Maryland State Exam

Kelly represents the seller of a three-bedroom townhome in Aberdeen. The seller has already consented to dual agency. Joyce, another salesperson at Kelly's firm, has a buyer who's interested in making an offer. What needs to happen next? A) Both parties must affirm consent to dual agency. B) One of the licensees must refer their client to an outside firm. C) The seller has already given consent, so only the buyer must consent to dual agency. D) The seller must sign the dual agency consent form.

A) Both parties must affirm consent to dual agency.

Members of the Maryland Real Estate Commission serve terms of how many years? A) Four B) Nine C) Seven D) Two

A) Four

Identify which of these actions is a prohibited activity for a real estate licensee in Maryland. A) Increasing the rent and security deposit for a family with seven children. B) Informing a potential renter than the bathroom in a unit does not currently meet ADA standards. C) Presenting an offer from a non-protected class to a seller client when a member of a protected class has already made an offer. D) Showing a unit that was built before 1991 and has not been retrofitted to ADA standards.

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

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

B) Every two years

Fatima, a salesperson, is hosting an open house in Annapolis for her seller client Ramona. Two interested buyers come in, and after Fatima gives them a tour they tell her they'd like her to represent them in making an offer. Since her seller client has already consented to dual agency, she gladly offers to represent the buyers and helps them write an offer right there at the open house, making sure that they also sign a Consent for Dual Agency form. What's wrong with this scenario? A) Fatima doesn't need them to sign the Consent for Dual Agency form since her seller client already has. B) Fatima isn't permitted to act as a dual agent. C) Fatima must wait until the open house is finished to have her new clients sign the Consent for Dual Agency form. D) Fatima needs to reaffirm the seller's dual agency consent before she can help the buyers make their offer.

B) Fatima isn't permitted to act as a dual agent.

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? A) The contractor's license number B) The date Silvio verified the contractor's licensure and the link to the DOL website where Donna can perform a license search C) The name and contact information of at least one more contractor D) The number of years that the contractor's been licensed in Maryland

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

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

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

New Maryland licensees pay a fee into the Guaranty Fund to help maintain it. What is the amount of the fee? A) $100 B) $120 C) $20 D) $50

C) $20

What is the amount of the one-time fee that each new Maryland licensee pays into the Guaranty Fund? A) $100 B) $120 C) $20 D) $60

C) $20

In Maryland, how many hours of approved real estate courses must an individual complete before taking the real estate salesperson exam? A) 120 B) 30 C) 60 D) 75

C) 60

The activities of which Maryland professionals are subject to the commission's Code of Ethics? A) All commission employees B) All lenders and title companies C) All real estate licensees D) All state employees

C) All real estate licensees

Which of the following is NOT a penalty that the Maryland Real Estate Commission may impose upon a licensee who violated the Maryland Code of Ethics? A) Fines B) Formal reprimand C) Jail time D) License suspension/revocation

C) Jail time

Which of these documents does NOT provide appropriate agency disclosure? A) Consent for Dual Agency form B) Dual Agency Within a Team form C) Listing agreement form D) Understanding Whom Real Estate Agents Represent form

C) Listing agreement form

You (a Maryland licensee) represent April, the seller, who is your Uncle Clyde's girlfriend. You receive an offer from Barry on behalf of a prospective buyer. Whose interests do you represent, and in what order? A) April's first, then Clyde's, then Barry's B) Clyde's first, then April's, but not Barry's C) Only April's D) Your Uncle Clyde's first, then April's, then Barry's

C) Only April's

Ruthe is fed up with her agent's lazy and irresponsible behavior. On top of his usual incompetence, her checking account was just hacked because he misplaced her $10,000 EMD check. She's lost $5,000 and has to pay $50 in bank fees, too. With which entity should she file a complaint? A) The chamber of commerce B) The Guaranty Fund C) The Maryland Real Estate Commission D) The state attorney general

C) The Maryland Real Estate Commission

What is the maximum amount a claimant can receive from the Guaranty Fund for a single transaction? A) $1,000 B) $10,000 C) $100,000 D) $50,000

D) $50,000

The Maryland Code of Ethics is divided into three sections: relations to ______, relations to clients, and relations with other licensees. A) Financial organizations B) Other professions C) Sponsoring brokers D) The public

D) The public

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? A) No. There is no federal or state fair housing protection based on a person's sexual orientation. B) Yes, under both federal and state fair housing laws C) Yes, under federal fair housing laws D) Yes, under state fair housing laws

D) Yes, under state fair housing laws

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

A) "Roger Kelly"

Because Lisa's agent didn't inform her that she needed to pull a permit to build a deck off the back of her home, she spent $11,000 having it installed, $7,000 having it removed when the homeowners association discovered she didn't pull a permit, and another $5,000 in legal fees fighting her agent in court over it. How much money is she entitled to seek from the Guaranty Fund? A) $18,000 B) $23,000 C) $5,000 D) $50,000

A) $18,000

In order to qualify as one of the five real estate professional members of the Maryland Real Estate Commission board, how many years of real estate experience must you have? A) 10 B) Five C) Seven D) Six

A) 10

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

A) 135

Which of these written counter-offers would the offeror be able to withdraw? A) A counter-offer sent 10 days ago with no response B) 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 C) A counter-offer that the offeree signed and returned to the offeror D) A counter-offer that the offeree verbally accepted

A) A counter-offer sent 10 days ago with no response

Ebony is a licensed real estate salesperson in Maryland. Which of the following does she NOT need to submit to the commission as part of her license renewal? A) A credit report B) Proof of broker affiliation C) Proof of continuing education completion D) Renewal application and fee

A) A credit report

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

A) A daughter whose father granted her power of attorney to sell his home

Antonia just got her salesperson's license and is selling a home that's been in her family for four generations. She's done a lot of work rehabbing it and is looking forward to seeing it pay off in a nice commission check once it sells. She and her brother are both on the title. What does she need to include in the listing paperwork and disclosures? A) A disclosure that she's a real estate licensee and has a personal interest in the sale B) An addendum giving her permission to serve as signatory C) Copies of receipts for the rehab work she performed D) Proof that she and her brother are the only ones on the title

A) A disclosure that she's a real estate licensee and has a personal interest in the sale

Harry, a real estate licensee, tells a seller, "I'll be surprised if you get $100,000 for this place. I won't charge you anything to list it, but anything you get above $100,000 goes to me. Deal?" This is an example of ______. A) A net listing agreement B) Contractual interference C) Failure to disclose an agency relationship D) Practicing law without a license

A) A net listing agreement

Raul, a broker licensed in Maryland, has just signed on to manage a landlord's 15-unit apartment building. Which of the following tasks may Raul NOT perform without the owner's express knowledge and consent? A) Accept a rebate from the laundry machine company. B) Collect each tenant's rent on the first of the month. C) Maintain the building's landscaping. D) Return security deposits to tenants after they move out.

A) Accept a rebate from the laundry machine company.

You just sold your very first house! You decide to cash the commission check directly and then give the remainder to your affiliate broker. What type of violation have you just committed? A) Accepting commissions other than through your broker B) Conflict of interest C) Failure to provide transactional paperwork D) Misrepresentation

A) Accepting commissions other than through your broker

With whom may Maryland broker Ruthe NOT share her commission? A) Adesha, a broker in a state with which Maryland does not allow interstate compensation sharing, once the arrangement is disclosed to both state's commissions B) Charlene, a broker in a neighboring county C) Felix, a broker who lives in a state that has a reciprocity agreement with Maryland D) Mario, a broker within Ruthe's brokerage firm

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

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? A) Age B) Disability and gender identity C) Marital status and familial status D) National origin and sexual orientation

A) Age

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? A) Antoine B) Brett C) Mike D) Yvonne

A) Antoine

Which licensee has violated Maryland license law concerning the use of unlicensed assistants? A) Antonio paid his assistant $100 for staying late one evening to help a client fill out an offer form when Antonio had to leave unexpectedly. B) Broker Sloane hired an assistant to answer phones, process contract paperwork, and create MLS listings for his approval. C) Reid has two assistants; one he pays an annual salary, and the other he pays by the hour. D) Stevie gave his assistant a $1,000 bonus because of all the hard work she did getting the firm's records management system up to par.

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

Which of the following statements about latent defects is true? A) Any party to a real estate sales transaction who has knowledge of latent defects must disclose them. B) In Maryland, sellers are not required to voluntarily disclose latent defects to prospective buyers. C) Latent defects are material facts that are often uncovered during an ordinary inspection. D) The buyer is responsible for uncovering latent defects through a home inspection.

A) Any party to a real estate sales transaction who has knowledge of latent defects must disclose them.

