding basement to the buyer and buyer's agent. Mark complied with the buyer's agent's instructions to change the available times for showings so the potential buyer could see the property. With her client's permission, Missy shared the entire inspection report with the seller's agent.

Francine disclosed information about the flooding basement to the buyer and buyer's agent.

Which of these would most likely be an implied contractual condition in a real estate sales contract? Buyer and seller names Freedom from fraud and misrepresentation Property location or description Purchase price

Freedom from fraud and misrepresentation

Which of these situations represents an illegal tie-in arrangement? Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction. Martha gives her buyer clients a list of home inspectors and encourages them to call several who are both on and not on the list to find one who meets their needs. Monica agrees to rebate a portion of the commission earned when her buyer client buys a house if the client also lists her current home with Monica. Trina tells her buyer, Martin, that she won't perform any brokerage services for him unless he signs an agency agreement.

Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction.

A landlord has an available unit but refuses to show it to several applicants. These applicants are all single women with children. The applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law? He is advertising the unit in a restrictive way that discriminates against those with children. He is discriminating against people based on sex and familial status by refusing to show available housing. He is discriminating by offering special terms for rental based on a protected class status. He is sexually harassing potential tenants.

He is discriminating against people based on sex and familial status by refusing to show available housing.

Juan has finalized his comparables and is ready to determine a property's appraised value. How does he do this? He reviews his process and places more weight on the most similar comparables that he believes to be the most valid. He takes an average of the adjusted comparable values. He uses the highest adjusted value from his comparables. He uses the lowest adjusted value from his comparables

He reviews his process and places more weight on the most similar comparables that he believes to be the most valid.

The ______ decides if a complaint has merit and should be investigated. Department of Investigative Services Governor Hearing panel Local police department

Hearing panel

year! Kim is taking a leave of absence from her job to accompany Marta. They don't want their home in a gated community to sit empty, so they'd like to rent it out for the year. What might prohibit them from doing so? County ordinance Homeowner regulations Neighborhood watch group State law

Homeowner regulations

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from the familial status discrimination? Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974 Housing for Older Persons Act of 1995

Housing for Older Persons Act of 1995

to meet the requirements of the statute of frauds, an agreement must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable. Achieve a result that's fair to all parties Be agreed to verbally Be reviewed by an attorney Identify the contracting parties

Identify the contracting parties

If DeMarcus fails to make sure that his buyer client, Ross, has received the property disclosure/disclaimer statement before he submits an offer, DeMarcus may be violating his obligation to protect Ross's interests ______. If DeMarcus's failure could result in the contract becoming voidable Only if Ross decides to press charges against him Only if there are significant defects in the property Unless DeMarcus thought the seller would provide it within five days of offer acceptance

If DeMarcus's failure could result in the contract becoming voidable

Georgina is an escrow agent who's holding funds for several transactions. Which of these statements about how she'll disburse these funds is true? If the transaction closes, Georgina will disburse the earnest money to the listing broker as part of his commission. If the transaction closes, she'll refund the earnest money to the buyer, since the buyer brings the full amount necessary for the down payment and loan costs to closing. If the transaction doesn't close, Georgina will disburse the earnest money as instructed by the parties or according to state law. If the transaction doesn't close, Georgina will refund the earnest money to the buyer.

If the transaction doesn't close, Georgina will disburse the earnest money as instructed by the parties or according to state law.

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______. By licensed real estate professionals By members of the Appraisal Foundation In the most expeditious and inexpensive way possible In writing, and in accordance with uniform standards

In writing, and in accordance with uniform standards

Hannah wasn't able to get the financing to open her boutique, so her mother came on as a silent partner and provided additional cash. Hannah and her mother have an agreement that states Hannah's mother can't be held financially or legally liable if there are any problems with the store. What type of contract clause is this? Arbitration Choice of law Damages block Indemnification

Indemnification

Which physical characteristic of land addresses the concept that while improvements may deteriorate over time, the land itself cannot be destroyed? Immobility Indestructibility Permanence of investment Uniqueness

Indestructibility

Which one of the following tasks must a licensee perform for seller clients? Assist the seller in finding someone who can effectively market the property. Inform sellers of their responsibility to make all required property condition disclosures. Set the listing price of the property based on comparables. Tell the sellers how to deposit the buyer's earnest money into their personal checking account.

Inform sellers of their responsibility to make all required property condition disclosures.

When Marcy toured her new client's house, she noticed paint peeling off of the shutters. When she asked the seller if the house was painted with lead-based paint, he replied, "I'm not sure ... I inherited the house from my dad, who built it in the '50s." What is Marcy required to do? 1 Based on the build date, she should assume the property has lead-based paint and advise the seller that it must be remediated before listing the property. 2 Have the seller test for lead-based paint. 3 Inform the seller that he needs to complete the lead-based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards. 4 Take a sample of the peeling paint with her, have it tested, and have the seller reimburse her for the testing cost at settlement.

Inform the seller that he needs to complete the lead-based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards.

How does a Maryland broker's license renewal differ from a salesperson's license renewal? Brokers have to renew every three years and salespersons have to renew every two years. Brokers must take the 15 hours of CE salespersons take, plus an additional three hours of broker supervision coursework. Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives. 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.

Ashish is purchasing a bank-owned property. His real estate agent tells him the bank is offering insurable, not marketable, title. What does this mean to Ashish? An insurable title has uncurable title defects, so Ashish terminate his contract. Insurable title carries a higher standard of assurance than marketable title, so Ashish shouldn't be concerned. Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy. The title company will include any easements or other title defects as exceptions on the policy, which is a concern for Ashish.

Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy.

Mortgage, homeowners, and flood ______ may be included the mortgage payment. Addenda Fees Insurance Waivers

Insurance

Your home inspector Mason found some discoloration in the attic and near the windows on the second floor. Why does he think this may be a concern? Dark stains in the attic could mean plumbing problems. It could be a sign of fire damage. It means that the homeowners haven't insulated well. It's indicative of insect activity.

It could be a sign of fire damage.

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? If Dina's license is revoked, Pat's is automatically suspended. If Dina's license is suspended, Pat's is automatically suspended as well. It could be suspended or revoked. Nothing. Only Dina's license is in danger.

It could be suspended or revoked.

Which offer would be the most appealing to a seller? A full-price offer waiving inspection, conventional financing with 20% down, closing in 45 days. An all-cash offer $15,000 below list price, closing in two weeks. An offer $10,000 over list price, contingent upon appraisal and inspection, conventional financing with 20% down, closing in 30 days. It depends on the seller's needs and motivations.

It depends on the seller's needs and motivations.

Why might a licensee want a buyer to sign a buyer representation agreement? It helps ensure buyer loyalty. It provides the agent with bragging rights. It's required by law. It will ensure that he'll receive the standard commission rate.

It helps ensure buyer loyalty.

you've just signed a listing with a new seller client. What's true about electronic delivery of written notice or contract forms to your seller? It's allowed if the seller consented to it in the listing contract. It's allowed with special permission from the commission. It's illegal in Colorado. It's legal as long as it's subsequent to physical hard copy delivery.

