state exam 2
Before a manufactured home may be sold as real estate, it must meet several conditions, which include the owner having canceled the motor vehicle registration and ______. The home being permanently attached to a foundation The home being at least a double-wide The home having passed a HUD inspection The home having been manufactured in Pennsylvania
The home being permanently attached to a foundation Before a manufactured home may be sold as real estate, it must meet several conditions, including that the owner must have canceled the motor vehicle registration and the home must be permanently attached to a foundation.
What's an encroachment? The right to cross over or otherwise use another's land for a specified purpose The right of the government to take private property for the good of the public The illegal building of a structure or object on another's property A method for containing a hazardous substance
The illegal building of a structure or object on another's property An encroachment occurs when someone illegally places a building or object on another person's property.
To whom do subagents working with buyer customers owe their duties? The buyers The sellers and the seller's agents The buyers and sellers equally No one
The sellers and the seller's agents Subagents working with buyer customers do not represent the buyers.
Considering where pipelines and utilities can be located and their impact on the overall look in the subdivision are factors of ______. Development cost TDR Topography District zoning
Topography Topography can involve considering where pipelines and utilities are located and their impact on the overall look in the subdivision.
What's another name for an escrow account? Locked account Trust account Savings account Closing fund
Trust account Escrow funds are also called trust funds, just like escrow agents can also be called trustees.
Regarding the need for mutual agreement for a contract to be valid, which of the following exists when an act of persuasion overcomes another person's free will and judgment? Innocent misrepresentation Undue influence Fraud Duress
Undue influence Undue influence occurs when persuasion overcomes another person's free will and judgment. Duress occurs when a threat is involved.
Tommy and Quinn are buying their first home together. All seems to have gone well, and they are conducting their final walk-through before closing. But wait ... nothing has been done to fix those electrical issues that the sellers agreed to fix. And the sellers removed the beautiful chandelier that was supposed to stay, per the contract. Can Tommy and Quinn walk away from the deal at this point? The contract can be renegotiated between the parties, or Tommy and Quinn can sue the sellers, but they cannot simply walk away at this point. Tommy and Quinn can walk away if the sellers agree to terminate the contract, but they will lose their earnest money. Yes, the sellers have breached the contract, so Tommy and Quinn have the option of unilateral rescission. Because these items were addenda to the agreement of sale, they are not legally binding on the sellers. Tommy and Quinn would be considered in breach of contract if they walk away now.
Yes, the sellers have breached the contract, so Tommy and Quinn have the option of unilateral rescission. The sellers are legally required to abide by the terms of the contract, so they have breached the agreement of sale. Tommy and Quinn can choose the remedy of unilateral rescission and walk away from the deal.
Shawn and his life partner, Dennis, recently put an in an offer on a home. The seller tells his agent to reject the offer, because he won't sell to "gays." Are Shawn and Dennis protected under fair housing laws? Yes, under federal fair housing laws Yes, under both federal and state fair housing laws Yes, under state fair housing laws No. There is no federal or state fair housing protection based on a person's sexual orientation.
Yes, under state fair housing laws Maryland's state fair housing laws prohibit discrimination based on the protected class of sexual orientation; federal fair housing laws do not offer such protection.
If someone wants to make a change to a zoning ordinance, they must submit a request for a variance or special use permit to which of the following groups? The planning board Building department The architectural review board Zoning board of appeals
Zoning board of appeals Requests for variances and special use permits must be submitted to the zoning board of appeals.
In order for misrepresentation to occur, what must happen to the person who relied upon it? He must be harmed. He must research all claims. He must believe the statement to be false. He must not be harmed.
He must be harmed. An element of misrepresentation is that the person relying on the false statement was harmed.
Sam Star is a new licensee ordering business cards for himself. What information must he include? His name, license status, phone number, and brokerage logo His name, photo, phone number, brokerage name, and brokerage phone number His name, license status, and phone number His name, phone number, brokerage name, and brokerage phone number
His name, phone number, brokerage name, and brokerage phone number Sam must include his name and also the name of his broker. Because he'll list his phone number, he must also include his broker's phone number so the public can reach the broker if there's a complaint.
Which of the following duties are owed to customers and other parties to a real estate transaction? Fairness and loyalty Honesty and obedience Obedience and loyalty Honesty and fairness
Honesty and fairness Customers and other parties are owed the duties of honesty and fairness. Licensees must also disclose all material facts to these parties.
