License Law & Reg - Summary Questions Flashcards
Whom may the licensed salesperson represent/
- Owners who employ them directly
- Not more than one owner at one time
- Only brokers under whom they are licensed
- Any broker who is duly licensed
3
License certificates issued for salespersons MUST be
- Carried by them when they are performing acts of brokerage
- Displayed by their brokers in their company offices
- Retained by the Commission
- Displayed by them in their homes
2
Brokers need NOT notify the Commission when
- salespersons resign
- changes occur in the locations of any of their offices
- changes occur in the names of their firms
- changes occur in commission sharing
4
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
- this is not a violation of the license law
- this is a violation of the license law only if the seller is not informed
- this is not a violation of the license law if your broker has given you written permission
1
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?
- have a written employment contract with their brokers agreeing to this status
- be free form their broker’s control of how their work is done
- earn substantially all the income coming from their brokerage firms in the form of commissions
- hold a real estate license
2
Which of the following is paid biennially?
- initial Guaranty Fund Fee
- Broker’s and salesperson’s original license fee
- Broker’s and salesperson’s license renewal fee
- Guaranty Fund reassessment
3
How is the act of blockbusting regarded by Maryland law?
- as unethical but not prohibited by law
- as a felony
- as a misdemeanor
- as a legitimate listing technique
3
Who may fine individuals found guilty of operating in the real estate business without a license?
- the district attorney
- the Commission
- the state or local association of Realtors
- the attorney general
2
Of what is an unlicensed person improperly collecting a real estate commission guilty?
- Duress
- a felony
- a misdemeanor
- fraud
3
Which of the following could result in discipline by the Commission?
- slandering competitors
- intemperance
- bad faith
- puffing
3
What is the maximum penalty possible for filing false statements with the Commission in reference to a Guaranty Fund claim?
- $5,000
- $10,000
- $10,000 and imprisonment for two years
- $25,000 and imprisonment for three years
4
Who may hold standard licenses to provide Maryland residential real estate brokerage services?
- Corporations
- LLC’s
- Partnerships
- Individuals
4
Who appoints members to the MD real estate Commission?
- the State Senate
- the governor of MD
- the House of Delegates
- the executive director of the Commission
2
When will a salesperson license issued by the Commission on November 1 expire?
- 1 year from the date of issue
- 2 years from the date of issue
- april 30 of the next even-numbered year
- march 1 of the next even-numbered year
2
What is the primary purpose of the Brokers Act?
- to raise revenue
- to protect the public interest
- to control salespersons
- to restrict competition
2
How is the executive director of the Commission chosen?
- appointed by the governor
- confirmed by the State Senate
- appointed by the Secretary of Labor, Licensing, and Regulation
- Selected from the MD State Employees Classified System
3
What must be shown in ads placed by licensees for a property listed in their firm?
- name and address of the property owner
- name of the listing salesperson
- designated name of the broker
- general location of the property
3
At what minimum level must the Guaranty Fund be maintained?
- $2,000
- $25,000
- $200,000
- $250,000
4
Relations with which of the following is NOT addressed in the Commission’s Code of Ethics?
- members of the public
- the Commission
- clients
- fellow licensees
2
Which of the following is TRUE concerning the MD real estate Commission?
- it has five members
- four of its members are not real estate licensees and five are
- it has four professional and five consumer members
- its members are representative brokers from real estate boards or associations throughout MD.
2
The Commission may refuse to issue a broker license to a MD resident who has filed a proper application and met the legal requirements
- if it then offers the applicant a hearing on the matter
- if the applicant has been convicted of a traffic violation within the past year
- without offering to hold a hearing on the matter
- if the applicant has not reached the age of 21 years
1
Which of the following has authority to set license fees?
- the Commission
- Associations and boards of licensees
- the Secretary of the Dept. of Labor, Licensing and Regulation
- the General Assembly
1
In which of the following situations does an act of real estate brokerage require a real estate brokerage license?
- a mortgage lender sells real estate acquired through foreclosure
- a person charges a modest consulting fee to guide his friend in the sale of a home
- an attorney at law handling a divorce action charges 3 percent to help sell a house the couple owns
- a property owner subdivides his land and sells five lots in one calendar year
2
Where do fees paid for MD real estate licenses finally go?
- the MD General Fund
- the Guaranty Fund
- the real estate board or association active in the area
- the State Real Estate Commission Fund
4
Which is TRUE of employees of the Commission?
- they include an executive director and field inspectors
- they must be licensed as brokers or salespersons while employed by the Commission
- they must have been licensed to get their position
- they are permitted to perform acts of brokerage for which a license is required
1
The licenses of salespersons who are released by their brokers are to be
- returned to the Commission by the brokers
- returned to the Commission by the salespersons
- removed from display but retained by the brokers
- returned to the salespersons
1
What is the upper limit, if any, of a financial loss protected by the Guaranty Fund?
- $2,500
- $25,000
- $250,000
- an unlimited amount
2
Which statement pertaining to licenses held by MD real estate brokerage licensees is NOT correct?
- their holders are regulated by authority of the Business Occupations and Professions Article of the MD Annotated Code
- they are issued and administered by the MD Real Estate Commission
- they are not issued to corporations or associations
- they are required for every person who sells real estate for consideration
4
What is a requirement for licensed real estate salespersons to deliver real estate brokerage services?
- affiliation with any licensed real estate associate broker
- performance of real estate acts only on behalf of the broker under whom they are licensed
- membership in the local board or association of Realtors
- operate a real estate business under their own name or designated name
2
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 propect’s buyer broker
- a person who serves as a real estate sales-person for a home builder
- attorneys-in-fact who use powers of attorney to earn commissions for the sale of real estate
- trustees who sell properties upon which their lender has foreclosed
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