It's allowed if the seller consented to it in the listing contract.

Drake's offer to purchase Kevin's condo currently has a financing contingency, an inspection contingency, an appraisal contingency, and a sale of current home contingency. Kevin also got an offer from Lucy, which came in at $5,000 less than Drake's offer but with only an appraisal contingency. What is true about Drake's offer compared to Lucy's? It's likely viewed as a less favorable offer. It's likely viewed as a lowball offer. It's likely viewed as a more favorable offer. It will likely set off a bidding war.

It's likely viewed as a less favorable offer.

Todd and Tory sign a contract agreeing to falsify the cost of roofing repairs on Todd's house so Tory can collect more insurance money. Why is this contract invalid? It's not for a legal purpose. The parties are incompetent. There's no consideration. There's no mutual consent.

It's not for a legal purpose.

What happens to an initial offer from the buyer after a seller counters? It becomes the back-up offer. It's accepted by the seller until the buyer accepts the counter. It's no longer in play. Sellers cannot counter a buyer's initial offer.

Its no longer in play

Which of these is an encroachment? A path providing neighborhood access to a pond cuts through part of Bill's property. Jeff installed a sidewalk next to his driveway, six inches outside his property. The city seized a formerly private parcel of land for public use. The state took ownership of Dawn's property when no heirs could be located following her death.

Jeff installed a sidewalk next to his driveway, six inches outside his property.

Luci's client Kaden wants to purchase a new construction property, and he wants to get as much house as he can afford. Which of the following does Luci need to advise Kaden about regarding interest rates when purchasing a newly built home? 1 If Kaden uses his builder's lender, he can get a better interest rate and won't have to worry about market fluctuations between now and closing. 2 Kaden doesn't need to worry about interest rates for his long-term mortgage until 90 days prior to closing when he can lock in the best rate. 3 Kaden needs to allow for the possibility of an interest rate increase between now and closing because lenders won't lock in an interest rate for more than 90 days before closing. 4 Kaden needs to lock in the interest rate on his long-term mortgage now to avoid unexpected increases that could put his loan amount over his approval amount.

Kaden needs to allow for the possibility of an interest rate increase between now and closing because lenders won't lock in an interest rate for more than 90 days before closing.

Contrary to federal fair housing laws, the state where Katrina lives includes age as a protected class. Which of these statements about this conflict is true? Katrina can follow either the federal or the state law as long as she is consistent. Katrina is permitted to follow whichever law is least restrictive. Katrina must follow federal law for any federally related transaction. Katrina must follow the more restrictive of federal or state law.

Katrina must follow the more restrictive of federal or state law.

Which of the following is an example of sub-agency? Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller. Kermit is represented by Bert, an agent with Street Realty. Today they're seeing Oscar's house, which has been listed by Oscar's agent, Ernie, from Energy Realty. Rita is a licensee with Hawthorne Realty. She has a client, Dinah, who's selling her condo. Rita thinks Dinah's house will be perfect for Ruby, a customer. Tim and Tom are both licensees with Acme Realty. Tim is the listing agent on a home where Tom represents the buyer.

Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller.

The Perfect Home brokerage firm was found guilty of running deceptive ads. The Federal Trade Commission might require all of the following EXCEPT ______. Letters of apology to all affected consumers New ads to correct previous misinformation Notification to consumers about deceptive ad claims Specific disclosures to consumers

Letters of apology to all affected consumers

While hosting an open house, Nathan speaks witha pair of unrepresented prospective buyers who are interested in the house but think the listing price is a little high. They ask him what other incentives they could include in their offer to get the seller to come down on their price. If Nathan helps them, what Maryland Code of Ethics guideline may he be breaching? Licensees may not accept compensation from more than one transaction party without all parties' knowledge. Licensees must disclose any personal interest they have in a property or transaction. Licensees must present the Understanding Whom Real Estate Agents Represent form to every open house attendee. Licensees must protect and promote their client's interests without compromising their duties to the other parties.

Licensees must protect and promote their client's interests without compromising their duties to the other parties.

Under the statute of ______, if legal remedy is sought against a person, the pursuer must bring a court action within a specified period of time. Efficiency Fairness Limitations Timeliness

Limitations

Linda is the sponsoring broker at Gardner Homes. Which of the following best describes what happens with her license? Linda can choose whether to store or display her license at Gardner Homes. Linda displays her license at Gardner Homes. Linda keeps a copy of her license at home for safekeeping. Linda stores her license at Gardner Homes.

Linda displays her license at Gardner Homes.

A calculation that describes the amount being borrowed compared to the value of a property is called ______ ratio. Appraisal Housing Loan-to-value Total debt

Loan-to-value

Which of the following could be a sign of a plumbing problem? Copper pipes Cracks in the basement wall Low water pressure Rotting around the soffit

Low water pressure

Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace's death? Lucas Lucas and Tom Lucas, Monique, and Amy Lucas, Tom, Amy, and Monique

Lucas and Tom *Joint tenants are allowed to sell their interests, so Tom became a property owner when Ivan sold his interest. However, joint tenancy is not inheritable but instead includes the right of survivorship. Trace's and Chad's interests passed to Lucas and Tom.

Which of these licensees has NOT shown cause for immediate suspension of his or her license? Luis has been working for two brokers at the same time. Patrick has misplaced three clients' earnest money checks in the past month. Phoebe is convicted of felony fraud involving her brokerage's finances. When the commission performed a records audit, Annalise wasn't able to account for trust funds she deposited two years ago.

Luis has been working for two brokers at the same time.

Lyle is a developer who placed a number of restrictions on the Happy Valley subdivision when he built it in 2003. Sara bought a home in Happy Valley in 2009 and was surprised to learn that storage sheds weren't allowed. Now Sara has noticed that sheds are popping up here and there throughout the neighborhood, and she puts up a shed of her own feeling no concern about a penalty. Which of the following is most likely to be true? Lyle set up the restriction to expire after a certain number of years. The homeowners have all applied for waivers to the existing restrictive covenant. The homeowners so desperately need storage that they're willing to face fines or legal action. The sheds are made of a new material that hadn't been invented or prohibited in 2003.

Lyle set up the restriction to expire after a certain number of years.

Which of the following is one of a listing agent's duties? Disclose material facts to the seller alone. Guarantee a sale to the seller. Maintain seller confidentiality. Negotiate on behalf of all buyers.

Maintain seller confidentiality.

Marcus, a listing agent, told a potential buyer that his seller client's property had no flooding issues, though the seller had mentioned water in the basement a few years back when there was a particularly heavy rainy season. Which of these statements is true? Marcus committed intentional misrepresentation because he knew his statement was false. Marcus committed unintentional misrepresentation. Marcus didn't commit misrepresentation, because the property current has no flooding issues. Marcus is guilty of puffery.