Prior to the ______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. Civil Rights Act of 1866 Federal Fair Housing Act of 1968 Fair Housing Amendments Act of 1988 Housing and Community Development Act of 1974
Housing and Community Development Act of 1974 The Housing and Community Development Act of 1974 included gender or a person's sex in the list of protected classes.
Which economic characteristic of land contains the concept that a land's value can be affected by the changes made to it, such as construction of a home or shopping center? Scarcity Improvements Permanence of investment Situs (location)
Improvements Improvements include structures such as homes or commercial buildings, while the concept of permanence of investment is used when considering more permanent changes, such as roads, structures, and utilities.
Which of the following is essentially the same as fraud? Puffing Unintentional misrepresentation Intentional misrepresentation Active misstatement
Intentional misrepresentation Deliberate acts of misrepresentation of facts are acts of fraud.
What's one benefit of the government using the power of escheat? It allows the government to take the property and put it back into use for the public good. It allows the government to redevelop the property for its own profit. It provides the government an interest in the property until taxes are paid. It allows the government to enact legislation related to the property.
It allows the government to take the property and put it back into use for the public good. By taking possession, the government can put the property back into use for the public good.
Which of the following statements about the fiduciary duty of disclosure is true? It's owed to the agent's clients only. It's owed to other parties, not just to the agent's clients. It requires the agent to disclose everything to all parties. It only applies to the seller's agent.
It's owed to other parties, not just to the agent's clients. Agents are required to disclose all material facts to all parties.
Single and divorced individuals are protected from housing discrimination under which protected class? Marital status Family responsibility Familial status Sexual orientation
Marital status Marital status protects individuals from housing discrimination based on whether they are single, married, separated, divorced, or widowed. Question 46 of 100
Which type of lease will typically include taxes and insurance in the base rent, but not utilities or janitorial services? Triple-net lease Modified gross lease Gross lease Full-service lease
Modified gross lease A modified gross lease typically includes all of the nets (taxes, insurance, maintenance) in the base rent, but not utilities or cleaning services.
Sara has defaulted on her home loan. Her ______ gives the lender the right to sell the property. Promissory note Bad credit score Mortgage Mortgage broker
Mortgage The mortgage gives the lender the right to sell the property if the borrower defaults.
Cray leases a commercial building and pays all expenses related to the building, including taxes and insurance. Cray has a ______. Percentage lease Net lease Gross lease Sublease
Net lease With a net lease, the tenant pays some, or all (in the case of a triple net lease), expenses.
Mark lives in Maryland and purchased property in Pennsylvania. His real estate agent gave him poor advice, which cost him $52,000. Can Mark file a claim against the Guaranty Fund? Yes, but he can only recover $50,000 of his loss. No, his claim is over the $50,000 threshold. Yes, but not before exhausting other methods to collect the money. No, the property purchased was in Pennsylvania.
No, the property purchased was in Pennsylvania. Mark cannot file a claim against the Guaranty Fund because his property is located in Pennsylvania. All claims against the Guaranty Fund must be related to real estate located in Maryland.
How are accrued real estate taxes that are assessed but not yet due prorated? Typically, the seller pays the costs on the day of closing. Normally, these are prorated to the day of closing. These are split evenly between the buyer and seller. The buyer is responsible for all taxes accrued.
Normally, these are prorated to the day of closing. Prepaid taxes are one of the items prorated to the day of closing.
Real estate licensees are seldom guilty of blatant discrimination, but unintentional discrimination does exist. What's one example of unintentional discrimination? Not showing first-time homebuyers homes outside of their price range Following a landlord's instructions as to income requirements for applicants Refusing to work with African Americans Not showing African Americans homes in neighborhoods where they may be victims of racial bias
Not showing African Americans homes in neighborhoods where they may be victims of racial bias Not showing homes based on a client's identification with a protected class, even if you mean well, is still discriminatory.
Parker enters into a contract with seller Derrick to buy his home. Before finalizing the sale, Parker has a change of heart and decides to renounce all worldly possessions. He no longer wants to buy Derrick's home, but his brother, Tom, agrees to take Parker's place as the buyer in the purchase contract. This is an example of ______. Assignment Novation Fraud Misrepresentation
Novation Novation involves substituting one party with another party on an existing contract, releasing the original party from all liability.
