Download Maryland Real Estate Licensing Exam Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
2025 - 2026 CE SHOP FINAL EXAM
150 Qs&As|ALREADY GRADED A+
A couple years after Meredith closed on her first sale—a condo that her buyer client, Derek, bought after a messy divorce that left him virtually penniless—another licensee, Alex, called her up asking about Derek, who'd just hired Alex to help him buy a mansionworth $4.2 million. "Can he really afford it? He's not being forthcoming about his financial history, and I don't want to waste my time." What should Meredith tell him? - : "You know you shouldn't be asking me about this, Alex. I can't break my client's confidentiality." A real estate professional in Maryland is legally permitted to take which of these actions? - : Prohibit a family of 10 from renting a unit with a capacity of two people A seller client found out three days after closing that the woman who bought his condowas his seller agent Hannah's mother. Hannah never disclosed this to him. He wants tofile a complaint against her, claiming she violated the Maryland Code of Ethics. With which entity should he file his complaint? - : The Maryland Real Estate Commission According to Maryland disclosure guidelines, upon which of the following events is itNOT appropriate to give the buyer the opportunity to review the seller's disclosure/disclaimer statement? - : The day of the home inspection After 15 years of building her business as a salesperson, Estrella has gotten her broker's license and is striking out on her own. She's creating new business cards, and it's been so long since she had to do them on her own, she's double-checking that they comply with Maryland real estate advertising law. What does she need to be sure to include? - : The cards must include her name as it appears on herlicense
Antonio feels that his agent did not act in his best interests when she waited nearly a week to present an offer to him. His agent argues that she held onto the offer because itwas $15,000 less than list price and she wanted to see if a better offer came in before the weekend. Which section of the Maryland Code of Ethics did Antonio's agent possibly violate? - : Relations to the client Artie, a real estate licensee, is a convicted felon, and although he served his time, he has had some administrative sanctions that call into question his trustworthiness to serve the public. What is the maximum sanction the MREC may impose? - : License revocation As a result of Maryland Real Estate Commission hearings, who makes recommendations to the commission regarding disciplinary actions? - : An administrative law judge Assuming that each of these foreclosure consultants is properly licensed, who is violating the Protection of Homeowners in Foreclosure Act? - : Pedro charges clients a $ retainer fee when he signs on to provide foreclosure consultation services. Assuming that the following individuals only carry a real estate license, who is in violation of the foreclosure consultation parameters set forth in PHIFA? - : Clint's former buyer client lost her home to foreclosure. When the lender filed a deficiency judgment against her, Clint advised her how to proceed. Ben and Leslie received their finalized purchase contract on April 10, just moments after the sellers put their final signatures on it. Ben and Leslie decided that since the home they're buying was built in 1920, they'd like to have it inspected for lead-based paint. When is the latest that the couple can have the inspection performed if they wantto be able to back out of the contract? - : April 20
Bridget represents Colin, who's buying Hugh's house. Darcy represents Hugh. Hugh completed and signed the Residential Property Disclosure/Disclaimer Statement, and Colin reviewed and signed it. Hugh and Colin also signed the Section 10-702 notice form, and their agents made sure a copy of the form and the disclosure statement wereincluded in the finalized contract. What's missing from this scenario? - : The licensees also need to sign the notice form. Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted and the responsedate had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of. - : Demonstrating untrustworthiness or incompetency to act as a real estate broker Broker Pat was so busy enjoying her semi-retired life that she failed to supervise new salesperson Dina adequately and Dina engaged in unintentional discrimination. What might happen to Pat's license - : It could be suspended or revoked. Carmelita is a licensee selling a condo. She has the owner's permission to place a for sale sign in front of the unit. As she pounds the sign into the ground, a condo board representative approaches her and informs her that condo regulations forbid signage. Can Carmelita come back later and place the sign anyway? - : No,she must conform to condo regulations. Carmen is a new licensee who wants to drum up some business for herself. There are a lot of high-end homes in her area and she would love to cash a commission check forselling one of them. She sees a few for sale signs and thinks perhaps she could convince the sellers to drop their current agent and allow her to represent them. Which of the following is true? - : Carmen
may not try to persuade sellersto break the contract they have with another agent. Craig, a broker, has been accused of multiple counts of misrepresentation and fraud. MREC has called a hearing before an administrative law judge. Which parties may attend the hearing?