Marcus committed intentional misrepresentation because he knew his statement was false.

John is considering purchasing an office building and is trying to determine whether or not it's a good investment. The methods of income approach he may use when estimating the value are all of the following EXCEPT for which? Market or sales comparison The capitalization method The gross income multiplier The gross rent multiplier

Market or sales comparison

Which of these parties WOULD need a real estate license in Maryland? Gail, who works for a bank that is selling a foreclosed property it owns Kathy, who is selling her knitting store business, including the lease for the store's space at the local mall Marsha, an attorney who is selling a client's home, as this is something she typically does as part of her practice Stefano, a home builder who is selling a property he built

Marsha, an attorney who is selling a client's home, as this is something she typically does as part of her practice

Real estate licensees in Maryland who are found guilty of violating the Maryland Code of Ethics will be penalized by which regulatory body? Consumer Advocacy Department Federal Real Estate Commission Maryland Real Estate Commission National Association of REALTORS®

Maryland Real Estate Commission

"Beginning at a stake and stones about 30 feet from the center of the brook that runs across the road Southwesterly from the dwelling house of the late Bethany Smith ..." is an example of what type of legal description? Benchmark Lot and block Metes and bounds Rectangular

Metes and bounds

The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property? Adaptability of the item to the land's use Agreement of the parties Intention in placing item on land Method of annexation

Method of annexation

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? Bryce, who, as the executor of his deceased mother's will, is selling her house Erica, who's selling her five-unit apartment building to an investor who will be converting it to retail space Mikey, an investor who's selling a property that he converted into a three-unit apartment building Tessa, who represents a lender that's selling a foreclosed four-bedroom ranch-style home that sits on three acres

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

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? Improper brokerage commission Improper delivery of instruments Incompetence Misrepresentation

Misrepresentation

What are trust funds? Commission money the licensee has earned Money belonging to others held for a specific purpose in the course of a real estate transaction Money given as a gift to the broker Rent received from a broker-owned property

Money belonging to others held for a specific purpose in the course of a real estate transaction

Monica is acting as 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. Monica should not be the listing agent for her friend. Monica should purchase Brian's property. Monica should tell all prospective buyers that the seller has HIV.

Monica cannot tell others about Brian's HIV status.

Home inspector Maura was walking Thad through a property inspection. The frame house, on a slab foundation, had mulch piled up about 18 inches next to the house. Why was Maura noting this as a concern? Mulch is a flammable substance. Mulch isn't a sustainable material. Mulch next to wood siding may lead to wood rot. That amount of mulch might kill the plants it's meant to protect.

Mulch next to wood siding may lead to wood rot.

How would you calculate a transfer tax of .04% on a $350,000 property? Divide .04 by 350,000 Divide 350,000 by .004 Multiply 350,000 by .0004 Multiply 350,000 by 4

Multiply 350,000 by .0004

Murphey's farm has been in his family for generations, since his great-great-great-grandfather received it as a land grant in 1862. What's the beginning point of this property's chain of title? Murphey's grandfather, the previous owner Murphey's great-great-great-grandfather Murphey, the current owner The federal government that originally granted the land

Murphey, the current owner

Rescission can be a(n) ______ agreement to cancel a contract. Ill-advised Mutual Tenuous Unlawful

Mutual

select the situation that correctly represents a true conflict of fiduciary duties. 1. Kai learns that her buyer clients' inspector will be reporting a furnace issue to the buyers. She doesn't want to break the news to them. Her duty of confidentiality to the seller and her duty of loyalty to her buyers are in conflict. 2. Nikki's seller client has instructed her not to present offers that are less than the listing price. This is a conflict of Nikki's duty of disclosure, which requires her to present all offers, and her duty of obedience. 3. Renee's clients don't want showings on weekends. Renee knows this may reduce market exposure and she feels it's not in her client's best interests. This is a conflict of her duty of loyalty and her duty of obedience. 4. Terrance's buyer clients don't want him to share with the seller that they're having trouble coming up with the down payment. Terrance's duty of loyalty to his clients is in conflict with his duty of disclosure.

Nikki's seller client has instructed her not to present offers that are less than the listing price. This is a conflict of Nikki's duty of disclosure, which requires her to present all offers, and her duty of obedience.

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 binding until it's rejected by the other party (in this case, the seller). No. A counter-offer is considered accepted when the offer is signed and the offeror (in this case, the buyer) is notified. Yes. The buyer can back out of the counter-offer at any point before it's signed. 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.

When buyers haven't spoken to their bank or another lender, how should you handle the situation? Ask questions about their income, assets, and debts to determine their buying power. Ask them to come back when they have spoken to a banker or broker. Inform them that they must be pre-qualified before you can show them any houses. Offer to refer them to a lender and prepare them for the meeting.

Offer to refer them to a lender and prepare them for the meeting.

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? Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days Offering a 1% reduction in her commission rate to the first 10 seller clients who list with her Offering to buy a washer/dryer set for the first 10 buyer clients who sign on with her 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

Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the _______. Examiners Executors Offerees Offerors

Offerors

Which agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations? Office of Civil Rights Office of Equal Credit Opportunity Office of Fair Housing and Equal Opportunity Office of Housing and Community Development

Office of Fair Housing and Equal Opportunity

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? All of them Only offer D, since it's a counter-offer Only offers A, B, and C, since they supersede a counter-offer Only offers A, C, and D, since they're in writing

Only offers A, C, and D, since they're in writing

James, a seller, signed a listing agreement that allowed him to contract with multiple agents but only pay a commission to the agent who located a buyer. This type of listing agreement is called ______. disclosure of conflict of interest Exclusive agency Exclusive right to sell Open Seller's choice

Open

Eileen is preparing a report pursuant to the terms of a property management agreement. This report attempts to predict the income and expenses associated with running the property over the next year. What report is she preparing? Budget comparison statement Cash flow report Operating budget Profit and loss statement

Operating budget

A life estate can best be described as ______. An estate for a limited time An estate for a specified time Ownership for an undetermined length of time Ownership, possession, and control for someone's lifetime

Ownership, possession, and control for someone's lifetime

Under what circumstances can a buyer representation agreement be terminated early in Maryland? If the buyer finds another buyer to replace them. If the buyer finds out that their agent is representing other buyers. If the buyer notifies the agent in writing that they have a contract on a home found for them by another broker. Per the early cancellation provision agreed to by both the broker and the client as listed in the agreement.

Per the early cancellation provision agreed to by both the broker and the client as listed in the agreement.

Phyllis is a real estate salesperson in Maryland. The commission recently summarily revoked her license because of fraudulent conduct. Which of the following is true? Phyllis can never practice real estate in Maryland again. Phyllis may not reapply for a real estate license for three years. Phyllis may request a hearing to appeal the summary revocation. The commission must also investigate Phyllis's broker to see if he is also guilty of misconduct.

Phyllis may request a hearing to appeal the summary revocation.