In a real estate transaction, which of the following is established when parties enter into an agreement voluntarily with full understanding of the contract terms? Consideration Offer and acceptance Legal purpose Legal competency
Offer and acceptance Offer and acceptance, also known as mutual agreement or consent, occurs only when the parties enter into the agreement voluntarily with full understanding of the contract terms.
Which type of real estate property can be divided into classes A, B, and C? Office buildings Mixed-use Industrial Retail
Office buildings Office buildings can be divided into Class A, which is prestigious, Class B, which is fair to good, or Class C, which is functional with below-average rent.
All POAs require a notice to the ______ broadly explaining the purpose and effect of the power of attorney and the ______ must acknowledge in writing an understanding of the nature of the relationship and to execute it to the best of his or her ability. Grantor, Grantee Principal, Agent Executor, Arbitrator Agent, Referee
Principal, Agent The principal must be given a notice broadly explaining the purpose and effect of power of attorney and the Agent must acknowledge an understanding of the relationship in writing.
Which of the following is a mortgage where the consumer cannot later claim that the lender did not comply with the ability to repay requirements? Qualified mortgage with the rebuttable presumption Qualified mortgage with a safe harbor status Qualified mortgage with ability to repay Qualified mortgage with cash payment option
Qualified mortgage with a safe harbor status The safe harbor is the lender's ability to prove compliance.
Which act prohibits the payment of kickbacks between settlement service providers? RELA RESPA MDIA SEQRA
RESPA RESPA, or the Real Estate Settlement Procedures Act, prohibits the payment of kickbacks between settlement service providers. Question 17 of 100
Hank is a real estate licensee working for an investor. Which of these actions is he prohibited from performing? Search the MLS, auctions, advertisements, etc. for investment properties. Recommend a specific investment. Crunch numbers for the client. Prepare an offer for an investment property.
Recommend a specific investment. Licensees can perform actions to find and evaluate properties, but should not recommend a specific investment. Ultimately, this needs to be the client's decision, but you can provide the data needed to make the decision.
As a licensee, you're helping a couple buy a new home when you come across issues that could meant there's a cloud on the title. What should you do? Encourage the couple to move forward with the purchase and not worry about the clouded title. Keep moving forward with the sale but recommend the couple purchase title insurance to insure against any potential title problems. Recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale. File an affidavit with the court about the knowledge of the clouded title and tell the couple to move forward with the sale.
Recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale. You should recommend the couple find another property to purchase, or ask the seller to settle the title through a quiet title action to clear any cloud before moving forward with the sale.
With a land contract, who retains the title to the property? Seller Trustee Buyer Beneficiary
Seller The seller retains the title in a land contract. With a purchase money mortgage, the buyer retains the title.
Your buyer client, Christine, asks you when she'll have to pay the transfer tax. What do you tell her? She'll pay it when the seller accepts Christine's offer. She'll pay it when property taxes are assessed. She'll pay it when the deed is recorded. She'll pay it when the down payment is made.
She'll pay it when the deed is recorded. Transfer tax is payable when the deed is recorded. Question 37 of 100
Which of the following is the least specific method for describing a property? Street address Metes and bounds description Lot and block description Rectangular government survey system description
Street address An address is the least specific method for describing a property, which is why it is generally not acceptable as a legal description.
Land, improvements, fixtures, and crops within the bundle of rights are defined as ______ rights. Littoral Riparian Affixed Tangible
Tangible Tangible rights include land, improvements, fixtures, and crops within the bundle of rights.
In which form of co-ownership is a person's ownership inheritable? Tenancy by the entirety Joint tenancy Tenancy in severalty Tenancy in common
Tenancy in common With tenancy in common, if one owner dies, that person's ownership is inheritable. It doesn't automatically pass to the other owners as it would with joint tenancy.
An administrative law judge presides over Maryland Real Estate Commission hearings and makes recommendations regarding disciplinary action. Who decides whether to accept them? A criminal judge An administrative law judge The executive director The hearing panel
The hearing panel The hearing panel reviews the entire case and votes on whether to accept the recommendation.
