Real Estate Exam Prep

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Roger Kelly is signing a listing contract with a client. Which of the following is an acceptable signature on the document?

"Roger Kelly" Licensees must only sign their own name, not the name of a group or team.

License law violators penalties:

$5,000 for the first violation $15,000 for the second up to $25,000 per violation after three or more violations.

Which of these written counter-offers would the offeror be able to withdraw?

A counter-offer sent 10 days ago with no response

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. The broker acts as the dual agent in a dual agency situation in Maryland and may not represent one of the parties. Instead, the broker (or designated office manager) assigns two associated licensees to represent the parties as intra-company agents.

Which of the following terms must be included in a buyer agency agreement?

Duties and responsibilities of the buyer to the agent

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

Lauren, a Maryland licensee, has been working with buyer Steven for a few days. She's asked him about what types of homes he's interested in and has sent him listings based on his criteria. The two of them are about to meet for the first time so Lauren can show him the three properties he's most interested in. What does Lauren need to do?

Have Steven sign either a buyer agency agreement or an Understanding Whom Real Estate Agents Represent form.

The ______ decides if a complaint has merit and should be investigated.

Hearing panel

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.

Which of the following scenarios depicts the illegal handling of trust funds in Maryland?

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.

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

The Consent for Dual Agency form is used to obtain a client's consent to dual agency representation.

Which of these parties is NOT notified when a licensee's license is suspended?

The licensee's clients

Assuming Maryland licensee Shannon has actual knowledge of all of the following property issues, which should she disclose to prospective buyers?

The upstairs bathroom has a leaky toilet.

What actions can licensees take related to signs?

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

Nancy, a broker in Annapolis, is going over the listing agreement with her new client, Josie, who asks, "What if I need to cancel the agreement early?" What should Nancy tell her? "I'm always flexible. If we need to, we'll add an amendment to the agreement granting you permission to cancel early." "Listing agreements in Maryland must be for a definite amount of time. If it would make you more comfortable, we can set the expiration date for one month, then have it automatically renew unless you decide to cancel." "There's a provision right here that gives either of us permission to cancel the agreement early." "You may cancel early. But per Maryland law, since listing agreements must have a definite termination date, if you do cancel I'll have to charge you a nominal cancellation fee."

"There's a provision right here that gives either of us permission to cancel the agreement early."

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

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

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

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 $23,000 $5,000 $50,000

$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.

Janice is the victim of misrepresentation in the sale of her home. Her listing agent gave her poor advice that cost her $62,000. She has tried to recover the cost through several other means, but to no avail. If she files a claim against the Guaranty Fund, what is the maximum amount she could hope to recoup?

$50,000

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? $100,000 $25,000 $50,000 $75,000

$75,000 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.

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?

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

135

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 30 days 45 days 60 days 90 days

60 Days

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

60 hours

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 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 bank statement showing she has enough to cover the down payment A disclosure that she's a real estate licensee An earnest money deposit for at least 5% of the offer price A signed receipt showing she received a copy of the condo resale packet.

A disclosure that she's a real estate licensee Licensees who are buying/renting or selling/leasing property for themselves must disclose, in writing, their licensed status no later than when they submit the offer or list/offer the property for sale.

Which of these describes self-dealing?

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

In the MAR's Exclusive Right to Sell Residential Brokerage Agreement, what does the Lead-Based Paint section contain?

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

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

With whom may Maryland broker Ruthe NOT share her commission?

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

Business is really slow and you've decided to pull in some more clients with a marketing campaign claiming you're the top producing real estate agent in town. What type of violation are you committing? Advertising in a misleading or untruthful manner Failure to disclose material facts Mishandling funds Violating dual agency requirements

Advertising in a misleading or untruthful manner

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

Affiliation with a supervising broker

Which one of the following choices is not protected by federal or Maryland fair housing law, but may be protected by local ordinances in Maryland?

Age is not protected for housing discrimination at the federal or state level in Maryland, but may be protected at the local level.

______ must abide by the Code of Ethics enforced by the Maryland Real Estate Commission.

All Maryland real estate licensees

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

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

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

All real estate licensees

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

All real estate licensees All Maryland real estate licensees must adhere to the commission's Code of Ethics, which is divided into three categories: relations to the client, relations to the public, and relations to fellow 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 David, a semi-retired real estate broker with 25 years of experience Marco, a licensed electrician who has a 10% ownership interest in the commission Simone, a former licensee who gave up a lucrative real estate career four months ago to be a stay-at-home mom

Amelia, a retired community college professor who used to teach about home improvement Consumer members of the commission are not licensees (nor subject to commission regulation) and may not have an ownership interest in the commission or have received compensation from a commission-regulated entity within the previous year.

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

Annual ground rent plus the full cost of capitalization If these signs are used, they must show the full cost of capitalization in addition to the annual ground rent.

Mike, a salesperson with Helping Hand Realty, listed Yvonne's home for sale. Brett, another salesperson with Helping Hand, has a buyer interested in purchasing Yvonne's property. Antoine, Helping Hand's broker, makes sure that both Mike and Brett have re-affirmed their clients' consent to dual agency. Who is the dual agent in this scenario?