What might the government do if property owners fail to pay taxes on their property? Do nothing. Evict those living on the property. Place a lien on the property. Take ownership of the property.

Place a lien on the property

The government's authority at all levels to ensure the health, safety and welfare of its citizens, which includes the control of public land use is the definition of ______. Condemnation Eminent domain Police power Sovereignty

Police power

Upon examination of his mortgage document, Jared finds a clause stating he will owe additional interest if he pays off his loan within one year of the loan origination date. What type of penalty does this describe? Acceleration Alienation Defeasance Prepayment

Prepayment

Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms? Deed of trust Mortgage lien Promissory note Usury

Promissory note

In property management, what's the legal and binding contract that spells out the duties for both the property manager and property owner? Power of attorney Property management agreement Property management proposal Service contract

Property management agreement

Which of the following statements related to the power of taxation is true? If the property is foreclosed upon, property taxes are paid after all other creditors. Property tax liens take priority over any and all other liens on the property in most states. Property tax liens take the lowest priority after all other liens on the property. Taxation is an unstable source of income.

Property tax liens take priority over any and all other liens on the property in most states.

Which of the following is a characteristic of an abstract of title? Provides an attorney's opinion of the title Provides information about the payoff amount Provides information about the property location Releases an existing lien

Provides an attorney's opinion of the title

What factors directly affect an adjustable rate mortgage? Amortization tables, index, and rate Index, tax basis, and margin Rate, index, and margin Rate, loan-to-value ratio, and index

Rate, index, and margin

Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable? Drew didn't have the financial resources to make the offer. Real estate contracts must be in writing. There was no offer and acceptance. This wasn't a legal purpose.

Real estate contracts must be in writing.

Which of the following is NOT a requirement for an electronic records system in Maryland? Records may not be in a format that can be erased or edited. Records must be easily identifiable. Records must be maintained in the regular course of the licensee's business. Records must be stored in alphabetical order.

Records must be stored in alphabetical order.

A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do? 1 Advertise for a tenant of a specific race. 2 Move out of the property and rent both portions of it, relying on the "Mrs. Murphy" exemption to permit renting only to single females. 3 Refuse to rent to a female tenant. 4 Use the services of a real estate professional to advertise for a male tenant.

Refuse to rent to a female tenant.

A landlord refuses to show or rent an apartment to someone who is not Christian or Jewish. What type of discrimination is this? Disability discrimination Familial status discrimination Racial discrimination Religious discrimination

Religious discrimination

Jayne was tired of waiting for her subcontractor to get his part of the deal done. The agreed-upon deadlines came and went, and Jayne lost money waiting for the subcontractor to come through. She decided that if the subcontractor wasn't going to honor his commitments, neither was she, so Jayne consulted with her attorney and then terminated the contract. This is an example of ______. Accepting partial performance Mutually rescinding the contract Rescinding the contract unilaterally Suing for damages

Rescinding the contract unilaterally

If a buyer makes an offer that the seller finds lacking, which of the following actions is the seller most likely to take? Ask the seller's agent to talk with the buyer's agent. Call the buyer to negotiate better terms. Increase the asking price. Respond with a written counter-offer.

Respond with a written counter-offer.

A requirement that all property owners in a subdivision have a six-foot privacy fence surrounding their entire property is an example of a _______, Deed Doctrine of laches Restrictive covenant Setback

Restrictive covenant

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? He must wait to evict her until after the complaint has been investigated. Landlords must wait 180 days to evict parties who file a discrimination complaint. Parties who file a discrimination complaint may not be evicted for any reason. Retaliation against parties who file a discrimination complaint is illegal.

Retaliation against parties who file a discrimination complaint is illegal.

As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______. Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer's favor Explain to the buyer why it's unnecessary to have a professional inspection done on a new home Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license Show properties the buyer might qualify for if he would put down more earnest money

Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license

Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money? Brandon Greta Nelson Rigby

Rigby

What classification of water rights includes the two smaller sub-classifications of navigable and non-navigable waterways? Groundwater Littoral Riparian The doctrine of appropriation

Riparian

Which of these property managers is violating fair housing law? Cheri, who represents a religious organization that sponsors housing, will only show the available rental unit to members of the religion. Clyde, who represents the owner of a senior living facility, refuses to rent a unit to a family with minor children. Dwayne, who represents the owner of property that only rents to members of its private club, refuses to show a rental property to someone who isn't a member of the club. Sandra, who represents the owner of a multi-building complex, will only show families with children units available in the building closest to the park.

Sandra, who represents the owner of a multi-building complex, will only show families with children units available in the building closest to the park.

What responsibility does the seller's agent have to the seller? Advocate for and ensure the sale is profitable for the seller. Advocate for the seller and help present the property in the best light, even if it means covering up material defects. Ensure the sale is profitable for the seller. Seek a sale at the best price at terms acceptable to the seller.

Seek a sale at the best price at terms acceptable to the seller

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? Inflated appraisal Self-dealing Silent second Straw buyer

Self-dealing

Eleanor is moving from a starter home into something a little larger. Her agent has cautioned her against making the offer on the new place contingent on the sale of Eleanor's starter home. Why the caution? Eleanor might want to keep and rent out her smaller home as an income source. Eleanor should include a minimum of two contingencies to let the sellers know she is serious. Eleanor's lender might be wary of contingencies. Sellers would view an offer without a contingency as a stronger offer.

Sellers would view an offer without a contingency as a stronger offer.

Dwayne has a buyer client who's very interested in making an offer on a home in Dwayne's own neighborhood, and he actually met the seller at the latest community block party. Dwayne knows that the seller's agent is out of town until next week and is anxious to make the offer before another buyer potentially comes into the mix. What should he do with the offer? 1 In order to fulfill his fiduciary duties to his buyer client, Dwayne should deliver the offer to the seller directly, but only after leaving the seller agent a message informing him about it. 2 Send one copy of the offer directly to the seller, and one copy to the seller's agent so that she can review it with her client. 3 Send the offer to the seller's agent and follow up after the agent is back in town. 4 Since they know each other personally, it's permissible for Dwayne to deliver the offer directly to the seller.

Send the offer to the seller's agent and follow up after the agent is back in town.

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? Age and marital status Gender identity and marital status Marital status and sexual orientation Sexual orientation and gender identity

Sexual orientation and gender identity

Which of these licensees is correctly following MREC guidelines for hosting an open house? Fabrizio displays his real estate license and wears a name tag. Luke makes sure that all attendees sign an Understanding Whom Real Estate Agents Represent form. Shawna displays the MREC notice informing consumers that she represents the seller. 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.

Which of these tasks that Jenna performs does NOT represent the fiduciary duty of accounting? She avoids commingling trust funds with her firm's operating funds. She discloses the terms of the listing agent's compensation to her client. She meticulously manages all her clients' transactional paperwork. She properly records the earnest money her buyer client gave her.

She discloses the terms of the listing agent's compensation to her client.

