Real Estate CE Shop Final:

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 balance 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? $107,000 $225,000 $25,000 $50,000

$25,000

If a license expires due to non-renewal, it must be reinstated within what period of time?

3 years

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

4 year terms

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.

60 days.

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 credit report

One of the reasons Leelo 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 row-home in Gaithersburg under LLC, fifth element along with her offer?

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

Which one of these incentives would be legal according to Maryland License Law?

Ben runs a "spring into summer" and offering sellers a reduced commission rate for the next three months.

Jennifer, an experienced Maryland salesperson, hires an unlicensed assistant, Suzanne. Jennifer's on vacation, and in her absence, Suzanne discussed some contract terms with one of Jennifer's clients. Who's responsible for Suzanne's behavior?

Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined.

Damon lives in Frederick but is affiliated with a broker in downtown Baltimore. He'd like to affiliate with a broker closer to home but doesn't want to sever his relationship with his current broker. What needs to happen in order for Damon to be able to work for both brokerages?

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

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?

Both parties must affirm consent to dual agency.

Ruthe lost her job last year, and she's fallen three months behind on the mortgage payments for her Baltimore home. She seeks the services of Chuck, a foreclosure consultant. Chuck charges Ruthe $1,000 up front, then disappears and fails to return Ruthe's calls. PHIFA permits Ruthe to

Bring a private legal action against Chuck to recover up to $3,000 as well as a reasonable attorneys fees.

When _________________ in Maryland, you must submit statement of affiliation from the new broker and a statement of affiliation termination from the former broker along with your broker with your transfer.

Changing brokers

Which of the following is not an example of legal dual agency in Maryland?

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

Assuming that the following individuals only carry a real estate license, who is in violation of the foreclosure consultation parameters set forth in PHIFA?

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

Which document is used to obtain a client's consent to dual agency representation in Maryland?

Consent for dual agency.

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

Deirde enters into a listing agreement with Peter and agrees to pay him all of the sale proceeds in excess of $250,000 she needs to make off the sale of her condo.

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 unworthiness or incompetency to act as a real estate broker.

In addition to your name, what must be included in any advertising?

Designated name of your brokerage firm.

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?

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

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

EPA Lead Safety pamphlet.

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?

Failing to verify annually that Sharlene was still licensed.

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

Five years

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?

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

If Demarcus fails to make sure that his buyer client, Ross, has received the property disclosure/disclaimer statement before he submits an offer, Demarcus may be violating his obligation to protect Ross's interests

If Demarcus failure could result in the contract becoming voidable.

You decide to take the earnest money deposit you have been given and place it in your own personal account until it is needed at closing. Failing to properly safeguard and deposit on earnest money check is an example of what type of violation?

Improper handling of trust money.

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

Intra-company agent.

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 time too: her license is set to expire the following week. How will CE hours get reported to the commission?

Last minute real estate education must issue Ellen a completion certificate, which she must then submit electronically to the commission.

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 would include in their offer to get the seller to come down on their price. If Nathan's helping them, what Maryland code of ethics guideline may he be breaching?

Licensees must protect and promote their clients interests without compromising their duties to the other parties.

Who or what entity has the power to seek civil action and/or injections against parties who violate Maryland Fair housing laws?

Maryland Commission on Civil rights.

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

Maryland real estate commission

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.

Which of these unlicensed assistants may NOT be compensated for their activities in Maryland?

Michael, who shows properties when salesperson Janine is out of town.

Maryland sponsoring broker Sandrine has five salespersons working under her supervision. Whose license must be displayed in the brokerage office?

Only the licenses of the five salespersons must be displayed.

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 gets back in town.

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.

What happens when the Guarantee Funds balance falls below $250,000?

The balance goes up to $40 until the balance returns to $250,000.

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 ti the prospective buyers inquiry?

The licensee can obtain permission from the sellers to reveal the previous owners AIDS diagnosis.

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

Two months

LaTanya 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 is she can disclose her agency relationship with the seller. Is this permissible?

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

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?

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

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

$40,000

Which one of these describes self-dealing?

A licensee lists her own properties for sale and informs all parties that she's licensed.

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?

Maintain the accountants insured financial institution at Maryland.

The Maryland Real Estate Commission received a complaint claiming the 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. Whats the maximum penalty MREC can impose upon Michael?

Nothing: MREC doesn't have jurisdiction over licensed electricians.

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 how many more meetings are available for her to attend?

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

What type of ownership interest needs to be disclosed in writing to all parties?

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.

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? 1. She failed to complete her CE in a timely manner. 2. She failed to keep informed of new real estate law or changes to real estate requirements. 3. She failed to reimburse Emmett's earnest money. 4. She hasn't violated any ethical guidelines.

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

Which of the following is NOT cause for the Maryland real estate commission to summarily suspend a licensee's real estate license?

The licensee fails to disclose personal interest in a transaction.

Phoebe's New Jersey real estate license was revoked after she was convinced of intentional misrepresentation. When the Maryland Real Estate Commission learns of this, it summarily revokes her Maryland salespersons license. Does it have the power to do this?

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?

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