Maryland 40 Questions Flashcards
Which of these does a licensee NOT need to do to be a qualified real estate agent and file as self-employed on their federal tax return?
C) Be free from their broker’s control of how their work is done
Which classes are protected under the Maryland State fair housing law but NOT under federal fair housing law?
B) Marital status and sexual orientation.
If property is being sold as-is, the seller’s Property Disclosure and Disclaimer Statement
B) must disclose any latent defects known to the seller.
How must a check drawn on a brokerage firm’s escrow (trust) account be signed?
D) It doesn’t necessarily need a second signature if signed by the firm’s broker.
What is the maximum penalty possible for filing false statements with the Commission in reference to a guaranty fund claim?
D) $25,000 and imprisonment for three years.
Tessa Marie has never before owned and occupied a principal residence in Maryland. She is buying a three-level bayfront townhouse in Maryland for $400,000 to occupy. How will the State transfer tax be apportioned at settlement?
A) Tessa will pay $0, and sellers will pay $1,000.
Licenses of salespersons who are released by their brokers are to be
A) returned to the Commission by the brokers.
What is the membership composition of the Maryland Real Estate Commission?
B) Four professional members and five consumer members.
When the sales contract calls for the broker to hold the earnest money deposit, what does the Brokers Act require?
B) Deposit is placed in broker’s account within seven days, regardless of the parties’ instructions.
Brokers’ principals are called
B) clients.
Which of the following does a licensee NOT owe to a customer?
C) Obey lawful instructions.
In Maryland, which of the following is required for a valid will?
D) A minimum of two witnesses.
Which of the following statements about brokerage relationships is TRUE in Maryland?
D) Dual agency is permitted only in brokerage firms consisting of three or more licenses
Which of the following statements about real estate teams is FALSE?
B) The broker cannot be a team leader.
License certificates issued for salespersons must be
A) carried by them while performing acts of brokerage.
What is the upper limit, if any, of a financial loss protected by the guaranty fund?
A) $50,000.
A buyer is using a provided right to cancellation to terminate the sales contract due to the unfavorable home inspection outcome. The buyer’s $10,000 earnest money deposit will be
C) returned to the buyer within 30 days unless the seller files for mediation.
Who appoints members to the Maryland Real Estate Commission?
B) The governor of Maryland.
Mike has been selected by his broker, Mary, to represent a buyer for the purchase of a property listed by Angela. Which of the following is TRUE?
A) Mike is the buyer’s intracompany agent; Mary is a single-agency broker; and Angela is the seller’s intracompany agent.
Mia Lynn is buying a vacation home from salesperson Shelly. What water rights could Mia enjoy with this property?
A) She may build a pier out into the river, subject to state and federal laws.
What is an unlicensed person improperly collecting a real estate commission guilty of?
C) A misdemeanor.
As a licensed salesperson, you receive a lead from a friend who is not a real estate licensee. What is the legal implication of splitting the commission?
A) This is a violation of the license law.
To protect the contract’s enforceability, what must the owner of a condominium unit furnish to purchasers not later than 15 days before closing?
D) All of these.
Which of the following team names would be permissible under the Brokers Act?
B) The ABC Realty Service Team.
What is the minimum level for the guaranty fund to be maintained?
A) $250,000.
If an existing apartment building is being converted to timeshares, the current tenants must be given
C) 120 days’ notice to vacate.
Which of the following is a requirement for claiming adverse possession?
D) Claimant’s possession must have begun with permission of the owner.
Confidential information must remain confidential until
A) it becomes public information.
Brokers need not notify the Commission when
A) salespersons resign.
Sometimes MREC provides an expedited approach to issuing a license. Who else is given an expedited process to get their Maryland real estate license quicker?
C) An out-of-state military service member with an active real estate license.
Which of the following has authority to set license fees?
A) The Commission.
Which of the following is FALSE concerning requirements for recording a deed?
B) It may have been witnessed (attested) rather than notarized.
Easement by prescription may be acquired in Maryland when an adverse user makes use of another’s land for the required period of at least
D) 25 years’ continuous use.
When will a salesperson license issued by the Commission on November 1 expire?
B) Two years from the date of issue.
When must a licensee present the UWREAR agency disclosure form?
C) At a first face-to-face, if the other party does not have representation.
What is the primary purpose of the Brokers Act?
B) To protect the public interest.
What is required by law on any outdoor sign or advertisement displayed on property for sale subject to ground rent?
A) It must, if a price is shown, also show the required ground rent disclaimer.
Which of the following satisfies the requirement that a broker maintain an office?
D) A definite place of business.
The Maryland Real Estate Commission must adopt a code of ethics in order to
A) protect the interests of the public and set standards of conduct for licensees.
