Practice Exam
Which of the following is NOT a duty agents owe to their principals? a) Reporting a client-buyer that one of the seller's family members had AIDS b) Disclose of all facts c) Timely presentation of all written offers and counteroffers d) Loyalty
A
Which of the following is TRUE of brokers when they represent real estate? a) They must disclose this agency relationship to sellers b) They will not be compensated c) They are in violation of the brokers act d) They are regarded by the law as dual agents in such transaction
A
Which team name below would be permissible under the Brokers Act? a) The 123 Service Team b) The 123 Real Estate Expert Team c) 123 Service Associates d) The 123 Realty Service Team
A
Which statement about teams is FALSE? a) The team identified itself to the public with some name b) A team must have at least two licensee members c) A salesperson cannot be a team leader d) Members of the team regularly work together
C
Which of the following is a source of funds with which the State can purchase agricultural easement? a) General tax revenues b) Transfer taxes imposed at the time of real estate transfer c) Fines on developers who overdeveloped agricultural land d) Special assessments for this specific purpose
B
How is the act of blockbusting regarding by MD law? a) as a misdemeanor b) As a legitimate listing technique c) As unethical but not prohibited by law d) As a felony
A
In MD, whom is primarily responsible for the real estate brokerage services provided through a corporation? a) The licensed real estate broker of the firm b) The chairperson of the corporate board c) The majority shareholder of the corporation c) the president of the corporation
A
What form of ownership is created in MD by a deed that conveys ownership to "Jessica and Mike Johnson, husband and wife" by does NOT specify the form of ownership? a) Tenancy by the entirety b) Ownership in severalty c) The deed must be redrawn to specify the form of ownership before it is recorded d) Tenancy in common
A
What is a requirement for a licenses real estate salesperson to deliver real estate brokerage service? a) Affiliation with any licensed real estate associate broker b) Performance of real estate acts only on behalf of the broker under whom they are licensed c) Operate a real estate business under their own name or designated name d) Membership in the local board or association of Realtors
A
What must be shown in ads placed by licensees for the property listen in their firm? a) Designated name of the broker b) General location of the property c) Name and address of the property owner d) Name of the listing salesperson
A
When must a licensee whom is representing a seller disclose this fact to the buyer or the buyer's agent? a) No later than the first scheduled face-to-face meeting b) At first contract c) When an offer is made d) When the buyer or agent of the buyer aks
A
Which of the following could result in discipline by the commission? a) Bad faith b) Slandering competitors c) Intemperance d) Puffing
A
Which of the following forms of ownership is NOT recognized in MD? a) Community property b) Ownership in severalty c) Trust d) Tenancy in common
A
Which of the following has the authority to set license fees? a) The commission b) The General assembly c) The secretary of the department of labor, licensing and regulation d) Associations and boards of licensees
A
Which of the following is a requirement for team advertising? a) The name of the team must be directly connected with the full name of the brokerage firm of which it is a part. b) The address of the office out of which the team works must be shown c) The phone number of the team leader must be shown d) The name of the team must be the same size as or smaller than the name of the firm of which it is part
A
Which of the following would meet or exceed the requirement for prescriptive easement in MD? a) 25 years continuous use b) 15 years intermittent use c) 15 years continuous use d) 25 years intermittent use
A
Which statement about cooperating agents is FALSE? a) Cooperating agents can represent the buyer b) A cooperating agent who brings in a buyer has fiduciary duties to the seller/owner c) Cooperating agents are sub-agents of the listing broker d) Cooperating agents bring in customer buyers and are from a company other than the listing company
A
Which statement is accurate abut the amount or rate of commission on real estate sale? a) It must be stated in the listing agreement b) It is established by the law c) it is established by the commission d) It is established by the local real estate board or association of Realtors
A
Which statement pertaining to licenses held by MD real estate brokerage licensees is NOT correct? a) They are required for every person who sells real estate for consideration b) Their holders are regulated by authority of the Business Occupations and Professions article of the MD Annotated Code c) They are not issued to corporations or associations d) They are issues and administered by the MD Real Estate Commission.