Which of these tasks that Jenna performs does NOT represent the the fiduciary duty of accounting? She avoids commingling trust funds with her firm's operating funds. She discloses the terms of the listing agent's compensation to her client. She meticulously manages all her clients' transactional paperwork. She properly records the earnest money her buyer client gave her.

She discloses the terms of the listing agent's compensation to her client.

Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC? She must belong to the local REALTORS® association. She must take a required number of continuing education hours. She must take three training classes through the firm. She receives no benefits from the firm.

She must take three training classes through the firm.

Travis made the final payment on his loan according to the loan terms. What must the note holder do to acknowledge that the debt has been repaid? Assign the note to Travis. Destroy the note. Endorse the note and return it to Travis. Sign the note, mark it "paid in full," and return it to Travis.

Sign the note, mark it "paid in full," and return it to Travis.

The UETA makes it legal and binding for contracts to be ______. Completed verbally Filed without signatures Signed electronically Written by a broker

Signed electronically

Rhonda purchased an existing pet store in her neighborhood, and she's so excited! Her animal-loving aunt is thrilled for Rhonda but disappointed that she won't be able to visit the store in her wheelchair, as the aisles are narrow and there isn't enough room to move around. What is true about Rhonda's responsibilities to her aunt and other people with disabilities? At a minimum, Rhonda is required to add an accessible bathroom. At a minimum, Rhonda is required to add an accessible entrance to the building. Because Rhonda purchased a retail business, she must meet the same ADA requirements as new construction buildings. Since Rhonda purchased an existing building and business, the ADA requirements aren't as strict as with new construction and vary by building.

Since Rhonda purchased an existing building and business, the ADA requirements aren't as strict as with new construction and vary by building.

Betty hired a contractor to replace her gutters. Within days, the gutters leaked and flooded her basement. She complained to the contractor, who replaced the gutters again. The next time it rained, the gutters leaked and flooded Betty's basement a second time. Frustrated, Betty decided to file a lawsuit against the contractor in an attempt to recover the money she lost. This is an example of ______. Accepting partial performance Rescinding the contract unilaterally Suing for damages and breach of contract Suing for specific performance

Suing for damages and breach of contract

Brent and Kathy recently bought a property in a gated community. While doing some landscaping they noticed that their neighbor's shed seems to be over the lot line and on their property. What should they consult to determine if the shed is an encroachment? Deed HOA covenant Mortgage Survey

Survey

Marla's excited about closing on a cute lakefront cottage. But when she reads the report from the home inspection, she learns that the chimney leaks and that there is water damage in several places. This wasn't on any of the seller's disclosures. Which of these is the best option for Marla? Complete the purchase and plan to spend a lot of money trying to make her cottage leakproof. Complete the purchase, then sue the seller for fraud. Find a lawyer and file a class action suit against the chimney mason. Terminate the agreement and ask for a refund of her earnest money.

Terminate the agreement and ask for a refund of her earnest money.

New licensee Joey is reconciling his bank statement and identifies a $20 deficit that he can't account for. Which initial licensing fee has he likely forgotten about? The $15 new license fee and $5 new pocket card fee The $20 Guaranty Fund fee The $20 Real Estate Education Fund fee The two $10 charges for each of the background checks the state and local government ran

The $20 Guaranty Fund fee

Trinity has applied for a home equity line of credit to perform some upgrades on her home. Within what timeframe must her lender provide the Closing Disclosure? At closing The Closing Disclosure isn't required for a HELOC. Three days before closing Three days from her loan application date

The Closing Disclosure isn't required for a HELOC. *Home equity lines of credit aren't subject to TRID disclosures, so Trinity's lender isn't obligated to provide a Closing Disclosure, though other disclosure forms may be required.

What's the relationship between TILA, RESPA, and TRID? The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID). TILA and RESPA require lenders to use TRID. TILA, RESPA, and TRID mandate the lender disclosures required for federally related transactions. TRID mandates the type of disclosures for TILA- and RESPA-related transactions.

The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID). *TRID stands for TILA-RESPA Integrated Disclosures, which the Dodd-Frank Act implemented for all federally related mortgage transactions.

This act added familial status and disability (both physical and mental) to the existing federally protected classes. The Civil Rights Act of 1866 The Equal Credit and Opportunity Act of 1974 The Fair Housing Amendment Act The Housing and Community Development Act of 1974

The Fair Housing Amendment Act

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 Commission on Civil Rights The Maryland Department of Professional Licensing The Maryland Office of the Attorney General The Maryland Real Estate Commission

The Maryland Real Estate Commission

The two real estate firms in one small town, Vineyard Realty and Homestead Homes, agree to charge the same commission rate to avoid the possibility of clients selecting a firm based simply on price. What specific federal legislation prohibits this? The Clayton Act of 1914 The Federal Trade Commission Act of 1914 The Restraint of Trade Act of 1894 The Sherman Antitrust Act of 1890

The Sherman Antitrust Act of 1890

Which of the following is NOT a required inclusion in a Maryland buyer representation agreement? A definite termination date Compensation details Each party's duties and responsibilities to the other The address of the property the buyer is purchasing

The address of the property the buyer is purchasing

When the listing agreement's purpose has been fulfilled, what happens to the agency agreement? Agency continues for future transactions. Agency continues until the agreement's expiration date. The agency agreement terminates by completion. The agent can renounce the listing agreement to terminate it.

The agency agreement terminates by completion.

Centennial Development is constructing a new condo. The exterior of the building is 60 feet square. Which of these about the air lot is true? The air lot above the condo extends to the middle of the adjacent streets. The air lot is the same area as the condominium building. The air lot is the same perimeter as the condo and the lot on which it's built. The air lot perimeter is the same as the condominium's perimeter.

The air lot is the same perimeter as the condo and the lot on which it's built. *Picture a box drawn over the property boundaries. The perimeter of this box is the perimeter of the air lot.

What is put at risk if a buyer misses a contingency deadline? The agent's license The broker's reputation The buyer's earnest money The sales price

The buyer's earnest money

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 and seller only The buyer only The buyer, seller, and their agents The seller only

The buyer, seller, and their agents

Moira has delivered a counter-offer to some potential buyers for her property. Which of these best states the time frame for the buyers' acceptance? The buyers have five days to respond. The buyers must respond by the time and date specified in the counter-offer. The buyers must respond within the time frame originally noted as their offer acceptance date. The counter-offer is active until the seller accepts or rejects it.

The buyers must respond by the time and date specified in the counter-offer.

Bart just toured his fourth patio home of the day. To help him remember what he saw in each one, he's making notes about décor, updates, and inclusions that will stay with the property. Which of the following items is NOT considered personal property and would therefore stay with a home? The area rug in the dining room The banker's lamps in the den The chandelier in the foyer The chimenea on the back patio

The chandelier in the foyer

Which individual is responsible for ordering, preparing, and reviewing closing-related documents, such as the title policy and settlement statement? The broker The buyer The closing agent The seller

The closing agent

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

The commission will mail or email DeShawn a renewal reminder at least 60 days before his license's expiration date.