Antoine

Which of the following statements about latent defects is true?

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

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? A notarized letter from her broker, granting her permission to focus on commission business for the term of her membership At least four more years' residency on the Eastern Shore At least two more years of real estate experience Her broker's license for at least five years

At least two more years of real estate experience The five MREC members who are licensed real estate professionals must each have at least 10 years' experience, and they must have resided in the area from which they're appointed for at least five years in order to qualify for membership.

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? At the open house In his email response that included the property disclosure When he met the Greenes at the house to let them in for the home inspection When the Greenes dropped off their offer

At the open house

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

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

Which of these incentives would be legal according to Maryland license law?

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

Salesperson Katie represents seller Suzie in a transaction. Bob and Janine are buying Suzie's home, and they're not represented. To whom does Katie need to disclose her agency relationship using the Understanding Whom Real Estate Agents Represent form?

Bob and Janine only Licensees must disclose their agency relationship to all unrepresented transaction parties in writing, using the Understanding Whom Real Estate Agents Represent form and making the disclosure no later than the time of the first scheduled face-to-face meeting.

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 arrangement 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. Even if preliminary consent was given, if a represented buyer makes an offer to purchase property owned by a seller who's represented by the same company, both parties must affirm their dual agency consent.

Ruthe lost her job last year, and she's fallen three months behind on the mortgage payments for her Baltimore home. She seeks the services of Chuck, a foreclosure consultant. Chuck charges Ruthe $1,000 up front, then disappears and fails to return Ruthe's calls. PHIFA permits Ruthe to ______. Bring a private legal action against Chuck to recover up to $1,000, though Chuck cannot be required to pay her attorney's fees Bring a private legal action against Chuck to recover up to $3,000, as well as reasonable attorney's fees Bring a private legal action against Chuck to recover up to $500, though Chuck cannot be required to pay her attorney's fees Do nothing, as a private action cannot be brought against a foreclosure consultant

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

Brisco is representing an elderly man who's selling his Severna Park home. When touring the home, Brisco notices it needs a new roof and the heating and cooling systems should be replaced as well. His seller client insists on not disclosing this information, since he needs to sell fast and alerting buyers about the issues will delay the sale. What's Brisco's responsibility regarding disclosure of the property's material facts? Brisco must make reasonable efforts to learn all material facts and prevent the seller from concealing them. Brisco's fiduciary duty of obedience means he must honor his client's wishes and not tell prospective buyers about the issues. Brisco should wait until after the home inspection to disclose these issues to see if the inspector includes them in her report. Ultimately, this is the seller's decision and responsibility, not Brisco's.

Brisco must make reasonable efforts to learn all material facts and prevent the seller from concealing them.

A Maryland salesperson included a personal phone number on an ad. What other piece of information must also be included on the ad? Brokerage mailing address Broker's email address Broker's office phone number Salesperson's email address If salespersons or associate brokers include their personal telephone number or email address in an ad, the broker's office telephone number must also be included.

Broker's office phone number

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

Brokers, associate brokers, and salespersons

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? By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure. New salespersons aren't permitted to take on listings until after the 90-day probationary period. Salespersons must get their broker's permission before accepting a short sale listing or offering on a short sale property. Short sales may only be listed by brokers or associate brokers.

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

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?

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

Chandler is a licensed salesperson in a state that doesn't have a reciprocal agreement with Maryland. What must he do in order to qualify for licensure in Maryland?

Chandler needs to complete the same licensure requirements as other Maryland salesperson candidates and submit an irrevocable consent form. Nonresidents from states with no reciprocal agreement with Maryland must complete the same requirements for Maryland licensure as other candidates and submit an "irrevocable consent" form, which allows legal action to be placed on the licensee in Maryland

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.

Changing Brokers

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. Becoming affiliated with a second broker Changing brokers Moving to a home outside the current brokerage's business area Obtaining an additional license

Changing brokers

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 Licensees and their brokers are notified when a complaint is being investigated. The charges, potential penalties, and a copy of the complaint are included in the notification, and the licensees must respond with a full explanation.

Which of the following is NOT a relief option that the nine-member Maryland Commission on Civil Rights may order if it determines that housing discrimination has occurred?

Criminal action against the party who discriminated

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

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

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

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

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

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

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

Designated name of your brokerage firm

Devon and Courtney both consented to dual agency when they signed their listing agreement with Chad from Crab Shack Homes, the Eastern Shore's premiere vacation home brokerage. But when another licensee from Crab Shack presented Chad with an offer, the couple got cold claws and decided they didn't want the potential conflict of interest with dual agency and withdrew their consent. Which of the following is NOT a potential outcome?

Devon and Courtney will be held to their previous dual agency consent and the transaction will continue unhindered. Clients can't be forced into dual agency. They may decide not to affirm a specific dual agency and have the right to terminate the agency and hire other representation. Brokers may terminate representation of a client who refuses to consent to dual agency

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? Assume the buyer understands that Daniel is the seller's agent. Disclose his agency relationship with the seller to the prospective buyer. Refer any questions about the property to the seller. Schedule the showing.

