Free Maryland Real Estate Practice Exam Questions (December 2024) 30+

The Governor is in charge of handling the appointment of Commission members.

The agent can, in fact, practice real estate again when the amount paid on his or her behalf is repaid with interest. It has to be completely paid off otherwise their license remains suspended. After it is paid off, they have to apply to the commission for reinstatement of the license.

Whenever you pay your agency fees a portion of those fees go towards the fund, the goal is for the fund to be at least $250,000. If it is lower than that the commission may ask for an additional fee or take money from interests built on investments. Per theMaryland Real Estate Brokers Act: 17-402.

The statute of frauds refers to the requirement that certain kinds of contracts be in writing, and signed. Every state has a statute that requires certain types of contracts to be in writing and signed by the party to be charged. The most common requirements are for contracts that involve the sale or transfer of land, and contracts that cannot be completed within one year.

In Maryland, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks they must hold an active real estate license.

Unlike some states, in Maryland there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

All Maryland agents must give a client or potential client the "Understanding Whom Real Estate Agents Represent" form no later than the first scheduled face-to-face meeting.

Law requires that brokers deposit funds no later than the 7th business day after the contract has been executed.

The Maryland Real Estate Commission members serve for terms of 4 years.

The disclosure is required to be made no later than the first scheduled face-to-face meeting; however, when an agent is not going to meet their client face-to-face until settlement, then the agent should have emailed or mailed an agency disclosure to their client very early in the listing process.

The time limit to request payment from the fund is 3 years from the loss or discovery of the loss. Per Maryland Real Estate Brokers Act: 17-404.

Regarding real estate licenses reciprocity, Maryland does with the following states: Pennsylvania, and Oklahoma.

Yes, Maryland does in fact recognize oral express agencies. Many states do not, Maryland is one of those states that do.

The Real Estate Guaranty Fund is a special fund established by Maryland Real Estate Code to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The real estate guaranty fund is designed to protect consumers.

The Maryland Real Estate Guarantee Fund is supported by licensees. Sometimes the fee can be increased if the fund is below a certain amount but it is almost always $25.00.

A seller who pays a commission to a broker under false pretenses would be able to apply for compensation from the Maryland Real Estate Guarantee Fund. While the other instances are more than likely illegal, this the only case that grants access to the fund.

Prior to changing the location of an office or escrow account, a broker must give the Commission 7 days notice.

Each sales contract that is provided by a real estate broker must include a written notice to the buyer that the buyer is protected by the Maryland Real Estate Guaranty Fund.

Confidentiality goes on indefinitely. The only exception is if the agent has written permission to applicable information.

According to Maryland law, unless the client directs the agent otherwise, contract offers and counteroffers should be presented even if the property is subject to an existing offer up until settlement occurs.

Dower and Curtesy was an old law. Oftentimes, back in the day, real property owned by a husband was typically not inherited by the wife nor was the wife's property inherited by her husband. Instead, the property would either go to the children or some other member of the husband or wife's line. Since the late 1800’s the law has been largely abolished, however some states still hold the law true. Maryland abolished Dower and Courtesy in 1980. Today most states abolished dower and curtesy and generally provide the same benefits regardless of sex.

A Maryland broker can function as a corporation, limited liability company, partnership, or sole proprietorship. There is no law that dictates what business structure a broker must be.

In Maryland continuing education is required once every two years.

The maximum amount that may be paid in a single transaction is $50,000.00. This is the maximum meaning it can be less. It's important to note this payment from the fund may only be made to cover actual monetary loss and cannot be paid for attorney or court costs or anything else. Per Section 17-404

The Commission has the authority to control real estate advertising in areas of Maryland if they believe that blockbusting or panic selling is going on. These specific areas are called conservation areas.

Maryland real estate license law is administered by the Maryland Real Estate Commission.

ALL Maryland real estate agents wishing to sell their own property must disclose their license status in advertising. It's only fair to any seller to be aware of their expertise.

The Maryland Code of Ethics specifically requires that a licensee get the owner's prior consent before putting a sign on a property. It's best practice to always get consent for all real estate related activities.

Pretty self explanatory. All real estate agents MUST follow not only the state laws that apply to them but the national ones as well.

The Maryland Real Estate Commission has the power to suspend a licensee's license. The Commission cannot however transfer a license to another state, give out licenses based on merit and launch investigations on escrow firms.