A listing brokerage received a $25,000 check from a property sale, which was the brokerage's 2.5% split. The total commission was 5%. How much did the property sell for? $1 million $10 million $100,000 $2 million
$1 million If $25,000 was the listing broker's split, then the total commission was $50,000. $50,000 divided by .05 (the total commission rate) works out to a sales price of $1 million.
Your client Faye is buying a condo downtown for $565,000 and financing 60% of the purchase. Her lender is charging a one-point loan origination fee and two discount points. Can you help Faye calculate the dollar amount for points she's going to pay on her loan? $6,780 $10,170 $16,950 $4,520
$10,170 A point is 1% of the loan amount. Faye's loan amount is 60% of the sales price, or $339,000 ($565,000 x 0.60). Her lender is charging three points total, or 3% of the loan amount. That comes out to $10,170 ($339,000 x 0.03).
Anita's property appraised at $370,000. It is assessed at 40% of appraised value, and the tax rate is 80 mills. What are Anita's semi-annual property taxes? $11,840 $8,950 $5,920 $4,875
$5,920 Divide mills by 1,000 (80 ÷ 1,000 = .08). Assessed value is 40% of appraised value, so multiply .4 by $370,000 = $148,000. Multiply this by the mill rate (.08) to get annual taxes of $11,840. Divide this by two to get semi-annual property taxes of $5,920.
If the Maryland Commission on Civil Rights finds a pattern of discrimination exists, the court can award damages of up to how much for the first violation? $10,000 $15,000 $25,000 $50,000
$50,000 MCCR can award damages of up to $50,000 for the first violation, if a pattern of discrimination is found to exist.
Good consideration differs from valuable consideration in that good consideration is ______. A gift A promise to do something Cash Illegal
A gift Good consideration is a gift. For example, it could be a gift of a car from one family member to another.
Which of the following is an example of self-dealing? A licensee lists his property with another firm and sells his home without informing buyers of his license status. A licensee purchases a listing through his cousin but does not inform the seller. A licensee purchases a property for personal profit. A licensee sells a property for personal profit.
A licensee purchases a listing through his cousin but does not inform the seller. Making a profit is not illegal. Illegal self-dealing is having an undisclosed personal interest in a transaction.
Which of the following statements is true of a material fact? A material fact is known only to real estate licensees. A material fact need not be disclosed to all parties. A material fact would cause a reasonable person to either act or not act, if that fact were known. A material fact is only related to the condition of a property.
A material fact would cause a reasonable person to either act or not act, if that fact were known. A material fact would cause a reasonable person to not take an action that would otherwise be taken, or take an action that would otherwise not be taken.
Who presides over a Maryland Real Estate Commission hearing? A criminal judge An administrative law judge The executive director A member of the real estate commission
An administrative law judge An administrative law judge presides over the hearing and makes recommendations to the commission regarding disciplinary action. The entire case is then reviewed by a hearing panel that votes on whether to accept the recommendation.
______ presides over Maryland Real Estate Commission hearings. A criminal judge An administrative law judge The executive director A member of the commission
An administrative law judge An administrative law judge presides over the hearing and makes recommendations to the commission regarding disciplinary action. The entire case is then reviewed by a hearing panel that votes on whether to accept the recommendation.
A person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______. Required to have a broker license Required to have at least an associate broker license Required to have at least a salesperson license An exception to the real estate licensing requirement
An exception to the real estate licensing requirement There are specific circumstances when licensure is not required.
Ethical complaints that are made against another licensee to the Department of Labor, Licensing and Regulation must be based on which of the following? An issue that involved the construction of a new home An issue that had to do with the results of a home inspection report An issue that occurred during a real estate transaction in Maryland An issue that involved the actions of a mortgage broker
An issue that occurred during a real estate transaction in Maryland The commission does not have jurisdiction over new home builders, home inspectors, sellers, or mortgage brokers. Question 64
Which of the following statements about latent defects is true? The buyer is responsible for uncovering latent defects through a home inspection. Latent defects are material facts that are often uncovered during an ordinary inspection. In Maryland, sellers are not required to voluntarily disclose latent defects to prospective buyers. Any party to a real estate sales transaction who has knowledge of latent defects must disclose them
Any party to a real estate sales transaction who has knowledge of latent defects must disclose them.