Shira bought a condominium in a planned unit development. The development has a small playground, tennis and basketball courts, and a putting green. Who owns these recreational facilities? The businesses located in the PUD The condo owners The development investors The PUD developer

The condo owners

Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission? The listing agent stops working on the listing. The seller decides to sell the property without an agent. The seller has a change of heart. The seller locates a buyer.

The listing agent stops working on the listing.

Tabitha listed her property for sale, but it's been on the market for several months with no offers. Tabitha decides to terminate her listing agreement and rent the property out instead of selling it. Under what condition may she do this? At any time; this is at her discretion. She's received no offers on the listing, so she can terminate her listing agreement. Since she's converting it to a rental, she can terminate the listing. The listing agreement with her current broker has expired.

The listing agreement with her current broker has expired.

Harini had a lease with an option to buy on her condo since she wasn't financially stable enough to purchase the condo when she first signed the lease. Two years later Harini was in great financial shape, but she found out that the owner legally sold the condo to another buyer. Harini has to move out next month. What must have happened? Harini and the seller had a falling out. Harini exercised her right of first refusal. The option expired. The seller breached the contract.

The option expired

Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud? Agency disclosures Buyer representation agreement The original sales agreement and any addenda The title

The original sales agreement and any addenda

What's the meaning of "good faith" in relation to contract law? The contract terms are written to be equally beneficial to each party. The contract was formed without undue influence or duress. The parties agree that they'll execute the contract to the best of their ability and without any fraud or misrepresentation. The parties agree to arbitration or mediation instead of legal action as a means of settling any disputes.

The parties agree that they'll execute the contract to the best of their ability and without any fraud or misrepresentation.

Agency may be legally terminated in which of the following ways? The agent finds a better client. The client changes financing. The client changes plans. The principal broker becomes incapacitated.

The principal broker becomes incapacitated.

Quad City National Bank has several REO properties on its books. Why does the bank own these properties? Quad City is in the process of foreclosing on these homes. The bank purchased the properties as investments. The bank purchased these properties from owners who were in foreclosure. The properties went through the foreclosure process and didn't sell at auction.

The properties went through the foreclosure process and didn't sell at auction

Jorge accepted a seller's offer of insurable title. The transaction hasn't reached closing, and a previously unknown title defect has been revealed. What happens now? Jorge has to take steps to remove the defect before he can close. The seller is still required to clear the title defect before closing. The seller may not be required to attempt to clear the defect before closing. The title insurance company is required to cover the title defect.

The seller may not be required to attempt to clear the defect before closing. *The seller may not be required to clear the defect before closing; depending on the type of defect (e.g., an easement) it may not impact closing. Other types of defects may require action before closing.

Which of these situations is addressed by the fiduciary duty of disclosure? The buyer fails to disclose to the seller his need to close on the property quickly. The buyer's home inspector refuses to share the inspection report with the seller. The seller refuses to complete a property disclosure form. The seller's agent fails to disclose a conflict of interest.

The seller's agent fails to disclose a conflict of interest.

Jacqueline found a ready, willing, and able buyer for her client's condo, with a sales price of $20,000 more than the asking price. However, the appraisal came in just under the asking price. Which number will the lender use to calculate the loan-to-value ratio? A middle point between the two numbers A weighted average based on the sales price, appraisal amount, and recent sales The larger number, as a buyer has already been found The smaller number

The smaller number

Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement? The taxes are an accrued expense, and will appear as a buyer credit and a seller debit. The taxes are an accrued expense, and will appear as a buyer debit and a seller credit. The taxes are a prepaid expense, and will appear as a buyer credit and a seller debit. The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.

The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.

Which of the following actions would result in the legal termination of an agency agreement? The client wants the seller to make improvements to the property. The client wants to attach another addendum to the sales contract. There is an unexpected death in the agent's family. The term specified in the agency agreement expired.

The term specified in the agency agreement expired.

Your client, a builder, is considering buying three adjacent lots. They each have the same depth, 275 feet. Lot A is 35,750 s.f., Lot B 53,900 s.f., and Lot C is 33,000 s.f. If your client buys all three lots, what total street frontage will he have? 446 feet 462 feet 464 feet 466 feet

The total street frontage is 446 feet. Add up the square footages of the three lots and divide by the lot depth (275) to get the total street frontage. (35,750 + 53,900 + 33,000) ÷ 275 = 446

Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true? The two firms are located in different parts of the state. The two firms are owned by the same umbrella company. The two firms have agreed not to compete in one another's markets. The two firms have agreed to set commission rates and/or co-op fees at a specific amount.

The two firms have agreed not to compete in one another's markets.

Assuming Maryland licensee Shannon has actual knowledge of all of the following property issues, which should she disclose to prospective buyers? The nearby school system is one of the worst in the area. The neighbors like to throw a lot of parties. The tree in the front yard is at least 50 years old. The upstairs bathroom has a leaky toilet.

The upstairs bathroom has a leaky toilet.

Assuming licensee Shannon has actual knowledge of all of the following property issues, which should she disclose to prospective buyers? The nearby school system is one of the worst in the area. The neighbors like to throw a lot of parties. The tree in the front yard is at least 50 years old. The upstairs bathroom has a leaky toilet.

The upstairs bathroom has a leaky toilet.

Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws? Their offer is rejected because it's too low. Their offer is rejected because the seller knows the neighbors don't like children. They rescinded their offer when a house they were previously outbid on became available again. They rescinded their offer when their inspection revealed structural issues with the house.

Their offer is rejected because the seller knows the neighbors don't like children.

Business is booming for The Jill Luck Team—the most lucrative team within Maryland Pro Realty. Jill and her team members are doing lots of in-house, in-team deals. What disclosure do they need to be sure to make to these dual agency clients? Because the deals are occurring within their team, they cannot offer complete confidentiality. Because the transaction is staying within their team, they may reduce the commission by one half of a percent. They are members of the same team, and the team may have a financial interest in the transaction's outcome. They will be paid by both the seller and their brokerage.

They are members of the same team, and the team may have a financial interest in the transaction's outcome.

Picture a drawing of a section of land. Where is Township 16 located? Fourth row, fourth from left Fourth row, third from left Third row, fourth from left Third row, third from left

Third row, third from left *Townships in a section are numbered beginning in the upper right (NE) corner and continue in a zigzag pattern.

Charlie represents Sue, a buyer. Charlie is being paid by Claude, the seller, through his brokerage. What's true about this situation? Charlie is Claude's agent. Sue is Claude's customer. This doesn't change the agency relationships. This is undisclosed dual agency.

This doesn't change the agency relationships.

An attorney receives a request to have an appraisal performed on a property inheritance that she is transferring from her deceased client's estate to his heir. Which of these statements is true? A licensee or certified appraiser must always appraise estates that are inherited, but other types of estates are exempt. Appraisals performed for attorneys for any reason must be performed by a certified appraiser. Estate-related property transfers always require a certified appraisal. This isn't a federally related transaction and under federal law an appraisal isn't required.

