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Maryland Real Estate Salesperson Examination Question and Answers

Maryland Real Estate Salesperson Examination

Last Update Dec 7, 2025
Total Questions : 209

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Questions 1

Options:

A.  

By advising the client on landlord/tenant responsibilities

B.  

By describing the legal implications of contract clauses in detail

C.  

By drafting new contract language to suit the client’s needs

D.  

By explaining the general purpose of the contract clause without interpreting its legal impact

Discussion 0
Questions 2

Which of the following best describes the concept of appreciation?

Options:

A.  

When a property's value increases as a result of capital improvements.

B.  

When losses are deducted from a property's value for tax purposes.

C.  

When the value of a property decreases over time.

D.  

When the value of a property increases over time.

Discussion 0
Questions 3

A landlord locks a tenant out and requires the tenant to pay past-due rent before regaining access to the unit. This is considered:

Options:

A.  

Constructive eviction

B.  

Illegal

C.  

Personal possession lien process

D.  

Termination

Discussion 0
Questions 4

Which of the following is a material fact that must be disclosed to prospective buyers?

Options:

A.  

A house has had more than ten owners.

B.  

A lead-based paint disclosure must be included since the home was built in 1957.

C.  

A previous homeowner had Ebola.

D.  

A previous owner had HIV.

Discussion 0
Questions 5

An organization with many investors who jointly participate in a real estate investment and must adhere to the rules and regulations of the Securities and Exchange Commission is a

Options:

A.  

C corporation

B.  

Partnership

C.  

S corporation

D.  

Syndicate

Discussion 0
Questions 6

Options:

A.  

It’s used to build high-end housing.

B.  

It’s used to build new shopping malls.

C.  

It’s used to determine property tax increases.

D.  

It’s used to fund essential services and public works.

Discussion 0
Questions 7

When assigning a contract, what should the assignor ensure is permitted in the purchase contract?

Options:

A.  

Acceleration

B.  

A due-on-sale clause

C.  

Assignability

D.  

Termination

Discussion 0
Questions 8

Homeowners can take several actions related to pest infestations, but which of the following actions should be left to licensed pest management professionals?

Options:

A.  

Applying pesticides

B.  

Installing a vapor barrier

C.  

Looking for signs of an infestation

D.  

Removing moisture from the home

Discussion 0
Questions 9

Disclosing which of the following facts would be considered a fair housing violation?

Options:

A.  

The current owner has HIV.

B.  

The kitchen was remodeled five years ago.

C.  

The property has been treated for pests.

D.  

The roof was replaced last year.

Discussion 0
Questions 10

A first-time home buyer needs to take out a loan to help finance his purchase. What’s the first thing he must do once the seller has accepted his offer and the contract has been finalized?

Options:

A.  

Check his credit score

B.  

Pay off all his credit cards

C.  

Request the settlement date be delayed 30 days

D.  

Submit a written application for financing

Discussion 0
Questions 11

What happens when personal property is attached to real property?

Options:

A.  

It becomes a fixture.

B.  

It remains personal property.

C.  

It’s classified as emblements.

D.  

It’s considered detached property.

Discussion 0
Questions 12

Why are legal descriptions required in real estate contracts?

Options:

A.  

To calculate the exact property taxes owed by the new owner

B.  

To ensure the piece of property can be clearly identified from all other properties

C.  

To establish the legal boundaries for future construction on the property

D.  

To guarantee the buyer is receiving the exact property they believe they are purchasing

Discussion 0
Questions 13

Kip is a sub-agent working with a buyer customer, Charlie, for Sheila's listing of May's property. To whom does Kip owe his loyalty?

Options:

A.  

Charlie

B.  

May

C.  

Sheila and Charlie

D.  

Sheila and May

Discussion 0
Questions 14

A property is conveyed to an individual until that individual's death, when the property will be conveyed to another party. What type of estate is this?

Options:

A.  

Fee simple estate

B.  

Homestead estate

C.  

Leasehold estate

D.  

Life estate

Discussion 0
Questions 15

Options:

A.  

The buyer

B.  

The buyer and the licensee

C.  

The buyer and the seller

D.  

The seller

Discussion 0
Questions 16

Options:

A.  

Contractual interference

B.  

Failure to disclose an agency relationship

C.  

Making a substantial and willful misrepresentation

D.  

Performing services that would qualify as practice of law

Discussion 0
Questions 17

Real property ownership may offer significant tax advantages. Which one of the following is a potential advantage?

Options:

A.  

Depreciation

B.  

Insurance expenses

C.  

Taxable gains

D.  

Transfer tax

Discussion 0
Questions 18

Octogenarians Gertie and Frank both have advanced Alzheimer’s disease and met in Sunset Living, a skilled nursing center for people with advanced Alzheimer’s disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a _____ contract.

Options:

A.  

An executory

B.  

An implied

C.  

An invalid

D.  

A valid

Discussion 0
Questions 19

At its most basic level, which type of antitrust violation is a conspiracy between business competitors to set their prices to buy or sell goods or services at a certain price point?

