Ch. 1

Question 1

Affiliate

Answer 1

Refer to an individual, a licensed associate broker or salesperson representing a broker. (TO AFFILIATE means refers to selecting a broker who will apply for a hold the agent’s license.)

Question 2

Administrative Law

Answer 2

Real estate is governed by both administrative and statutory law. Administrative Law is found in COMAR, which is enforced by the MD Real Estate Commission (MREC).

Question 3

Associate Brokers

Answer 3

Individuals who have met the requirement of 135 hours of education and 3 years of licensed experience, and have passed both portions of the broker’s exam. An associate broker has the qualification of a broker but chooses to have the same authority as a salesperson - only to provide brokerage services on behalf of their licensed broker.

Question 4

Clock Hours

Answer 4

Defined in COMAR regulations as 50 minutes of actual instruction per each 60-minute hour of continuing education instruction.

Question 5

Code of Maryland Regulations (COMAR)

Answer 5

Examples of administrative law enacted and enforced by MREC to govern real estate brokerage.

Question 6

Common Law

Answer 6

This UNWRITTEN law takes into consideration customs and judicial precedence. Precedence is the use of prior court decisions. Strict construction means the original intention of a previous ruling is applied to current decisions exactly as written. Judicial activism allows previous decisions to be “modernized

Question 7

Continuing Education

Answer 7

A requirement for all license renewals that includes mandatory topics and electives adding up to a minimum of 15 hours for every two-year renewal. There is no reduction in the required 15 hours needed for license renewal, regardless of degrees held or number of years licensed.

Question 8

Executive Director

Answer 8

The Commission’s executive director is appointed by the secretary. The executive director, while not a member or the chairperson of the Commission, is a State employee who attends the monthly meetings and supervises its office staff and field inspectors between monthly meetings.

Question 9

General Assembly

Answer 9

The General Assembly is the legislative branch of the State government that contributes statutory (legislative) law, such as Title 17, to the real estate industry.

Question 10

Guaranty Fund

Answer 10

The guaranty fund is administered by MREC and exists to reimburse members of the public as much as $50,000 for actual losses caused by licensees and their employees.

Question 11

Inactive Status

Answer 11

Individuals who are not going to be actively selling an place their license on inactive status.

Question 12

Irrevocable Consent

Answer 12

Nonresident applicants must provide irrevocable consent allowing that they be served with official documents within the State of Maryland and have suits and actions brought against them within the MD court system.

Question 13

Maryland Real Estate Commission (MREC)

Answer 13

One of many commissions within DLLR, which regulates licensed industries. MREC consists of nine members chose by the governor for four-year terms. MREC contributes to COMAR, which is administrative law.

Question 14

Nonresidential Property

Answer 14

Real property improved by five or more single-family units and property that is zoned for agricultural, commercial, industrial, or nonresidential use.

Question 15

Pocket Cards

Answer 15

Images of the license and pocket card are issued to the broker. The broker then gives a copy of the pocket card to licensees to carry on their person. Brokers would retain a copy of the license for all individuals who currently represent them in brokerage.

Question 16

Reciprocity Agreements

Answer 16

MD has a reciprocity agreement with PA and OK that allows for the education and experience accomplished in these two states to be recognized when they seek to acquire an additional real estate license in MD.

Question 17

Red Flags

Answer 17

Physical indications that there may be a defect in the property not readily apparent to a layperson or an inexperienced home purchaser.

Question 18

Reinstatement

Answer 18

An expired license can be reinstated if it is within 3 years of expiration with the payment of a $150 reinstatement fee. An individual cannot perform any acts of brokerage or accept any portion or commission including referral fees, while their license is expired.

Question 19

Summary Actions

Answer 19

Steps taken, such as a summary suspension, before a hearing is held by MREC, due to the need for an immediate action to protect the public.

Question 20

Title 17

Answer 20

The statutory law also known as the MD Real Estate Brokers Act.