maryland state exam | practice

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

Designated name of your brokerage firm

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? a.fines b.formal reprimand c.jail time d.license suspenson/revocation

jail time

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? a.$18000 b.$23000 c.$5000 d.$50000

$18000

Because her agent didn't tell her about the leaking roof he knew about, Dulce's had to pay $20,000 to repair her roof, $8,000 to repair the bedroom ceiling that caved in, $2,000 to repaint the bedroom, $10,000 to replace her ruined furniture and wardrobe, and $10,000 in legal fees pursuing her agent in court. She also wants to get back the $2,500 commission she paid him. How much can she seek from the Guaranty Fund? a.$12500 b.$40000 c.$50000 d.$52500

$40,000

In Maryland, how many hours of approved real estate courses must an individual complete before taking the real estate salesperson exam? a.120 b.30 c.60 d.75

60

With whom may Maryland broker Ruthe NOT share her commission? a.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 b.Charlene, a broker in a neighboring county c.Felix, a broker who lives in a state that has a reciprocity agreement with Maryland d.Mario, a broker within Ruthe's brokerage firm

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

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? a.Affidavit of signed consent and approval b.Affiliation with a supervising broker c.An additional 20 hours of education d.An irrevocable consent form

Affiliation with a supervising broker

Which of these parties would be eligible to be one of MREC's consumer members? a.Amelia, a retired community college professor who used to teach about home improvement b.David, a semi-retired real estate broker with 25 years of experience c.Marco, a licensed electrician who has a 10% ownership interest in the commission d.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

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

At the open house

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? a.By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure. b.New salespersons aren't permitted to take on listings until after the 90-day probationary period. c.Salespersons must get their broker's permission before accepting a short sale listing or offering on a short sale property. d.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? a.Carmen can contact the sellers if they have an exclusive listing agreement. b.Carmen may not try to persuade sellers to break the contract they have with another agent. c.Carmen may try to convince the sellers to break their contract with the other agent and sign with her instead if they have an exclusive listing agreement. d.Carmen should look up the listings on the MLS and then prepare an appraisal at a higher value in order to persuade the sellers to sign with her.

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? a.Chandler needs to complete the same licensure requirements as other Maryland salesperson candidates and submit an irrevocable consent form. b.Chandler needs to pass both the national and Maryland licensing exams and submit an irrevocable consent form. c.Chandler needs to receive commission approval before completing any licensure requirements. d.Chandler only needs to pass the Maryland portion of the licensing exam and provide the name of the Maryland broker with whom he'll be affiliating once licensed.

Chandler needs to complete the same licensure requirements as other Maryland salesperson candidates and submit an irrevocable consent form.

Which of the following is NOT an example of legal dual agency in Maryland? a.Chet, the managing broker, represents a seller and designates one of his associated salespersons, Chanice, to represent the buyer in the same transaction. b.Damon, an associate broker with Sunshine Realty, represents the property seller, and Jake, a salesperson at the same firm, represents the property buyer. c.Patrice, the office manager of Nest Egg Homes, appoints salesperson Sharlene to represent the seller and salesperson Butch to represent the buyer of a property listed with Nest Egg. d.Ruthe, an associate broker with Fortunata Realty, represents a property seller, and Lisa, another associate broker at the same firm, represents that property's buyer.

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

Assuming that the following individuals only carry a real estate license, who is in violation of the foreclosure consultation parameters set forth in PHIFA? a.Benji listed a seller client's short sale property on the MLS and identified it as a short sale in all marketing materials. b.Clint's former buyer client lost her home to foreclosure. When the lender filed a deficiency judgment against her, Clint advised her how to proceed. c.Tiffany conducted a comparative market analysis for a short sale seller client and determined that the property's value is $50,000 less than what her client owed on his mortgage. d.When Marin's seller client said that she was thinking about pursuing a deed in lieu of foreclosure instead of a short sale, Marin referred her to a foreclosure consultant.

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

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

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

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? a.Crab Shack may terminate the listing agreement. b.Devon and Courtney may terminate their agency relationship with Crab Shack and find another broker. c.Devon and Courtney will be held to their previous dual agency consent and the transaction will continue unhindered. e.The buyers may find another broker to represent them.