Options:

A.  

Group boycotting

B.  

Market allocation

C.  

Price fixing

D.  

Tie-in arrangement

Discussion 0
Questions 20

In order for an owner-occupant of a building with rental units to reject applicants based on sex, marital status, gender identity, and/or sexual orientation, they must not own more than how many rental units in a building?

Options:

A.  

Five

B.  

Four

C.  

Three

D.  

Two

Discussion 0
Questions 21

Shelly buys Mark’s house, which is still in an option period with Monique. Monique decides to exercise her option after Shelly moves in. What will happen?

Options:

A.  

Mark will have to refund Monique’s option fee.

B.  

Nothing will happen, as long as Shelly has a fully executed sales contract with Mark.

C.  

Shelly and Mark must form a new option agreement.

D.  

Shelly will have to sell the house to Monique.

Discussion 0
Questions 22

Options:

A.  

Bulk zoning

B.  

Density-reduction zoning

C.  

Downzoning

D.  

Reduction zoning

Discussion 0
Questions 23

What items go into the seller's credit column and the buyer's debit column when calculating prorations?

Options:

A.  

Home inspection fees

B.  

Prepaid property taxes

C.  

The buyer's loan amount

D.  

Unpaid property taxes

Discussion 0
Questions 24

How does the building department ensure that a builder who has obtained a permit builds according to code?

Options:

A.  

The builder is required to submit to weekly inspections performed by peers in the industry.

B.  

The builder signs an affidavit to that effect.

C.  

The builder submits a monthly progress report.

D.  

The building department sends inspectors to inspect the work.

Discussion 0
Questions 25

How large is an acre?

Options:

A.  

10,000 square meters

B.  

43,560 feet

C.  

43,560 square feet

D.  

5,480 square feet

Discussion 0
Questions 26

Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand?

Options:

A.  

Appropriate financing

B.  

High-risk loan products

C.  

Rental options

D.  

Rental options and high-risk loan products

Discussion 0
Questions 27

What are PCBs?

Options:

A.  

A chemical compound that occurs naturally in the environment

B.  

A substance resulting from the decay of uranium

C.  

A substance that grows due to moisture problems

D.  

Chemical compounds used in cooling and insulating, mainly in electrical transformers

Discussion 0
Questions 28

Which of these is a colorless, odorless, radioactive gas that is released when uranium decays?

Options:

A.  

Carbon monoxide

B.  

Chlorofluorocarbons

C.  

Polychlorinated biphenyls

D.  

Radon

Discussion 0
Questions 29

Appraiser Niles uses ________ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison.

Options:

A.  

Bracketing

B.  

Competition

C.  

Correlation

D.  

Substituting

Discussion 0
Questions 30

Complete this formula: Net to seller = ______

Options:

A.  

(100% - commission rate)

B.  

Closing costs

C.  

Commission rate

D.  

Market value

E.  

Sales price

Discussion 0
Questions 31

The power of the state to claim property when the owner dies without a will and without locatable heirs or creditors is also known as ______.

Options:

A.  

Eminent domain

B.  

Escheat

C.  

Life estate

D.  

Taking

Discussion 0
Questions 32

Isabelle just took on a new listing, in which the owner is selling because a new freeway is being built right behind the house. The owner is concerned about the noise and other activity the freeway will bring, but doesn't want prospective buyers to know this. Which action best demonstrates good faith in this scenario?

Options:

A.  

Isabelle decides not to take the listing, since the property will be impossible to sell.

B.  

Isabelle takes the listing and, per her client's instructions, doesn't tell prospective buyers about the planned road construction.

C.  

Isabelle takes the listing, tells the seller she won't discuss the new freeway, then discloses this fact to prospective buyers, since it's material to the property.

D.  

Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.

Discussion 0
Questions 33

When an offer is prepared by a licensee for a buyer to present to a seller, who determines the amount of the earnest money offered?

Options:

A.  

The broker

B.  

The buyer

C.  

The licensee

D.  

The seller

Discussion 0
Questions 34

Property ownership for an indeterminable length of time is an example of what form of estate?

Options:

A.  

Freehold

B.  

Homestead

C.  

Leasehold

D.  

Periodic

Discussion 0
Questions 35

What's the area of a rectangular building that's 40 feet by 20 feet?

Options:

A.  

800 feet

B.  

800 square feet

C.  

80 feet

D.  

80 square feet

Discussion 0
Questions 36

In which type of lease does the tenant pay some or all expenses separately?

Options:

A.  

Gross lease

B.  

Net lease

C.  

Percentage lease

D.  

Sublease

Discussion 0
Questions 37

When a client understands what dual agency is and agrees in writing to allow a firm to act as a dual agent for them in a real estate transaction, this is known as ________.

Options:

A.  

Double dipping

B.  

Informed consent

C.  

Mutual agreement

D.  

Representation by proxy

Discussion 0
Questions 38

In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as ______, where certain factors may be given more weight.

Options:

A.  

Averaging

B.  

Bracketing

C.  

