Maryland Real Estate Exam Prep

MD Salesperson Practice Exam

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Maryland License Requirements

An applicant shall be of good character and reputation.
An applicant shall be at least 18 years old.
An applicant shall have completed successfully a basic course in real estate approved by the Commission that does not require more than 60 clock hours of classroom instruction; and includes a 3 clock hour course in real estate ethics approved by the Commission; or if approved by the Commission as an alternative, courses in real estate subjects in any college, including a 3 clock hour course in real estate ethics approved by the Commission.
An applicant shall pass an examination given by the Commission under § 17-306 of this subtitle.
An applicant shall obtain, from a licensed real estate broker, a commitment providing that the applicant shall become affiliated with the licensed real estate broker as a real estate salesperson on the granting of a real estate salesperson license to the applicant.
An applicant shall meet any other requirement that the Commission establishes to ensure that only individuals who are professionally competent and of good character and reputation are licensed.

For more information on state requirements click here.

Maryland Sample Practice Real Estate Exam Questions and Answers

Maryland State Section

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Question 1

The Salesperson license fee costs how much?

A	$100
B	$110
C	$120
D	$90

Question 2

The license law is administered by:

A	Maryland Real Estate Commission
B	Department of Real Estate
C	Maryland Department of Real Estate
D	Commission of Real Estate

Question 3

After getting a license, how often must you take Continuing Education classes?

A	every year
B	every 2 years
C	every 3 years
D	every 4 years

Question 4

Which is not necessary for a valid contract?

A	offer
B	legal object
C	acceptance
D	due date

Question 5

Which of the following isn't part of a deed?

A	Premises
B	Habendum
C	acknowledgement
D	novation

Question 6

What term means "going to the state?"

A	Taxation
B	Eminent Domain
C	police power
D	escheat

Question 6 Explanation:

Escheat is if someone dies and there is no one to inherit or no will the property goes to the state.

Question 7

Which of the following is a landlord's option for a tenant not paying the rent?

A	unlawful detainer action in court
B	turn off the gas
C	turn off the power
D	lock the tenant out

Question 8

Who is responsible for maintaining a habitable property and for complying with local housing and building codes?

A	Lessor
B	Agent
C	Buyer
D	Lessee

Question 9

Standing trees would be considered:

A	Personal Property
B	Chattels
C	Emblements
D	Real property

Question 10

Does Maryland allow Holographic wills?

A	Yes
B	No

Question 11

What is a holographic will?

A	a will and testament that has been entirely handwritten and signed by the testator.
B	a will that displays in 3D
C	a will that has been approved by each family member.
D	a standard boiler plate will.

Question 12

Which of the following would not put a salesperson in jeopardy of losing their license in Maryland?

A	Being authorized to accept and excessive commission.
B	Being Convicted of a felony
C	Placing an ad claiming to be a broker when they are not.
D	Depositing his/her clients escrow money into a personal account

Question 13

Which of the following is required for an applicant to receive a Real Estate License?

A	Must be 25 or older
B	Must have a Bachelors degree
C	Must sit and pass the required exam
D	Must be a resident of the state for over 1 year

Question 14

What is homestead protection?

A	The status provided to a home owner's principal residence that protects the home against judgement up to a specified amount.
B	The estimated value that an asset will have at then end of it's useful life
C	Net cash remaining to investor after sale of investment property
D	Gradual subsidence of waters, leaving dry land

Question 15

How soon can a broker receive a commission check after a closing in Maryland?

A	After the transaction is completed and funded.
B	Once the offer sheet is signed.
C	Once the seller agrees to the price.
D	When the Buyer moves in.

Question 16

In what circumstances, if any, can a broker in Maryland who is serving as an intermediary representing both parties collect compensation from both the buyer and the seller?

A	None; the broker may only collect compensation from one party to a transaction
B	Only when both buyer and seller give informed consent to this arrangement
C	Only when both buyer and seller have legal representation
D	In most circumstances, except when the buyer and seller are related

Question 17

Mortgage "discount" points only apply if which of the following conditions are met?

