Unit 23: Maryland Real Estate Law
What is the maximum penalty possible for filing false statements with the Commission in reference to a Guaranty Fund claim?
$25,000 and imprisonment for three years
What is the upper limit, if any, of a financial loss protected by the Guaranty Fund?
$50,000
new associate broker's license
135-hour class, plus $130 in fees
renewal of salesperson's license
15 hours in continuing education, plus $70 in fees
renewal of inactive associate broker's license
15 hours of continuing education, plus $110 in fees
renewal of broker's license
15 hours of continuing education, plus $170 in fees
new salesperson's license
60-hour class, plus $90 in fees
irrevocable consent
A document signed by a licensee who is not a Maryland resident that authorizes the Real Estate Commission to accept legal service of documents on the licensee's behalf.
mold
A form of fungus that can be found almost anywhere and can grow on almost any organic substance, so long as moisture and oxygen are present.
Where do fees paid for Maryland real estate licenses finally go?
A general fund maintained by the Real Estate Commission
latent defect
A hidden structural defect that could not be discovered by ordinary inspection and that threatens a property's soundness or the safety of its inhabitants.
precedent
A legal decision that serves as a guide for future decisions.
asbestos
A mineral once used in insulation and other materials that can cause respiratory diseases.
Of what is an unlicensed person improperly collecting a real estate commission guilty?
A misdemeanor
In which of the following situations does an act of real estate brokerage require a real estate brokerage license?
A person charges a modest consulting fee to guide his friend in the sale of a home.
salesperson
A person who performs real estate activities while employed by or associated with a licensed real estate broker.
Which of these must hold a valid real estate license to perform the acts shown in return for consideration?
An attorney-at-law who advertises real estate services and agrees to serve as a prospect's buyer broker
How is the executive director of the Commission chosen?
Appointed by the secretary of labor, licensing, and regulation
How is the act of blockbusting regarded by Maryland law?
As a misdemeanor
Which of the following could result in discipline by the Commission?
Bad faith
storage tank
Commonly found on sites where petroleum products are used or where gas stations and auto repair shops are located.
A commissioner on the Maryland Real Estate Commission may only serve one four-year term.
False
A real estate salesperson may accept a gratuity or bonus directly from his seller at the time of settlement.
False
All licensees should become experts on all environmental issues.
False
Although the Maryland Department of the Environment (MDE) is responsible for the quality of drinking water in Maryland, it is NOT responsible for the health of the Chesapeake Bay.
False
Associate brokers may legally provide brokerage services directly to the public in their own name.
False
The code of ethics of the Maryland Real Estate Commission and the Code of Ethics of the National Association of REALTORS® are the same.
False
Which of the following is TRUE concerning the Maryland Real Estate Commission?
Four of its members are not real estate licensees and five are.
red flag
Indications or material facts that a property may have latent defects.
Who may hold standard licenses to provide Maryland residential real estate brokerage services?
Individuals
statute
Laws passed by a legislative body that, generally, must also be signed by the president, governor, or chief executive of the jurisdiction
Which of the following is NOT a direct source of Maryland air pollution?
Leakage from underground storage tanks
associate broker
Licensees who have met the requirements to become a broker (education, testing, and experience) but are affiliated with another broker.
Buffer
Maryland Critical Area law identifies certain land areas that are so critical to the health of the Chesapeake Bay that almost no disturbance is allowed in those areas. The area is generally 200 feet from the mean high-water mark of the bay or the tidal river.
Which statement is TRUE of the Maryland Smart Growth Initiative?
One of its goals is to revitalize older neighborhoods.
administrative law
Regulations and codes promulgated by commissions, boards, and departments. They typically only apply to the regulated individual or entity.
Which statement about the Critical Areas Act's Buffer is accurate?
The Buffer extends 200 feet deeper inland than a Critical Area.
Which of the following has authority to set license fees?
The Commission
Who may fine individuals found guilty of operating in the real estate business without a license?
The Commission
Critical Area
The Maryland General Assembly has identified certain areas of the state that are particularly important to the health of the Chesapeake Bay-the Critical Areas. These areas include all land under the bay, all land within 1,000 feet of the bay, and the tidal sections of the rivers feeding the bay.
Relations with which of the following are NOT addressed in the Commission's code of ethics?
The Real Estate Commission
Which statement is TRUE of the Chesapeake Bay Critical Area Act?
The act keeps local governments from approving virtually any disturbance of the land in a buffer zone.
Which of the following will NOT increase as a result of state and local government environmental actions?
The amount of land available for real estate development
common law
The body of law based on custom, usage, and court decisions.
Who appoints members to the Maryland Real Estate Commission?
The governor of Maryland
strict construction
The principle guiding judicial decisions that assumes that the original language and intent of a law stands
Code of Maryland Regulations (COMAR)
The set of administrative law promulgated by various Maryland boards and commissions. It includes the regulations of the 18 commissions within the Department of Labor, Licensing and Regulations.
Which statement pertaining to licenses held by Maryland real estate brokerage licensees is NOT correct?
They are required for every person who sells real estate for consideration.
Which is TRUE of employees of the Commission?
They include an executive director and field inspectors.
What is the guideline for environmental regulations imposed by local jurisdictions within the state?
They may be stricter than those imposed by the state.
What is the MOST accurate statement about most environmental issues?
They often involve local, state, regional (interstate), and federal cooperation.
Which of these statements is TRUE of both open space preservation and ecological challenges?
They overlap in many ways.
As a licensed salesperson, you receive a lead from a friend who is not a real estate licensee. As previously agreed upon, you split the commission with your friend. Which of the following is TRUE?
This is a violation of the license law.
What is the primary purpose of the Brokers Act?
To protect the public interest
Before applying to take the state exam to obtain a real estate salesperson's license, an applicant must generally have completed a minimum 60-hour course.
True
The Mandatory continuing education class required for license renewal must be taught by an instructor approved by the Commission.
True
jointly and severally
When more than one individual or entity is responsible for an action, each individual or entity is viewed as responsible for the whole action, not just that individual's proportional share.
jointly and severally liable
When two or more individuals or entities are responsible for a debt or cost, individuals are responsible for the whole debt, not their individual proportional share.
affiliate
a licensed associate broker or a licensed salesperson.
methyl tertiary butyl ether (MTBE)
an additive used in gasoline. It replaced the use of lead products. There is building concern that the use of these might lead to future environmental issues with ground water contamination and air pollution. It is also a suspected carcinogen.
natural person
an individual living person. Does not include corporations, LLCs or other legal entities
real estate
any interests in real property anywhere. It even includes interests in condominiums, time-share estates, and time-share licenses
Pocket cards issued for salespersons must be
carried by them when they are performing acts of brokerage.
Brokers need NOT notify the Commission when
changes occur in commission sharing.
clock hours
continuing education is measured in this- 50 minutes of actual class time for each 60-minute clock hour
The Commission may refuse to issue a broker license to a Maryland resident who has filed a proper application and met the legal requirements
if it then offers the applicant a hearing on the matter.
Accepting a $100 gratuity directly from your buyer
illegal
Offering a referral fee to an unlicensed person
illegal
Giving all parties copies of signed documents
legal
Putting your brokerage name in an advertisement
legal
The licenses of salespersons who are released by their brokers must be
returned to the Commission by the brokers.
real estate brokerage service
the bringing together of parties interest in making a real estate transaction
Broker's Act
the law guiding the actions of real estate licensees
Placing a sign on an unlisted property
unethical
nonresidential property
zoned and used for nonresidential purposes, as well as residential property that contain five or more residential units in a single platted building