When are you required to give your client a copy of the listing agreement? Only if the client requests a copy Within 24 hours of the seller accepting an offer on the property Before beginning to carry out the tasks assigned in the agreement Within five days of the date the agreement was signed
Before beginning to carry out the tasks assigned in the agreement You are required to give a copy of listing agreement to the client before beginning to carry out the tasks assigned in the agreement.
Which of the following statements about zoning ordinances is true? Zoning ordinance changes apply to specific properties in different ways. Zoning ordinance changes impact individual property owners, but not communities. Zoning ordinance changes impact communities, but not individual property owners. Before zoning ordinances are changed, they must be examined for fairness and reasonableness.
Before zoning ordinances are changed, they must be examined for fairness and reasonableness. Before zoning changes are made, public hearings are held, and proposed zoning ordinances are examined for fairness and reasonableness. They also undergo specific tests for validity.
Tristan's offer has been signed by all parties and delivered back to the seller. This means that ______ has occurred. Notarization Personal delivery Binding acceptance Acceptance
Binding acceptance Binding acceptance happens when a signed contract is delivered according to the delivery procedures and deadline outlined in the contract.
Which action could temporarily stop a foreclosure? Borrower using their statutory right of redemption Borrower remaining on the property Borrower abandoning the property Borrower declaring bankruptcy
Borrower declaring bankruptcy The only option that would temporarily stop a foreclosure is the borrower declaring bankruptcy.
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 Bring a private legal action against Chuck to recover up to $500, though Chuck cannot be required to pay her attorney's fees Bring a private legal action against Chuck to recover up to $1,000, though Chuck cannot be required to pay her attorney's fees Do nothing, as a private action cannot be brought against a foreclosure consultant
Bring a private legal action against Chuck to recover up to $3,000, as well as reasonable attorney's fees A homeowner can bring a private action against a foreclosure consultant for damages incurred because of a practice prohibited by PHIFA. If the court finds that the defendant willfully or knowingly violated PHIFA, the court can award damages equal to three times the amount of actual damages. The homeowner can also seek reasonable attorney's fees.
In case history regarding fair housing, which case involved an ordinance that prohibited blacks from living on a block where the majority of the residents were white? Plessy vs. Ferguson Buchanan vs. Warley Brown vs. Board of Education Jones vs. Mayer
Buchanan vs. Warley In Buchanan vs. Warley, the U.S. Supreme Court cited the Civil Rights Act of 1866 and the 14th Amendment to overturn the Louisville ordinance.
In order to qualify as one of the ______ real estate professional members of the Maryland Real Estate Commission, you must have 10 years of real estate experience as a licensee. Five Six Seven Ten
Five In order to qualify as one of the five real estate professional members of the board, you must have at least 10 years of real estate experience as a licensee prior to your appointment. This requirement does not apply to the four appointed consumer members of the board. Question 53 of 100
In Maryland, the Protection of Homeowners in Foreclosure Act describes the role of and sets guidelines for the actions of ______. Lenders Short sale agents Foreclosure consultants Fannie Mae
Foreclosure consultants 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. Question 83 of 100
When a licensee has broad responsibility to handle all details of a specific transaction, what type of real estate agency relationship usually exists? Universal General Designated Special
General A general agent has the responsibility of handling all details of a specific transaction. Property managers often serve as general agents.
Which organization regulates and enforces the construction methods of manufactured homes? American National Standards Institute Uniform Construction Code HUD's Manufactured Housing Program U.S. Department of Transportation
HUD's Manufactured Housing Program Construction methods of manufactured homes are federally regulated and enforced by HUD's Manufactured Housing Program.
This is a shared side of a structure; each owner owns his section of the wall in severalty, with the ownership subject to an easement by the other. A party wall Easement by necessity Easement by implication Easement by prescription
A party wall Think of each property owner being a party to an easement on the same side of a structure.
Which of the following is a way in which property taxes could impact your clients? A sale in the area may prompt a reassessment, impacting new buyers. Neighbors may be jealous about favorable tax rates. Tax refunds are not possible if property tax deductions are taken. Tax abatements could harm buyers financially.
A sale in the area may prompt a reassessment, impacting new buyers. A sale can prompt a reassessment, resulting in higher property taxes.
