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

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.

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

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

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.

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

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.

If the Commission orders payment by the Guaranty Fund of a claim based on an act or omission for which a licensee is responsible, the Commission immediately and without further proceedings shall suspend the license of the licensee. Per Maryland Real Estate Brokers Act: 17-412.

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.

Maryland has 3 state protected classes in addition to the 7 federal protected classes. They are: Sexual orientation, gender identity, and marital status.

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 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.

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.

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.

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.

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.

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 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.

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

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.

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

The maximum fines that the Commission is authorized to impose for the first violations is $5,000 second $15,000 and third $25,000.

In Maryland continuing education is required once every two years.

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.

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.

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

The law specifically states that the broker is responsible to supervise brokerage activities and oversee the escrow account.

Maryland law prohibits a real estate agent from negotiating with a lender on behalf of a property owner. The seller should negotiate themselves or find someone qualified for that.

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

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