A
What is the license or registration requirement for a developer wishing to create MD time-share? a) Register with the local board of association of Realtors b) Register with the MD Real Estate Commission c) Register with the state treasurer d) Be a licensed real estate broker
B
What is the max penalty possible for filing false statements with the commission in reference to a Guaranty Fund claim? a) $5,000 b) $25,000 and imprisonment for 3 years c) $10,000 d) $10,000 and imprisonment for 3 years
B
What is the primary purpose of the Brokers Act? a) To restrict competition b) To protect public interests c) To raise revenue d) To control salesperson
B
What is required by law on any outdoor sing or advertisement displayed on property for sale subject to ground rent? a) It needs to show only the sale price b) If the sign shows the price, it must also show ground rent and cost of capitalization in lettering no smaller than the letting used for the price c) It need show only sales price and the phrase "plus GR" d) If the sign shows the price, it must also show the annual ground rent by need now show any other details until inquiry is made by a prospective buyer
B
A man owns several acres of MD land located along the banks of a navigate river. What is an example of his riparian rights in the situation? a) He may construct a dam across the river to divert the water into an artificial lake on his property b) He may build a pier out into the river, subject to state and federal laws c) He may construct a wharf state approval d) He may make use only of the dry land
B
How and when should it first be revealed to prospects that they have presumed buyer representation? a) In writing, before the end of the first scheduled face-to-face meeting b) Orally, at the initial interview between licensee and prospect c) In writing, when a prospect signs a written agreement to be a client d) In writing, when the possibility of dual agency arises
B
How is the executive director of the Commission chosen? a) Confirmed by the State Senate b) Appointed by the Secretary of Labor, Licensing, and Regulation c) Appointed by the govenor d) Selected from the MD State Employees Classified System
B
In MD, which of the following are FALSE concerning tenancy by the entirety? a) It may be held only by a married couple b) It continues after the death of one of the owners c) It may not be partitioned by one owner d) It gives each individual possession of the entire estate
B
Licensed certificates issued for salesperson MUST be... a) Retained by the Commission b) Displayed by their brokers in their company offices c) Displayed by them in their homes d) Carried by them when they are performing acts of brokerage
B
What is the upper limit, if any, of a financial loss protected by the Guaranty Fund? a) $250,000 b) $25,000 c) $2,500 d) An unlimited amount
B
When can the Commission refuse to issue a broker license to a MD resident who has filed a proper application and met legal requirements? a) If the applicant has been convicted of traffic violation within the past year b) If it offers the applicant a hearing on the matter c) If the applicant has not reached the age of 18 d) Without offering to hold a hearing on the matter
B
Which statement is TRUE of a MD residential listing agreement? a) It need not contain a definite termination date b) It must be in writing c) It does not create an agency d) It may be oral
B
Who can hold standard licenses to provide MD residential real estate brokerage services? a) Partnership b) Individuals c) Corporation d) Limited liability companies (LLC)
B
Whom may operate a real estate brokerage firm? a) An associate broker b) A licensed real estate broker c) A real estate salesperson d) Any person holding a valid real estate license issued by the MD Real Estate Commission
B
Which statement about agency is TRUE in MD? a) MD does not allow a brokerage firm to represent both buyer and seller in the same transaction b) The broker of a firm may act as one of the two intra-company agents required for a dual agency c) Dual agency is permitted only in brokerage firms consisting of three or more licensees.
C
At what min level must the Guaranty Fund be maintained at? a) $200,000 b) $2,000 c) $250,000 d) 25,000
C
Broker's principle are called a) Managers b) Customers c) Clients d) Prospects
C
In which of the following situations does an act of real estate brokerage require a real estate brokerage license? a) A mortgage lender sells real estate acquired through foreclosure b) An attorney at law handling a divorce actin charges 3% to help sell a house the couple owns c) A person charts a modest consulting fee to guide his friend in the sale of a home d) A property owner sub divides his land and sells five lots in calendar year
C
Relations with which of the following is NOT addressed in the Commission's Code of Ethics? a) Fellow licensees b) Clients c) The Real Estate Commission d) Members of the public
C
What is required of a MD licensee who wishes to show a property located in Virginia that is multiple-listed by a MD firm? a) The licensee must be a member of MD's multiple listing service b) The licensee must hold multiple-state license certificate c) The licensee must hold a Virginia real-estate d) The licensee must hold a MD broker's license
C
What is the effect on purchasers of having received the MD Residential Property and Disclaimer Statement before signing their contract offer? a) They may rescind contract at any time up to five days after signing b) They may rescind the contract at any time up to three days after signing c) They may not rescind the contract based on any facts the statement discloses d) They may rescind at any time prior to settlement or to taking occupancy.
