Real Estate Maryland CE Shop

Because her agent didn't tell her about the leaking roof he knew about, Dulce's had to pay $20,000 to repair her roof, $8,000 to repair the bedroom ceiling that caved in, $2,000 to repaint the bedroom, $10,000 to replace her ruined furniture and wardrobe, and $10,000 in legal fees pursuing her agent in court. She also wants to get back the $2,500 commission she paid him. How much can she seek from the Guaranty Fund?

$40,000

Fines for performing real estate activities without a license can be as much as

$5,000 for a first offense and as much as $25,000 for third offenses.

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

135

Members of the Maryland Real Estate Commission serve terms of how many years?

4

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

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

What may happen when the Guaranty Fund's balance falls below $250,000?

All licensees may be required to pay a nominal fee at renewal time.

The activities of which Maryland professionals are subject to the commission's Code of Ethics?

All real estate licensees

Unless the real estate licensee who posts the ad is otherwise properly licensed, which of these ads violates PHIFA rules in Maryland?

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

Which of the following is NOT true regarding the Maryland Commission on Civil Rights?

Commission members serve four-year terms.

Mike's a busy listing broker. Luna, one of his associated licensees, had a complaint filed against her. Mike was busy with his own clients, and the commission's response deadline came and went without him noticing. The following week Mike received a new complaint-this time, against him. What is the new complaint likely about?

He failed to cooperate with the commission in its investigation.

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

Her former broker returns them to the commission.

Which of these documents does NOT provide appropriate agency disclosure?

Listing agreement form

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

MREC's open house notice

Who regulates real estate professionals' licenses?

Maryland Real Estate Commission (MREC)

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

The broker's/company's name

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

The license should've also come with a pocket card.

Licensed property managers in Maryland must maintain related records for at least five years, beginning on the date ______.

The property management agreement terminates

Brokers and associate brokers must complete

Three hours each of: legislative updates, agency, and ethics (including a professionalism component) 1.5 hours of fair housing 3 hours of broker supervision 1.5 electives

Salespersons are required to complete 15 hours of continuing education (CE) during every two-year renewal period, consisting of:

Three hours each of: legislative updates, agency, and ethics (including a professionalism component) 1.5 hours of fair housing 4.5 hours of electives

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

Two months

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?

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

Halbert's license was summarily suspended after he was convicted of felony embezzling. He'd like the chance to appeal the decision. Can he?

Yes. He has the right to plead his case in front of the commission.

Associate broker applicants must

addition to the broker requirements, choose a broker with whom to affiliate.

Once an applicant has fulfilled all licensure requirements and applied for a license...

the commission will issue: new licensee a license pocket card

The license and pocket card include

the name of the brokerage firm with whom the licensee is affiliated.

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

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 a sub-agent for the seller

When should a prospective buyer receive a copy of the Maryland Residential Property Disclosure and Disclaimer Statement?

Before or at the time the buyer makes a written offer to the seller

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 $3,000, as well as reasonable attorney's fees

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

Brokers, associate brokers, and salespersons

Which of the following is NOT an example of a legal agency agreement in Maryland?

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?

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

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

What must Maryland sellers provide prospective buyers of homes built prior to 1978, in addition to the appropriate disclosure form?

EPA lead safety pamphlet

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

Employee timecards

In Maryland, how often must real estate salespersons renew their license?

Every two years

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

Federally, Maryland-, and Baltimore City-protected classes

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

Five years

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

Foreclosure consultants

Margaret has been working periodically with Bill, a lukewarm prospective buyer who can't seem to make up his mind about what kind of home he wants. Though he's signed the agency disclosure form, they've never signed an agency agreement, but he calls Margaret up every couple of months, tells her what he's looking for, and she sends him some listings. What other duties does Margaret owe Bill?

Honesty and fairness

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

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

Beverly's broker, Marquis, has assigned her to represent the seller in an in-house transaction. Beverly's colleague, Tyrone, will be representing the buyer. What's Beverly's role in this transaction?

Intra-company agent

James is a real estate licensee in Maryland. A complaint has been brought against James by the Commission on Civil Rights for a fair housing violation. Which of the following is true?