A	The seller has agreed to pay 1% of the closing costs
B	The interest rate on the mortgage loan has been lowered by 1% for each point charged
C	The interest rate on the mortgage loan has been lowered by 2% for each point charged
D	The loan does not close and the buyer owes the lender for services rendered

Question 18

Does Maryland have dower laws?

A	Yes
B	No

Question 19

Is Maryland a community property state?

A	Yes
B	No

Question 20

What tenancies does Maryland allow?

A	Joint tenancy
B	Tenancy by the entirety
C	Both a and b
D	Neither

Question 21

Does Maryland have homestead laws?

A	Yes
B	No

Question 22

Does Maryland participate in reciprocity with other states?

A	Yes
B	No

Question 22 Explanation:

Maryland participates in reciprocity with Pennsylvania and Oklahoma.

Question 23

A licensed salesperson can represent whom?

A	Owners who employ them directly
B	Not more than one owner at one time
C	Only brokers under whom they are licensed
D	Any broker who is duly licensed

Question 24

Licensed certificates issued for salesperson MUST be

A	Carried by them when they are performing acts of brokerage
B	Displayed by their brokers in their company offices
C	Retained by the Commission
D	Displayed by them in their homes

Question 25

Brokers are not required to notify the the Commission when

A	A salesperson resigns
B	Changes occur in the locations of any of their offices
C	Changes occur in the names of their firms
D	Changes occur in the commission sharing

Question 26

If you are a licensed salesperson and receive a lead from a friend who is not a real estate licensee and then split the commission with your friend, which of the following will be true?

A	This is a violation of the license law
B	This is not a violation of the license law
C	This is a violation of the license law only if the seller is not informed
D	This is not a violation of the license law if your broker has given you written permission

Question 27

Licensees do NOT need to do which of the following to be "qualified real estate agents" and be eligible to use Schedule C-Self-Employed when filing federal tax returns?

A	Have written employment contract with their brokers agreeing to this status
B	Be free from their broker's control of how their work is done
C	Earn substantially all the income coming from their brokerage firms is the form of commissions
D	Hold a real estate license

Question 28

Which of the following is paid biennially?

A	Initial Guaranty Fund Fee
B	Broker's and salesperson's original license fee
C	Broker's and salesperson's license renewal fee
D	Guaranty fund reassessment

Question 29

How is the act of blockbusting regarded by Maryland law?

A	As unethical but not prohibited by law
B	As a felony
C	As a misdemeanor
D	As a legitimate listing technique

Question 30

Who has the right to fine individuals found guilty of operating in the real estate business without a license?

A	The district attorney
B	The Commission
C	The state or local association of Realtors
D	The attorney general

Question 31

An unlicensed person improperly collecting a real estate commission is guilty of

A	Duress
B	A felony
C	A misdemeanor
D	Fraud

Question 32

Which of the following could result in discipline by the commission?

A	Slandering competitors
B	Intemperance
C	Bad faith
D	Puffing

Question 33

At what minimum level must the Guaranty Fund be maintained at?

A	$2,000
B	$25,000
C	$200,000
D	$250,000

Question 34

What is the maximum penalty possible for filing false statements with the Commission in reference to a Guaranty Fund claim?

A	$5,000
B	$10,000
C	$10,000 and imprisonment for two years
D	$25,000 and imprisonment for three years

Question 35

Who can hold standard licenses to provide Maryland residential real estate brokerage services?

A	Corporation
B	Limited liability companies (LLC)
C	Partnerships
D	Individuals

Question 36

Who appoints members to the Maryland Real Estate Commission?

A	The State Senate
B	The governor of Maryland
C	The House of Delegates
D	The executive director of the Commission

Question 37

When will a salesperson license issued by the Commission on October 1st expire?

A	One year from the date of issue
B	Two years form the date of issue
C	October 30th of the next even-numbered year
D	May 1st of the next even-numbered year

Question 38

What is the primary purpose of the Brokers Act?