In Maryland, how and when must you present the Consent for Dual Agency form to the seller? A) As part of completing the listing agreement and again if a dual agency situation arises and you need the seller to reaffirm her consent B) Just once—as part of completing the listing agreement to obtain the seller's informed consent for dual agency C) Only when a buyer client wants to make an offer on one of your listings D) Only when a dual agency situation arises and the seller didn't consent to dual agency representation initially

A) As part of completing the listing agreement and again if a dual agency situation arises and you need the seller to reaffirm her consent

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

A) At the open house

When should a prospective buyer receive a copy of the Maryland Residential Property Disclosure and Disclaimer Statement? A) Before or at the time the buyer makes a written offer to the seller B) Just prior to the home inspection if the buyer has elected to have an inspection done C) No later than five days after the buyer and seller have signed the contract of sale D) No later than two weeks before closing

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

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? A) Bob and Janine only B) Suzie and either Bob or Janine C) Suzie, Bob, and Janine D) Suzie only

A) Bob and Janine only

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? A) Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined. B) Jennifer is, because she hired Suzanne. C) Jennifer's broker is, because the broker has ultimate responsibility for all brokerage staff. D) Suzanne is, because she knew she was performing tasks that required a license.

A) 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? A) Both brokers need to send a letter to the commission stating their approval of the arrangement and that there is no conflict of interest. B) He can't work for more than one broker at a time. C) He needs to send the commission a letter requesting dual licensure. D) He needs to submit proof to the commission that both brokerages will benefit from his dual licensure.

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

Fresh out of community college and newly licensed as a real estate salesperson, Ben just took on a short sale as his first listing. Ben told his broker, Janine, that he could handle the transaction and had just advised his seller client that he could do it with minimal damage to the client's credit rating. Janine immediately took Ben off the listing and assigned it to a more experienced licensee. Why? A) By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure. B) New salespersons aren't permitted to take on listings until after the 90-day probationary period. C) Salespersons must get their broker's permission before accepting a short sale listing or offering on a short sale property. D) Short sales may only be listed by brokers or associate brokers.

A) By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure.

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? A) Chandler needs to complete the same licensure requirements as other Maryland salesperson candidates and submit an irrevocable consent form. B) Chandler needs to pass both the national and Maryland licensing exams and submit an irrevocable consent form. C) Chandler needs to receive commission approval before completing any licensure requirements. D) 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.

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

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

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

Which of the following is NOT true regarding the Maryland Commission on Civil Rights? A) Commission members serve four-year terms. B) The commission is made up of nine members. C) The commission is managed by an executive director. D) The governor appoints members to the commission.

A) Commission members serve four-year terms.

In addition to your name, what must be included in any advertising? A) Designated name of your brokerage firm B) Fax number C) Licensee photo D) Number of years you've held a license

A) Designated name of your brokerage firm

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

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

Corita is a salesperson with Maryland's Best Realty and is slammed with clients right now; so much so that she wants another agent with her firm, Spencer, to handle listing Corita's own home. What does Spencer need to make sure to do? A) Disclose that he and Corita work together at the same firm. B) Get their broker's approval. C) Have interested buyer's agents contact Corita directly, since she's licensed and knows the most about the property. D) Split his commission with Corita.

A) Disclose that he and Corita work together at the same firm.

Seth is a Maryland licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property? A) Dora doesn't use the back door because the steps leading to the yard are rotted. B) Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds. C) The neighborhood kids like to ride their bikes in Dora's driveway. D) The pink geraniums in the window boxes are fake.

A) Dora doesn't use the back door because the steps leading to the yard are rotted.

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

A) 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? A) Employee timecards B) Forms that each licensee signed stating that they'd received the firm's policies and procedures manual C) Meeting sign-in sheets that licensees signed D) Records that Bobbi reviewed advertising

A) Employee timecards

In Maryland, unless a prior business relationship exists, it is illegal to commercially solicit using what means? A) Fax machine B) Flyers C) For Sale signs D) Telephone

A) Fax machine

In Maryland, you could be fined up to $1,000 per solicitation if you use this method to advertise and a prior business relationship does not exist. A) Fax machine B) Flyers C) For Sale signs D) Telephone

A) Fax machine

In order to qualify as one of the ______ real estate professional members of the Maryland Real Estate Commission, you must have 10 years of real estate experience as a licensee. A) Five B) Seven C) Six D) Ten

A) Five

In Maryland, listing agreements and their associated disclosure forms must be kept on file with the broker for a minimum of ______. A) Five years B) One year C) Six months D) Three years

A) Five years

Your client and you just successfully closed on a home. Early on in the transaction you collected an agency disclosure notice. How long do you have to keep the notice on file? A) Five years B) Four years C) Three years D) Two years

A) Five years

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? A) Forward it to the Maryland Commission on Civil Rights. B) Forward it to the Maryland Real Estate Commission. C) Investigate it and report the findings to Jameel within 180 days. D) Investigate it and report the findings to the Maryland Real Estate Commission within 180 days.

A) Forward it to the Maryland Commission on Civil Rights.

Rumi was on vacation in St. Croix when he received a written offer, via email, for his seller client's property, which had been on the market for two months with no offers. He decided to hold onto it until he got back a week later, so he could present it to his client in person. The next day, his seller client called Rumi's office to cancel the listing. When Rumi told the former client that he'd had an offer, she complained to MREC about him. What are the possible penalties Rumi could face? A) He could be disciplined by the commission and receive a possible lawsuit for intentional interference. B) None; since the client cancelled the listing, Rumi is not at fault. C) Rumi could be subject to disciplinary action from local board of REALTORS®. D) Rumi could receive disciplinary action from the commission, including jail time.

A) He could be disciplined by the commission and receive a possible lawsuit for intentional interference.

Dexter has been managing Holly's 10-unit apartment building for five years. Holly's on vacation in Europe for a month, but before she left she approved Dexter's plan to sell six of the building's washing machines in order to buy new ones. Dexter got a great deal from the hardware store because his cousin is the manager and there ended up being a surplus of $1,000. Dexter deposited the surplus into his personal account as a bonus to himself for striking such a good deal. What did Dexter do wrong? A) He didn't get Holly's approval before pocketing the profits from the sale of the washers. B) He didn't get Holly's approval of the sale prices before selling the washing machines. C) He didn't split the surplus among the building's tenants. D) He used a personal connection with the hardware store to strike a better deal.

A) He didn't get Holly's approval before pocketing the profits from the sale of the washers.

Stanley, a broker, received notice from the Maryland Real Estate Commission that it was summarily suspending his license. What's the most likely reason that his license was immediately suspended? A) He didn't provide the commission with trust account records. B) He failed to pay his license renewal fee on time. C) He failed to report that he was charged with a misdemeanor last week. D) He held onto an earnest money check until the offer had been accepted.

A) He didn't provide the commission with trust account records.

Hiram, a broker, is part owner of a real estate investment group that wants to unload some of its portfolio and the group wants Hiram to list the properties. What percentage of ownership interest would Hiram need to have in order to avoid having to disclose his licensed status? A) Hiram has to disclose his personal interest no matter how much of an ownership interest he has. B) Less than 25% C) Less than 5% D) Less than 50%

A) Hiram has to disclose his personal interest no matter how much of an ownership interest he has.

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 ______. A) If DeMarcus's failure could result in the contract becoming voidable B) Only if Ross decides to press charges against him C) Only if there are significant defects in the property D) Unless DeMarcus thought the seller would provide it within five days of offer acceptance

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

Tom and Rosanne are interested in a property in Maryland, but before making an offer, they want to make sure there aren't any registered sex offenders living in the neighborhood. Which statement is most accurate? A) It's up to the buyer to perform due diligence and research whether sex offenders live in the area. Licensees can direct clients to the state's registry. B) Sex offender information is not public, and a seller is not required to disclose it. C) The licensee must research the neighborhood to determine if there are any registered sex offenders. D) The seller must disclose the location of any nearby sex offenders.

A) It's up to the buyer to perform due diligence and research whether sex offenders live in the area. Licensees can direct clients to the state's registry.

Which of the following situations is a violation of Maryland fair housing laws? A) Jack refuses to rent a unit in the six-unit apartment building he owns and in which he lives to a transgender woman named Jane. B) Property owner Cali discovers through a background check that a potential tenant has been convicted of manufacturing methamphetamines, and refuses to rent to him. C) The Kyles, a family of 10, apply to rent a studio apartment that has a maximum occupancy limit of three people. Their application is rejected because they exceed the occupancy limits. D) Tony and Joan own a duplex; they live in one half of it, and rent the other half to a retired couple. They raise the rent $15 a year upon the annual lease renewal.

A) Jack refuses to rent a unit in the six-unit apartment building he owns and in which he lives to a transgender woman named Jane.

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

A) License revocation

In Maryland, transaction records may be stored electronically as long as ______. A) Licensees are able to provide a paper copy upon commission request B) The electronic storage system has unlimited capacity C) The storage system used is on the commission's approved systems list D) They're stored for at least six years

A) Licensees are able to provide a paper copy upon commission request

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

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

Which of these parties likely does NOT have the right to sue for commission earned as part of a Maryland real estate transaction? A) Mario, an unlicensed assistant who filled in for salesperson Todd and showed buyer Theresa the property she ended up buying B) Poppy, a salesperson whose client refused to pay her commission even though she showed him the property he bought during the term of their agency agreement C) Tatum, a licensed assistant who acted as a sub-agent for her broker's seller client and hosted several open houses D) Zander, a broker who procured a list-price buyer for his seller client, but the seller declined the offer and cancelled the listing

A) Mario, an unlicensed assistant who filled in for salesperson Todd and showed buyer Theresa the property she ended up buying

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? A) Monica cannot tell others about Brian's HIV status. B) Monica should not be the listing agent for her friend. C) Monica should purchase Brian's property. D) Monica should tell all prospective buyers that the seller has HIV.