Income taxes affect property owners at all three stages of the ownership cycle. What are these three stages? Resale, appreciation, and depreciation Appraisal, assessment, and acquisition Acquisition, ownership, and reversion Negotiation, compromise, and proration
Acquisition, ownership, and reversion All three stages of homeownership—acquisition, ownership, and reversion—can be affected by income taxes. Question 90 o
The element of a deed that signifies the grantor's intention to transfer title to the grantee is the ______. Transference clause Evidence of title Consideration Act of conveyance
Act of conveyance This is the act of conveyance, which "conveys" the intention to transfer title.
One evening during their weekly card game, Cecilia and her group of retired friends are recounting the difficulty they had finding a place they could afford that was close to a hospital. Cecilia added that they were the lucky ones because she has a few other friends who have had to put their names on a waiting list to get into a low-maintenance condo development just down the street. What current market trend is this an example of? Increased density Greener buyers Smaller houses, bigger houses Aging baby boomers
Aging baby boomers This is an example of the aging baby boomers trend. As baby boomers age, the demand for senior housing near healthcare facilities increases.
What does the metes and bounds system use to develop a property's legal description? Plat references Principal meridians and base lines Compass headings and directions Townships and sections
Compass headings and directions The metes and bounds system uses compass headings and directions.
Jerry's home has been in his family for nearly 75 years and sits smack dab in the middle of where a public university wants to expand. A government authority has made a fair offer for seizing Jerry's home as part of the process of taking someone's property called ______. Non-conforming use Foreclosure Condemnation Escheat
Condemnation Condemnation is the process of the government taking someone's property, but paying a fair price on it.
William is a real estate licensee who's preparing a sale agreement that will include an unusual circumstance. What's the best course of action? Use existing forms but modify the language to address the unusual circumstance. Use an existing form and write an addendum that covers the unusual circumstance. Create his own forms. Consult an attorney.
Consult an attorney. It's possible that William could still use an existing form, but it won't cover the unusual circumstance. William should not write an addendum that covers it. His best bet is to consult an attorney.
Which of the following is not a characteristic of a corporation? Corporations have tax rates separate from individual tax rates. Corporations are tangible and nontaxable. Corporations are recognized legal entities. Corporations are taxable.
Corporations are tangible and nontaxable. Corporations are conjured by law. Corporations don't physically exist, as in bricks, mortar, or even people. Corporations are intangible and taxable.
Which of the following can be defined as what it would take to recreate that property if it disappeared off the face of the earth today? Value Price Insurance Cost
Cost Replacement cost is the entire term. The cost approach works with this idea: What would it cost to replace the building on the land as it is now? Question 39 of 100
Which of the following is a life estate in a property held by a widower? Remainderman Curtesy Estate at will Dower
Curtesy A curtesy is a life estate in a property held by a widower.
Which of the following is an instrument of conveyance? Promissory note Title insurance policy Deed Mortgage
Deed A deed is a method of conveying real property from one party to another. A deed should be recorded to protect the parties' interests.
The Town of Petersville has just decided to restrict density in one area of town that previously allowed a higher density. This is known as ______. Aesthetic zoning Reduction zoning Downzoning Density zoning
Downzoning While it may be more beautiful and does result in lowering density, downzoning also reduces possible uses and potential value. Question 45 of 100
Which of the following is required on real estate advertising? Personal photo Firm name Sales volume Personal contact information
Firm name The firm's name is required on any advertising.
What happens to ethical complaints about licensees once they are received by the Department of Labor, Licensing and Regulation? Every complaint is immediately investigated. All complaints are accepted and assumed to be legitimate. Each complaint is reviewed to determine whether it falls within the commission's jurisdiction. The offending licensee is contacted and asked to suspend all real estate-related work.
Each complaint is reviewed to determine whether it falls within the commission's jurisdiction. Once a complaint is received, it is reviewed to determine whether it falls within the commission's jurisdiction.
To prevent commingling and accidentally using the funds from one income property to pay for the expenses of another, a broker should ______. Establish a separate escrow account for each property Keep the funds from one of the properties in his personal bank account Create distinct names for each property and track the funds in separate spreadsheets Ask another broker in his firm to manage the second property
Establish a separate escrow account for each property The broker should establish a separate escrow account for each property—even if one owner owns several properties.
