MD state ce shop

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?

10

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

135

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 NB// 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.

What is the highest amount you can be fined by the Maryland Real Estate Commission for a serious violation?

25,000

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

60

The Protection of Homeowners in Foreclosure Act (PHIFA) outlines parameters for foreclosure consulting services offered to homeowners who are at least ______ delinquent on their mortgage payments

60 days NB//PHIFA sets guidelines for foreclosure consulting services offered to owners who are at least 60 days delinquent on their mortgage payments. Certain foreclosure consultation services require additional licensure outside of a typical real estate license.

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?

75,000

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?

75,000 NB//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.

Harry, a real estate licensee, tells a seller, "I'll be surprised if you get $100,000 for this place. I won't charge you anything to list it, but anything you get above $100,000 goes to me. Deal?" This is an example of ______.

A net listing agreement

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

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

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

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

Which of the following statements about latent defects is true?

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

Ben and Leslie received their finalized purchase contract on April 10, just moments after the sellers put their final signatures on it. Ben and Leslie decided that since the home they're buying was built in 1920, they'd like to have it inspected for lead-based paint. When is the latest that the couple can have the inspection performed if they want to be able to back out of the contract?

April 20 NB// Buyers have 10 days from the date of contract ratification to conduct a risk assessment or inspection of the property for lead-based paint hazards.

When must an agent disclose an agency relationship to an unrepresented transaction party?

At first substantive contact

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

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

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.

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

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

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.

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.

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

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 NB// 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 these payment structures is illegal in Maryland?

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

Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______.

Demonstrating untrustworthiness or incompetency to act as a real estate broker

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

Designated name of your brokerage firm

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 terms must be included in a buyer agency agreement?

Duties and responsibilities of the buyer to the agent

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

Every two year

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

Foreclosure consultants NB// 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

Nancy just hired her sister, real estate licensee Grace, to list her property. Jason schedules a showing for his client, who's interested in Nancy's property. What needs to take place?

Grace needs to disclose in writing to Jason and his client that the property is owned by a family member.

Rumi was on vacation in St. Croix when he received a written offer, via email, for his seller client's property, which had been on the market for two months with no offers. He decided to hold onto it until he got back a week later, so he could present it to his client in person. The next day, his seller client called Rumi's office to cancel the listing. When Rumi told the former client that he'd had an offer, she complained to MREC about him. What are the possible penalties Rumi could face?

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

Dexter has been managing Holly's 10-unit apartment building for five years. Holly's on vacation in Europe for a month, but before she left she approved Dexter's plan to sell six of the building's washing machines in order to buy new ones. Dexter got a great deal from the hardware store because his cousin is the manager and there ended up being a surplus of $1,000. Dexter deposited the surplus into his personal account as a bonus to himself for striking such a good deal. What did Dexter do wrong?

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

Chester is moving on up! He and his wife are ready to sell their condo and purchase a new place. Chester is a real estate licensee and will list the property himself. What must Chester disclose to prospective buyers?

He owns the property.

One of the things that Tyrone loves being able to do as a licensee is help his friends, family, and business associates with their real estate needs. In which of these situations does Tyrone NOT need to disclose his personal interest in the transaction?

He's selling the home of his childhood friend.

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 these is NOT a power of the Maryland Real Estate Commission?

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

What type of license would Sarah be eligible for if she is new to real estate and does not yet have a supervising broker lined up?

Inactive salesperson license

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. NB//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).

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.

In 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 share commissions with licensees in other states, even if their brokers know about it. NB// Licensees may share commissions with licensees in other states, as long as that state also allows intra-state compensation sharing.

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 ______.

Making a substantial and willful misrepresentation

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

Your broker's designated name must be included in all real estate advertising, and it must be ______.

Meaningfully and conspicuously present

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 NB// 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.

The Maryland Commission on Civil Rights consists of how many members?

Nine (9)

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.

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 NB//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 does NOT qualify as a ministerial act under Maryland law?

Offering earnest money deposit advice NB// Ministerial acts do not require that the licensee advocate for or advise the customer. Licensees should not use their discretion or judgment in assisting customers.

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.

Joanne's a new licenses, and her broker has suggested that she attend a meeting of the Maryland Real Estate Commission to learn more about how the commission works. If it's December 1, and she's trying to go before the end of the year, how many more meetings are available for her to attend?

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

Monique received four offers on her client's listing. Offer A is a written offer that the buyer's agent dropped off at Monique's office. Offer B is an offer that the buyer's agent communicated to Monique over the phone. Offer C is a written offer that Monique received via email. Offer D is a written counter-offer from a buyer that Monique's client countered earlier in the week. Which offers must Monique present to her client?

Only offers A, C, and D, since they're in writing NB// Licensees must present all written offers and counter-offers to their clients in full, in hard copy or electronic format. Since offer B isn't in writing, Monique isn't required to present it, but it would be prudent for her to request it in writing.

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

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

Open house NB// Contests offering prizes at open houses are permitted.

In addition to sanctions imposed by the Maryland Real Estate Commission, serious violations of real estate license laws can result in what?

Prison sentence

A real estate professional in Maryland is legally permitted to take which of these actions?

Prohibit a family of 10 from renting a unit with a capacity of two people.

Which of these documents does NOT establish an agency relationship between a client and a licensee?

Purchase agreement

Which of these parties is the Maryland Real Estate Commission NOT authorized to investigate for license law violation?

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

Which of 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 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?

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.

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

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

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 include a written statement on the CMA's first page that clarified that it wasn't an appraisal

During a particularly grueling and heated negotiations process, Roz, who's representing the buyer, notices the seller coming down the aisle toward her at the grocery store. Roz has just heard from her buyer client that he's willing to budge on a couple of home inspection repair issues. What should Roz do?

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

New licensee Joey is reconciling his bank statement and identifies a $20 deficit that he can't account for. Which initial licensing fee has he likely forgotten about?

The $20 Guaranty Fund fee

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

The address of the property the buyer is purchasing

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 is missing ?

The commission amount

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 30 days before his license's expiration date.

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. NB// Once an applicant has fulfilled all licensure requirements and applied for a license, the commission will issue the new licensee a license and pocket card that include the name of the brokerage firm with which the licensee is affiliated.

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. NB// 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 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

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

The property 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

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?

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

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

Three (3) NB// Each of the commission's hearing panels consists of three members

Which of these is NOT a material fact requiring disclosure in Maryland?

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

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

Two (2) Months

Which of these scenarios does NOT accurately reflect the MREC complaint and investigations process?

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

LaTonya represents the seller of a property that's got an interested buyer. She's emailing the buyer, who's unrepresented, some documentation based on some questions he had and has included the Understanding Whom Real Estate Agents Represent form so she can disclose her agency relationship with the seller. Is this permissible?

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

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.

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?

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.

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. NB// Even if a property or transaction is exempt from fair housing law, as this one would be given that Mrs. Jones is renting a unit in her own residence, advertising may not discriminate.

In Maryland, unless a prior business relationship exists, it is illegal to commercially solicit using what means?

fax machine

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

within three years