A) Monica cannot tell others about Brian's HIV status.

Landon is the listing agent for Maury's property. Maury is moving out of state for a new job, so the house will be vacant for some time, depending on how long it takes to sell. Maury is pretty adamant about not having a sign in his yard, especially after he moves. Landon follows Maury's wishes, but a month after Maury moved, there hasn't been any movement on the property. Landon places a sign in the yard, hoping it will drum up some interest. Is this okay? A) No, Landon shouldn't place a sign on Maury's property without Maury's written permission. B) No, Maury's neighbors might tattle. C) Yes, as the listing agent, Landon has the right to place a sign on the properties he has listed. D) Yes, since Maury has moved, Landon can make decisions related to the property.

A) No, Landon shouldn't place a sign on Maury's property without Maury's written permission.

Carmelita is a licensee selling a condo. She has the owner's permission to place a for sale sign in front of the unit. As she pounds the sign into the ground, a condo board representative approaches her and informs her that condo regulations forbid signage. Can Carmelita come back later and place the sign anyway? A) No, she must conform to condo regulations. B) Yes, if she comes at night and no one sees her. C) Yes, she has the owner's consent. D) Yes, the condo board can't tell her what to do!

A) No, she must conform to condo regulations.

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

A) Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days

Under what conditions can licensees contact sellers who are under an exclusive listing agreement with another agent? A) Only to arrange a showing to a buyer B) To inform them that they will probably not be happy with the other agent C) To let them know that they can provide the seller with an appraisal that may allow them to raise their asking price D) To persuade them to break their contract with the other agent

A) Only to arrange a showing to a buyer

Which of the following statements about how a listing agreement can be terminated in Maryland is true? A) Per Maryland law, all listing agreements must contain a provision for the early cancellation of the agreement by either the broker or the seller. B) Per Maryland law, only the broker may terminate a listing agreement before performance of the contract. C) Per Maryland law, only the seller may terminate a listing agreement before performance of the contract. D) There is no early termination provision in a Maryland listing agreement.

A) Per Maryland law, all listing agreements must contain a provision for the early cancellation of the agreement by either the broker or the seller.

Sam is an independent contractor Maryland licensee working for B & L Realty. Since Sam is an independent contractor, what supervisory responsibility does Sam's broker have? A) Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes. B) Sam may elect whether or not to accept supervisory action from his broker. C) The IRS makes an exception for licensed independent contractors and allows Sam's supervisor to supervise Sam as he would any other employee. D) To maintain Sam's independent contractor status, the broker is prohibited from supervising Sam.

A) Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes.

Monica's business is booming. She's representing an owner who's selling a $500,000 home on one side of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens, the seller and buyer both know each other from church and have been talking to others about Monica's talents, which has brought in several new leads for her to pursue. What type of agency relationship does Monica have with the seller and buyer? A) She is each party's single agent. B) She's a dual agent, since the seller and buyer know each other. C) She's the buyer's agent and the seller's sub-agent. D) She's the seller's agent and the buyer's sub-agent.

A) She is each party's single agent.

Susan is a real estate licensee. Her mother is moving to a facility for active seniors and has asked Susan to sell her home. What information does Susan need to disclose to prospective buyers? A) She is related to the seller (her mother). B) Susan doesn't need to disclose any of these things. C) Susan's father passed away in the house. D) The seller is moving to a senior living facility.

A) She is related to the seller (her mother).

Why does the Maryland Code of Ethics require that licensees stay abreast of current market conditions? A) So they can competently advise clients about fair market value/price B) So they can pass their license renewal exam C) To eliminate the risk of misrepresentation D) To prevent properties from selling for less than market value

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

Chelsea represents the buyer of a For Sale by Owner townhome in Bowie. When the seller stops by Chelsea's office to deliver the homeowners association resale packet, the two get to chatting. What does Chelsea need to make sure to tell the seller? A) That Chelsea may share any information the seller tells her with her buyer client B) That Chelsea will hold anything the seller tells her in the strictest confidence C) That the buyer will return the resale packet to the seller as soon as he's had time to review it D) That the HOA packet should've been delivered directly to the buyer

A) That Chelsea may share any information the seller tells her with her buyer client

What item(s) must be included on ALL real estate advertising in Maryland? A) The broker's/company's name B) The broker's/company's name and address C) The broker's/company's name and license number D) The broker's/company's name and phone number

A) The broker's/company's name

According to Maryland disclosure guidelines, upon which of the following events is it NOT appropriate to give the buyer the opportunity to review the seller's disclosure/disclaimer statement? A) The day of the home inspection B) When the buyer expresses interest in purchasing the property C) When the buyer makes an offer D) When the property goes on the market

A) The day of the home inspection

Ned is a Maryland listing agent who has learned of a material fact related to the transaction. To whom and when must he disclose this information? A) To all parties as soon as possible B) To the seller and buyer as soon as possible, provided his firm represents both parties C) To the seller as soon as possible; to the buyer prior to closing D) To the seller prior to closing

A) To all parties as soon as possible

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

A) To curb threats to the racial stability of an area.

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? A) $10,000 B) $15,000 C) $20,000 D) $5,000

B) $15,000

One of the reasons Leeloo got her real estate license was so that she'd have the inside track in purchasing investment properties for her other business as a fix-and-flipper. She's offering on a run-down rowhome in Gaithersburg under her LLC, Fifth Element Homes. What does she need to remember to submit along with her offer? A) A copy of her LLC's operating agreement B) A disclosure that she's a licensed real estate professional and has a personal interest in the sale C) Proof that she is a signatory for the LLC D) The approximate budget for any renovations she plans to make

B) A disclosure that she's a licensed real estate professional and has a personal interest in the sale

Charlotte, an associate broker, has finally saved up enough of her commission earnings to buy an oceanfront condo in Ocean City. Assuming that she's made all of the necessary disclosures and included all the necessary paperwork with her offer, what do we know she sent to the seller's agent? A) A bank statement showing she has enough to cover the down payment B) A disclosure that she's a real estate licensee C) An earnest money deposit for at least 5% of the offer price D) A signed receipt showing she received a copy of the condo resale packet.

B) A disclosure that she's a real estate licensee

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? A) Affidavit of signed consent and approval B) Affiliation with a supervising broker C) An additional 20 hours of education D) An irrevocable consent form

B) Affiliation with a supervising broker

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

B) All Maryland 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? A) An ad that targets first-time homebuyers who are eligible for VA loans B) An ad that targets homeowners in danger of foreclosure and indicates the licensee can offer guidance C) An ad that targets individuals who are age 55 or older and may qualify for a reverse mortgage D) An ad that targets low-income individuals in need of down payment assistance

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

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

B) Annual ground rent plus the full cost of capitalization

Craig, a broker, has been accused of multiple counts of misrepresentation and fraud. MREC has called a hearing before an administrative law judge. Which parties may attend the hearing? A) Anyone may attend, as long as they're licensed. B) Anyone may attend, since MREC hearings are open to the public. C) The hearing is restricted to Craig, the complainants, and their attorneys. D) The hearing is restricted to Craig, the complainants, their attorneys, and any subpoenaed witnesses.

B) Anyone may attend, since MREC hearings are open to the public.

Which of these incentives would be legal according to Maryland license law? A) After hosting a buyer education seminar, Khaaliq announces that anyone who signs an agency agreement with him that day will be entered to win a long weekend at a ski resort. B) Ben runs a "Spring into Summer" ad offering sellers a reduced commission rate for the next three months. C) Karen runs a "Clean Up the Competition" ad saying she'll buy a new washer/dryer set for the first 10 buyers who sign an agency agreement with her. D) Stanley's client can't decide between two properties; Stanley knows the first property is best for his client, so he offers to waive his admin fee if his client offers on that one.

B) Ben runs a "Spring into Summer" ad offering sellers a reduced commission rate for the next three months.

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

B) 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? A) Associate brokers only B) Brokers, associate brokers, and salespersons C) Brokers only D) Salespersons only

B) Brokers, associate brokers, and salespersons

Carmen is a new licensee who wants to drum up some business for herself. There are a lot of high-end homes in her area and she would love to cash a commission check for selling one of them. She sees a few for sale signs and thinks perhaps she could convince the sellers to drop their current agent and allow her to represent them. Which of the following is true? A) Carmen can contact the sellers if they have an exclusive listing agreement. B) Carmen may not try to persuade sellers to break the contract they have with another agent. C) Carmen may try to convince the sellers to break their contract with the other agent and sign with her instead if they have an exclusive listing agreement. D) Carmen should look up the listings on the MLS and then prepare an appraisal at a higher value in order to persuade the sellers to sign with her.

B) Carmen may not try to persuade sellers to break the contract they have with another agent.

