Maryland-Real-Estate-Salesperson Exam Dumps - Real Estate Maryland Real Estate Questions and Answers

A title examination (title search) is a review of public records to establish the chain of title, identify liens, encumbrances, or defects, and confirm the seller’s ability to convey marketable title—customarily extending 60 years or more. A title report is the product issued after the examination; a correction deed cures a specific deed error; a limited search covers a shorter period or scope.

Price fixing occurs when competing firms agree to set prices, fees, or commission rates rather than allowing them to be independently determined. In real estate, this includes agreements among brokers to set commission rates or fee structures—an antitrust violation. Market allocation divides territories or clients, group boycotts are concerted refusals to deal, and tie-in arrangements force the purchase of a second product/service as a condition of sale.

Maryland agency law requires that licensees disclose and explain brokerage relationship options and obtain a signed brokerage agreement before providing client-level services. Prior to entering an exclusive right to sell, the licensee must present available forms of representation (e.g., exclusive right to sell vs. exclusive agency) and explain the duties, compensation, and implications of each so the seller can make an informed choice. Listing or marketing cannot lawfully proceed as client-level services without the executed agreement and required disclosures.

In Maryland, when a new salesperson applicant identifies a supervising broker on the license application, the applicant receives an active license.

An inactive license is issued only if no broker is designated.

An active license authorizes the salesperson to conduct real estate activities under the supervision of the sponsoring broker, in compliance with MREC rules.

In settlement prorations, prepaid items (e.g., prepaid property taxes or HOA dues) are credited to the seller and debited to the buyer, because the seller has paid for a period that extends beyond the closing date, and the buyer reimburses the seller for the buyer’s post-closing share. Conversely, accrued but unpaid items (e.g., the current year’s unpaid property taxes) are debited to the seller and credited to the buyer. The Maryland course teaches these conventions in the Closing and Math sections.

Maryland’s Code of Ethics and Standards of Practice for real estate licensees is promulgated in COMAR (Code of Maryland Regulations) under the real estate subtitle, but enforcement rests with the Maryland Real Estate Commission (MREC). The Commission investigates complaints and may impose sanctions (education, fines, suspension, revocation) for violations. REALTOR® associations enforce the NAR Code of Ethics, which is separate and contractual to membership, not the state’s legal code.

In development analysis, costs include impacts that require public or private expenditure—for example, the increased demand on infrastructure (roads, utilities, schools, water/sewer), which necessitates capacity expansions, impact fees, or mitigation measures.

Crime rates and lower unemployment are socio-economic conditions/impacts, not direct development costs.

Local density zoning rules are regulatory constraints (land-use controls), not a cost in themselves (although they can influence costs).

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Land Use Controls and Property Development” (infrastructure capacity, impact fees, concurrency, mitigation of development impacts).

Planning and subdivision concepts taught in Maryland curriculum (infrastructure and service demands as development costs).

An encumbrance is any claim, charge, or liability attached to real property that burdens the title or limits use, including monetary interests (e.g., liens, such as mortgages, tax liens, mechanic’s liens) and non-monetary/physical interests (e.g., easements, encroachments, deed restrictions). Encumbrances do not necessarily prevent transfer, but they run with the land and affect marketability.

Under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and the Maryland Lead Poisoning Prevention Program, sellers and landlords of housing built before 1978 must:

Provide the EPA-approved pamphlet on lead hazards.

Disclose known lead-based paint or hazards and supply any available records.

Allow buyers a 10-day inspection period (unless waived).

A licensee’s duty is to ensure that the sellers comply with these disclosure requirements and to remind them to deliver the proper forms and pamphlet.

The licensee is not responsible for testing or remediation but must ensure all disclosures are completed prior to ratification of the contract.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Environmental Issues and Disclosures section.

– 42 U.S.C. §4852d (Residential Lead-Based Paint Hazard Reduction Act).

– COMAR 26.16.02 (Maryland Lead Poisoning Prevention Program).

In Maryland practice, standard residential contracts (e.g., the Maryland REALTORS® Residential Contract of Sale) require parties to initial and date each page. This page-by-page acknowledgment demonstrates that both buyer and seller reviewed and consented to the specific terms on every page, reducing disputes over omitted or altered provisions. Final signatures execute the agreement, but initials and dates on each page evidence assent to the entire document as presented.