- : Anyone may attend, since MREC hearingsare open to the public. Damon lives in Frederick but is affiliated with a broker in downtown Baltimore. He'd like to affiliate with a broker closer to home but doesn't want to sever his relationship with his current broker. What needs to happen in order for Damon to be able to work for bothbrokerages? - : Both brokers need to send a letter to the commission stating their approval of the arrangement and that there is no conflict of interest. Dante lives in Maryland and purchased property in Pennsylvania. His real estate agentlied to him about a material defect, and it ended up costing Dante $52,000. Can Dante file a claim against the Guaranty Fund? - : No, the property purchased was in Pennsylvania. Demetrius is a real estate salesperson, and his friend Sharlene is a plumber. Just last week, Demetrius recommended Sharlene's services to a buyer client in desperate need of a new toilet for his new home. Unbeknownst to Demetrius, Sharlene's license expired18 months ago. What Maryland license law violation is Demetrius potentially guilty of? - : Failing to verify annually that Sharlene was still licensed DeShawn has been licensed as a salesperson in Maryland for 18 months. Which of the following statements is true about his upcoming license renewal? - : The commission will send DeShawn a renewal reminder at least 60 days before his license's expiration date. Devon and Courtney both consented to dual agency when they signed their listing agreement with Chad from Crab Shack Homes, the Eastern Shore's premiere vacationhome
bank accounts. What must he make sure to do in order to comply with Maryland law regarding trust accounts? - : Maintain the accounts at a federallyinsured financial institution in Maryland For sale signs on ground rent properties that show the price of the property must alsostate which of the following? - : Annual ground rent plus the full cost of capitalization Four years ago, licensee Gustav assisted a buyer in her purchase of a foreclosed three- bedroom townhome in Hanover. The buyer recently called Gustav, telling him thatshe filed a complaint with MREC, claiming that Gustav knew the plumbing was faulty, but didn't disclose this to her. As a result, she's racked up more than $35,000 in plumbing bills since her home purchase. Panicked, Gustav begins searching for the transaction file until his broker tells him he can stop. Why? - : Complaints must be filed within three years of the transaction date, and this sale took place four years ago. Fresh out of community college and newly licensed as a real estate salesperson, Ben just took on a short sale as his first listing. Ben told his broker, Janine, that he could handle the transaction and had just advised his seller client that he could do it with minimal damage to the client's credit rating. Janine immediately took Ben off the listing and assigned it to a more experienced licensee. Why? - : By predicting the seller's credit rating outcome, Ben crossed the line into giving advice thatrequires additional licensure. Fumiko hosted an open house for her new seller client. She gave away door prizes to attendees, including pens, mousepads, USB drives, and other items with her brokerage's contact information on them. Did Fumiko do anything wrong? - : No. She didn't do anything wrong.
Gillian filed a complaint with MREC, alleging that her agent, Walter, discriminated against her by not showing her houses in areas that he "didn't think were safe enoughfor a single woman." Walter responds to the complaint by sending MREC a copy of anemail exchange between himself and Gillian in which she appears to agree to the arrangement. A few weeks later, Walter receives notice of a hearing regarding the complaint. What should he do? - : Attend the hearing. Halbert's license was summarily suspended after he was convicted of felony embezzling. He'd like the chance to appeal the decision. Can he? - : Yes. He has the right to plead his case in front of the commission. Harry, a real estate licensee, tells a seller, "I'll be surprised if you get $100,000 for this place. I won't charge you anything to list it, but anything you get above $100,000 goes to me. Deal?" This is an example of. - : Entering into a netlisting agreement
In Maryland, you could be fined up to $1,000 per solicitation if you use this method to advertise and a prior business relationship does not exist. - : Faxmachine In order to qualify as one of the five real estate professional members of the MarylandReal Estate Commission board, how many years of real estate experience must you have? - : 10 James is a real estate licensee in Maryland. A complaint has been brought againstJames by the Commission on Civil Rights for a fair housing violation. Which of the following is true? - : James could be sanctioned by both the Commission on Civil Rights and the real estate commission. Janet is a 20-something salesperson at a small country brokerage. She enjoys her job but longs for the city life. She would like to change brokerages. Which of the following istrue? - : Janet will need to submit a transfer application to the commission. Jason has completed 60 hours of Maryland pre-licensing real estate education, met the minimum requirements, and passed his licensing examination. What else does he needin order to receive an active license when applying for licensure? - : Affiliation with a supervising broker Jennifer is a new licensee in Baltimore City, Maryland. In order to abide by fair housinglaws, Jennifer must avoid discriminating against members of which of the following protected classes? - : Jerome let his license expire four years ago when his wife had twins and he decided to become a stay-at-home dad. Now that the twins have started preschool, Jerome would like to resume his real estate practice. What does he have to do in order to reinstate his license? - : His license