When ______ in Maryland, you must submit a statement of affiliation from the new broker and a statement of affiliation termination from the former broker along with your transfer application. A) Becoming affiliated with a second broker B) Changing brokers C) Moving to a home outside the current brokerage's business area D) Obtaining an additional license

B) Changing brokers

Assuming that the following individuals only carry a real estate license, who is in violation of the foreclosure consultation parameters set forth in PHIFA? A) Benji listed a seller client's short sale property on the MLS and identified it as a short sale in all marketing materials. B) Clint's former buyer client lost her home to foreclosure. When the lender filed a deficiency judgment against her, Clint advised her how to proceed. C) Tiffany conducted a comparative market analysis for a short sale seller client and determined that the property's value is $50,000 less than what her client owed on his mortgage. D) When Marin's seller client said that she was thinking about pursuing a deed in lieu of foreclosure instead of a short sale, Marin referred her to a foreclosure consultant.

B) Clint's former buyer client lost her home to foreclosure. When the lender filed a deficiency judgment against her, Clint advised her how to proceed.

Which of the following is NOT an example of a legal agency agreement in Maryland? A) Cybill enters into a listing agreement with Antwon and agrees to pay him 5% of the property's purchase price. B) 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. C) 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. D) Paulo enters into a buyer agency agreement with Danika and agrees to pay her 1% of the purchase price.

B) 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.

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

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

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

B) Duplex built in 1959

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

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

In Maryland, the Protection of Homeowners in Foreclosure Act describes the role of and sets guidelines for the actions of ______. A) Fannie Mae B) Foreclosure consultants C) Lenders D) Short sale agents

B) Foreclosure consultants

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? A) He didn't make sure that Luna responded to the commission's notice. B) He failed to cooperate with the commission in its investigation. C) He failed to present himself before the commission. D) He failed to properly supervise his affiliated licensees.

B) He failed to cooperate with the commission in its investigation.

Chester is moving on up! He and his wife are ready to sell their condo and purchase a new place. Chester is a real estate licensee and will list the property himself. What must Chester disclose to prospective buyers? A) Chester doesn't need to disclose anything to buyers. B) He owns the property. C) The sellers are eager to sell. D) The sellers will not accept any offers below $300,000.

B) He owns the property.

Which of these is NOT a power of the Maryland Real Estate Commission? A) Adopt reasonable bylaws and regulations regarding real estate practice and licensee conduct B) Impose jail sentences of up to six months on licensees who commit multiple serious license law violations C) Investigate complaints against real estate licensees or unlicensed individuals who are allegedly practicing real estate D) Oversee license application, issuance, and renewal

B) Impose jail sentences of up to six months on licensees who commit multiple serious license law violations

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? A) Dual agent B) Intra-company agent C) Non-agent D) Sub-agent

B) Intra-company agent

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

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

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? A) James could be fined, but will definitely keep his license. B) James could be sanctioned by both the Commission on Civil Rights and the real estate commission. C) The Civil Rights Commission could revoke James' real estate license. D) The Commission on Civil Rights cannot bring a civil action against James.

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

Shelby listed her seller client's condo on April 4. It went under contract May 16. That contract fell through on May 29. The listing agreement expired on July 4, with no other offers or contracts. On what date does the five-year record-retention clock start ticking? A) April 4 B) July 4 C) May 16 D) May 29

B) July 4

Fabio just received his broker's license and is striking out on his own after 15 years as a salesperson. He's registered his firm with the commission and is setting up his firm's bank accounts. What must he make sure to do in order to comply with Maryland law regarding trust accounts? A) Maintain the accounts at a bank within 25 miles of his main office. B) Maintain the accounts at a federally insured financial institution in Maryland. C) Name himself and at least one other person as signatories on the trust account. D) Open an interest-bearing account to hold trust funds.

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

You are the buyer's agent and are meeting with the unrepresented seller for the first time. You present the seller with the Understanding Whom Real Estate Agents Represent form and explain that you represent the buyer. You then ask the seller to acknowledge receipt of the agency disclosure, but the seller refuses to sign the form. What do you do? A) Explain to the seller that unless the disclosure is acknowledged, the transaction cannot continue. B) Make note of the seller's refusal on the agency disclosure, being sure to include the date when you presented it to the person. C) Tell the seller that they are required by law to sign the form. D) Throw up your hands in disgust and storm out of the room.

B) Make note of the seller's refusal on the agency disclosure, being sure to include the date when you presented it to the person.

Jose signed a listing agreement with Mary. A day later, Mary's co-worker, Tracey, showed Jose a property that he's interested in buying once his home sells. A week after that, Rachel submitted an offer on Jose's property on behalf of his buyer client. Who is Jose's agent? A) Jose doesn't have an agent B) Mary C) Rachel D) Tracey

B) Mary

Who or what entity has the power to seek civil action and/or injunctions against parties who violate Maryland fair housing law? A) Governor's office B) Maryland Commission on Civil Rights C) Maryland General Assembly D) State attorney general

B) Maryland Commission on Civil Rights

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? A) Maryland Attorney General B) Maryland Real Estate Commission C) Real Estate Licensing Commission D) U.S. Board of Real Estate Licensees

B) Maryland Real Estate Commission

Roger is an unlicensed assistant in Dave's Maryland office. He performs tasks for several of the firm's licensees. Katherine is a licensed assistant, and she performs tasks for three of the firm's independent contractor licensees. The firm's broker, Michaela, has her own licensed assistant. Which of these statements best represents Michaela's liability for the acts of all these assistants? A) Michaela is only responsible only for her own personal assistant. B) Michaela is responsible for all licensees and employees associated with the firm. C) Michaela is responsible only for the licensed assistants. D) Michaela is ultimately responsible for her assistant and for Roger (the unlicensed assistant).

B) Michaela is responsible for all licensees and employees

Roger is an unlicensed assistant in Dave's Maryland office. He performs tasks for several of the firm's licensees. Katherine is a licensed assistant, and she performs tasks for three of the firm's independent contractor licensees. The firm's broker, Michaela, has her own licensed assistant. Which of these statements best represents Michaela's liability for the acts of all these assistants? A) Michaela is only responsible only for her own personal assistant. B) Michaela is responsible for all licensees and employees associated with the firm. C) Michaela is responsible only for the licensed assistants. D) Michaela is ultimately responsible for her assistant and for Roger (the unlicensed assistant).

B) Michaela is responsible for all licensees and employees associated with the firm.

The Maryland Commission on Civil Rights consists of how many members? A) Four B) Nine C) Six D) Thirteen

B) Nine

While pursuing her Maryland salesperson license, Persephone utilized her growing real estate knowledge to help Victor locate a home to purchase. Victor said he'd pay her for her troubles once she was licensed, but when she contacted him shortly after earning her license, he reneged on their deal. Does Persephone have grounds to sue Victor for the commission? A) No, all lawsuits must be initiated by the broker, not the salesperson. B) No, she can only sue for compensation earned while she was licensed and a brokerage agreement was in place. C) Yes, but only if their agreement was in writing. D) Yes, since she was enrolled in a licensing program when they entered into their agreement.

B) No, she can only sue for compensation earned while she was licensed and a brokerage agreement was in place.

Dante lives in Maryland and purchased property in Pennsylvania. His real estate agent lied to him about a material defect, and it ended up costing Dante $52,000. Can Dante file a claim against the Guaranty Fund? A) No, his claim is over the $50,000 threshold. B) No, the property purchased was in Pennsylvania. C) Yes, but he can only recover $50,000 of his loss. D) Yes, but not before exhausting other methods to collect the money.

B) No, the property purchased was in Pennsylvania.

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? A) No. A counter-offer is binding until it's rejected by the other party (in this case, the seller). B) No. A counter-offer is considered accepted when the offer is signed and the offeror (in this case, the buyer) is notified. C) Yes. The buyer can back out of the counter-offer at any point before it's signed. D) Yes. The offeror of a counter-offer has an exclusive right to rescind the offer at any time.

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

Sylvia's buyer client didn't have a copy of the property disclosure/disclaimer statement before he made an offer on a property. Now, a week after the offer was accepted, the seller's agent finally gives Sylvia a copy of the statement, and she sees that the home is riddled with defects. Not surprisingly, her buyer client wants to back out of the offer. What violation has Sylvia possibly committed? A) Not performing due diligence and inspecting the property herself before allowing her client to make an offer B) Not protecting her client's interests by ensuring he had a copy of the disclosure/disclaimer statement before he made an offer C) Not showing loyalty to the seller by suggesting that they try to negotiate around the property defects before cancelling the contract entirely D) Not showing reasonable skill and care and reviewing the offer to make sure the buyer had maintained his right to review the disclosure/disclaimer statement

B) Not protecting her client's interests by ensuring he had a copy of the disclosure/disclaimer statement before he made an offer

What information about the Guaranty Fund must be included in every Maryland sales contract? A) Notice that the Guaranty Fund's minimum balance is $250,000 B) Notice to the buyer of the Guaranty Fund's protection up to $50,000 C) Notice to the buyer that licensees are exempt from having Guaranty Fund claims placed against them D) The website and office address where consumers may go to file a written Guaranty Fund claim

B) Notice to the buyer of the Guaranty Fund's protection up to $50,000

Joanne's a new licensee, and her broker has suggested that she attend a meeting of the Maryland Real Estate Commission to learn more about how the commission works. If it's December 1, and she's trying to go before the end of the year, how many more meetings are available for her to attend? A) Four; MREC meets every week. B) One; MREC meets once a month (12 times per year). C) Two; MREC meets every other week. D) Zero; MREC meetings aren't open to the public.