C
What tenancies does MD allow? a) Both c/d b) Neither c) Tenancy by the entirety d) Joint tenancy
C
When can a brokerage lawfully perform dual agency? a) When both sellers and buyers have agreed to dual agency on particular prperty b) When the firm has only two individual licensees in it c) When the firm's broker designated two company licensees, one to represent the seller and another for the buyer d) When the firm has been certified by the Commission for the dual agency brokerage
C
When must a licensee give a copy of the listing agreement to sellers? a) When a buyer is found b) Within 15 days after acceptance by the broker c) Before the firm advertises the property or offers it for sale d) When they request it
C
When should sellers complete the MD Residential Property Disclosure and Disclaimer Statement? a) After a sales contract has been signed b) When an offer is received c) When the property is being listed d) At settlement
C
Where do fees paid by MD real estate license go? a) The real estate board or association active in the area b) The MD General Fund c) The State Real Estate Commission Fund d) The Guaranty Fund
C
Which government agency may purchase easements to restrict land for agricultural use? a) MD Environmental Department b) MD land Development Corporation c) MD Agricultural Department d) MD Department of Assessments and Taxation
C
Which is TRUE of employees of the commission? a) They must have been licensed to get their position b) They must be licensed as brokers or salespersons while employed by the Commission c) They include an executive director and field inspectors. d) hey are permitted to perform acts of brokerage for which a license is required
C
Which is TRUE when brokers handle the purchase and sale of residential real property? a) They may not act as the agent of the buyer b) They may personally represent both buyer and seller if both parties agree c) They may not represent both buyer and seller in the same transaction without designating two intra-company agents d) They are agents of the owner of the property being bought or sold
C
Which of the following does a licensee NOT owe to a customer? a) Due care b) Disclose of material facts c) Obedience d) Honesty
C
Which of the following is TRUE concerning how a check drawn on a brokerage firm's escrow account must be signed? a) It must be signed by the associate broker of the firm using his or her designated name b) It must be cosigned by an appointed non license if signed by a non designate licensee c) It does not necessarily need a second signature if singed by the broker of the firm d) It must be signed by at lease two licensees in the firm
C
Which of the following is TRUE of a listing on MD residential property? a) It may contain an automatic renewal provision b) It may be parol c) It must be in writing and signed by all parties d) It may leave the commission fee to be negotiated at the time an offer is made
C
Which of the following is recognized in MD? a) Curtesy b) Homestead exemption c) Easement by prescription d) Dower
C
Which of the following may an unlicensed individual working in a brokerage form NOT do? a) Schedule appointments for a licensee to show listed properties b) Submit listing and changes to a multiple listing service c) Conduct an open house d) Compute commission checks
C
Which of the following satisfies the requirement that a broker maintain an office? a) A post office box b) A mechanical answering machine c) A definite place of business d) Telephone answering machine
C
Which statement about a team leader is FALSE? a) The team leader can be the branch manager b) The team leader is responsible for reasonable and adequate supervision of the team c) The team leader can appoint intra-company agents when dual agency occurs involving two team players d) The team leader is chosen by the members of the team
C
Which statement concerning agency is TRUE? a) A salesperson may personally perform dual agency if both buyer and seller agree in writing b) A broker is allowed to be a dual agent in a transaction if no harm is done c) A broker who represents both buyer and seller in the same transaction must appoint two intra-company agents. d) A broker may properly be considered the agent of the party from whom the broker receives payment
C
Which type of residential listing agreement is illegal for a broker to use in MD? a) open b) exclusive-right-to-sell c) net d) exclusive agency
C
Who has the right to fine individuals found guilty of operating in the real estate business without a license? a) The district attorney b) The attorney general c) The commission d) The sate or local association of Realtors
C
Which of the following is NOT required in advertising for a team? a) The advertisement must follow branch office and company wide requirements b) the advertisement must contain the name of at least one licensee on the team c) the advertisement must contain the name of the team leader d) The ad must include the phone number of the office out of which the team works
C) The advertisement must contain the name of the team leader
What must be include in advertising by a broker? a) The name of the broker's realtor board or association or realist organization b) The legal name of the licensed real estate broker c) The designated name of that broker as registered with the commission d) The name of the licensee who listed the property
C) The designated name of that broker as registered
Brokers are not required to notify the Commission when... a) Changes occur in the names of their firms b) A salesperson resigns c) Changes occur in the commission sharing d) changes occur in the location of any of their offices
C) changes occur in the commission sharing
A licensed salesperson can represent whom? a) Not more than one owner at one time b) Owners who employ them directly c) Any broker who is duly licensed d) Only brokers under whom try are licensed
D
