Other Maryland Laws and Practices Flashcards
Maryland real estate appraisers are regulated by the
a. Real Estate Commission.
b. State Commission of Real Estate Appraisers and Home Inspectors.
c. State Commission of Real Estate Appraisers.
d. State Commission of Real Estate Appraisers and Mortgage Lenders.
(b) State Commission of Real Estate Appraisers and Home Inspectors
Much like real estate licensees are regulated by the Real Estate Commission, real estate appraisers and
home inspectors are regulated by the State Commission on Real Estate Appraisers and Home Inspectors.
Time shares in Maryland are regulated by the
a. Secretary of State.
b. Attorney General.
c. Real Estate Commission.
d. Commission on Time Shares.
(a) Secretary of State.
In Maryland, timeshares are regulated by the Secretary of State. In some states, timeshares are regulated by the state’s real estate regulatory body, for example a Real Estate Commission.
A time share developer must deliver to prospective buyers a(n)
a. public offering statement.
b. property survey.
c. time share caveat-emptor disclosure.
d. economic impact report.
(a) public offering statement.
Most states require a timeshare developer to give prospective buyers some kind of extensive disclosure. In Maryland, that document is called a public offering statement.
Buyers of a time share have how many days after the contract date within which to cancel the purchase contract?
a. 10 business days
b. 10 calendar days
c. 5 business days
d. 5 calendar days
(b) 10 calendar days
It is important to distinguish between business days and calendar days. In Maryland, buyers of a timeshare have 10 calendar days within which to cancel the contract.
A property seller subject to a homeowners association Which of the following is the seller NOT required to disclose?
a. That the property is subject to a homeowners association
b. The buyer’s rights, responsibilities, and obligations
c. The building cost and exact living area of a unit
d. The fees associated with the homeowners association
(c) The cost of building a unit
Although a lot of disclosures are required for properties subject to a Homeowners Association, the cost of building the unit is not one of those required disclosures.
A new home builder must disclose
a. the square footage of each house for sale.
b. if the builder participates in a new home warranty security plan.
c. the cost of building each home.
d. the life expectancy for the roof on each home.
(b) if the builder participates in a new home warranty security plan.
New home builders are obligated to make a wide variety of required disclosures. Among these is the
requirement to disclose if they participate in a new home warranty security plan.
Ad valorem real estate tax bills in Maryland are issued
a. annually.
b. once every 2 years.
c. periodically depending on the budget needs of the taxing authority .
d. in July and August of each year.
(d) in July and August of each year.
An ad valorem tax is a tax based on the value of the property. In Maryland, tax bills are sent out in In July and August of each year.
To be enforceable, a lease must be in writing if the term
a. exceeds 1 month.
b. exceeds 3 months.
c. exceeds 6 months.
d. exceeds 1 year.
(d) exceeds 1 year.
To be enforceable, a lease with a term that exceeds 1 year must be in writing. A lease for 365 days does not exceed 1 year.
To qualify for a mechanics’ lien the work must improve the value of the property by
a. 15%.
b. 20%.
c. 25%.
d. 30%.
(a) 15%.
A mechanics’ lien is a financial encumbrance against real property for the payment of materials or work incurred for making an improvement on the property. In Maryland, to qualify for a mechanics’ lien, the work must have improved the value of the property by 15%.
A security deposit for a residential unit in Maryland
a. may not exceed 1 month’s rent.
b. may not exceed 2 months’ rent.
c. may not exceed 3 months’ rent.
d. must be paid in cash or a cashier’s check.
(b) may not exceed 2 months’ rent.
A security deposit on a residential unit secures payment of unpaid rent, loss or damages caused by violation of the lease, and cost of repairs in excess of ordinary wear and tear. In Maryland, a residential security deposit cannot exceed the equivalent of two months’ rent.
Two types of time-share
▪ time-share license: the right-to-use a timeshare
▪ time-share estate: purchase of fractional interest in a timeshare
▪ with a time-share license, the holder may trade vacation periods
Time Shares - Regulation of sales
▪ sales are strictly regulated by the Secretary of State
▪ developers must prepare and deliver a public offering statement to prospective buyers
Time Shares - Regulation of sales
▪ Buyers have right to cancel the sales contract within 10 calendar days following the latest of the following
- the contract date or
- the day the buyer received the last required document or
- the day the unit meets all occupancy
requirements
Homeowner Association Act
❑ Sellers of property subject to a homeowner association must disclose
▪ property is subject to a homeowners
association
▪ buyer rights, responsibilities, and obligations
▪ right of rescission if information not provided –
5 calendar days
▪ fees that members are obligated to pay
New Home Warranties
❑ Builder must disclose if the builder participates in new home warranty security plan
▪ if builder does not participate, must disclose that buyer has limited warranties
▪ Home Builder Guaranty Fund available if new home warranty plans are exhausted