A	To raise revenue
B	To protect the public interest
C	To control salesperson
D	To restrict competition

Question 39

How is the executive director of the Commission chosen?

A	Appointed by the governor
B	Confirmed by the State Senate
C	Appointed by the Secretary of Labor, Licensing, and Regulation
D	Selected from the Maryland State Employees Classified System

Question 40

What must be shown in ads placed by licensees for a property listed in their firm?

A	Name and address of the property owner
B	Name of the listing salesperson
C	Designated name of the broker
D	General location of the property

Question 41

Relations with which of the following is NOT addressed in the Commission's Code of Ethics?

A	Members of the public
B	The Real Estate Commission
C	Clients
D	Fellow licensees

Question 42

Which of the following is TRUE concerning the Maryland Real Estate Commission?

A	It has 5 members
B	3 out of its members are not real estate licensees and 5 are
C	It has 4 professional and 5 consumer members
D	Its members are representative brokers from real estate boards or associations throughout Maryland

Question 43

When can the Commission refuse to issue a broker license to a Maryland resident who has filed a proper application and met legal requirements?

A	If it offers the applicant a hearing on the matter
B	If the applicant has been convicted of a traffic violation within the past year
C	Without offering to hold a hearing on the matter
D	If the applicant has not reached the age of 18

Question 44

Which of the following has the authority to set license fees?

A	The Commission
B	Associations and boards of licensees
C	The Secretary of the Department of Labor, Licensing, and Regulation
D	The General Assembly

Question 45

In which of the following situations does an act of real estate brokerage require a real estate brokerage license?

A	A mortgage lender sells real estate acquired through foreclosure
B	A person charges a modest consulting fee to guide his friend in the sale of a home
C	An attorney at law handling a divorce action charges 3 percent to help sell a house the couple owns
D	A property owner subdivides his land and sells five lots in one calendar year

Question 46

Where does fees paid for by Maryland real estate licenses go?

A	The Maryland General Fund
B	The Guaranty Fund
C	The real estate board or association active in the area
D	The State Real Estate Commission Fund

Question 47

Which is TRUE of employees of the Commission?

A	They include an executive director and field inspectors
B	They must be licensed as brokers or salespersons while employed by the Commission
C	They must have been licensed to get their position
D	They are permitted to perform acts of brokerage for which a license is required

Question 48

The licenses of salespersons who are released by their brokers are to be

A	Returned to the Commission by brokers
B	Returned to the Commission by salespersons
C	Removed from display but retained by brokers
D	Returned to the salesperson

Question 49

What is the upper limit, if any, of a financial loss protected by the Guaranty Fund?

A	$2,500
B	$25,000
C	$250,000
D	An unlimited amount

Question 50

Which statement pertaining to licenses held by Maryland real estate brokerage licensees is NOT correct?

A	Their holders are regulated by authority of the Business Occupations and Professions Article of the Maryland Annotated Code.
B	They are issued and administered by the Maryland Real Estate Commission
C	They are not issued to corporations or associations
D	They are required for every person who sells real estate for consideration

Question 51

What is a requirement for a licensed real estate salesperson to deliver real estate brokerage service?

A	Affiliation with any licensed real estate associate broker
B	Performance of real estate acts only on behalf of the broker under whom they are licensed
C	Membership in the local board or association of Realtors
D	Operate a real estate business under their own name or designated name

Question 52

Which of these must hold a valid real estate license to perform the acts shown in return for consideration?

A	An attorney-at-law who advertises real estate services and agrees to serve as a prospect's buyer broker
B	A person who serves as a real estate salesperson for a home builder
C	Attorneys-in-fact who use powers of attorney to earn commissions for the sale of real estate
D	Trustees who sell properties upon which their lender has foreclosed

Question 53

Broker's principle are called

A	Managers
B	Clients
C	Prospects
D	Customers

Question 54

Which is TRUE when brokers handle the purchase and sale of residential real property?