B) One; MREC meets once a month (12 times per year).

What type of ownership interest must a licensee disclose in writing to all parties? A) Only property held by the licensee or by the licensee's immediate family member B) Only property held by the licensee, the licensee's immediate family member, or an entity in which the licensee has an ownership interest C) Only property held directly by a family member D) Only property held directly by the licensee

B) Only property held by the licensee, the licensee's immediate family member, or an entity in which the licensee has an ownership interest

Niles listed Daphne's condo last week at $200,000. Late yesterday, one of Niles's firm's buyer clients submitted an offer at list price. Excited to have his firm earn both sides of the commission, Niles opened his email the next morning to forward the offer to Daphne. At that moment, he received an offer from an outside agent for $15,000 more than list price. What should Niles do? A) Present both offers but encourage Daphne to take the offer from the in-house agent. B) Present both offers to Daphne and answer any questions she has in making her decision about them. C) Present the in-house offer first, since it came first, then present the second offer. D) Present the second offer first, since it's for a higher sales price.

B) Present both offers to Daphne and answer any questions she has in making her decision about them.

Antonio feels that his agent did not act in his best interests when she waited nearly a week to present an offer to him. His agent argues that she held onto the offer because it was $15,000 less than list price and she wanted to see if a better offer came in before the weekend. Which section of the Maryland Code of Ethics did Antonio's agent possibly violate? A) Relations to fellow licensees B) Relations to the client C) Relations to the commission D) Relations to the public

B) Relations to the client

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? A) She can file a bill of interpleader and deposit the funds with the courts, which would then decide their disbursement. B) She can file a claim with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed. C) She can hold onto the funds until one of the parties files suit and a court orders the funds' disbursement. D) She can hold the funds until she receives both parties' authorization to disburse them.

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

Rosalie's buyer client, Emmett, lost $10,000 in earnest money when his contract fell through due to a tiny change in Maryland law that went into effect the previous month. When she received a notice of Emmett's complaint to MREC, Rosalie argued that she'd renewed her license the previous year, so hadn't taken her legislative update CE for her next renewal yet and wasn't responsible for the legal oversight. Which, if any, of the Maryland Code of Ethics guidelines has Rosalie potentially violated? A) She failed to complete her CE in a timely manner. B) She failed to keep informed of new real estate law or changes to real estate requirements. C) She failed to reimburse Emmett's earnest money. D) She hasn't violated any ethical guidelines.

B) She failed to keep informed of new real estate law or changes to real estate requirements.

Jerry is a new licensee and he's excited to be creating some advertising. When he does this, what must he remember about including his brokerage's designated name in his advertising? A) A franchise logo can be used in place of the brokerage's designated name. B) The brokerage's designated business name must be meaningfully and conspicuously present. C) The brokerage's designated name must be first on all advertising. D) The brokerage's designated name only has to appear on for sale signs.

B) The brokerage's designated business name must be meaningfully and conspicuously present.

Bella perused the listing agreement her new seller client had just signed. Looking it over, she realized that they'd forgotten to fill in one item that's required in Maryland listing agreements. What was missing? A) The amount of earnest money the seller requires B) The commission amount C) The most recent property tax amount D) The seller's preferred closing date

B) The commission amount

What actions can licensees take related to signs? A) They can only place signs on property they own. B) They can place signs on an owner's property with the owner's written consent. C) They can place signs on properties for which they are the listing agent, with or without the owner's permission. D) They can't place signs anywhere.

B) They can place signs on an owner's property with the owner's written consent.

Several Maryland licensees have landed themselves on the commission's naughty list, and the Guaranty Fund has paid out a $50,000 claim, a $12,000 claim, and a $45,000 claim in the last week. The fund's balancterm-154e is now $225,000. How much money does the fund need to recoup through fees collected from every Maryland licensee to get to the required minimum balance? A) $107,000 B) $225,000 C) $25,000 D) $50,000

C) $25,000

The Protection of Homeowners in Foreclosure Act (PHIFA) outlines parameters for foreclosure consulting services offered to homeowners who are at least ______ delinquent on their mortgage payments A) 30 days B) 45 days C) 60 days D) 90 days

C) 60 days

In the MAR's Exclusive Right to Sell Residential Brokerage Agreement, what does the Lead-Based Paint section contain? A) A notice that buyers must pay to have the property tested for lead-based paint B) A notice that sellers must pay to have all lead-based paint hazards removed in properties built before 1978 C) A notice that sellers of properties built before 1978 must provide lead hazard disclosures D) A selection of color chips to be used for the renovation, repair, and painting of homes containing lead-based paint

C) A notice that sellers of properties built before 1978 must provide lead hazard disclosures

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? A) 10 days from the home inspection date B) April 15 C) April 20 D) May 10

C) April 20

Don, a Maryland licensee, helped Peggy find a home she loved, but there was a sinkhole in the backyard. The seller's agent, Roger, told Don that he and the seller were aware of the sinkhole and it would be repaired. What is Don's ethical responsibility in this case? A) Advise Peggy not to purchase the home. B) Document the cost of repairing the sinkhole. C) Document the information from Roger that the seller was aware of the sinkhole and would repair it. D) Find a contractor to fill the sinkhole.

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

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

C) Duties and responsibilities of the buyer to the agent

MREC's five-member hearing panel reviewed Rachel's complaint against David, a supervising broker of a 10-member firm. The panel then forwarded the claim to Investigative Services, which determined that a hearing was necessary. MREC gave both Rachel and David 10 days' notice before the hearing, to which they each brought their attorneys. What's wrong with this scenario? A) Attorneys are not allowed to accompany licensees to a hearing. B) Consumers may only file complaints against brokerage firms, not individual licensees. C) Hearing panels have three members. D) Hearings occur before Investigative Services gets involved.

C) Hearing panels have three members.

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? A) If neither party files a protest with the commission within 30 days, she may disburse the funds to the buyer. B) If neither party sends Melody a protest within 14 days, she may disburse the funds to the buyer. C) If neither party sends Melody a protest within 30 days, she may disburse the funds to the buyer as stated in her letter. D) 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.

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

You decide to take the earnest money deposit you've been given and place it in your personal account until it is needed at closing. Failing to properly safeguard and deposit an earnest money check is an example of what type of violation? A) Conflict of interest B) Improper brokerage commission C) Improper handling of trust money D) Misrepresentation

C) Improper handling of trust money

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? A) 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. B) Have the seller test for lead-based paint. C) 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. D) Take a sample of the peeling paint with her, have it tested, and have the seller reimburse her for the testing cost at settlement.

C) 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.

You're a real estate licensee in Maryland. You're walking through a property with a new seller client. The seller tells you that the property is serviced by the public sewer system, but when walking up the drive you noticed the access hatch for a septic system. What should you do? A) Believe the homeowner when he says the property is on public sewer, because he'd know best. B) Hire a private investigator to look into it. C) Inquire about the homeowner's claim to ensure the property really is on public sewer. D) Terminate the listing, as the homeowner is obviously not being truthful.

C) Inquire about the homeowner's claim to ensure the property really is on public sewer.

How does a Maryland broker's license renewal differ from a salesperson's license renewal? A) Brokers have to renew every three years and salespersons have to renew every two years. B) Brokers must take the 15 hours of CE salespersons take, plus an additional three hours of broker supervision coursework. C) Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives. D) There is no difference between license renewals for brokers and salespersons.

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

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

C) It could be suspended or revoked.

When a payment is made on your behalf from the Guaranty Fund, what happens to your real estate license? A) It depends upon the situation. B) It is revoked. C) It is suspended. D) Nothing! That is what the fund is for!

C) It is suspended.

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? A) Ellen must create digital copies of her completion certificates and email them to the commission's license renewal email address. B) Ellen must send her completion certificates to the commission via certified mail. C) Last Minute Real Estate Education must electronically submit Ellen's completion data to the commission. D) Last Minute Real Estate Education must issue Ellen a completion certificate, which she must then submit electronically to the commission.

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

Which advertisement most likely complies with Maryland's real estate advertising law? A) James's ad, which uses his firm's logo, his name as it appears on his salesperson's license, and his REALTOR® designation. B) Katie's ad, which uses her firm's logo, her broker's name, and her phone number. C) Leslie's ad, which uses her brokerage firm's name and phone number, her firm's logo, and her licensed name and cell phone number. D) Petra's ad, which uses a photo of herself, her name, and her firm's logo.

C) Leslie's ad, which uses her brokerage firm's name and phone number, her firm's logo, and her licensed name and cell phone number.

Maryland licensee Clint operates as an independent contractor associated with Red Hat Properties and its broker, Margaret. Which of these statements is true about Margaret's supervisory responsibility and liability for Clint's actions? A) Clint can elect whether or not to be subject to Margaret's supervision. B) Margaret can't be held responsible for Clint's actions since he's an independent contractor. C) Margaret is responsible for and can be disciplined based on Clint's actions. D) Margaret must supervise Clint but isn't responsible for his actions.