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

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? Disclose that he and Corita work together at the same firm. Get their broker's approval. Have interested buyer's agents contact Corita directly, since she's licensed and knows the most about the property. Split his commission with Corita.

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

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?

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

Seth is a Maryland licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property?

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

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

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

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

Employee time cards While Bobbi should keep employee timecards for business purposes, they are not adequate evidence that Bobbi was properly supervising employees while they were working.

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

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? Fatima doesn't need them to sign the Consent for Dual Agency form since her seller client already has. Fatima isn't permitted to act as a dual agent. Fatima must wait until the open house is finished to have her new clients sign the Consent for Dual Agency form. Fatima needs to reaffirm the seller's dual agency consent before she can help the buyers make their offer.

Fatima isn't permitted to act as a dual agent. Only brokers may act as dual agents. For this scenario to be legal, Fatima would represent one side of the transaction as an intra-company agent, and her broker would appoint another licensee in Fatima's brokerage to represent the other party.

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. Fax machine Flyers For Sale signs Telephone

Fax machine

It is illegal in Maryland to commercially solicit via ____________________ UNLESS a prior business relationship exists. Fax machine Flyers For Sale signs Telephone

Fax machine

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

Federally, Maryland-, and Baltimore City-protected classes Let's be real: Jennifer shouldn't discriminate against anyone, but in order to avoid a fair housing violation in Baltimore, she must not discriminate against anyone who is a member of a federally protected class, a Maryland-protected class, or a Baltimore City-protected class.

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.

Five In order to qualify as one of the five real estate professional members of the board, you must have at least 10 years of real estate experience as a licensee prior to your appointment. This requirement does not apply to the four appointed consumer members of the board.

Charlie and his girlfriend, Frankie, are buying a house together. Having found the perfect home, they made an offer without first having seen the seller's property disclosure/disclaimer statement. The statement arrived two days after they entered into the contract with the seller. How many days do Charlie and his girlfriend have to rescind their offer if they find something in the disclosure that makes them uncertain about the property? Five days Seven days Ten days Three days

Five days

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

Foreclosure consultants PHIFA defines the role of foreclosure consultants and details what actions they can and cannot do in practice. Penalties for violating the act can be as much as three years in prison or a $10,000 fine.

HUD received a complaint from Jameel, an Annapolis resident who claimed that his landlord evicted him when she found out he was gay. What will HUD likely do with this complaint?

Forward it to the Maryland Commission on Civil Rights. MCCR receives and investigates housing discrimination complaints. HUD also forwards complaints it receives that pertain to Maryland. Sexual orientation isn't a federally protected class, but it is a protected class in Maryland.

Members of the Maryland Real Estate Commission serve terms of how many years? Four Nine Seven Two

Four

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? He didn't get Holly's approval before pocketing the profits from the sale of the washers. He didn't get Holly's approval of the sale prices before selling the washing machines. He didn't split the surplus among the building's tenants. He used a personal connection with the hardware store to strike a better deal.

He didn't get Holly's approval before pocketing the profits from the sale of the washers. Property managers may not accept any payment, rebate, or profit on expenditures made for an owner without the owner's knowledge and consent. Dexter should've told Holly about the surplus and let her decide what to do with it.

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

He failed to cooperate with the commission in its investigation.

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

Her former broker returns them to the commission.

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?

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

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

Honesty and fairness

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

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

After the seller backed out of the contract at the last minute, Maryland broker Melody determined that the buyer's earnest money, which she'd deposited in her firm's trust account, should be returned to the buyer. She sent certified letters to the buyer and the seller detailing this decision. What happens next?

If neither party sends Melody a protest within 30 days, she may disburse the funds to the buyer as stated in her letter. If the broker decides to disburse disputed funds, the broker must give the parties 30 days' notice as to how the funds will be distributed. If no one protests in 30 days, the broker may disburse the funds.

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? Conflict of interest Improper brokerage commission Improper handling of trust money Misrepresentation

Improper handling of trust money

Identify which of these actions is a prohibited activity for a real estate licensee in Maryland.

Increasing the rent and security deposit for a family with seven children. Increasing the rent and security deposit on the basis of number of children would be a prohibited practice, because it is discrimination on the basis of familial status.

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

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

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? Believe the homeowner when he says the property is on public sewer, because he'd know best. Hire a private investigator to look into it. Inquire about the homeowner's claim to ensure the property really is on public sewer. Terminate the listing, as the homeowner is obviously not being truthful.

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?

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

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

Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives. Like salespersons, brokers must also complete 15 hours of CE, but unlike the salesperson renewal requirements, three of those hours must be in broker supervision (only 1.5 CE hours are electives).

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?

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.

Broker Pat was so busy enjoying her semi-retired life that she failed to supervise new salesperson Dina adequately and Dina engaged in unintentional discrimination. What might happen to Pat's license? If Dina's license is revoked, Pat's is automatically suspended. If Dina's license is suspended, Pat's is automatically suspended as well. It could be suspended or revoked. Nothing. Only Dina's license is in danger.