This isn't a federally related transaction and under federal law an appraisal isn't required.

Which type of antitrust violation occurs when the providing of one service is made dependent on the customer or client obtaining another recommended service? Group boycotting Market allocation Price fixing Tie-in arrangement

Tie-in arrangement

Garrett wanted to move his real estate closing so that he can get through his wedding first. His broker and attorney encouraged him not to do it because of which contract clause? Contract novation Indemnification Liquidated damages Time is of the essence

Time is of the essence

Many real estate contracts contain the phrase ________, reminding the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates. Haste makes waste Patience is a virtue Seek the advice of an attorney Time is of the essence

Time is of the essence

Which of the following clauses directs the parties to a real estate sales contract to proceed in good faith, and not unduly delay the process? Acceleration clause Indemnification clause Severability clause Time is of the essence clause

Time is of the essence clause

Which of the following statements is true regarding timeshare estates? Timeshare estates are illegal. Timeshare estates can be sold or passed down to heirs. Timeshare estates cannot be passed down to heirs. Timeshare estates cannot be sold.

Timeshare estates can be sold or passed down to heirs.

Which statement correctly identifies a federal fair housing law and what it addresses? The Civil Rights Act of 1866 made it illegal to discriminate on the basis of age and gender. The Fair Housing Act of 1968 attempted to eliminate discrimination based on gender. The Housing and Community Development Act of 1974 added marital status to the list of protected classes. Title VIII of the Civil Rights Act of 1968 prohibits housing discrimination based on race, color, national origin, and religion.

Title VIII of the Civil Rights Act of 1968 prohibits housing discrimination based on race, color, national origin, and religion.

Avery is about to close on his first home. What will protect him from financial loss if his ownership later comes into question? Abstract of title Chain of title Title insurance Title search

Title insurance

Your buyer is worried that after she closes on her property, she'll find out someone else has a claim to its ownership. What can reassure her? Abstract of title Chain of title Title insurance Title search

Title insurance

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

To curb threats to the racial stability of an area.

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document? To detail the amount Lawrence needs to bring to closing To detail the estimated closing costs for Lawrence's loan To disclose the interest rates available on this lender's various loan programs To disclose the lender's source of loan funds

To detail the estimated closing costs for Lawrence's loan

What's the purpose of a buyer representation agreement? To disclose brokerage relationship options to consumers To establish an exclusive agent/buyer relationship To limit the duties a licensee may perform for a consumer To register an agency as a real estate brokerage firm

To establish an exclusive agent/buyer relationship

A town has just assigned a lower-density use zone to an area that previously allowed higher density. What's one reason the town may have done this? To improve property values To increase density in surrounding areas To increase taxes To limit overgrowth

To limit overgrowth

The ease with which the property can be conveyed to another describes which factor that influences value? Demand Scarcity Transferability Utility

Transferability

In a real estate transaction in which you represent the seller, your duty to other parties is to ______. Be honest in all matters that do not affect your client's interests Be polite and courteous Maintain the confidentiality of all matters that other parties disclose to you Treat them honestly and fairly

Treat them honestly and fairly

Which factor that influences value considers the property's function? Demand Scarcity Transferability Utility

Utility

Starla, 35, and Gwen, 32, are going into business! Gwen is buying a share of Starla's franchise. Their attorneys drew up a contract that had Gwen providing $45,000 to Starla in return for 50% ownership. Gwen and Starla happily signed the contract, Gwen paid Starla the $45,000, and Starla presented Gwen with a notarized certificate showing Gwen's 50% ownership in the company. What type of contract is this? Executory Valid Void Voidable

Valid

What's the capitalization formula used in the income approach? Value = cap rate minus income Value = income multiplied by cap rate Value = income plus cap rate Value = net operating income divided by cap rate

Value = net operating income divided by cap rate

Which of these professional activities is NOT covered by the Fair Housing Act? Jonah's real estate firm provides single-agency brokerage services to clients. Marsha, a landlord, owns several multi-unit buildings and rents one or more units daily. Michael is in charge of marketing for his real estate brokerage firm. Vickie's staging company works with investor clients to stage vacant properties.

Vickie's staging company works with investor clients to stage vacant properties.

Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part of a legal business dealing. What kind of contract do Rex and Ben have? Executed Executory Void Voidable

Void

Warren signed a contract with the Samsons for the sale of property he didn't own. What type of contract is this? Enforceable Unilateral Void Voidable

Void

As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this? Implied Incomplete Valid Voidable

Voidable *A voidable contract can be cancelled by one or more parties because it's missing an essential element. In this situation, Melanie, the buyer, has the right to cancel the contract and have her earnest money refunded.

While showing your buyers through a home, you flipped on the light in the powder room and were concerned because the light switch felt warm. Why is this a concern? Warm light switches might mean the house doesn't cool well. Warm light switches might mean the house doesn't heat well. Warm light switches might mean there is an electrical problem. Warm light switches might mean there is a structural problem.

Warm light switches might mean there is an electrical problem.

When does offer and acceptance occur? When both parties sign a contract with a full understanding of the terms. When one party makes an offer on a property, and the seller turns it down. When one party makes an offer to a second party, and the second party makes a counter-offer. When one party signs a contract voluntarily with full understanding of the terms.

When both parties sign a contract with a full understanding of the terms.

Susie's a little nervous about the $20,000 earnest money check she just deposited with the title company. When should she expect to see this money applied toward her purchase of the property? When conditions are met at closing When her mortgage is approved Within 10 days of the home inspection Within six months of closing

When conditions are met at closing

Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered? Whether consent was voluntary Whether the contract has been translated into all possible languages Whether the contract is in writing Whether the parties are over 21

Whether consent was voluntary

Emma is interested in purchasing a property with a big fenced backyard, because her eventual goal is to open an in-home daycare. Which of the following is a zoning issue that you would encourage her to research? How many children she'll legally be able to watch per state guidelines. The kind of fence that is required for daycare playgrounds. Whether or not current regulations permit home-based businesses. Whether she'll need to provide a business plan to lenders for a small business loan.

Whether or not current regulations permit home-based businesses.

Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor? 1 Whether another broker supervises the licensee 2 Whether the brokerage offers regular guidance and instruction to the licensee 3 Whether the firm provides the licensee with a copy of the brokerage's policies and procedures manual 4 Whether the licensee receives benefits from the brokerage firm

Whether the licensee receives benefits from the brokerage firm

Janine, a professional home inspector, notices a lot of small holes burrowed in a home's attic beams. This could indicate the existence of ______. Fire ants Slugs Wood-boring beetles Wood wasps

Wood-boring beetles

Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements? No, because Gus won't be using a real estate professional. No, because there's no transfer of title involved. Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit. Yes, because the bank is also the lender for his home mortgage. If he'd used a different lender, RESPA would not apply.

Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit.