has been expired too long. He has to startthe pre-licensing process from scratch. Jerry is a new licensee and he's excited to be creating some advertising. When he does this, what must he remember about including his brokerage's designated name inhis advertising? - : The brokerage's designated business name must be meaningfully and conspicuously present. Jim's had one heck of a time getting his latest listing sold. His seller client nitpicked every single item that the buyers asked her to repair after the home inspection. She wasabout to let the deal fall through over it until Jim offered to rebate 0.5% of his commission back to the seller. Does Maryland license law permit Jim to do this? - : Yes, as long as he documents the commission reduction in writing and discloses it to all parties. Joanne's a new licensee, and her broker has suggested that she attend a meeting of the Maryland Real Estate Commission to learn more about how the commission works.If it's December 1, and she's trying to go before the end of the year, how many more meetings are available for her to attend? - : One; MREC meets once a month (12 times per year). John is 18 and wants to be a real estate broker in Maryland. If he completes the 135 hours of required real estate licensing coursework, is there anything that might preventhim from taking the broker's license exam? - : Yes, he must haveat least three years of active experience as a Maryland salesperson before he qualifiesto take the broker's exam. Justine's seller client needs to repair the property's roof, and Justine has recommended a contractor to her. In addition to the contractor's name and the date that Justine verified his registration with the Maryland Home Improvement Commission, what else does Justine need to give her seller client? - : The link to the MarylandHome Improvement License Search on the DLLR website
included the Understanding Whom Real Estate Agents Represent form so she can disclose her agency relationship with the seller. Is this permissible? - : Yes, LaTonya may disclose her agency relationship through whatever medium is used when first contacting the unrepresented party. Lee, a Maryland licensee, has a buyer client who asks for recommendations for home improvement contractors. Lee gives her client a list of recommended contractors, which includes the date that she last checked each contractor's license status on the MarylandHome Improvement Commission's website. At least how often must Lee check the license status of the providers that she recommends? - : yearly Licensed property managers in Maryland must maintain related records for at least fiveyears, beginning on the date. - : The property management agreement terminates Mark lives in Maryland and purchased property in Pennsylvania. His real estate agent gave him poor advice, which cost him $52,000. Which of the following is true? - : Mark can file a claim with the Guaranty Fund to recover his loss. Maryland licensee Clint operates as an independent contractor associated with Red Hat Properties and its broker, Margaret. Which of these statements is true about Margaret's supervisory responsibility and liability for Clint's actions? - : Margaret is responsible for and can be disciplined based on Clint's actions. Maryland salesperson Claire has been licensed for a little over a year. She's a bit of an overachiever, so she's already completed 12 hours of her required continuing education. Her broker Darnell's license is renewing on August 28. Claire must make sure that her license is renewed by. - : The date printed on her license
Maryland salesperson Seema is new to the real estate business, and she's having trouble getting her sales off the ground. She's considering offering some incentives. Which of the following incentives would be legal according to the Maryland Code of Ethics? - : Offering a 1% reduction in her commission rate if herseller clients' homes don't sell within the first 90 days Mike's a busy listing broker. Luna, one of his associated licensees, had a complaint filed against her. Mike was busy with his own clients, and the commission's response deadline came and went without him noticing. The following week Mike received a newcomplaint—this time, against him. What is the new complaint likely about? - : He failed to cooperate with the commission in its investigation. Miranda has been charged with mishandling of her client's earnest money deposit. She's collected her supporting documentation and asked her broker to speak on her behalf at her hearing. Who will be presiding over the hearing? - :An administrative law judge MREC received a complaint from Rose, stating that licensee Stan had placed a sign onher property without her permission. As a result, she received a $250 fine from her homeowners association for illegal signage. MREC notified Stan and his broker about the complaint, and Stan's broker responded by sending a copy of an email from Rose, stating that the firm could have a sign installed. As a result, the hearing panel dismissedthe claim. What can Rose do now?
