CE Shop Final Exam - Practice
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 - because 5,000 is legal fees
New Maryland licensees pay a fee into the Guaranty Fund to help maintain it. What is the amount of the fee?
$20
What is the amount of the one-time fee that each new Maryland licensee pays into the Guaranty Fund?
$20
What is the highest amount you can be fined by the Maryland Real Estate Commission for a serious violation?
$25,000
What is the maximum amount a claimant can receive from the Guaranty Fund for a single transaction?
$50,000
In Maryland, how many hours of approved real estate courses must an individual complete before taking the real estate broker's exam?
135
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
For sale signs on ground rent properties that show the price of the property must also state which of the following?
Annual ground rent plus the full cost of capitalization
Which licensee has violated Maryland license law concerning the use of unlicensed assistants?
Antonio paid his assistant $100 for staying late one evening to help a client fill out an offer form when Antonio had to leave unexpectedly. Commissions may not be paid to unlicensed individuals based on their performance of real estate activities for which a license is required.
Craig, a broker, has been accused of multiple counts of misrepresentation and fraud. MREC has called a hearing before an administrative law judge. Which parties may attend the hearing?
Anyone may attend, since MREC hearings are open to the public.
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
In terms of record keeping, how long do you need to have something on file for?
At least five years.
Phyllis has learned that the Maryland Real Estate Commission's real estate professional member from the Eastern Shore is vacating his seat soon. Phyllis has eight years of experience as a salesperson, and she's lived in Ocean City for six years. What else does Phyllis need in order to secure her nomination by the governor?
At least two more years of real estate experience
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.
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.
Four years ago, licensee Gustav assisted a buyer in her purchase of a foreclosed three-bedroom townhome in Hanover. The buyer recently called Gustav, telling him that she filed a complaint with MREC, claiming that Gustav knew the plumbing was faulty, but didn't disclose this to her. As a result, she's racked up more than $35,000 in plumbing bills since her home purchase. Panicked, Gustav begins searching for the transaction file until his broker tells him he can stop. Why?
Complaints must be filed within three years of the transaction date, and this sale took place four years ago.
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 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.
Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______.
Demonstrating untrustworthiness or incompetency to act as a real estate broker
Which of the following offers is a Maryland licensee NOT required to present to a client?
Details of an oral offer
Which of these parties could NOT file a claim with the Guaranty Fund?
Devon, a broker who lost $10,000 when a seller client demanded that Devon pay to have her home staged, then cancelled the listing a week later when the house hadn't sold
What must licensees do if they have an ownership interest in the property that is subject to the transaction?
Disclose the interest in writing to all parties to the transaction.
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.
What must Maryland sellers provide prospective buyers of homes built prior to 1978, in addition to the appropriate disclosure form?
EPA lead safety pamphlet
Bobbi received a notice from the Maryland Real Estate Commission that she was being investigated for failure to properly supervise her affiliated licensees. At her hearing next month, she needs to present evidence to the contrary. Which of the following is NOT considered evidence of reasonable and adequate supervision, as defined by the commission?
Employee timecards
In Maryland, how often must real estate salespersons renew their license?
Every two years
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
Your client and you just successfully closed on a home. Early on in the transaction you collected an agency disclosure notice. How long do you have to keep the notice on file?
Five years
In Maryland, the Protection of Homeowners in Foreclosure Act describes the role of and sets guidelines for the actions of ______.
Foreclosure consultants
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.
Stanley, a broker, received notice from the Maryland Real Estate Commission that it was summarily suspending his license. What's the most likely reason that his license was immediately suspended?
He didn't provide the commission with trust account records.
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.
MREC's five-member hearing panel reviewed Rachel's complaint against David, a supervising broker of a 10-member firm. The panel then forwarded the claim to Investigative Services, which determined that a hearing was necessary. MREC gave both Rachel and David 10 days' notice before the hearing, to which they each brought their attorneys. What's wrong with this scenario?
Hearing panels have three members.
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?
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
A property is listed as having four bedrooms and two-and-a-half bathrooms. However, when showing your buyer clients the property, you only count three bedrooms. As their agent, what should you do as part of your due diligence?
Investigate this discrepancy.
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?
It illegal to retaliate against parties who file a discrimination complaint
When a payment is made on your behalf from the Guaranty Fund, what happens to your real estate license
It is suspended
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.
Which of these scenarios depicts a potentially illegal dual agency arrangement in Maryland?
Jackson, an associate broker, acts as dual agent and designates two salespersons from the brokerage to represent each party.
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.
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
While hosting an open house, Nathan speaks witha pair of unrepresented prospective buyers who are interested in the house but think the listing price is a little high. They ask him what other incentives they could include in their offer to get the seller to come down on their price. If Nathan helps them, what Maryland Code of Ethics guideline may he be breaching?
Licensees must protect and promote their client's interests without compromising their duties to the other parties.
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?
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 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?
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
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 cannot file a claim with the Guaranty Fund because the property purchased was in Pennsylvania.
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
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
Which of these unlicensed assistants may NOT be compensated for their activities in Maryland?
Michael, who shows properties when salesperson Janine is out of town.
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 responsible for all licensees and employees associated with the firm.
Timothy is moving out of his neighborhood because his neighbors host raucous parties at all hours of the night. - Does he need to disclose?