C) Margaret is responsible for and can be disciplined based on Clint's actions.

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

C) 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? A) Consumer Advocacy Department B) Federal Real Estate Commission C) Maryland Real Estate Commission D) National Association of REALTORS®

C) Maryland Real Estate Commission

Shaina has hired Jerry to assist her with finding a new home, and just found out that his real estate license was revoked. Where can Shaina go to file a complaint against Jerry? A) Maryland Attorney General website B) Maryland Broker's Act website C) Maryland Real Estate Commission website D) U.S. Board of Real Estate Licensees Web site

C) Maryland Real Estate Commission website

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

C) Meaningfully and conspicuously present

Which of the following does NOT qualify as a ministerial act under Maryland law? A) Answering informational questions about a listing B) Granting property access to a home inspector C) Offering earnest money deposit advice D) Writing a purchase offer as instructed

C) Offering earnest money deposit advice

Which of the following scenarios depicts the illegal handling of trust funds in Maryland? A) Kelly transferred her client's $5,000 earnest money deposit from her firm's escrow account into the title company's account a few days before closing. B) Maxwell deposited his client's earnest money check six days after the property went under contract. C) On Friday, Shanice deposited her client's earnest money check in her personal account to keep it safe until she could transfer it to her brokerage's escrow account on Monday. D) Salesperson Irene gave her client's $10,000 earnest money check to her broker, Paul, for safekeeping until the property went under contract.

C) On Friday, Shanice deposited her client's earnest money check in her personal account to keep it safe until she could transfer it to her brokerage's escrow account on Monday.

Assuming that each of these foreclosure consultants is properly licensed, who is violating the Protection of Homeowners in Foreclosure Act? A) In her consultation contracts, Sylvia includes a clause stating that her compensation will be 7% of the property's sales price. B) Maya, who's also a licensed real estate broker, presents her real estate license to clients before they sign a contract. C) Pedro charges clients a $500 retainer fee when he signs on to provide foreclosure consultation services. D) Regina puts all of her foreclosure consultation terms into a written contract that she and her clients sign.

C) 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? A) Phyllis can never practice real estate in Maryland again. B) Phyllis may not reapply for a real estate license for three years. C) Phyllis may request a hearing to appeal the summary revocation. D) The commission must also investigate Phyllis's broker to see if he is also guilty of misconduct.

C) Phyllis may request a hearing to appeal the summary revocation.

Kent's seller client's home just went under contract on Tuesday. Just as he's hanging the "under contract" sign in the yard, he gets an email alert from a different buyer's agent with a new offer attached. What should Kent do with the offer? A) Advise your seller to accept it as a back-up offer. B) Hold onto it in case the current contract falls through. C) Present it to his client. D) Reply to the buyer's agent that the property is under contract, so it's too late to make an offer.

C) Present it to his client.

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? A) 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. B) 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. C) Send the offer to the seller's agent and follow up after the agent is back in town. D) Since they know each other personally, it's permissible for Dwayne to deliver the offer directly to the seller.

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

Beverly was so proud of the comparative market analysis (CMA) she'd put together for her seller client, Jonathon. The first page was simple: a large photo of his property with the address printed underneath. The rest of the CMA was spotless: She'd found four excellent comparable properties, included plenty of information about them, and was confident that Jonathon would love the suggested list price she arrived at. What did Beverly do wrong? A) She didn't alert the comparable properties' listing agents that she was using their listings as comps. B) She didn't include at least six comparables in her analysis. C) She didn't include a written statement on the CMA's first page that clarified that it wasn't an appraisal. D) She didn't leave it up to Jonathon to determine the suggested list price.

C) She didn't include a written statement on the CMA's first page that clarified that it wasn't an appraisal.

Aurelia is a relatively new salesperson who has been accused of discriminating against minorities in her real estate advertising. Which of the following is NOT a possible outcome if she's found guilty? A) Her license and her broker's licenses are suspended for 15 days. B) She has to pay a $5,000 fine. C) She must place a retraction in any publication that featured her ad. D) She's required to take additional fair housing classes.

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

During a particularly grueling and heated negotiations process, Roz, who's representing the buyer, notices the seller coming down the aisle toward her at the grocery store. Roz has just heard from her buyer client that he's willing to budge on a couple of home inspection repair issues. What should Roz do? A) Inform the seller about her buyer client's decision, but only if she has it in writing. B) Let the seller know the good news in an effort to dispel some of the animosity between the parties. C) Smile and greet the seller, engage in small talk as needed, but not mention the buyer's decision. D) Tell the seller about her buyer client's decision and ask that the seller relay that information to her agent.

C) Smile and greet the seller, engage in small talk as needed, but not mention the buyer's decision.

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? A) The Department of Labor, Licensing and Regulation B) The Maryland Association of REALTORS® C) The Maryland Real Estate Commission D) The state attorney general

C) 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? A) The beneficiary of the trust money failed to complete the contract terms. B) The broker received a court order instructing her to disburse the trust money. C) The buyer needed his earnest money back in order to pay the down payment. D) The transaction closed.

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

Which of the following is a true statement about possible penalties imposed by the commission for a violation of the Maryland Code of Ethics? A) The commission does not have the authority to sanction licensees for violations of the Maryland Code of Ethics. B) The commission may reprimand and impose fines, but may not suspend or revoke licenses. C) The commission may reprimand, impose fines, and suspend and/or revoke licenses, but it may not impose prison sentences. D) The commission may reprimand, impose fines, suspend and/or revoke licenses, and impose prison sentences for serious violators.

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

Which of these parties is NOT notified when a licensee's license is suspended? A) Any other local board of REALTORS® where the licensee is licensed B) The licensee's broker C) The licensee's clients D) The Maryland Association of REALTORS®

C) The licensee's clients

Justine's seller client needs to repair the property's roof, and Justine has recommended a contractor to her. In addition to the contractor's name and the date that Justine verified his registration with the Maryland Home Improvement Commission, what else does Justine need to give her seller client? A) A summary of typical roofing charges so her client can compare it to the contractor's work estimate B) Nothing C) The link to the Maryland Home Improvement License Search on the DLLR website D) The name of at least one other contractor so her client can get multiple bids for the work

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

April has some crazy listings in her current portfolio; it seems as if everything that could've gone wrong with them has gone wrong. According to Maryland disclosure law, which of these defects should April disclose? A) A body was buried in the wall connecting the two halves of the duplex on Davidson Street. B) The bungalow on Baker Street served as headquarters for a local prostitution ring. C) The mansion on Monroe Street is a former cat sanctuary, and the drywall near where the litter boxes were shows signs of "water" damage. D) The owner of the condo on Conrad Street killed himself there.

C) The mansion on Monroe Street is a former cat sanctuary, and the drywall near where the litter boxes were shows signs of "water" damage.

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? A) The number of affiliated licensees B) The number of branch offices and managers in each office C) The number of mandatory work hours expected of independent contractors D) The types of real estate activities the firm performs

C) The number of mandatory work hours expected of independent contractors

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? A) The number of affiliated licensees. B) The number of branch offices and managers in each office C) The number of mandatory work hours expected of independent contractors D) The types of real estate activities the firm performs

C) The number of mandatory work hours expected of independent contractors

Licensed property managers in Maryland must maintain related records for at least five years, beginning on the date ______. A) The last tenant moves out B) The property management agreement commences C) The property management agreement terminates D) The property management agreement was signed

C) The property management agreement terminates

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? A) 1.5 hours of ethics (including professionalism) and 1.5 more hours of electives B) 1.5 hours of ethics (including professionalism) and three more hours of electives C) Three hours of ethics (including professionalism) and 1.5 more hours of electives D) Three hours of ethics (including professionalism) and three more hours of electives

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

Which of these is NOT a material fact requiring disclosure in Maryland? A) Marquis inherited his property from his mother after she passed away in the master bedroom, which was painted with lead-based paint. B) The city will begin construction on a new community center 50 yards from Ebony's property next year. C) Timothy is moving out of his neighborhood because his neighbors host raucous parties at all hours of the night. D) You can't see it because it's under the new carpeting Peggy installed before listing her house, but there's a crack in the foundation.

C) Timothy is moving out of his neighborhood because his neighbors host raucous parties at all hours of the night.

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

C) Two months

If a license expires due to nonrenewal, it must be reinstated within what time period? A) Within 30 days B) Within one year C) Within three years D) Within two years

C) Within three years

Jim's had one heck of a time getting his latest listing sold. His seller client nitpicked every single item that the buyers asked her to repair after the home inspection. She was about to let the deal fall through over it until Jim offered to rebate 0.5% of his commission back to the seller. Does Maryland license law permit Jim to do this? A) No. Licensees aren't permitted to pay (or rebate) compensation to unlicensed individuals. B) No. The commission rate written into the listing agreement is binding. C) Yes, as long as he documents the commission reduction in writing and discloses it to all parties. D) Yes, but only if the listing agreement is also updated to reflect the new commission rate.

C) Yes, as long as he documents the commission reduction in writing and discloses it to all parties.