It could be suspended or revoked.

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

It is suspended. Your license is suspended automatically when a payment is made on your behalf from the Guaranty Fund. Your actions have resulted in significant losses to a buyer or seller. Your license cannot be reinstated until you repay the fund the full amount owed, plus interest, and make formal application for reinstatement.

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? 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. Sex offender information is not public, and a seller is not required to disclose it. The licensee must research the neighborhood to determine if there are any registered sex offenders. The seller must disclose the location of any nearby sex offenders.

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. As a result of Megan's Law, sex offenders must register with the state, and this information must be made available to the public (usually through websites). Buyers should do the research if this is a concern, keeping in mind that sex offenders may move.

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

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

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

Jail Time

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

James could be sanctioned by both the Commission on Civil Rights and the real estate commission. James could be sanctioned by both the Commission on Civil Rights and the real estate commission (if someone files a similar complaint with that commission). The Commission on Civil Rights could bring a civil action against James, as well as fine him.

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?

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?

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

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

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

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

Last Minute Real Estate Education must electronically submit Ellen's completion data to the commission. CE providers must issue a certificate of completion upon successful completion of a CE course by electronically submitting the completion data to the commission.

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

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.

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? License revocation License suspension One year in prison Three years in prison and license revocation

License revocation

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

Licensees are able to provide a paper copy upon commission request

n Maryland, transaction records may be stored electronically as long as ______.

Licensees are able to provide a paper copy upon commission request

Which of the following is NOT true regarding compensation and Maryland licensees? Licensees may not accept compensation from more than one transaction party without all parties' knowledge. Licensees may not share commissions with licensees in other states, even if their brokers know about it. Licensees may offer prizes at open houses. Unlicensed assistants may not be paid on a commission/contingency basis.

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

Linda is the sponsoring broker at Gardner Homes. Which of the following best describes what happens with her license?

Linda displays her license at Gardner Homes.

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.

Kavita is hosting her first open house. She's put out some refreshments, some printouts of the public MLS listing, and a sign-in sheet so she can (hopefully) get some viable buyer leads from the open house attendees. What other document does she need to display? A copy of the signed listing agreement A copy of the signed Understanding Whom Real Estate Agents Represent form Her real estate license MREC's open house notice

MREC's open house notice Licensees hosting an open house must display an MREC-mandated notice advising consumers that the licensee represents the seller and warning visitors not to discuss with the agent anything they wouldn't want the seller to know.

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 accounts at a bank within 25 miles of his main office. Maintain the accounts at a federally insured financial institution in Maryland. Name himself and at least one other person as signatories on the trust account. Open an interest-bearing account to hold trust funds.

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? Explain to the seller that unless the disclosure is acknowledged, the transaction cannot continue. Make note of the seller's refusal on the agency disclosure, being sure to include the date when you presented it to the person. Tell the seller that they are required by law to sign the form. Throw up your hands in disgust and storm out of the room.

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

Maryland broker Joseph tells his client that a property is zoned as residential, even though he knows it's zoned as commercial. This violation is an example of ______. Contractual interference Failing to disclose an agency relationship Making a substantial and willful misrepresentation Performing services that qualify as practice of law

Making a substantial and willful misrepresentation

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? Clint can elect whether or not to be subject to Margaret's supervision. Margaret can't be held responsible for Clint's actions since he's an independent contractor. Margaret is responsible for and can be disciplined based on Clint's actions. Margaret must supervise Clint but isn't responsible for his actions.

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

Which of these parties likely does NOT have the right to sue for commission earned as part of a Maryland real estate transaction?

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

Joe signed a listing agreement with Marisa. A week later, Marisa's co-worker, Tina, showed Joe a property that he's interested in buying once his home sells. A week after that, Ross submitted an offer on Joe's property on behalf of his buyer client. Who is Joe's agent?

Marisa

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

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

Marital status, sexual orientation, gender identity, and source of income Maryland fair housing law recognizes race, color, religion, sex, familial status, national origin, marital status, sexual orientation, gender identity, disability, and source of income.

Mark lives in Maryland and purchased property in Pennsylvania. His real estate agent gave him poor advice, which cost him $52,000. Which of the following is true? Mark can file a claim with the Guaranty Fund, but he can only recover $50,000 of his loss. Mark can file a claim with the Guaranty Fund to recover his loss. Mark can file a claim with the Guaranty Fund to recover his loss, but only after he has exhausted other methods. Mark cannot file a claim with the Guaranty Fund because the property purchased was in Pennsylvania.

Mark cannot file a claim with the Guaranty Fund because the property purchased was in Pennsylvania.

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

Maryland Commission on Civil Rights

Dennis thinks he was discriminated against by a potential landlord in Maryland and wants to file a complaint. Which entity can he contact to do this?

Maryland Commission on Civil Rights Anyone who believes they've been discriminated against regarding housing in Maryland should initiate an inquiry with the MCCR.