- : She is out of luck and won'tbe able to request further action from MREC Nancy just hired her sister, real estate licensee Grace, to list her property. Jason schedules a showing for his client, who's interested in Nancy's property. What needs to
Pamela has had her real estate broker's license for years. Which agency regulates therules and requirements Pamela must follow to keep her license? - : Maryland Real Estate Commission Paul is hoping to purchase a townhouse in Locust Point in Baltimore, and Shelly, a salesperson, is helping him fill in the blanks on the contract form before he makes his offer. Though Shelly doesn't have an agency agreement with Paul, she knows she'll still get paid since the seller has agreed to compensate sub-agents. What else does Shelly need to do? - : Use the agency disclosure form to inform Paul thatshe's a sub-agent and technically represents the seller. Peter represents an owner who's selling an investment property. The property is listed at $245,000, which Peter knows is too high. He encourages his business partner, Mel, to offer $235,000 and convinces the seller to take it. After closing, Peter and Mel flip thehouse and make a handsome profit. What illegal activity has Peter engaged in? - : Self-Dealing Phyllis has learned that the Maryland Real Estate Commission's real estate professional member from the Eastern Shore is vacating his seat soon. Phyllis has eightyears of experience as a salesperson, and she's lived in Ocean City for six years. What else does Phyllis need in order to secure her nomination by the governor? - : At least two more years of real estate experience Phyllis is a real estate salesperson in Maryland. The commission recently summarily revoked her license because of fraudulent conduct. Which of the following is true? - : Phyllis may request a hearing to appeal the summary revocation. Real estate licensees in Maryland who are found guilty of violating the Maryland Code of Ethics will be penalized by which regulatory body? - : MarylandReal Estate Commission
Rhetta received the lead-based paint inspection report for the two-bedroom condo she's purchasing. The report found evidence of lead-based paint in the living room, dining room, and kitchen. Within the 10-day deadline, Rhetta made sure to send thesellers a copy of the report, an itemization of the hazards, and guidelines on how thesellers should abate them. What's wrong with this scenario? - :Rhetta only has five days in which to send the sellers this information. Roger is an unlicensed assistant in Dave's Maryland office. He performs tasks for several of the firm's licensees. Katherine is a licensed assistant, and she performs tasksfor three of the firm's independent contractor licensees. The firm's broker, Michaela, hasher own licensed assistant. Which of these statements best represents Michaela's liability for the acts of all these assistants? - : Michaela is responsible for all licensees and employees associated with the firm. Ron prides himself on providing his buyer clients with consistently stellar representation. His latest buyer client, Tammy, is purchasing a fixer-upper on Walnut Street, just a stone's throw from the railroad tracks. What's Ron's responsibility regarding making sure Tammy is informed about the property's condition? - : Rosalie's buyer client, Emmett, lost $10,000 in earnest money when his contract fell through due to a tiny change in Maryland law that went into effect the previous month. When she received a notice of Emmett's complaint to MREC, Rosalie argued that she'drenewed her license the previous year, so hadn't taken her legislative update CE for hernext renewal yet and wasn't responsible for the legal oversight. Which, if any, of the Maryland Code of Ethics guidelines has Rosalie potentially violated? - : She failed to keep informed of new real estate law or changes to real estate requirements. Rumi was on vacation in St. Croix when he received a written offer, via email, for his seller
Shanice got her real estate license just in time to help her father sell the condo they jointly own in Harbor East in Baltimore. Even better, another agent in her brokerage found a buyer, so they were able to keep the commission within the brokerage. Shanicemade sure that both parties were fully aware of and consented to the dual agency arrangement in writing. What is Shanice forgetting? - : She forgot to disclose that she has ownership interest in the property. Sheila filed a discrimination complaint against her landlord. She's worried that when hefinds out about her complaint, he's going to evict her. However, he knows not to evict her just because she filed a complaint. Why? - : Retaliation against parties who file a discrimination complaint is illegal. Shelby listed her seller client's condo on April 4. It went under contract May 16. That contract fell through on May 29. The listing agreement expired on July 4, with no other offers or contracts. On what date does the five-year record-retention clock start ticking?
- : July 4 Silvio's buyer client Donna is new to the area and asked him if he could recommend any contractors to install new windows and doors in her new home. Silvio checked the DOL website to make sure the contractor was still licensed, then gave Donna the contractor's contact information. What else does he need to give Donna? - : The date Silvio verified the contractor's licensure and the link to the DOL website where Donna can perform a license search Susan is a real estate licensee. Her mother is moving to a facility for active seniors andhas asked Susan to sell her home. What information does Susan need to disclose to prospective buyers? - : She is related to the seller (her mother).
Sylvia's buyer client didn't have a copy of the property disclosure/disclaimer statement before he made an offer on a property. Now, a week after the offer was accepted, the seller's agent finally gives Sylvia a copy of the statement, and she sees that the home isriddled with defects. Not surprisingly, her buyer client wants to back out of the offer. What violation has Sylvia possibly committed? - : Not protecting her client's interests by ensuring he had a copy of the disclosure/disclaimer statementbefore he made an offer The activities of which Maryland professionals are subject to the commission's Code ofEthics?
- : The Guaranty Fund paid a consumer's $15,000 claim because of licensee Ben's negligence. Ben is breaking the news to his broker. How's his broker likely to respond? - : "Well, since this means your license is suspended, we'll see you back at the office when you reimburse the fund." The Maryland Commission on Civil Rights consists of how many members? - : The Protection of Homeowners in Foreclosure Act (PHIFA) outlines parameters for foreclosure consulting services offered to homeowners who are at least delinquent on their mortgage payments - : 60 days Tiara's Maryland salesperson's license is going to expire next week if she doesn't complete all of the required continuing education hours. She's completed three hours ofagency, three hours of legislative updates, 1.5 hours of fair housing, and three hours ofelectives. What other coursework does she need to complete in order to renew her license? - : Three hours of ethics (including professionalism) and 1.5 more hours of electives Tom and Rosanne are interested in a property in Maryland, but before making an offer, they
