MD RE

Question 1

Maryland real estate brokerage is governed by…

Answer 1

Statutory law (Brokers Act) and COMAR (administrative law)

Question 2

3 levels of licenses that are issued…

Answer 2

Brokers, associate brokers, and salesperson

Question 3

Who must conform to Brokers Act w/o license?

Answer 3

Financial institutions, homebuilders in the rental or initial sale, agents of a licensed broker, persons who negotiate the sale lease or transfer of property

Question 4

Maryland Real Estate Commission (MREC)

Answer 4

Consists of 9 members; 5 hold licenses for 10yrs and lived where they represent for 5yrs; other 4 are consumer members

Question 5

Who appoints members to MREC?

Answer 5

Governor

Question 6

MREC membership terms are…

Answer 6

Started on June 1 and end four years later

Question 7

How is MREC chairperson selected?

Answer 7

Yearly by the members of the Commission; covered by a surety bond

Question 8

Executive Director of the Commission

Answer 8

Appointed by and serves at the pleasure of the Secretary

Question 9

MREC Duties and Powers

Answer 9

Investigate complaints; conduct hearings; issue subpoenas; take depositions; seek injunctions

Question 10

MREC Broker Requirements

Answer 10

Complete 135hr course; hold sales license for 3yrs

Question 11

Associate Brokers

Answer 11

Same reqs as broker; must obtain written commitment from licensed broker to accept as an associate

Question 12

Salespersons

Answer 12

66hr course

Question 13

Sales License Fee

Answer 13

Original fee $70; Guaranty Fund Assessment $20

Question 14

Cost to reactivate an inactive license

Answer 14

$25

Question 15

Cost to reinstate a license

Answer 15

$150

Question 16

Reinstatement

Answer 16

Revives licenses that have expired; Within 3yrs following expiration; must complete education reqs in those 3yrs; $150 reinstatement fee

Question 17

Transfer of Affiliation

Answer 17

Must obtain from new broker written commitment; Must submit confirmation of termination from existing broker

Question 18

Dishonored Checks

Answer 18

$35

Question 19

Continuing Education

Answer 19

15hrs

Question 20

Inactive Status

Answer 20

When no longer affiliated with brokers and licenses have been returned to Commision

Question 21

Responding to complaints…

Answer 21

Licensees must submit in writing to MREC within 20 days

Question 22

How long before a hearing must someone be notified?

Answer 22

10 days

Question 23

Guaranty fund payments…

Answer 23

Licensees must pay the fund in full plus interest of at least 10%

Question 24

Place of Business

Answer 24

Office or headquarters where real estate business is conducted

Question 25

MD Civil Rights Commission

Answer 25

Applies to employers with >15 employees

Question 26

Maintenance of records states...

Answer 26

Transactions must be kept for at least 5yrs from the date of closing; employment; agreement

Question 27

Changes in Office Location

Answer 27

Must be sent to Commission within 10 days

Question 28

Trust Money

Answer 28

Deposit or payment that a person entrusts to a broker to hold for the benefit of the owner related to a real estate transaction

Question 29

Beneficial Owner

Answer 29

Person other than the owner of the trust money, who benefits from the trust money

Question 30

Management of Trust Money

Answer 30

Receipt of money (earnest money) it must be deposited no later than 7 business days after formation of the contract of sale; non interest bearing; no commingling

Question 31

Changing/Adding new bank accounts

Answer 31

Brokers must notify the Commission within 10 days

Question 32

Signing Trust Account Checks

Answer 32

The firm's broker must be the signer; at least one licensee must sign the checks

Question 33

MD Fair Housing Classes

Answer 33

Marital status, sexual orientation, gender identity

Question 34

Elderly Descrimination

Answer 34

All residents over 62; at least one person 55 or older in 80% of units; may deny occupancy but not ownership

Question 35

Easement by Prescription

Answer 35

Adverse user makes use of land for 20yrs

Question 36

Converting Property to a Condo

Answer 36

Must be registered with the secretary of State before it may be sold or offered for sale

Question 37

Public Offering Statement

Answer 37

Contains proposed contract for purchase of units; declaration, bylaws, rules and regulations

Question 38

Conversion to time-share

Answer 38

Developer must give tenants 120 days notice

Question 39

Cancellation of time-shares

Answer 39

Purchasers have 10 calendar days