Betsy and Josh want to file a complaint against a real estate licensee whom they feel misrepresented them in the sale of their Maryland home. With what organization can they file a complaint?

Maryland Real Estate Commission

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

Maryland Real Estate Commission

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

Maryland Real Estate Commission

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

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

Meaningfully and conspicuously present

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

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? Michaela is only responsible only for her own personal assistant. Michaela is responsible for all licensees and employees associated with the firm. Michaela is responsible only for the licensed assistants. Michaela is ultimately responsible for her assistant and for Roger (the unlicensed assistant).

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

Amelia's portfolio is on fire! She's got four upcoming listings and each of them will list for at least $500,000. Before she can count her commissions, though, she's got some paperwork to get through. Since she wants to stay on the right side of the Maryland Property Condition Disclosure Law, which of these sellers does Amelia need to remind about completing the Residential Property Disclosure/Disclaimer Statement?

Mikey, an investor who's selling a property that he converted into a three-unit apartment building Unimproved properties, new construction, transfer tax-exempt properties, foreclosures/REOs, sheriff's/tax sales, court-appointed transfers, and properties that will be converted to commercial use or demolished are exempt from the disclosure requirement.

Monica is acting as a listing agent for her friend, Brian. She and Brian met when they both began attending a support group for those living with HIV. Which of the following best represents an action Monica should take?

Monica cannot tell others about Brian's HIV status.

New Maryland licensees pay a fee into the Guaranty Fund to help maintain it. What is the amount of the fee?

New licensees pay a one-time fee of $20 into the fund, whether the licensee is a salesperson or a broker.

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? No, Landon shouldn't place a sign on Maury's property without Maury's written permission. No, Maury's neighbors might tattle. Yes, as the listing agent, Landon has the right to place a sign on the properties he has listed. Yes, since Maury has moved, Landon can make decisions related to the property.

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

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?

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

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? No, she must conform to condo regulations. Yes, if she comes at night and no one sees her. Yes, she has the owner's consent. Yes, the condo board can't tell her what to do!

No, she must conform to condo regulations.

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? No, his claim is over the $50,000 threshold. No, the property purchased was in Pennsylvania. Yes, but he can only recover $50,000 of his loss. Yes, but not before exhausting other methods to collect the money.

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

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

No. She didn't do anything wrong. Licensees may not offer free prizes, incentives, items, etc. in order to induce consumers into a sale or purchase. However, they may give away prizes at open houses, provided they don't induce consumers to enter into a brokerage agreement.

Fumiko hosted an open house for her new seller client. She gave away door prizes to attendees, including pens, mousepads, USB drives, and other items with her brokerage's contact information on them. Did Fumiko do anything wrong? No. She didn't do anything wrong. Yes. All prizes must have her contact information, not her brokerage's. Yes. Licensees aren't allowed to offer prizes or incentives to consumers. Yes. The prizes are considered advertising and must be approved by the commission first.

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. MREC has the power to investigate and discipline real estate licensees and those who practice real estate without a license. MREC doesn't have jurisdiction over Michael, but you can be sure that Own It Realty Group is now on its radar.

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

Notice to the buyer of the Guaranty Fund's protection up to $50,000 Sales contracts must include a written 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 Offering a 1% reduction in her commission rate to the first 10 seller clients who list with her Offering to buy a washer/dryer set for the first 10 buyer clients who sign on with her Offering to waive the administrative fee for the first 10 buyers who sign on with her

Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days Licensees may not use contests or offer prizes to induce a consumer to enter into a brokerage agreement or to influence a buyer to make an offer on a particular property. Incentives may be offered provided they are available to all on the same basis.

Which of the following statements about counter-offers is true?

Once a counter-offer has been made, the prior offer is cancelled.

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?

Only April's

Maryland sponsoring broker Sandrine has five salespersons working under her supervision. Whose license must be displayed in the brokerage office? None are required to be displayed. Only Sandrine's license is required to be displayed; the salesperson licenses must be retained. Only the licenses of the five salespersons must be displayed. Sandrine's license must be displayed, as well as the licenses of the five salespersons.

Only Sandrine's license is required to be displayed; the salesperson licenses must be retained. Only sponsoring brokers must display their licenses. Associate brokers may supervise licensees, but not sponsor them. Licenses may either be displayed or stored in such a manner that they may be immediately presented to the commission upon request.

What type of ownership interest must a licensee disclose in writing to all parties?

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

Under what conditions can licensees contact sellers who are under an exclusive listing agreement with another agent?

Only to arrange a showing to a buyer

In which of the following settings is a prize offering permitted in Maryland?

Open house

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

Open house Contests offering prizes at open houses are permitted.

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

PHIFA defines the role of foreclosure consultants and details what actions they can and cannot do in practice. Penalties for violating the act can be as much as three years in prison or a $10,000 fine.

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

Panic selling

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

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

Under what circumstances can a buyer representation agreement be terminated early in Maryland?

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

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 but encourage Daphne to take the offer from the in-house agent. Present both offers to Daphne and answer any questions she has in making her decision about them. Present the in-house offer first, since it came first, then present the second offer. Present the second offer first, since it's for a higher sales price.