In what type of leasehold is the duration of the lease unknown at the time it is created? Periodic estate Holdover tenant Estate at will Estate at sufferance
Estate at will In an estate at will, the duration of the lease is unknown at the time it is created. The duration of the lease is contingent upon the will of the involved parties. An example of an estate at will is a month-to-month lease.
Kirby has a listing agreement with Bob. If Kirby or another agent locates the buyer, Kirby gets his listing commission. However, if Bob locates the buyer, Kirby does not earn a commission. What type of listing agreement do they have? Open Exclusive agency Exclusive right to sell Open exclusive
Exclusive agency This is an example of exclusive agency. The key is that if an agent locates the buyer, a listing commission has been earned.
Based on federal fair housing law, single-family housing sold or rented without the use of a broker is ______. Exempt from coverage under the Fair Housing Act in most circumstances if the private owner does not own more than three single-family homes at one time Not exempt from coverage under the Fair Housing Act Exempt from coverage under the Fair Housing Act in all circumstances Exempt from coverage only under state and local fair housing law Your Answer:
Exempt from coverage under the Fair Housing Act in most circumstances if the private owner does not own more than three single-family homes at one time Single-family housing sold or rented without the use of a broker is exempt from some provisions of the act (race is never exempt) if the homeowner does not own more than three single-family homes at one time.
Which act attempted to eliminate discrimination caused by blockbusting, steering, and redlining? Civil Rights Act of 1866 HUD Act of 1961 Fair Housing Act of 1968 Housing Discrimination Act of 1974
Fair Housing Act of 1968 The Fair Housing Act of 1968 added protections against blockbusting, redlining, and steering.
In caveat emptor states, whose responsibility is it to notify sellers of their duty to disclose required items? Buyer Licensee representing the seller Licensee representing the buyer Transactional broker
Licensee representing the seller In caveat emptor states, licensees representing the seller have a responsibility to notify the seller of their duty to disclose required items. Licensees should also remind sellers of their duty to be honest.
Gregory is a salesperson at Gardner Homes. Linda is his sponsoring broker. Which of the following best describes what happens with Gregory's license? Gregory keeps a copy of his license at home for safekeeping. Gregory displays his license at Gardner Homes. Linda displays Gregory's license at Gardner Homes. Linda stores Gregory's license at Gardner Homes.
Linda stores Gregory's license at Gardner Homes. Salespersons licenses are not required to be displayed but must be stored by the broker.
Which of the following trusts is created during a person's lifetime and is often used when minor children are involved? Living Tertiary Testamentary Juvenile
Living A living trust is created during a person's lifetime, and it is often used when minor children are involved.
At what level are budgeting, site plan review, and building codes controlled? Local Federal State Federal and state Your Answer:
Local It would be cumbersome to exert local control and planning from a state or federal level.
When agents put their clients' interests ahead of their own, this describes the duty of ______. Reasonable skill and care Loyalty Accounting Obedience
Loyalty Loyalty means putting the client's interests first ... ahead of customers' interests and ahead of your own.
According to the NAR Code of Ethics, what responsibility do licensees have related to material facts? Make a reasonable effort to ascertain all material facts concerning each property for which an agency is accepted. Make extraordinary efforts to ascertain all material facts concerning each property for which an agency is accepted. Accept all client statements concerning the property as material fact. They don't have any responsibilities related to material facts.
Make a reasonable effort to ascertain all material facts concerning each property for which an agency is accepted. Licensees should make reasonable efforts to ensure material facts related to the property are accurate. This may include (but is not necessarily limited to) asking the client questions about the property and its condition or inspecting the property.
Terry, an agent in Maryland, is hosting an open house at his client's home. What is the process for providing the agency disclosure to potential buyers? Terry must provide the disclosure form to each potential buyer who visits the open house. Terry must present the disclosure form to each potential buyer who expresses interest in the property. Terry must post the MREC-approved disclosure sign in a prominent place. Since an open house isn't considered a scheduled meeting, no disclosure is necessary.
Terry must post the MREC-approved disclosure sign in a prominent place. Effective October 1, 2016, Maryland agents are required to post the MREC-approved disclosure sign in lieu of providing individual disclosures. Question 87 of 100
Which statement about radon testing is true? It can only be performed by a licensed professional. It is not necessary. Test kits are not available to the general public. Test kits are available for purchase.