Devon and Courtney will be held to their previous dual agency consent and the transaction will continue unhindered.

Which of the following Maryland properties would require a lead disclosure? a.Commercial building built in 1960 b.Duplex built in 1959 c.Duplex built in 1979 d.Single-family home built in 1999

Duplex built in 1959

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? a.Employee timecards b.Forms that each licensee signed stating that they'd received the firm's policies and procedures manual c.Meeting sign-in sheets that licensees signed d.Records that Bobbi reviewed advertising

Employee timecards

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? a.Grace doesn't need to do anything special, since she doesn't own the property. b.Grace must terminate her contract with Nancy, since she can't represent a family member. c.Grace needs to disclose in writing to Jason and his client that the property is owned by a family member. d.Grace needs to keep the fact that the property is owned by her sister confidential.

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? a.He didn't provide the commission with trust account records. b.He failed to pay his license renewal fee on time. c.He failed to report that he was charged with a misdemeanor last week. d.He held onto an earnest money check until the offer had been accepted.

He didn't provide the commission with trust account records.

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? a.He didn't make sure that Luna responded to the commission's notice. b.He failed to cooperate with the commission in its investigation. c.He failed to present himself before the commission. d.He failed to properly supervise his affiliated licensees.

He failed to cooperate with the commission in its investigation.

How does a Maryland broker's license renewal differ from a salesperson's license renewal? a.Brokers have to renew every three years and salespersons have to renew every two years. b.Brokers must take the 15 hours of CE salespersons take, plus an additional three hours of broker supervision coursework. c.Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives. d.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.

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? a.If Dina's license is revoked, Pat's is automatically suspended. b.If Dina's license is suspended, Pat's is automatically suspended as well. c.It could be suspended or revoked. d.Nothing. Only Dina's license is in danger.

It could be suspended or revoked.

Shelby listed her seller client's condo on April 4. It went under contract May 16. That contract fell through on May 29. The listing agreement expired on July 4, with no other offers or contracts. On what date does the five-year record-retention clock start ticking? a.April 4 b.July 4 c.May 16 c.May 29

July 4

Which of these documents does NOT provide appropriate agency disclosure? a.consent for dual agency form b.dual agency within a team form c.listing agreement form d.understanding whom real estate agents represent form

Listing agreement form

Which of these licensees has NOT shown cause for immediate suspension of his or her license? a.Luis has been working for two brokers at the same time. b.Patrick has misplaced three clients' earnest money checks in the past month. c.Phoebe is convicted of felony fraud involving her brokerage's finances. d.When the commission performed a records audit, Annalise wasn't able to account for trust funds she deposited two years ago.

Luis has been working for two brokers at the same time.

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

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

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? a. Hearing panel b. Local police department c. Maryland real estate commission d. U.S. Board of Real Estate Licensees

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? a.Maryland Attorney General b.Maryland Real Estate Commission c.Real Estate Licensing Commission d.U.S. Board of Real Estate Licensees

Maryland Real Estate Commission

Sylvia's buyer client didn't have a copy of the property disclosure/disclaimer statement before he made an offer on a property. Now, a week after the offer was accepted, the seller's agent finally gives Sylvia a copy of the statement, and she sees that the home is riddled with defects. Not surprisingly, her buyer client wants to back out of the offer. What violation has Sylvia possibly committed? a.Not performing due diligence and inspecting the property herself before allowing her client to make an offer b.Not protecting her client's interests by ensuring he had a copy of the disclosure/disclaimer statement before he made an offer c.Not showing loyalty to the seller by suggesting that they try to negotiate around the property defects before cancelling the contract entirely d.Not showing reasonable skill and care and reviewing the offer to make sure the buyer had maintained his right to review the disclosure/disclaimer statement

Not protecting her client's interests by ensuring he had a copy of the disclosure/disclaimer statement before he made an offer

Under what circumstances can a buyer representation agreement be terminated early in Maryland? a.If the buyer finds another buyer to replace them. b.If the buyer finds out that their agent is representing other buyers. c.If the buyer notifies the agent in writing that they have a contract on a home found for them by another broker. d.Per the early cancellation provision agreed to by both the broker and the client as listed in the agreement.