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

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? Advise your seller to accept it as a back-up offer. Hold onto it in case the current contract falls through. Present it to his client. Reply to the buyer's agent that the property is under contract, so it's too late to make an offer.

Present it to his client. Written offers must be presented in a timely manner, even if the property subject to the offer is already under contract. The only exception to this rule is if the seller has told the agent in writing not to present any more offers.

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

Purchase Agreement The purchase agreement doesn't establish agency; it outlines the agreement between the seller and buyer.

Which of the following is NOT a requirement for an electronic records system in Maryland?

Records must be stored in alphabetical order.

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? Relations to fellow licensees Relations to the client Relations to the commission Relations to the public

Relations to the client

Sheila filed a discrimination complaint against her landlord. She's worried that when he finds out about her complaint, he's going to evict her. However, he knows not to evict her just because she filed a complaint. Why? He must wait to evict her until after the complaint has been investigated. Landlords must wait 180 days to evict parties who file a discrimination complaint. Parties who file a discrimination complaint may not be evicted for any reason. Retaliation against parties who file a discrimination complaint is illegal.

Retaliation against parties who file a discrimination complaint is illegal.

Rhetta received the lead-based paint inspection report for the two-bedroom condo she's purchasing. The report found evidence of lead-based paint in the living room, dining room, and kitchen. Within the 10-day deadline, Rhetta made sure to send the sellers a copy of the report, an itemization of the hazards, and guidelines on how the sellers should abate them. What's wrong with this scenario?

Rhetta only has five days in which to send the sellers this information.

Continuing Education Hours

Salespersons are required to complete 15 hours of continuing education (CE) during every two-year renewal period, consisting of: 3 hours each of legislative updates, agency, and ethics (including professionalism) 1.5 hours of fair housing 4.5 hours of electives.

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?

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

Peter represents an owner who's selling an investment property. The property is listed at $245,000, which Peter knows is too high. He encourages his business partner, Mel, to offer $235,000 and convinces the seller to take it. After closing, Peter and Mel flip the house and make a handsome profit. What illegal activity has Peter engaged in? Inflated appraisal Self-dealing Silent second Straw buyer

Self-Dealing

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?

Sellers should provide buyers with the disclosure/disclaimer before the contract is signed. If they don't, and the parties still enter into the contract, the buyer may rescind the contract any time before receiving the disclosure/disclaimer form.

Which two Maryland protected classes, while not specified in federal fair housing law, may still qualify for protection under the federal Fair Housing Act under certain circumstances?

Sexual orientation and gender identity Sexual orientation and gender identity are considered protected classes in Maryland, and in certain circumstances, these categories may qualify for protection under other federally protected classes, depending on the basis of the discrimination.

Dorothy, a Maryland broker, deposited her buyer client's earnest money funds a month ago. The seller backed out of the contract two days before closing and claimed she was owed the earnest money because of the time the property had been taken off the market during contract negotiations. The buyer wants his earnest money back. Which of the following is NOT an option that Dorothy has regarding the dispute? She can file a bill of interpleader and deposit the funds with the courts, which would then decide their disbursement. She can file a claim with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed. She can hold onto the funds until one of the parties files suit and a court orders the funds' disbursement. She can hold the funds until she receives both parties' authorization to disburse them.

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

She can file a claim with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed. Brokers may: hold disputed funds until both parties authorize their disbursement, file a bill of interpleader and deposit the funds with the courts to decide their disbursement, or hold the funds until one party files suit and a court orders disbursement.

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? She didn't alert the comparable properties' listing agents that she was using their listings as comps. She didn't include at least six comparables in her analysis. She didn't include a written statement on the CMA's first page that clarified that it wasn't an appraisal. She didn't leave it up to Jonathon to determine the suggested list price.

She didn't include a written statement on the CMA's first page that clarified that it wasn't an appraisal. Licensees must include a specific "Competitive Market Analysis Disclosure" statement conspicuously and on the CMA's first page. The exact wording of the statement can be found in the "Relations to Clients" section of the Maryland Code of Ethics.

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?

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

Shanice got her real estate license just in time to help her father sell the condo they jointly own in Harbor East in Baltimore. Even better, another agent in her brokerage found a buyer, so they were able to keep the commission within the brokerage. Shanice made sure that both parties were fully aware of and consented to the dual agency arrangement in writing. What is Shanice forgetting? She forgot that she isn't allowed to be a principal in a dual agency transaction. She forgot that she isn't allowed to sell a property in which she has a personal interest. She forgot to disclose that she has ownership interest in the property. She forgot to order the condo resale packet before placing the property on the market.

She forgot to disclose that she has ownership interest in the property.

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? She is each party's single agent. She's a dual agent, since the seller and buyer know each other. She's the buyer's agent and the seller's subagent. She's the seller's agent and the buyer's subagent.

She is each party's single agent.