A	They are agents of the owner of the property being bought or sold
B	They may not act as the agent of the buyer
C	They may not represent both buyer and seller in the same transaction without designating two intra-company agents
D	They may personally represent both buyer and seller if both parties agree

Question 55

Which of the following is TRUE of brokers when they represent real estate?

A	They are regarded by the law as dual agents in such transactions
B	They must disclose this agency relationship to sellers
C	They are in violation of the Brokers Act
D	They will not be compensated

Question 56

Which statement is TRUE concerning presumed buyer representation?

A	Presumed buyer representation begins when a licensee shows a prospective purchaser property listed by another brokerage firm
B	Presumed buyer representation ends when a licensee shows a prospective purchaser property listed with another brokerage firm
C	A prospective purchaser who declines to enter into a buyer representation agreement is no longer owed confidentiality about matters previously discussed
D	The licensee can no longer be the presumed buyer representative of a purchaser who makes an offer on a property

Question 57

Which statement concerning agency is TRUE?

A	A broker may properly be considered the agent of the party from whom the broker receives payment
B	A broker is allowed to be a dual agent in a transaction if no harm is done
C	A salesperson may personally perform dual agency if both buyer and seller agree in writing
D	A broker who represents both buyer and seller in the same transaction must appoint two intra-company agents.

Question 58

Which of the following is NOT a duty agents owe to their principals?

A	Disclose of all facts
B	Loyalty
C	Timely presentation of all written offers and counteroffers
D	Reporting to a client-buyer that one of the seller's family members had AIDS

Question 59

When must a licensee whom is representing a seller disclose this fact to the buyer or the buyer's agent?

A	At first contact
B	When an offer is made
C	No later than the first scheduled face-to-face meeting
D	When the buyer or agent of the buyer asks

Question 60

Which of the following does a licensee NOT owe to a customer?

A	Due care
B	Disclose of material facts
C	Obedience
D	Honesty

Question 61

Which statement about agency is TRUE in Maryland?

A	Maryland does not allow a brokerage firm to represent both buyer and seller in the same transaction
B	Dual agency is permitted only in brokerage firms consisting of three or more licensees
C	The broker of a firm may act as one of the two intra-company agents required for a dual agency

Question 62

Which of the following does NOT end presumed buyer representation?

A	Prospects orally decline presumed representation
B	Prospects decide to make an offer for property listed by a company other than the company representing them
C	The licensee working with prospects fails to present a disclosure of representation form
D	The licensee shows prospects a property listed with the licensee's own firm

Question 63

When can a brokerage lawfully perform dual agency?

A	When the firm has been certified by the Commission for dual agency brokerage
B	When the firm has only two individual licensees in it
C	When the firm's broker designates two company licensees, one to represent the seller and another for the buyer
D	When both sellers and buyers have agreed to dual agency on a particular property

Question 64

How and when should it first be revealed to prospects that they have presumed buyer representation?

A	Orally, at the initial interview between licensee and prospect
B	In writing, when a prospect signs a written agreement to be a client
C	In writing, before the end of the first scheduled face-to-face meeting
D	In writing, when the possibility of dual agency arises

Question 65

Which statement about cooperating agents is FALSE?

A	Cooperating agents can represent the buyer
B	Cooperating agents are sub-agents of the listing broker
C	Cooperating agents bring in customer buyers and are from a company other than the listing company
D	A cooperating agent who brings in a buyer has fiduciary duties to the seller/owner

Question 66

What is required by law on any outdoor sign or advertisement displayed on property for sale subject to ground rent?

A	If the sign shows the price, it must also show the annual ground rent but need not show any other details until inquiry is made by a prospective purchaser
B	If the sign shows the price, it must also show ground rent and cost of capitalization in lettering no smaller than the lettering used for the price
C	It need show only the sales price
D	It need show only sales price and the phrase "plus GR"

Question 67

Which of the following is TRUE of ads in which licensees advertise real property which they listed?

A	The name of the salesperson does not need to be included in the advertisement, but the designated name of the broker must be shown
B	Only the broker's name is permitted in advertisements
C	The price of the property must be included in all advertisements
D	Members of multiple listing services may advertise any of the service listings

Question 68

Which of the following satisfies the requirement that a broker maintain an office?