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

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? a.Advise your seller to accept it as a back-up offer. b.Hold onto it in case the current contract falls through. c.Present it to his client. d.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.

A real estate professional in Maryland is legally permitted to take which of these actions? a.Limit the number of apartment units available to families with children b.Note the races of prospective tenants on their rental applications c.Point out to a buyer client that they are considering purchasing a home in a neighborhood that has many Spanish-speaking residents d.Prohibit a family of 10 from renting a unit with a capacity of two people

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

Which of the following is NOT a requirement for an electronic records system in Maryland? a.Records may not be in a format that can be erased or edited. b.Records must be easily identifiable. c.Records must be maintained in the regular course of the licensee's business. d.Records must be stored in alphabetical order.

Records must be stored in alphabetical order.

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? a.She can file a bill of interpleader and deposit the funds with the courts, which would then decide their disbursement. b.She can file a claim with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed. c.She can hold onto the funds until one of the parties files suit and a court orders the funds' disbursement. d.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.

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

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? a.She forgot that she isn't allowed to be a principal in a dual agency transaction. b.She forgot that she isn't allowed to sell a property in which she has a personal interest. c.She forgot to disclose that she has ownership interest in the property. d.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.

Why does the Maryland Code of Ethics require that licensees stay abreast of current market conditions? a.So they can competently advise clients about fair market value/price b.So they can pass their license renewal exam c.To eliminate the risk of misrepresentation d.To prevent properties from selling for less than market value

So they can competently advise clients about fair market value/price

How do you change your supervising broker in Maryland? a.File an affidavit from both brokerages approving the switch at the county clerk's office. b.Just start working at the new brokerage. c.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. d.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.

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? a.Sabine may request that her broker appear before the judge to corroborate the evidence she presented. b.Sabine must take the ethics coursework and submit proof of completion to MREC. c.Since Sabine was found guilty of a violation, her case is automatically appealed. d.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.

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 ______. a.August 28 (the same date that broker's license must be renewed) b.July 28 (one month before her broker's license must be renewed) c.September 29 (one month after her broker's license must be renewed d.The date printed on her license

The date printed on her license

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? a.Because the deals are occurring within their team, they cannot offer complete confidentiality. b.Because the transaction is staying within their team, they may reduce the commission by one half of a percent. c.They are members of the same team, and the team may have a financial interest in the transaction's outcome. d.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.

What actions can licensees take related to signs? a.They can only place signs on property they own. b.They can place signs on an owner's property with the owner's written consent. c.They can place signs on properties for which they are the listing agent, with or without the owner's permission. d.They can't place signs anywhere.

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

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? a.No. Counter-offers negate any previous offers, so at least one term must be different. b.No. Once the initial offer is rejected, it's dead and new terms need to be negotiated. c.Yes, as long as someone still has a copy of the initial offer. d.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.

John is 18 and wants to be a real estate broker in Maryland. If he completes the 135 hours of required real estate licensing coursework, is there anything that might prevent him from taking the broker's license exam? a.No, he's in the clear. b.Yes, he must be at least 19 years old. c.Yes, he must have at least three years of active experience as a Maryland salesperson before he qualifies to take the broker's exam. d.Yes, he must schedule his exam before beginning the required coursework.

Yes, he must have at least three years of active experience as a Maryland salesperson before he qualifies to take the broker's exam.

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. a.fax machine b.flyers c.for sale signs d.telephone

fax machine

Members of the Maryland Real Estate Commission serve terms of how many years? a.four b.nine c.seven d.two

four

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? a.call the police b.demand the houseowner build another bedroom c.ignore the discrepancy d.investigate the discrepancy

investigate the discrepancy

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 ______. a.contractual interference b.failing to disclose an agency relationship c.making a substantial and willful misrepsentation d.performing services that qualify as practice of law

making a substantial and willful misrepsentation

In addition to serving as the listing agent for several clients, your own house is also on the market. You receive a call from another licensee who wants to show her buyer client your house. What must you immediately disclose to the buyer's agent and buyer? a.the house may have been an orphange 80 years ago b.you'd sell for far lower than the current asking price c.you own the property d.your housemate had swine flu last month

you own the property