An unlicensed person improperly collected a real estate commission is guilty of? a) Duress b) Fraud c) A felony d) A misdemeanor
D
If you are a licensed salesperson and receive a lead from a friend who is not a real estate licensee and then split the commission with your friend, which of the following will be true? a) This is a violation of the license law only if the seller is not informed b) This is not a violation of the license of the law if your broker has given you written permission c) This is not a violation of the license law d) This is a violation of the license law
D
In what situation can a salesperson use their own name and phone number in advertising a listed property? a) When different colors are used for the broker's salesperson's names b) When the broker gives permission c) When their office manager's name is shown in letters at least half the size of the salesperson's d) When the designated name of their firm is clearly and meaningfully shown, as well as the firms phone number
D
The licenses of salespersons who are released by their brokers are to be... a) Returned to the Commission by salespersons b) Removed from display but retained by brokers c) Returned to the salesperson d) Returned to the Commission by brokers
D
The salesperson license fee costs how much? a) $90 b) $120 c) $100 d) $110
D
What does the Brokers Act require be done with earnest money deposits when there are no instructions to the contrary from their owner and beneficial owner? a) They are to be placed in an interest-bearing account b) They may be withdrawn at any time prior to settlement, as long as a licensee's sig appears on the escrow check c) They must be commingled with the broker's fund d) They must be deposited in an insured and approved financial institution in MD
D
What is the consequence when purchasers don't receive the MD Residential property disclosure and disclaimer statement before or upon entering into a purchase agreement? a) The contract is void by action of law after three days b) The contract is voidable by the purchaser for five days c) The lender has five days to tell the purchaser of the right to void the agreement d) The purchasers may rescind the contract before the apply for a mortgage loan.
D
When will a salesperson license issued by the Commission on October 1st expire? a) One year from the date of issue b) October 30th of the next even-numbered year c) May 1st of the next even-numbered year d) Two years from the date of issue
D
Which of the following does NOT end presumed buyer representation? a) Prospects orally decline presumed representation b) Prospects decide to make an offer for property listed by a company other than the company representing them c) The licensee shows prospects a property listed with the licensee's own firm d The licensee working with prospects fails to present a disclosure of the representation form
D
Which of the following is TRUE of ads in which licensees advertise real property which they listed? a) Only the broker's name is permitted in advertisements. b) The price of the property must be included in all advertisements c) Members of multiple listing services may advertise any of the service listings, d) The name of the salesperson does not need to be included in the advertisement, but the designated name of the broker must be shown
D
Which of the following is paid biennially? a) Initial Guaranty Fund fee b) Broker's and salesperson's original license fee c) Guaranty fun reassessment d) Broker's and salesperson's license renewal fee
D
Which of these must hold a valid real estate to perform the acts shown in return for consideration? a) Trustees who sell properties upon which their lender has foreclosed b) A person who serves as a real estate sales person for a home builder c) Attorneys-in-fact wo use powers of attorney to earn commissions for the sale of real estate d) An attorney-at-law who advertises real estate services and agrees to serve as a prospect's buyer broker
D
Which statement is TRUE concerning presumed buyer representation? a) Presumed buyer representation ends when a licensee shows a perspective purchaser property listed with another brokerage firm. b) Presumed buyer representation begins when a licensee shows a prospective purchaser property listed by another brokerage firm. cc) A prospective purchaser who declines to enter into a buyer representation agreement is no longer owed confidentiality about matters previously discussed d) The licensee can no longer be the presumed buyer representative of a purchaser who makes an offer on a property.
D
Licensees do NOT need to do which of the following to be "qualified real estate agents" and be eligible to use Schedule C- Self Employed when filling federal tax returns. a) Hold a real estate license b) Be free from their broker's control of how their work is done c) Have written employment contract with their brokers agreeing to this status d) Earn substantially all the income coming from their brokerage forms is the form of commissions.
D - can be salaried employees
Who appoints members to the Maryland Real Estate Commission? a) The State Senate b) The House of Delegates c) The executive director of the Commission d) The governor of MD
D - gov of MD
Which of the following is TRUE concerning the MD Real Estate Commission? a) its members are representative brokers from real estate boards b) it has 5 members c) it has 4 professional and 5 consumer members d) 3 out of its members are not real estate licenses and 5 are
D) 3 out of its members are not real estate license and 5 are
Whom may use a listing agreement form published by a multiple listing service? a) Any licensee b) any broker or salesperson licensed by the Commission c) Any members of any board or association of Realtors d) Any licensed member of the organization that operates that listing system
D) Any licensed member of the organization that operates that listing system