NOT a material fact requiring disclosure in Maryland
Two agents from the same team represent the seller and the other represents the buyer- Is this dual agency in MD
NOT an example of legal dual agency in Maryland
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, the property purchased was in Pennsylvania.
What information about the Guaranty Fund must be included in every Maryland sales contract?
Notice to the buyer of the Guaranty Fund's protection up to $50,000 Sales contracts must include a written notice to the buyer of the Guaranty Fund's protection up to $50,000.
Which of the following statements about counter-offers is true?
Once a counter-offer has been made, the prior offer is cancelled.
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
In which of the following settings is a prize offering permitted in Maryland?
Open house
What's it called when a licensee tries to induce sales by predicting a decline in market value?
Panic selling
Amelia, a retired community college professor who used to teach about home improvement
People that would be eligible to be one of MREC's consumer members
Which of the following statements about how a listing agreement can be terminated in Maryland is true?
Per Maryland law, all listing agreements must contain a provision for the early cancellation of the agreement by either the broker or the seller.
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
What type of ownership interest needs to be disclosed in writing to all parties
Property held directly or indirectly by the licensee, the licensee's immediate family member, the licensee's firm, or a member of the licensee's firm
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
Ron prides himself on providing his buyer clients with consistently stellar representation. His latest buyer client, Tammy, is purchasing a fixer-upper on Walnut Street, just a stone's throw from the railroad tracks. What's Ron's responsibility regarding making sure Tammy is informed about the property's condition?
Ron should make sure that Tammy understands her rights and obligations regarding the property disclosure/disclaimer statement.
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.
Dwayne has a buyer client who's very interested in making an offer on a home in Dwayne's own neighborhood, and he actually met the seller at the latest community block party. Dwayne knows that the seller's agent is out of town until next week and is anxious to make the offer before another buyer potentially comes into the mix. What should he do with the offer?
Send the offer to the seller's agent and follow up after the agent is back in town.
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
Which of these licensees is correctly following MREC guidelines for hosting an open house?
Shawna displays the MREC notice informing consumers that she represents the seller.
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.
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.
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 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 is out of luck and won't be able to request further action from MREC.
Aurelia is a relatively new salesperson who has been accused of discriminating against minorities in her real estate advertising. Which of the following is NOT a possible outcome if she's found guilty
She must place a retraction in any publication that featured her ad.
Roz, representing the buyer, sees the seller coming 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
An administrative law judge presided over Sabine's misconduct hearing. Sabine presented several documents indicating she was an excellent licensee, including notarized statements from three of her clients. However, the ALJ found evidence of misconduct and recommended that Sabine be required to take an additional three hours of CE in ethics. What happens next?
The MREC hearing panel decides whether or not to accept the ALJ's recommendation.
Marjorie has been a licensed broker in Maryland for 45 years. She's sick of having to go through the renewal process every two years and wants to petition to allow seasoned licensees like her to renew every four years instead. Which entity should Marjorie contact about this idea?
The Maryland Real Estate Commission
Which of the following is NOT a required inclusion in a Maryland buyer representation agreement?
The address of the property the buyer is purchasing
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.
Who is required to sign and date the MAR's "Notice to Buyer and Seller of Buyer's Rights and Seller's Obligations under Maryland's Single Family Residential Property Condition Disclosure Law" form?
The buyer, seller, and their agents
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 DLLR 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 DLLR website where Donna can perform a license search
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
Which of these parties is NOT notified when a licensee's license is suspended?
The licensee's clients
April has some crazy listings in her current portfolio; it seems as if everything that could've gone wrong with them has gone wrong. According to Maryland disclosure law, which of these defects should April disclose?
The mansion on Monroe Street is a former cat sanctuary, and the drywall near where the litter boxes were shows signs of "water" damage.
The Maryland Real Estate Commission may discipline brokers who do not reasonably and adequately supervise their affiliated licensees. Which of the following does the commission NOT consider in determining whether supervision was reasonable and adequate?
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 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
The Maryland Real Estate Commission creates several hearing panels consisting of how many members each?
Three
Paul is hoping to purchase a townhouse in Locust Point in Baltimore, and Shelly, a salesperson, is helping him fill in the blanks on the contract form before he makes his offer. Though Shelly doesn't have an agency agreement with Paul, she knows she'll still get paid since the seller has agreed to compensate sub-agents. What else does Shelly need to do?
Use the agency disclosure form to inform Paul that she's a sub-agent and technically represents the seller.
Jorge's firm has just been assigned as the listing brokerage for a foreclosed condo unit in Jorge's own building. Jorge knows that given the unit's condition, it's bound to sell for far less than market value of a nicer unit such as his. Worried that the new listing will bring down his unit's value, Jorge quickly lists his unit at current market price and sells it before the foreclosed listing hits the market—at a price $100,000 less than Jorge sold his unit for. Has Jorge done anything wrong?
Yes, Jorge has engaged in self-dealing. Not disclosing a conflict of interest is called self-dealing, and it's illegal
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.
illegal handling of trust funds in Maryland
The commission may reprimand, impose fines, and suspend and/or revoke licenses, but it may not impose prison sentences.
possible penalties imposed by the commission for a violation of the Maryland Code of Ethics