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? She can appeal the hearing panel's decision. She can seek damages, including emotional distress and attorney's fees, from the Guaranty Fund. She can wait six months and then file another claim. She is out of luck and won't be able to request further action from MREC.

She is out of luck and won't be able to request further action from MREC. Since the hearing panel found no merit to Rose's case, it's rejected the claim, and Rose may not file an appeal. Guaranty Fund claims are considered separately, but only actual monetary damages may be claimed.

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?

She is related to the seller (her mother).

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? Her license and her broker's licenses are suspended for 15 days. She has to pay a $5,000 fine. She must place a retraction in any publication that featured her ad. She's required to take additional fair housing classes.

She must place a retraction in any publication that featured her ad. Penalties for violations include: fines, repayment of commission, license suspension/revocation, and requirements to take additional education. A broker's license may also be endangered if one of the broker's associated licensees commits a violation.

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 Licensees must stay abreast of current market conditions so they can competently advise clients about fair market value/price. The list price is ultimately the sellers' decision, even if it's outside the current market value that you recommend to them.

How do you change your supervising broker in Maryland? File an affidavit from both brokerages approving the switch at the county clerk's office. Just start working at the new brokerage. Submit a statement of affiliation from the new broker and a statement of affiliation termination from the former broker along with your transfer application to the commission. Tell your current brokerage you're leaving after your license is transferred to the new brokerage.

Submit a statement of affiliation from the new broker and a statement of affiliation termination from the former broker along with your transfer application to the commission.

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?

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

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

The $20 Guaranty fund fee Upon licensure, all new brokers and salespersons are charged a $20 Guaranty Fund fee. This fee helps keep the Guaranty Fund at its minimum balance of $250,000.

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? Sabine may request that her broker appear before the judge to corroborate the evidence she presented. Sabine must take the ethics coursework and submit proof of completion to MREC. Since Sabine was found guilty of a violation, her case is automatically appealed. The MREC hearing panel decides whether or not to accept the ALJ's recommendation.

The MREC hearing panel decides whether or not to accept the ALJ's recommendation. Once an ALJ makes a recommendation, the hearing panel decides whether or not to accept it. If the hearing panel upholds the decision, Sabine may appeal.

A seller client found out three days after closing that the woman who bought his condo was his seller agent Hannah's mother. Hannah never disclosed this to him. He wants to file a complaint against her, claiming she violated the Maryland Code of Ethics. With which entity should he file his complaint? The Maryland Commission on Civil Rights The Maryland Department of Professional Licensing The Maryland Office of the Attorney General The Maryland Real Estate Commission

The Maryland Real Estate Commission

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 chamber of commerce The Guaranty Fund The Maryland Real Estate Commission The state attorney general

The Maryland Real Estate Commission

Which of the following is NOT a required inclusion in a Maryland buyer representation agreement?

The address of the property the buyer is purchasing

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?

The brokerage's designated business name must be meaningfully and conspicuously present. Your brokerage's designated name must be included in all real estate advertising and it must be meaningfully and conspicuously present, so a franchise logo doesn't meet the requirements to identify the brokerage.

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

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

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? The amount of earnest money the seller requires The commission amount The most recent property tax amount The seller's preferred closing date

The commission amount The listing or buyer representation agreement must state the commission amount, in either a specific amount or a percentage. Net listings are prohibited.

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

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

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

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

Silvio's buyer client Donna is new to the area and asked him if he could recommend any contractors to install new windows and doors in her new home. Silvio checked the DOL website to make sure the contractor was still licensed, then gave Donna the contractor's contact information. What else does he need to give Donna?

The date Silvio verified the contractor's licensure and the link to the DOL website where Donna can perform a license search When providing a contractor name to a client, licensees are also required to provide the date they verified the contractor's licensure and the link to the Maryland Home Improvement License Search on the DOL website.

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 ______.

The date printed on her license

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? The day of the home inspection When the buyer expresses interest in purchasing the property When the buyer makes an offer When the property goes on the market

The day of the home inspection The seller is required to provide the buyer with the Maryland Residential Property Disclosure and Disclaimer Statement on or before the day the buyer signs the purchase offer. By the time the home inspection occurs, the contract has already been signed.

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

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

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. MREC may summarily suspend a license if the licensee is convicted of a felony, or if the licensee fails to: promptly account for trust funds, provide trust fund records, or disclose to the commission that the licensee has been convicted of a felony.

The link to the Maryland Home Improvement License Search on the DLLR website When providing a contractor name to a client, licensees are also required to provide the date they verified the contractor's licensure and the link to the Maryland Home Improvement License Search on the DLLR website.

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

The Maryland Real Estate Commission may discipline brokers who do not reasonably and adequately supervise their affiliated licensees. Which of the following does the commission NOT consider in determining whether supervision was reasonable and adequate?

The number of mandatory work hours expected of independent contractors

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

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

The property management agreement terminates

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

The property management agreement terminates Licensees who provide property management services must keep related records for at least five years, beginning on the date the management agreement terminates.

The Maryland Code of Ethics is divided into three sections: relations to ______, relations to clients, and relations with other licensees.