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

Ellen just completed a whirlwind continuing education marathon, taking all 15 of her required CE hours in the span of one weekend with a company called Last Minute Real Estate Education. It's just in the nick of time, too: Ellen's license is set to expire the following week. How will the CE hours get reported to the commission?

Last Minute Real Estate Education must electronically submit Ellen's completion data to the commission.

Which of the following is NOT true regarding compensation and Maryland licensees?

Licensees may not share commissions with licensees in other states, even if their brokers know about it.

What would need a real estate license in Maryland?

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

Pamela has had her real estate broker's license for years. Which agency regulates the rules and requirements Pamela must follow to keep her license?

Maryland Real Estate Commission

What is the name of the organization that has the authority to impose penalties of up to $25,000 for real estate license law violations?

Maryland Real Estate Commission

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?

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

Padma's buyer client made an offer on Tom's seller client's home, which the seller countered. Padma's client sent another counter-offer back to the seller on Monday. On Tuesday, Tom called Padma to tell her that the seller was accepting her client's offer, and he'd send over the signed paperwork on Thursday. Padma called her client to tell him the good news, but he told her he'd rather back out of the contract entirely. Can the buyer back out?

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

Fumiko hosted an open house for her new seller client. She gave away door prizes to attendees, including pens, mousepads, USB drives, and other items with her brokerage's contact information on them. Did Fumiko do anything wrong?

No. She didn't do anything wrong.

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

What's it called when a licensee tries to induce sales by predicting a decline in market value?

Panic selling

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

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

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 may request a hearing to appeal the summary revocation.

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

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

Aurelia is a relatively new salesperson who has been accused of discriminating against minorities in her real estate advertising. Which of the following is NOT a possible outcome if she's found guilty?

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

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 $20 Guaranty Fund fee

Marjorie has been a licensed broker in Maryland for 45 years. She's sick of having to go through the renewal process every two years and wants to petition to allow seasoned licensees like her to renew every four years instead. Which entity should Marjorie contact about this idea?

The Maryland Real Estate Commission

Which of these is NOT a circumstance that would result in a Maryland broker releasing trust money she was holding?

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

DeShawn has been licensed as a salesperson in Maryland for 18 months. Which of the following statements is true about his upcoming license renewal?

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

Tiara's Maryland salesperson's license is going to expire next week if she doesn't complete all of the required continuing education hours. She's completed three hours of agency, three hours of legislative updates, 1.5 hours of fair housing, and three hours of electives. What other coursework does she need to complete in order to renew her license?

Three hours of ethics (including professionalism) and 1.5 more hours of electives

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.

Paul is hoping to purchase a townhouse in Locust Point in Baltimore, and Shelly, a salesperson, is helping him fill in the blanks on the contract form before he makes his offer. Though Shelly doesn't have an agency agreement with Paul, she knows she'll still get paid since the seller has agreed to compensate sub-agents. What else does Shelly need to do?

Use the agency disclosure form to inform Paul that she's a sub-agent and technically represents the seller.

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

Within three years

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?

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

Shawn and his life partner, Dennis, recently put an in an offer on a home. The seller tells his agent to reject the offer, because he won't sell to "gays." Are Shawn and Dennis protected under fair housing laws?

Yes, under state fair housing laws

What is the maximum penalty if you're convicted of committing a serious violation and your broker is found to have knowledge of it?

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

Broker applicants must be

active real estate salespersons for at least three years immediately prior to licensure as a broker complete a 135-hour licensing course, and pass the broker exam.

Property managers Persons acting per a court order Public officers performing their official duties Persons granted a power of attorney to sell or lease a single property Licensed auctioneers selling real estate at a public auction Persons selling or leasing their own property, unless it's their primary business Persons acting as a receiver, trustee, personal representative, or guardian

are exempt from the licensure requirement

In Maryland, listing agreements and their associated disclosure forms must be kept on file with the broker for a minimum of ______.

five years

Real estate salespersons must

good character reputation be at least 18 years old complete a 60-hour licensing course pass the salesperson exam choose a broker with whom to affiliate.

Brokers who wish to operate more than one brokerage must

have a separate license for each location.