A	A telephone answering service
B	A post office box
C	A mechanical answering machine
D	A definite place of business

Question 69

Whom may operate a real estate brokerage firm?

A	A real estate salesperson
B	An associate broker
C	Any person holding a valid real estate license issued by the Maryland Real Estate Commission
D	A licensed real estate broker

Question 70

What must be included in advertising by a broker?

A	The designated name of that broker as registered with the Commission
B	The name of the broker's Realtor board or association or Realtist organization
C	The legal name of the licensed real estate broker
D	The name of the licensee who listed the property

Question 71

In Maryland, whom is primarily responsible for the real estate brokerage services provided though a corporation?

A	The president of the corporation
B	The licensed real estate broker of the firm
C	The chairperson of the corporate board
D	The majority shareholder of the corporation

Question 72

In what situation can a salesperson use their own name and phone number in advertising a listed property?

A	When the designated name of their firm is clearly and meaningfully shown, as well as the firms phone number
B	When their office manager's name is shown in letters at least half the size of the salesperson's
C	When different colors are used for the broker's and salesperson's names
D	When the broker gives permission

Question 73

What does the Brokers Act require be done with earnest money deposits when there are no instructions to the contrary from their owner and beneficial owner?

A	They may be commingled with the broker's funds
B	They must be deposited in an insured and approved financial institution in Maryland
C	They are to be placed in an interest-bearing account
D	They may be withdrawn at any time prior to settlement, as long as a licensee's signature appears on the escrow check

Question 74

Which of the following is TRUE concerning how a check drawn on a brokerage firm's escrow account must be signed?

A	It must be signed by the associate broker of the firm using his or her designated name
B	It must be signed by at least two licensees in the firm
C	It must be cosigned be an appointed non licensee if signed by a non designated licensee
D	It does not necessarily need a second signature if signed by the broker of the firm

Question 75

Which of the following may an unlicensed individual working in a brokerage firm NOT do?

A	Compute commission checks
B	Submit listings and changes to a multiple listing service
C	Conduct an open house
D	Schedule appointments for a licensee to show listed properties

Question 76

Which team name below would be permissible under the Brokers Act?

A	The 123 Service Team
B	The 123 Realty Service Team
C	The 123 Real Estate Expert Team
D	123 Service Associates

Question 77

Which statement about a team leader is FALSE?

A	The team leader is chosen by the members of the team
B	The team leader is responsible for reasonable and adequate supervision of the team
C	The team leader can appoint intra-company agents when dual agency occurs involving two team players
D	The team leader can be the branch manager

Question 78

Which of the following is NOT required in advertising for a team?

A	The advertisement must contain the name of at least one licensee on the team
B	The advertisement must contain the name of the team leaser
C	The advertisement must follow branch office and company wide requirements
D	The advertisement must include the phone number of the office out of which the team works

Question 79

Which of the following is a requirement for team advertising?

A	The name of the team must be directly connected with the full name of the brokerage firm of which it is a part
B	The name of the team must be the same size as or smaller than the name of the firm of which it is a part
C	The address of the office out of which the team works must be shown
D	The phone number of the team leader must be shown

Question 80

Which statement about teams is FALSE?

A	A team must have at least two licensee members
B	Members of the team regularly work together
C	The team identifies itself to the public with some name
D	A salesperson cannot be a team leader

Question 81

Which type of residential listing agreement is illegal for a broker to use in Maryland?

A	Net
B	Exclusive agency
C	Open
D	Exclusive-right-to-sell

Question 82

When should sellers complete the Maryland Residential Property Disclosure and Disclaimer Statement?

A	At settlement
B	When an offer is received
C	When the property is being listed
D	After a sales contract has been signed

Question 83

What is the consequence when purchasers don't receive the Maryland Residential Property Disclosure and Disclaimer Statement before or upon entering into a purchase agreement?