The public The code is divided into relations to the public, relations to clients, and relations to other licensees.

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

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

Which of the following is true regarding claims made against the Guaranty Fund?

They can only be made for actual monetary damages incurred.

Each of the Maryland Real Estate Commission's hearing panels consists of _________ members. 10 Five Nine Three

Three

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

Three

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

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

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? Marquis inherited his property from his mother after she passed away in the master bedroom, which was painted with lead-based paint. The city will begin construction on a new community center 50 yards from Ebony's property next year. Timothy is moving out of his neighborhood because his neighbors host raucous parties at all hours of the night. 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.

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

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

To curb threats to the racial stability of an area.

Licensees must disclose when they're acting on behalf of an immediate family member, an entity in which they have an ownership interest, or another affiliated licensee/employee of their brokerage or in their team/group. T/F

True

Which of these scenarios does NOT accurately reflect the MREC complaints and investigations process? Finding no evidence of misconduct, the hearing panel reviewing Monica's complaint dismissed the claim. The hearing panel decided against the administrative law judge's recommendation to suspend Swaroop's license. The hearing panel forwarded Charlene's complaint against licensee Todd to Investigative Services for further inquiry. Upon reviewing a complaint against licensee Derek, an administrative law judge deemed it worthy of further investigation.

Upon reviewing a complaint against licensee Derek, an administrative law judge deemed it worthy of further investigation. The hearing panel reviews complaints, dismissing invalid claims and forwarding valid ones to Investigative Services. If warranted, an ALJ will preside over a hearing and then make a recommendation to the hearing panel regarding disciplinary action.

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

Within 3 years When a license expires due to nonrenewal, it can be reinstated within three years of the last valid expiration date.

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?

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

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

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

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

Yes, but a new counter-offer must be drawn up to include the original offer's terms. Once a counter-offer has been made, the prior offer is cancelled. There is no retracting a counter-offer and returning to the prior offer, although a new counter-offer can do that if both parties agree and sign.

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? No, because any bonus should have been included in the original buyer brokerage agreement. No, because licensees aren't permitted to compensate each other. Yes, but only if all parties are notified about the extra compensation. Yes, but only if Jaleel approves it.

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

Brooke listed a home and the listing agreement detailed a 5% commission to be split equally with any cooperating agents. A week later, Brooke received an offer for $5,000 less than list price from Sam Crane, an agent that Brooke doesn't really care for given his overly aggressive negotiation style. She advises her client to decline the offer, saying it's only the first week and they'll likely get a better offer soon. Has Brooke violated any provisions of the Maryland Code of Ethics? No, if she knows that Sam will be hard to work with, she should protect her client. No, she's wise to advise the seller to not accept a less-than-listing offer so soon into the listing period. Yes, she failed to disclose the shared commission to Sam. Yes, she must cooperate with other brokers if it's in the seller's interest, and depending on the other offer terms, this deal might be.

Yes, she must cooperate with other brokers if it's in the seller's interest, and depending on the other offer terms, this deal might be.

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?

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

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

Yes, under state fair housing laws

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?

Yes. Advertising may not discriminate.

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

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

You recently listed an historic home more than 100 years old, which was the site of a suicide many years ago. A spirit is believed to roam the grounds, but the current owner doesn't want this shared with prospective buyers. Which action best demonstrates good faith? You follow the owner's wishes because the suicide and haunting don't need to be disclosed. You tell the owner you don't have to disclose that the property was the site of a suicide, but do need to disclose the ghost. You tell the owner you don't have to disclose the ghost, but do need to tell buyers that a suicide occurred on the property. You tell the owner you must disclose whether a property was the site of a suicide or homicide.

You follow the owner's wishes because the suicide and haunting don't need to be disclosed.

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? 10 Five Seven Zero

Zero

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

Earnest money must

be placed in an escrow account within no more than seven business days after the formation of the contract of sale. The amount of earnest money is negotiable between the parties.

The Protection of Homeowners in Foreclosure Act prohibits real estate licensees (unless they're further licensed)

from predicting the credit effects of a short sale/foreclosure, the benefits of a strategic default, or how to avoid a deficiency judgment.

The amount of earnest money __________ negotiable between the parties. Is Is not

Maryland brokers who hold trust funds must

maintain a non-interest-bearing checking or savings account designated solely to hold trust money and separate from their other accounts. The financial institution must be federally insured and in Maryland.

Licensees ___________ share commissions with licensees in other states, as long as that state also allows intra-state compensation sharing. Cannot May

may

Maryland fair housing law recognizes

race, color, religion, sex, familial status, national origin, marital status, sexual orientation, gender identity, disability, and source of income.

All Maryland =________________________ must adhere to the commission's Code of Ethics, which is divided into three categories: relations to the client, relations to the public, and relations to fellow licensees.

real estate licensees

When a salesperson transfers to another broker, the former broker

returns the license and pocket card to the commission. A new license and pocket card are then issued and can be downloaded digitally by the new broker.

If salespersons or associate brokers include their personal telephone number or email address in an ad

Real Estate Exam Prep

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