RE Duties and Powers of MREC Review (State)
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?
"Well, since this means your license is suspended, we'll see you back at the office when you reimburse the fund."
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?
$15,000 License law violators may incur penalties of $5,000 for the first violation, $15,000 for the second violation, and up to $25,000 per violation after three or more violations.
Because Lisa's agent didn't inform her that she needed to pull a permit to build a deck off the back of her home, she spent $11,000 having it installed, $7,000 having it removed when the homeowners association discovered she didn't pull a permit, and another $5,000 in legal fees fighting her agent in court over it. How much money is she entitled to seek from the Guaranty Fund?
$18,000 Guaranty Fund claims are limited to actual monetary damages suffered, up to $50,000. Attorney's fees and commission owed or paid to the licensee do not count.
New Maryland licensees pay a fee into the Guaranty Fund to help maintain it. What is the amount of the fee?
$20
What is the amount of the one-time fee that each new Maryland licensee pays into the Guaranty Fund?
$20
What is the highest amount you can be fined by the Maryland Real Estate Commission for a serious violation?
$25,000
What is the maximum amount a claimant can receive from the Guaranty Fund for a single transaction?
$50,000
Members of the Maryland Real Estate Commission serve terms of how many years?
4
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.
5
You just sold your very first house! You decide to cash the commission check directly and then give the remainder to your affiliate broker. What type of violation have you just committed?
Accepting commissions other than through your broker
______ must abide by the Code of Ethics enforced by the Maryland Real Estate Commission.
All Maryland real estate licensees
The activities of which Maryland professionals are subject to the commission's Code of Ethics?
All real estate licensees
Which of these parties would be eligible to be one of MREC's consumer members?
Amelia, a retired community college professor who used to teach about home improvement
Phyllis has learned that the Maryland Real Estate Commission's real estate professional member from the Eastern Shore is vacating his seat soon. Phyllis has eight years of experience as a salesperson, and she's lived in Ocean City for six years. What else does Phyllis need in order to secure her nomination by the governor?
At least two more years of real estate experience
Gillian filed a complaint with MREC, alleging that her agent, Walter, discriminated against her by not showing her houses in areas that he "didn't think were safe enough for a single woman." Walter responds to the complaint by sending MREC a copy of an email exchange between himself and Gillian in which she appears to agree to the arrangement. A few weeks later, Walter receives notice of a hearing regarding the complaint. What should he do?
Attend the hearing.
Broker Zeke is busy and doesn't have time to go to the bank, so he deposits his client's earnest money funds into his personal account. He plans to move the funds to the appropriate account within a week. This violation is an example of ______.
Commingling
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?
Contact information for MREC's legal hotline
Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______.
Demonstrating untrustworthiness or incompetency to act as a real estate broker
Which of these parties could NOT file a claim with the Guaranty Fund?
Devon, a broker who lost $10,000 when a seller client demanded that Devon pay to have her home staged, then cancelled the listing a week later when the house hadn't sold
Nancy just hired her sister, real estate licensee Grace, to list her property. Jason schedules a showing for his client, who's interested in Nancy's property. What needs to take place?
Grace needs to disclose in writing to Jason and his client that the property is owned by a family member.
While hosting an open house, Nathan speaks witha pair of unrepresented prospective buyers who are interested in the house but think the listing price is a little high. They ask him what other incentives they could include in their offer to get the seller to come down on their price. If Nathan helps them, what Maryland Code of Ethics guideline may he be breaching?
Licensees must protect and promote their client's interests without compromising their duties to the other parties.
MREC received Shanice's complaint against licensee Nick two years and eight months after he helped her buy her one-bedroom condo in Silver Spring. Nick and his broker responded to the copy of the complaint MREC sent them. Three weeks later, Nick and his broker received notice via certified mail that Shanice's claim warranted a hearing, which would take place in a week. What's wrong with this scenario?
MREC must give 10 days' notice before a hearing.
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?
Maryland Real Estate Commission website
What type of violation are you committing if you're the listing agent for a house and promise the seller $600,000, but assist the buyer in negotiating a better deal without letting the seller know?
Misrepresentation
The Maryland Real Estate Commission received a complaint claiming that Michael, a licensed electrician, was receiving referral fees from Own It Realty Group in exchange for giving sub-par wiring the green light during inspections. What's the maximum penalty MREC can impose upon Michael?
Nothing; MREC doesn't have jurisdiction over licensed electricians.
What information about the Guaranty Fund must be included in every Maryland sales contract?
Notice to the buyer of the Guaranty Fund's protection up to $50,000
Maryland salesperson Seema is new to the real estate business, and she's having trouble getting her sales off the ground. She's considering offering some incentives. Which of the following incentives would be legal according to the Maryland Code of Ethics?
Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days
Joanne's a new licensee, and her broker has suggested that she attend a meeting of the Maryland Real Estate Commission to learn more about how the commission works. If it's December 1, and she's trying to go before the end of the year, how many more meetings are available for her to attend?
One; MREC meets once a month (12 times per year).
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?
Present both offers to Daphne and answer any questions she has in making her decision about them.
Which of these parties is the Maryland Real Estate Commission NOT authorized to investigate for license law violation?
Ramon, a licensed home inspector who allegedly neglected to properly inspect a foundation that turned out to be cracked
Which of these parties is the Maryland Real Estate Commission NOT authorized to investigate for license law violations?
Ramon, a licensed home inspector who allegedly neglected to properly inspect a foundation that turned out to be cracked
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?
Send the offer to the seller's agent and follow up after the agent is back in town.
Aurelia is a relatively new salesperson who has been accused of discriminating against minorities in her real estate advertising. Which of the following is NOT a possible outcome if she's found guilty?
She must place a retraction in any publication that featured her ad.
Why does the Maryland Code of Ethics require that licensees stay abreast of current market conditions?
So they can competently advise clients about fair market value/price
An administrative law judge presided over Sabine's misconduct hearing. Sabine presented several documents indicating she was an excellent licensee, including notarized statements from three of her clients. However, the ALJ found evidence of misconduct and recommended that Sabine be required to take an additional three hours of CE in ethics. What happens next?
The MREC hearing panel decides whether or not to accept the ALJ's recommendation.
A seller client found out three days after closing that the woman who bought his condo was his seller agent Hannah's mother. Hannah never disclosed this to him. He wants to file a complaint against her, claiming she violated the Maryland Code of Ethics. With which entity should he file his complaint?
The Maryland Real Estate Commission
Marjorie has been a licensed broker in Maryland for 45 years. She's sick of having to go through the renewal process every two years and wants to petition to allow seasoned licensees like her to renew every four years instead. Which entity should Marjorie contact about this idea?
The Maryland Real Estate Commission
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?
The Maryland Real Estate Commission
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?
The owner's permission to advertise the property
Which of the following is true regarding claims made against the Guaranty Fund?
They can only be made for actual monetary damages incurred.
Which of these scenarios does NOT accurately reflect the MREC complaints and investigations process?
Upon reviewing a complaint against licensee Derek, an administrative law judge deemed it worthy of further investigation.
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?
Your license will be suspended and can't be reinstated until you pay back the fund plus interest.
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?
jail time
Which of these parties is NOT notified when a licensee's license is suspended?
licensee's clients
The Maryland Code of Ethics is divided into three sections: relations to ______, relations to clients, and relations with other licensees.
the public