Test kits are available for purchase. Test kits are available for purchase but must be sent to a lab for analysis. A radon technician can also place the test, pick it up, and send it in for testing. Licensees should advise all buyers to have homes tested for radon, regardless of location.
Which one of the following statements about testamentary trusts is true? Testamentary trusts don't avoid probate. Like living trusts, testamentary trusts avoid probate. Testamentary trusts don't need to be reviewed by an attorney. The costs of administering a testamentary trust isn't borne by the beneficiaries.
Testamentary trusts don't avoid probate. Property held within a testamentary trust must go through probate.
Real estate licensees in Maryland need to pay attention to updates from what agency which is responsible for administering and enforcing Maryland Fair Housing Law? The Commission on Civil Rights The Fair Housing Updates Board The Discriminatory Acts Board The Fair Housing Administration and Enforcement Board
The Commission on Civil Rights The Maryland Commission on Civil Rights administers and enforces Maryland fair housing laws.
An agent, Alice, has listed a three-bedroom home for her client. Before she finds a buyer, the home burns to the ground. What happens to the agency agreement that Alice has with her client? The agency agreement is terminated upon destruction of the property. The agreement must continue, but it can be modified due to the changed value of the property. The agency agreement must be extended until the home is rebuilt, or for six months, whichever is longer. The agency agreement continues as created unless Alice and her client can mutually agree to terminate it.
The agency agreement is terminated upon destruction of the property. One of the eight ways that an agency agreement can be terminated is through destruction of the property. Question 64 of 100
Which one of the following statements about the Maryland agency disclosure notice is true? The agency disclosure notice is not required by law. The agency disclosure notice, once signed and dated, creates a brokerage relationship. The agency disclosure notice is not a contract. The licensee must provide a written disclosure to the party they plan to represent in the real estate transaction.
The agency disclosure notice is not a contract. Although required by law, the agency disclosure notice is not a contract, and it does not create a brokerage relationship. The licensee must provide a written disclosure to any party the licensee does not represent in the transaction.
How does the term "break-even point" relate to percentage leases? The tenant has to break even on expenses before the percentage charge is applied. Sales proceeds must exceed last year's total before the percentage applies. The landlord must receive enough in rent plus the share of sales to break even on the debt service. The landlord doesn't charge a percentage of sales until the tenant's sales exceed a break-even point.
The landlord doesn't charge a percentage of sales until the tenant's sales exceed a break-even point. The percentage charge applies when the tenant's sales exceed a break-even point. This point is specified in the lease.
Kim is a subagent in a transaction involving a buyer customer, a seller, and a listing agent. Who is Kim a subagent for? The buyer Both buyer and seller The listing agent The listing agent and seller
The listing agent and seller Subagents who work with buyer customers are the subagent of the seller and listing agent.
What is used to secure a home loan in Maryland? Mortgage Full covenant and warranty deed Deed of trust The property
The property Maryland is a lien theory state, which means that the property acts as security for the loan.
The courts use three primary tests to determine whether something is personal property or real property. These are: method of attachment, agreement, and adaptation. What does agreement test? The test is based on what the parties have decided (usually captured in writing) as to whether an item will stay or go. The test is based on how and whether the item is permanently affixed to the property. The test is based on whether the item is accepted as part of the property or not. The test is based on how the item is situated to the real estate.
The test is based on what the parties have decided (usually captured in writing) as to whether an item will stay or go. The agreement test is based on what the parties have decided (usually captured in writing) as to whether an item will stay or go.
Each of the Maryland Real Estate Commission's hearing panels consists of ______ members. Three Nine Five Ten
Three Each of the commission's hearing panels consists of three members. Question 89 of 100
Joint tenancy requires unities of time, ______, interest, and possession. Tacking Trust Title Terms
Title Joint tenants must all have the same right to possession, receive their title at the same time from the same source, and have the same amount of interest and ownership in the property.
Which variance type allows a property owner to build a two-family home when existing regulation only allows single-family homes? Use variance Area variance Non-conforming use exception Spot zoning
Use variance This would be a use variance. The existing zoning only allows single-family homes, so a duplex represents a use other than the originally intended use.
At what point in a real estate transaction is transfer tax payable? When the deed is recorded When property taxes are assessed When the title search is conducted When the sales contract is executed
When the deed is recorded Transfer tax is payable when the deed is recorded. Question 99 of 100
