Reece's State study set #1
The Guaranty Fund paid a consumer's $15,000 claim because of licensee Ben's negligence. Ben is breaking the news to his broker. How's his broker likely to respond?
"Well, since this means your license is suspended, we'll see you back at the office when you reimburse the fund."
What is the amount of the one-time fee that each new Maryland licensee pays into the Guaranty Fund?
$20
Several Maryland licensees have landed themselves on the commission's naughty list, and the Guaranty Fund has paid out a $50,000 claim, a $12,000 claim, and a $45,000 claim in the last week. The fund's balance is now $225,000. How much money does the fund need to recoup through fees collected from every Maryland licensee to get to the required minimum balance?
$25,000
The Maryland Real Estate Commission creates several hearing panels consisting of how many members each?
3
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?
5 years
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
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.
Cheyenne has been working with a buyer, though they don't have a signed agency agreement. When he finds a house he likes, Cheyenne helps him fill out the offer paperwork and submits it to the seller's agent. In what capacity is Cheyenne contributing to this transaction?
As a sub-agent for the seller
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
Carmen is a new licensee who wants to drum up some business for herself. There are a lot of high-end homes in her area and she would love to cash a commission check for selling one of them. She sees a few for sale signs and thinks perhaps she could convince the sellers to drop their current agent and allow her to represent them. Which of the following is true?
Carmen may not try to persuade sellers to break the contract they have with another agent.
Which document is used to obtain a client's consent to dual agency representation in Maryland?
Consent for Dual Agency
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
Which of the following is NOT an example of a legal agency agreement in Maryland?
Deirdre enters into a listing agreement with Peter and agrees to pay him all of the sale proceeds in excess of the $250,000 she needs to make off of the sale of her condo.
Which of these 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
Demetrius is a real estate salesperson, and his friend Sharlene is a plumber. Just last week, Demetrius recommended Sharlene's services to a buyer client in desperate need of a new toilet for his new home. Unbeknownst to Demetrius, Sharlene's license expired 18 months ago. What Maryland license law violation is Demetrius potentially guilty of?
Failing to verify annually that Sharlene was still licensed
Fatima, a salesperson, is hosting an open house in Annapolis for her seller client Ramona. Two interested buyers come in, and after Fatima gives them a tour they tell her they'd like her to represent them in making an offer. Since her seller client has already consented to dual agency, she gladly offers to represent the buyers and helps them write an offer right there at the open house, making sure that they also sign a Consent for Dual Agency form. What's wrong with this scenario?
Fatima isn't permitted to act as a dual agent.
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.
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
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.
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 the following situations is a violation of Maryland fair housing laws?
Jack refuses to rent a unit in the six-unit apartment building he owns and in which he lives to a transgender woman named Jane.
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.
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?
July 4
Fabio just received his broker's license and is striking out on his own after 15 years as a salesperson. He's registered his firm with the commission and is setting up his firm's bank accounts. What must he make sure to do in order to bi comply with Maryland law regarding trust accounts?
Maintain the accounts at a federally insured financial institution in Maryland.
Who or what entity has the power to seek civil action and/or injunctions against parties who violate Maryland fair housing law?
Maryland Commission on Civil Rights
Dennis thinks he was discriminated against by a potential landlord in Maryland and wants to file a complaint. Which entity can he contact to do this?
Maryland Commission on Civil Rights
Betsy and Josh want to file a complaint against a real estate licensee whom they feel misrepresented them in the sale of their Maryland home. With what organization can they file a complaint?
Maryland Real Estate Commission
Pamela has had her real estate broker's license for years. Which agency regulates the rules and requirements Pamela must follow to keep her license?
Maryland Real Estate Commission
Monica is acting as a listing agent for her friend, Brian. She and Brian met when they both began attending a support group for those living with HIV. Which of the following best represents an action Monica should take?
Monica cannot tell others about Brian's HIV status.
While pursuing her Maryland salesperson license, Persephone utilized her growing real estate knowledge to help Victor locate a home to purchase. Victor said he'd pay her for her troubles once she was licensed, but when she contacted him shortly after earning her license, he reneged on their deal. Does Persephone have grounds to sue Victor for the commission?
No, she can only sue for compensation earned while she was licensed and a brokerage agreement was in place.
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
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
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.
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 quidelines has Rosalie potentially violated?
She failed to keep informed of new real estate law or changes to real estate requirements.
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.
What item(s) must be included on ALL real estate advertising in Maryland?
The broker's/company's name
Silvio's buyer client Donna is new to the area and asked him if he could recommend any contractors to install new windows and doors in her new home. Silvio checked the DOL website to make sure the contractor was still licensed, then gave Donna the contractor's contact information. What else does he need to give Donna?
The date Silvio verified the contractor's licensure and the link to the DOL website where Donna can perform a license search
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
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
The Maryland Code of Ethics is divided into three sections: relations to _________ , relations to clients, and relations with other licensees.
The public
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.
Ned is a Maryland listing agent who has learned of a material fact related to the transaction. To whom and when must he disclose this information?
To all parties as soon as possible
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.
Halbert's license was summarily suspended after he was convicted of felony embezzling. He'd like the chance to appeal the decision. Can he?
Yes. He has the right to plead his case in front of the commission.
What is the maximum penalty if you're convicted of committing a serious violation and your broker is found to have knowledge of it?
You and the broker may both be fined, and you may both have your licenses suspended or revoked
What happens to you if you're involved in a case and can't pay the judgment amount, and the consumer is awarded money from the Guaranty Fund?
Your license will be suspended and can't be reinstated until you pay back the fund plus interest.
Which of these documents does NOT establish an agency relationship between a client and a licensee?
purchase agreement