A	The contract is void by action of law after three days
B	The purchasers may rescind the contract before the apply for a mortgage loan
C	The contract is voidable by the purchaser for five days
D	The lender has five days to tell the purchaser of the right to void the agreement

Question 84

When must a licensee give a copy of the listing agreement to sellers?

A	When they request it
B	Before the firm advertises the property or offers it for sale
C	Within 15 days after acceptance by the broker
D	When a buyer is found

Question 85

What is required of a Maryland licensee who wishes to show a property located in Virginia that is multiple-listed by a Maryland firm?

A	The licensee must hold a Virginia real estate
B	The licensee must be a member of Maryland's multiple listing service
C	The licensee must hold a Maryland broker's license
D	The licensee must hold a multiple-state license certificate

Question 86

Whom may use a listing agreement form published by a multiple listing service?

A	Any broker or salesperson licensed by the Commission
B	Any members of any board or association of Realtors
C	Any licensed member of the organization That operates that listing system
D	Any licensee

Question 87

Which of the following is TRUE of a listing on Maryland residential property?

A	It may contain an automatic renewal provision
B	It may be parol
C	It must be in writing and signed by all parties
D	It may leave the commission fee to be negotiated at the time an offer is made

Question 88

What is the effect on purchasers of having received the Maryland Residential Property Disclosure and Disclaimer Statement before signing their contract offer?

A	They may rescind the contract at any time up to three days after signing
B	They may rescind contract at any time up to five days after signing
C	They may rescind at any time prior to settlement or to taking occupancy
D	They may not rescind the contract based on any facts the statement discloses

Question 89

Which statement is accurate about the amount or rate of commission on real estate sale?

A	It must be stated in the listing agreement
B	It is established by the Commission
C	It is established by the local real estate board or association of Realtors
D	It is established by law

Question 90

Which statement is TRUE of a Maryland residential listing agreement?

A	It does not create an agency
B	It may be oral
C	It must be in writing
D	It need not contain a definite termination date

Question 91

Which government agency may purchase easements to restrict land for agricultural use?

A	Maryland Land Development Corporation
B	Maryland Department of Assessments and Taxation
C	Maryland Agricultural Department
D	Maryland Environmental Department

Question 92

Which of the following would meet or exceed the requirement for prescriptive easement in Maryland?

A	15 Years' continuous use
B	15 years' intermittent use
C	25 years' intermittent use
D	25 years' continuous use

Question 93

Which of the following is recognized in Maryland?

A	Dower
B	Homestead exemption
C	Curtesy
D	Easement by prescription

Question 94

A man owns several acres of Maryland land located along the banks of a navigable river. What is an example of his riparian rights in the situation?

A	He may build a pier out into the river, subject to state and federal laws
B	He may construct a dam across the river to divert the waters into an artificial lake on his property
C	He may construct a wharf without state approval
D	He may make use only of the dry land

Question 95

Which of the following is a source of funds with which the State can purchase agricultural easements?

A	General tax revenues
B	Special assessments for this specific purpose
C	Fines on developers who overdevelop agricultural land
D	Transfer taxes imposed at the time of real estate transfers

Question 96

Which of the following forms of ownership is NOT usually recognized in Maryland?

A	Tenancy in common
B	Community property
C	Trust
D	Ownership in severalty

Question 97

What form of ownership is created in Maryland by a deed that conveys ownership to "Jessica and Mike Johnson, husband and wife" but does NOT specify the form of ownership?

A	Tenancy in common
B	Tenancy by the entirety
C	Ownership in severalty
D	The deed must be redrawn to specify the form of ownership before it is recorded

Question 98

In Maryland, which of the following is FALSE concerning tenancy by the entirety?

A	It may be held only be a married couple
B	It continues after the death of one of the owners
C	It gives each individual possession of the entire estate
D	It may not be partitioned by one owner

Question 99

What is the license or registration requirement for a developer wishing to create Maryland time-share?

A	Register with the Maryland Real Estate Commission
B	Register with the state treasurer
C	Register with the local board of association of Realtors
D	Be a licensed real estate broker

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