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

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

Selma made her initial offer on Monday. The seller countered it on Tuesday. On Wednesday, Selma sent the seller another counter-offer. On Thursday, the seller backed down and said he was willing to accept Selma's initial offer from Monday. Can this happen? No. Counter-offers negate any previous offers, so at least one term must be different. No. Once the initial offer is rejected, it's dead and new terms need to be negotiated. Yes, as long as someone still has a copy of the initial offer. Yes, but a new counter-offer must be drawn up to include the original offer's terms.

Yes, but a new counter-offer must be drawn up to include the original offer's terms.

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? No, if she knows that Sam will be hard to work with, she should protect her client. No, she's wise to advise the seller to not accept a less-than-listing offer so soon into the listing period. Yes, she failed to disclose the shared commission to Sam. 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.

Your 15-year-old son just signed a contract joining a health club, which costs $50 a month. Is this contract valid? No, the contract is missing a legal object. No, the contract is missing offer and acceptance. No, the contract is void. Yes, the contract is valid.

Yes, the contract is valid.

Ricardo filed a complaint with the Maryland Commission on Civil Rights when he saw Mrs. Jones's rental advertisement for a one-bedroom apartment above her garage. The ad said, "heterosexual tenants only." Mrs. Jones claimed that she is allowed to discriminate because she lives in the home. Does Ricardo have a case? No. Mrs. Jones is exempt because she's renting a unit in her own home. No. Only an actual tenant may file a complaint with MCCR. Yes. Advertising may not discriminate. Yes. Mrs. Jones may not discriminate against homosexuals in Maryland.

Yes. Advertising may not discriminate.

Kennedy tends to be rather informal about her real estate business. Her daughter's teacher, Matthew, tells Kennedy that he'd like her help selling his house. Kennedy agrees and tells Matthew she'll perform all the tasks she'd perform for any listing, though she has no written agency agreement with Matthew. Do Matthew and Kennedy have a legal agreement? No. There's no signed agreement. No. Verbal agreements are illegal. Yes. Express agreements may be verbal or written. Yes. They have a verbal implied agreement.

Yes. Express agreements may be verbal or written.

What is the maximum outcome if you're convicted of having committed a serious violation and your broker is found to have knowledge of it? Both you and your broker will have to take additional education and will be issued citations. You and the broker may both be fined, and you may both have your licenses suspended or revoked. You are fined and could have your license suspended or revoked. Nothing will happen to your employing broker. Your broker's license will be suspended or revoked, and nothing will happen to you since you're just a licensee.

You and the broker may both be fined, and you may both have your licenses suspended or revoked.

Which of these is an example of legal single license dual agency? You represent both the buyer and seller in a single transaction with appropriate consent from both. You represent the buyer and a colleague from your firm represents the seller. You represent the seller and a colleague from another firm represents the buyer. You represent the seller and a colleague from your firm represents the buyer.

You represent both the buyer and seller in a single transaction with appropriate consent from both

You're representing Crystal in the purchase of a house. Crystal has a trust fund and can more than afford the house on which she's made an offer. Which of the following statements is true? Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller. Your duty of disclosure to customers and third parties requires that you disclose Crystal's financial status to the seller. Your duty of honesty and fairness to customers dictates that you must share with the seller Crystal's ability to pay more for the property than she offered. Your duty of working in your client's best interests means you should be showing her properties that are in a higher price range since she can afford it.

Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller.

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? Nothing! That is what the fund is for! You can continue to practice real estate but must pay back the money to the fund at 10% interest. You must pay back the money from the fund at 30% interest from your real estate commissions. 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 buyer, Billy, wants to make an offer on the craftsman house he saw today, but he wants the sellers to start the paperwork for a tax reassessment before closing. This isn't part of the standard sales contract in your area. What will you use to accomplish this request? Addendum Amendment Annotation Appendix

addendum

Which one of the following choices is not protected by federal or Maryland fair housing law, but may be protected by local ordinances in Maryland? Age Disability and gender identity Marital status and familial status National origin and sexual orientation

age

Casey signed a contract form offering a purchase price of $309,000 on Karen's home and gave his agent a $5,000 earnest money deposit. Karen's out of town, though, and her agent can't reach her. At this point what does Casey have? An executory contract An implied contract An offer A voidable contract

an offer

ackson Elementary School is undergoing some major renovations during the summer while school is out of session. The renovation crew has a detailed list of requirements for the disposal and drainage of wastewater and sewage. These requirements are likely part of the ________ with which the renovators must comply. Building code Deed restriction Safety laws Zoning regulation

building code

Natalie is a single mother of twins and receives government assistance to help make ends meet. She's been living with her mother for the last few years but really wants to buy her own home to gain some independence. She's got a little in savings and has good credit, but when a lender turns her away because she receives public assistance she worries that she'll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act

equal credit opportunity act

A buyer, hoping to beat out all other offers, included a clause in the offer that reads, "Buyer to beat all competing offers by $1,000 up to a price of $700,000. Seller to provide copies of competing offer to buyer on acceptance." What type of offer is this an example of? Bad Dynamic Elevator Escalator

escalator

Jarod bought a home in which he has all the rights of ownership, including the right to sell and to convey the property to heirs at his death. What type of fee simple estate is this? Fee simple absolute Fee simple defeasible Fee simple determinable Fee simple subject to a condition

fee simple absolute

Which type of estate gives the owner condition-free interest in a property? This type of estate conveys the highest possible interest. Fee complete Fee simple absolute Fee simple defeasible Free and clear

fee simple absolute

Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true? If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed. If the disability is not obvious, the tenant must provide the landlord with full medical records to support the request. The landlord is not obligated to consider the request unless the tenant can produce either the original or a certified true copy of the animal's service certification. The landlord must consider the request but may require an additional "pet" security deposit.

if the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.

In which of these situations would the property most likely be conveyed with a trustee's deed? Karla is the executor of her father's estate and is selling his farm. Marvin and Tricia are selling their house. Tim's property will be sold at auction in a foreclosure action. TLC Lending is selling an REO property.

im's property will be sold at auction in a foreclosure action.

Todd and Tory sign a contract agreeing to falsify the cost of roofing repairs on Todd's house so Tory can collect more insurance money. Why is this contract invalid? It's not for a legal purpose. The parties are incompetent. There's no consideration. There's no mutual consent.

its not for a legal purpose

calculate commissions

sale price x commission rate

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

the cards must include her name as it appears on her license.

Silvio's buyer client Donna is new to the area and asked him if he could recommend any contractors to install new windows and doors in her new home. Silvio checked the DOL website to make sure the contractor was still licensed, then gave Donna the contractor's contact information. What else does he need to give Donna? The contractor's license number The date Silvio verified the contractor's licensure and the link to the DOL website where Donna can perform a license search The name and contact information of at least one more contractor The number of years that the contractor's been licensed in Maryland

the date Silvio verified the contractor's licensure and the link to the DOL website where Donna can perform a license search

What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form? Five Four Three Two

three

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? Every five years Every six months Every three years Yearly

yearly