First Baptist Church in Annapolis owns two apartments next door to the church, which used to be housing for their ministerial staff. It does not rent to non-Baptists. Is this legal? A) No, this is housing discrimination. B) Yes, as long as it does not charge more than $250 per month. C) Yes, as long as it does not discriminate based on race, color, national origin, or familial status. D) Yes, as long as it does not own more than two units.

C) Yes, as long as it does not discriminate based on race, color, national origin, or familial status.

Phoebe's New Jersey real estate license was revoked after she was convicted of intentional misrepresentation. When the Maryland Real Estate Commission learns of this, it summarily revokes her Maryland salesperson's license. Does it have the power to do this? A) No. MREC may not revoke a license before the licensee has a chance to present her case at a hearing. B) No. MREC would have to prove that she has violated Maryland license law in order to revoke her Maryland license. C) Yes, but Phoebe may request a hearing to appeal the revocation. D) Yes. Revocation in another state automatically means her Maryland license must be revoked.

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

Isla is the listing agent for Finn's property. Grayson represents Jaleel, who's purchasing the home. Because Isla personally approached Grayson at a real estate professional's happy hour to ask him if he had any clients who might be interested in her listing, Grayson wants to thank her by giving her a $500 bonus paid out of his commission. Is this permissible? A) No, because any bonus should have been included in the original buyer brokerage agreement. B) No, because licensees aren't permitted to compensate each other. C) Yes, but only if all parties are notified about the extra compensation. D) Yes, but only if Jaleel approves it.

C) Yes, but only if all parties are notified about the extra compensation.

John is 18 and wants to be a real estate broker in Maryland. If he completes the 135 hours of required real estate licensing coursework, is there anything that might prevent him from taking the broker's license exam? A) No, he's in the clear. B) Yes, he must be at least 19 years old. C) Yes, he must have at least three years of active experience as a Maryland salesperson before he qualifies to take the broker's exam. D) Yes, he must schedule his exam before beginning the required coursework.

C) Yes, he must have at least three years of active experience as a Maryland salesperson before he qualifies to take the broker's exam.

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? A) No. Mrs. Jones is exempt because she's renting a unit in her own home. B) No. Only an actual tenant may file a complaint with MCCR. C) Yes. Advertising may not discriminate. D) Yes. Mrs. Jones may not discriminate against homosexuals in Maryland.

C) Yes. Advertising may not discriminate.

Kate's client is looking for a condo with at least 2,500 finished square feet. She finds a listing that's advertised as 2,200 square feet, but Kate lives in the same condo community and knows that even the largest unit is only 1,800 square feet. Should she alert the listing agent? A) No. It's likely that there's just a larger unit that Kate is unaware of. B) No. It's the listing agent's responsibility to make sure the listing is accurate, and this mistake could provide Kate with leverage in negotiations. C) Yes. At the very least this is likely an innocent mistake, but at worst it's intentional misrepresentation. D) Yes, but only if Kate's client is interested in the unit.

C) Yes. At the very least this is likely an innocent mistake, but at worst it's intentional misrepresentation.

In addition to serving as the listing agent for several clients, your own house is also on the market. You receive a call from another licensee who wants to show her buyer client your house. What must you immediately disclose to the buyer's agent and buyer? A) The house may have been an orphanage 80 years ago. B) You'd sell for far lower than the current asking price. C) You own the property. D) Your housemate had swine flu last month.

C) You own the property.

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

C)Hearing panel

The Guaranty Fund paid a consumer's $15,000 claim because of licensee Ben's negligence. Ben is breaking the news to his broker. How's his broker likely to respond? A) "As long as you reimburse the fund for the full claim amount plus 12% interest within 30 days, you can keep practicing real estate." B) "Luckily, your E&O insurance covers this issue, so you can get back to business as usual. I hope you've learned your lesson!" C) "We'll both have a lot of time on our hands until you reimburse the fund, since both of our licenses are now suspended." D) "Well, since this means your license is suspended, we'll see you back at the office when you reimburse the fund."

D) "Well, since this means your license is suspended, we'll see you back at the office when you reimburse the fund."

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? A) "I can only tell you what his financial situation was at the time that I represented him." B) "That seems odd, Alex. I don't know how he'd come up with so much money in such a short amount of time." C) "Why don't you have your lender friend pull his credit report?" D) "You know you shouldn't be asking me about this, Alex. I can't break my client's confidentiality."

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

What is the highest amount you can be fined by the Maryland Real Estate Commission for a serious violation? A) $10,000 B) $100,000 C) $2,500 D) $25,000

D) $25,000

Blaire apparently hasn't learned her lesson. She paid a $5,000 penalty when MREC found her guilty of misrepresentation, a $10,000 penalty when she was found guilty of placing a for sale sign in someone's yard without permission, and now she's committed three more violations by placing a series of discriminatory ads. What's the maximum penalty MREC can levy for these new violations? A) $100,000 B) $25,000 C) $50,000 D) $75,000

D) $75,000

Which of these describes self-dealing? A) A licensee lists her own property and informs all parties that she's licensed. B) A licensee sells a property but forgets some of the paperwork. C) A licensee sells a property with the understanding that she will make all pertinent decisions on her client's behalf. D) A licensee sells her own property without informing all parties that she's licensed.

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

Adesha made an offer on a three-bedroom townhouse in Hanover on April 5. The sellers accepted her offer on April 6, and all signatures were finalized by April 7. Adesha still hasn't received the property disclosure/disclaimer statement. Until when can Adesha rescind the contract without penalty? A) April 12 B) April 14 C) April 17 D) At any time before she receives the disclosure/disclaimer statement

D) At any time before she receives the disclosure/disclaimer statement

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) A copy of the complaint B) A list of charges C) A list of potential penalties D) Contact information for MREC's legal hotline

D) Contact information for MREC's legal hotline

Demetrius is a real estate salesperson, and his friend Sharlene is a plumber. Just last week, Demetrius recommended Sharlene's services to a buyer client in desperate need of a new toilet for his new home. Unbeknownst to Demetrius, Sharlene's license expired 18 months ago. What Maryland license law violation is Demetrius potentially guilty of? A) Failing to disclose his personal relationship with Sharlene B) Failing to properly inspect the property for plumbing issues before his client made an offer on it C) Failing to serve his client's best interests by negotiating the plumbing repairs into the contract D) Failing to verify annually that Sharlene was still licensed

D) Failing to verify annually that Sharlene was still licensed

One of the things that Tyrone loves being able to do as a licensee is help his friends, family, and business associates with their real estate needs. In which of these situations does Tyrone NOT need to disclose his personal interest in the transaction? A) He's selling a condo in a development where he's a part owner. B) He's selling a home on behalf of another salesperson in his brokerage. C) He's selling his brother's home. D) He's selling the home of his childhood friend.

D) He's selling the home of his childhood friend.

When Janet, a licensed Maryland salesperson, transfers to a new brokerage, what happens to her license and pocket card? A) Her former broker destroys them. B) Her former broker gives them to Janet to provide to her new broker. C) Her former broker gives them to the new broker. D) Her former broker returns them to the commission.

D) Her former broker returns them to the commission.

Jerome let his license expire four years ago when his wife had twins and he decided to become a stay-at-home dad. Now that the twins have started preschool, Jerome would like to resume his real estate practice. What does he have to do in order to reinstate his license? A) He must complete all outstanding continuing education requirements. B) He must complete all outstanding continuing education requirements and retake the Maryland exam. C) He must send the commission proof of his affiliation with a new broker. D) His license has been expired too long. He has to start the pre-licensing process from scratch.

D) His license has been expired too long. He has to start the pre-licensing process from scratch.

What type of license would Sarah be eligible for if she is new to real estate and does not yet have a supervising broker lined up? A) Active broker license B) Active salesperson license C) Inactive broker license D) Inactive salesperson license

D) Inactive salesperson license

A property is listed as having four bedrooms and two-and-a-half bathrooms. However, when showing your buyer clients the property, you only count three bedrooms. As their agent, what should you do as part of your due diligence? A) Call the police. B) Demand the homeowner build another bedroom. C) Ignore the discrepancy. D) Investigate this discrepancy.

D) Investigate this discrepancy.

Isabelle just took on a new listing, in which the owner is selling because a new freeway is being built right behind the house. The owner is concerned about the noise and other activity the freeway will bring, but doesn't want prospective buyers to know this. Which action best demonstrates good faith in this scenario? A) Isabelle decides not to take the listing, since the property will be impossible to sell. B) Isabelle takes the listing and, per her client's instructions, doesn't tell prospective buyers about the planned road construction. C) Isabelle takes the listing, tells the seller she won't discuss the new freeway, then discloses this fact to prospective buyers, since it's material to the property. D) Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.

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

Janet is a 20-something salesperson at a small country brokerage. She enjoys her job but longs for the city life. She would like to change brokerages. Which of the following is true? A) Janet must remain with her current broker until she obtains her associate broker's license. B) Janet must remain with her current broker until she renews her license. C) Janet will need to obtain a different license to be affiliated with more than one brokerage. D) Janet will need to submit a transfer application to the commission.

D) Janet will need to submit a transfer application to the commission.

