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MD Real Estate Practice & Law > License Law & Reg - Summary Questions > Flashcards

License Law & Reg - Summary Questions Flashcards

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1
Q

Whom may the licensed salesperson represent/

  1. Owners who employ them directly
  2. Not more than one owner at one time
  3. Only brokers under whom they are licensed
  4. Any broker who is duly licensed
A

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2
Q

License certificates issued for salespersons MUST be

  1. Carried by them when they are performing acts of brokerage
  2. Displayed by their brokers in their company offices
  3. Retained by the Commission
  4. Displayed by them in their homes
A

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3
Q

Brokers need NOT notify the Commission when

  1. salespersons resign
  2. changes occur in the locations of any of their offices
  3. changes occur in the names of their firms
  4. changes occur in commission sharing
A

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4
Q

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?

  1. this is a violation of the license law
  2. this is not a violation of the license law
  3. this is a violation of the license law only if the seller is not informed
  4. this is not a violation of the license law if your broker has given you written permission
A

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5
Q

Which of the following do licensees not need to do to be “qualified real estate agents” and be eligible to use Schedule C-Self-Employed when filing federal tax returns?

  1. have a written employment contract with their brokers agreeing to this status
  2. be free form their broker’s control of how their work is done
  3. earn substantially all the income coming from their brokerage firms in the form of commissions
  4. hold a real estate license
A

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6
Q

Which of the following is paid biennially?

  1. initial Guaranty Fund Fee
  2. Broker’s and salesperson’s original license fee
  3. Broker’s and salesperson’s license renewal fee
  4. Guaranty Fund reassessment
A

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7
Q

How is the act of blockbusting regarded by Maryland law?

  1. as unethical but not prohibited by law
  2. as a felony
  3. as a misdemeanor
  4. as a legitimate listing technique
A

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8
Q

Who may fine individuals found guilty of operating in the real estate business without a license?

  1. the district attorney
  2. the Commission
  3. the state or local association of Realtors
  4. the attorney general
A

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9
Q

Of what is an unlicensed person improperly collecting a real estate commission guilty?

  1. Duress
  2. a felony
  3. a misdemeanor
  4. fraud
A

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10
Q

Which of the following could result in discipline by the Commission?

  1. slandering competitors
  2. intemperance
  3. bad faith
  4. puffing
A

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11
Q

What is the maximum penalty possible for filing false statements with the Commission in reference to a Guaranty Fund claim?

  1. $5,000
  2. $10,000
  3. $10,000 and imprisonment for two years
  4. $25,000 and imprisonment for three years
A

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12
Q

Who may hold standard licenses to provide Maryland residential real estate brokerage services?

  1. Corporations
  2. LLC’s
  3. Partnerships
  4. Individuals
A

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13
Q

Who appoints members to the MD real estate Commission?

  1. the State Senate
  2. the governor of MD
  3. the House of Delegates
  4. the executive director of the Commission
A

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14
Q

When will a salesperson license issued by the Commission on November 1 expire?

  1. 1 year from the date of issue
  2. 2 years from the date of issue
  3. april 30 of the next even-numbered year
  4. march 1 of the next even-numbered year
A

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15
Q

What is the primary purpose of the Brokers Act?

  1. to raise revenue
  2. to protect the public interest
  3. to control salespersons
  4. to restrict competition
A

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16
Q

How is the executive director of the Commission chosen?

  1. appointed by the governor
  2. confirmed by the State Senate
  3. appointed by the Secretary of Labor, Licensing, and Regulation
  4. Selected from the MD State Employees Classified System
A

3

17
Q

What must be shown in ads placed by licensees for a property listed in their firm?

  1. name and address of the property owner
  2. name of the listing salesperson
  3. designated name of the broker
  4. general location of the property
A

3

18
Q

At what minimum level must the Guaranty Fund be maintained?

  1. $2,000
  2. $25,000
  3. $200,000
  4. $250,000
A

4

19
Q

Relations with which of the following is NOT addressed in the Commission’s Code of Ethics?

  1. members of the public
  2. the Commission
  3. clients
  4. fellow licensees
A

2

20
Q

Which of the following is TRUE concerning the MD real estate Commission?

  1. it has five members
  2. four of its members are not real estate licensees and five are
  3. it has four professional and five consumer members
  4. its members are representative brokers from real estate boards or associations throughout MD.
A

2

21
Q

The Commission may refuse to issue a broker license to a MD resident who has filed a proper application and met the legal requirements

  1. if it then offers the applicant a hearing on the matter
  2. if the applicant has been convicted of a traffic violation within the past year
  3. without offering to hold a hearing on the matter
  4. if the applicant has not reached the age of 21 years
A

1

22
Q

Which of the following has authority to set license fees?

  1. the Commission
  2. Associations and boards of licensees
  3. the Secretary of the Dept. of Labor, Licensing and Regulation
  4. the General Assembly
A

1

23
Q

In which of the following situations does an act of real estate brokerage require a real estate brokerage license?

  1. a mortgage lender sells real estate acquired through foreclosure
  2. a person charges a modest consulting fee to guide his friend in the sale of a home
  3. an attorney at law handling a divorce action charges 3 percent to help sell a house the couple owns
  4. a property owner subdivides his land and sells five lots in one calendar year
A

2

24
Q

Where do fees paid for MD real estate licenses finally go?

  1. the MD General Fund
  2. the Guaranty Fund
  3. the real estate board or association active in the area
  4. the State Real Estate Commission Fund
A

4

25
Q

Which is TRUE of employees of the Commission?

  1. they include an executive director and field inspectors
  2. they must be licensed as brokers or salespersons while employed by the Commission
  3. they must have been licensed to get their position
  4. they are permitted to perform acts of brokerage for which a license is required
A

1

26
Q

The licenses of salespersons who are released by their brokers are to be

  1. returned to the Commission by the brokers
  2. returned to the Commission by the salespersons
  3. removed from display but retained by the brokers
  4. returned to the salespersons
A

1

27
Q

What is the upper limit, if any, of a financial loss protected by the Guaranty Fund?

  1. $2,500
  2. $25,000
  3. $250,000
  4. an unlimited amount
A

2

28
Q

Which statement pertaining to licenses held by MD real estate brokerage licensees is NOT correct?

  1. their holders are regulated by authority of the Business Occupations and Professions Article of the MD Annotated Code
  2. they are issued and administered by the MD Real Estate Commission
  3. they are not issued to corporations or associations
  4. they are required for every person who sells real estate for consideration
A

4

29
Q

What is a requirement for licensed real estate salespersons to deliver real estate brokerage services?

  1. affiliation with any licensed real estate associate broker
  2. performance of real estate acts only on behalf of the broker under whom they are licensed
  3. membership in the local board or association of Realtors
  4. operate a real estate business under their own name or designated name
A

2

30
Q

Which of these must hold a valid real estate license to perform the acts shown in return for consideration?

  1. an attorney-at-law who advertises real estate services and agrees to serve as a propect’s buyer broker
  2. a person who serves as a real estate sales-person for a home builder
  3. attorneys-in-fact who use powers of attorney to earn commissions for the sale of real estate
  4. trustees who sell properties upon which their lender has foreclosed
A

1

MD Real Estate Practice & Law (2 decks)

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