Lapis is training her new unlicensed assistant, Heidi, and they've come to the subject of recordkeeping. Which of these points is true? A) All real estate documents must be forwarded to the commission for safekeeping once a transaction is completed. B) Heidi is permitted to represent clients, as long as she does so under Lapis's direct supervision and gets the clients' written consent. C) Heidi may not handle real estate documents unless she gets her license. D) Lapis must keep her transaction records on file for at least five years.

D) Lapis must keep her transaction records on file for at least five years.

While hosting an open house, Nathan speaks with a 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? A) Licensees may not accept compensation from more than one transaction party without all parties' knowledge. B) Licensees must disclose any personal interest they have in a property or transaction. C) Licensees must present the Understanding Whom Real Estate Agents Represent form to every open house attendee. D) Licensees must protect and promote their client's interests without compromising their duties to the other parties.

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

Which choice correctly identifies the classes that Maryland protects in addition to the seven federally protected classes? A) Age, disability, and employment status B) Disability, sexual orientation, and gender identity C) Familial status, marital status, and sexual orientation D) Marital status, sexual orientation, gender identity, and source of income

D) Marital status, sexual orientation, gender identity, and source of income

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? A) Department of Education B) Department of Labor, Licensing and Regulation C) Department of Motor Vehicles D) Maryland Real Estate Commission

D) Maryland Real Estate Commission

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

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

In which of the following settings is a prize offering permitted in Maryland? A) Buyer education seminar B) Closing C) Listing presentation D) Open house

D) Open house

What's it called when a licensee tries to induce sales by predicting a decline in market value? A) Assertive bargaining B) False advertising C) Harassment D) Panic selling

D) Panic selling

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

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

What type of ownership interest needs to be disclosed in writing to all parties? A) Only property held directly by the licensee B) Only property held directly or indirectly by the licensee C) Only property held directly or indirectly by the licensee or by the licensee's immediate family member D) Property held directly or indirectly by the licensee, the licensee's immediate family member, the licensee's firm, or a member of the licensee's firm

D) Property held directly or indirectly by the licensee, the licensee's immediate family member, the licensee's firm, or a member of the licensee's firm

Which of these documents does NOT establish an agency relationship between a client and a licensee? A) Brokerage agreement B) Buyer representation agreement C) Listing agreement D) Purchase agreement

D) Purchase agreement

Which of these parties is the Maryland Real Estate Commission NOT authorized to investigate for license law violation? A) David, a real estate salesperson who allegedly deposited earnest money into his personal checking account B) Florence, an unlicensed assistant who allegedly negotiated deals for her licensed employer while he was on vacation C) Helping Hand Realty, a brokerage firm that allegedly discriminated against rental applicants D) Ramon, a licensed home inspector who allegedly neglected to properly inspect a foundation that turned out to be cracked

D) Ramon, a licensed home inspector who allegedly neglected to properly inspect a foundation that turned out to be cracked

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

D) Records must be stored in alphabetical order.

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

D) Retaliation against parties who file a discrimination complaint is illegal.

MREC received a complaint from Rose, stating that licensee Stan had placed a sign on her property without her permission. As a result, she received a $250 fine from her homeowners association for illegal signage. MREC notified Stan and his broker about the complaint, and Stan's broker responded by sending a copy of an email from Rose, stating that the firm could have a sign installed. As a result, the hearing panel dismissed the claim. What can Rose do now? A) She can appeal the hearing panel's decision. B) She can seek damages, including emotional distress and attorney's fees, from the Guaranty Fund. C) She can wait six months and then file another claim. D) She is out of luck and won't be able to request further action from MREC.

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

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? A) The Maryland Commission on Civil Rights B) The Maryland Department of Professional Licensing C) The Maryland Office of the Attorney General D) The Maryland Real Estate Commission

D) The Maryland Real Estate Commission

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

D) The address of the property the buyer is purchasing

Which of the following is one of the buyer's responsibilities as stated in the Maryland exclusive buyer agency agreement? A) The buyer has seven days to consent to being represented by a designated or dual agency before terminating the agreement. B) The buyer must attend three open house events on their own. C) The buyer must make a purchase offer on the first property the agent finds that meets the buyer's needs. D) The buyer must work exclusively with the broker during the term of the agreement.

D) The buyer must work exclusively with the broker during the term of the agreement.

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

D) The cards must include her name as it appears on her license.

DeShawn has been licensed as a salesperson in Maryland for 18 months. Which of the following statements is true about his upcoming license renewal? A) DeShawn must complete 18 hours of continuing education in order to qualify for renewal. B) DeShawn must complete his continuing education at least 14 days before his license's expiration date. C) Since this is his first renewal period, DeShawn only needs to complete 12 hours of continuing education. D) The commission will send DeShawn a renewal reminder 30 days before his license's expiration date.

D) The commission will send DeShawn a renewal reminder 30 days before his license's expiration date.

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

D) The date printed on her license

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? A) Licenses are issued at least 30 days after submission of documentation, not within a few days. B) Seo-yun should've gone to the commission office to pick up her new license. C) Seo-yun should've submitted her documentation to her broker, not the commission. D) The license should've also come with a pocket card.

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

A prospective buyer is curious why a previous owner is selling such a perfect home. The Maryland licensee knows that the previous owner recently died due to complications from AIDS. How should the licensee respond to the prospective buyer's inquiry? A) The licensee can disclose that the owner had AIDS, but can't reveal whether the owner died from the disease. B) The licensee can obtain permission from the seller to reveal the previous owner's AIDS diagnosis. C) The licensee can share that the previous owner died from AIDS. D) The licensee can't disclose that a previous owner had HIV or AIDS.

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

Keisha is a real estate salesperson in Maryland. She's got a new listing and is anxious to advertise it for sale. What must she have first so she can do this? A) Approval from the commission to run the ad B) A signed buyer agency agreement C) A signed property disclosure/disclaimer statement D) The owner's permission to advertise the property

D) The owner's permission to advertise the property

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

D) The upstairs bathroom has a leaky toilet.

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

D) 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? A) Every five years B) Every six months C) Every three years D) Yearly

D) Yearly

Jorge's firm has just been assigned as the listing brokerage for a foreclosed condo unit in Jorge's own building. Jorge knows that given the unit's condition, it's bound to sell for far less than market value of a nicer unit such as his. Worried that the new listing will bring down his unit's value, Jorge quickly lists his unit at current market price and sells it before the foreclosed listing hits the market—at a price $100,000 less than Jorge sold his unit for. Has Jorge done anything wrong? A) No, he was savvy to sell his condo unit before prices dropped. B) No, his unit was in better condition and would've sold for more anyway. C) Yes, Jorge has engaged in blockbusting. D) Yes, Jorge has engaged in self-dealing.

D) Yes, Jorge has engaged in self-dealing.

LaTonya represents the seller of a property that's got an interested buyer. She's emailing the buyer, who's unrepresented, some documentation based on some questions he had and has included the Understanding Whom Real Estate Agents Represent form so she can disclose her agency relationship with the seller. Is this permissible? A) No, agency disclosure must be made at the first face-to-face contact with an unrepresented party. B) No, LaTonya should have already made this disclosure. C) Yes, as long as LaTonya eventually presents the form in person. D) Yes, LaTonya may disclose her agency relationship through whatever medium is used when first contacting the unrepresented party.

D) Yes, LaTonya may disclose her agency relationship through whatever medium is used when first contacting the unrepresented party.

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? A) No. Counter-offers negate any previous offers, so at least one term must be different. B) No. Once the initial offer is rejected, it's dead and new terms need to be negotiated. C) Yes, as long as someone still has a copy of the initial offer. D) Yes, but a new counter-offer must be drawn up to include the original offer's terms.

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

D) 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.

Yashyka found a great apartment to move into, but when the landlord asked if she was married and Yashyka told him she'd just separated from her husband, he told her he didn't want to deal with her bringing "rebound" guys over day and night. Does Yashyka have a case for fair housing discrimination in Maryland? A) No, marital status isn't a protected class in Maryland. B) Not unless she lives in Baltimore City, where marital status is a protected class. C) Yes, since he is discriminating based on her sex, and sex is a protected class in Maryland. D) Yes, the landlord appears to be discriminating against Yashyka based on her marital status.

D) Yes, the landlord appears to be discriminating against Yashyka based on her marital status.

Halbert's license was summarily suspended after he was convicted of felony embezzling. He'd like the chance to appeal the decision. Can he? A) No. Appeals are only granted for temporary suspensions. B) No. Only license revocations can be appealed. C) Yes, but only after 30 days. D) Yes. He has the right to plead his case in front of the commission.

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

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? A) Nothing! That is what the fund is for! B) You can continue to practice real estate but must pay back the money to the fund at 10% interest. C) You must pay back the money from the fund at 30% interest from your real estate commissions. D) Your license will be suspended and can't be reinstated until you pay back the fund plus interest.

D) Your license will be suspended and can't be reinstated until you pay back the fund plus interest.

In order to qualify as one of the four appointed consumer members of the Maryland Real Estate Commission, how many years of experience must you have as a real estate licensee? A) 10 B) Five C) Seven D) Zero

D) Zero