Conformity

D.  

Reconciliation

Discussion 0
Questions 39

How should all compensation related to real estate transactions be handled according to real estate law?

Options:

A.  

All compensation must go directly to the salesperson from the seller or buyer.

B.  

Compensation can be handled privately between agents without broker involvement.

C.  

Compensation must be channeled through the salesperson’s broker.

D.  

Salespeople can receive compensation directly from mortgage brokers or title representatives.

Discussion 0
Questions 40

Ellen and Sadie signed an agreement to list Sadie’s condo for sale. After the contract was signed, Sadie’s father, Grant, offered to pay Ellen’s commission as a housewarming present. Sadie’s mom and stepdad, Linda and Rick, also chipped in. Who is Ellen’s client?

Options:

A.  

Grant

B.  

Linda

C.  

Rick

D.  

Sadie

Discussion 0
Questions 41

Which of these statements about cooperating with other licensees is true?

Options:

A.  

Licensees must compensate other licensees.

B.  

Licensees must cooperate with and compensate other licensees, even if it's not in their client's best interest.

C.  

Licensees must cooperate with other licensees, even if it is not in their client's best interest.

D.  

Licensees must cooperate with other licensees when it is in the interest of their client, and share the commission on a previously agreed-upon basis.

Discussion 0
Questions 42

________ pay earnest money to solidify their commitment to completing a real estate transaction.

Options:

A.  

Brokers

B.  

Buyers

C.  

Lenders

D.  

Sellers

Discussion 0
Questions 43

In terms of encumbrances, what's a license?

Options:

A.  

Permission to alter someone's land or property

B.  

Permission to do something on another's land while also possessing an interest or ownership in the land

C.  

Permission without possession, interest, or ownership

D.  

Process by which a non-owner gains possession of a property after a certain amount of time

Discussion 0
Questions 44

Which of the following is an instrument that’s used to convey property ownership?

Options:

A.  

Deed

B.  

Lien

C.  

Mortgage

D.  

Title

Discussion 0
Questions 45

What might you find in the legal description of a deed?

Options:

A.  

County clerk’s name

B.  

Metes and bounds property description

C.  

Name of developer

D.  

Title abstract

Discussion 0
Questions 46

What is real estate, plus all of the interests, benefits, and rights included in ownership, also known as?

Options:

A.  

Estate

B.  

Land

C.  

Personal property

D.  

Real property

Discussion 0
Questions 47

Which type of deed offers the strongest and broadest form of guarantee and protection of title to the grantee?

Options:

A.  

Bargain and sale deed

B.  

Executor’s deed

C.  

Full covenant and warranty deed

D.  

Quitclaim deed

Discussion 0
Questions 48

What happens when a married couple who owns a property as tenants by the entirety divorce?

Options:

A.  

Their ownership changes to tenants in common.

B.  

Their ownership rights terminate.

C.  

The one who records title first gets the property.

D.  

They become joint tenants with right of survivorship.

Discussion 0
Questions 49

Which of the following financing types involves the sale of personal property with the real property?

Options:

A.  

Blanket

B.  

Package

C.  

Security

D.  

Wrap-around

Discussion 0
Questions 50

In Maryland, it's customary for the buyer and seller to split the transfer and recordation ______.

Options:

A.  

25/75

B.  

30/70

C.  

40/60

D.  

50/50

Discussion 0
Questions 51

Between commercial and residential properties, which type of property is depreciated for a longer time?

Options:

A.  

Both commercial and residential income-producing properties are depreciated according to the same schedule.

B.  

Commercial income-producing properties are depreciated longer (39 years) than residential income-producing properties (27.5 years) are.

C.  

Residential income-producing properties are depreciated longer (39 years) than commercial income-producing properties (27.5 years) are.

D.  

You cannot depreciate income-producing properties.

Discussion 0
Questions 52

According to the Maryland Code of Ethics, which statement most accurately describes a licensee's responsibility related to written offers on their listings?

Options:

A.  

A licensee is only required to present formal written offers that are equal to or more than the listing price.

B.  

A licensee is only required to present formal written offers within a certain range of the listing price of the property.

C.  

All formal written offers received by the licensee must be presented to the owner, even after the seller accepts an offer.

D.  

All formal written offers received by the licensee must be presented to the owner until the seller accepts an offer.

Discussion 0
Questions 53

What type of agency exists because of the actions and behavior of the parties?

Options:

A.  

Action agency

B.  

Behavioral agency

C.  

Express agency

D.  

Implied agency

Discussion 0
Questions 54

Options:

A.  

Deferment

B.  

Depreciation

C.  

Equity

D.  

Taxable gains

Discussion 0
Questions 55

What practice did the Fair Housing Act of 1968 attempt to eliminate?

Options:

A.  

Discrimination based on marital status

B.  

Discrimination based on sexual orientation

C.  

Discrimination based on source of income

D.  

Discrimination through blockbusting, steering, and redlining

Discussion 0
Questions 56

How many of the nine appointed Maryland Real Estate Commission board members are consumers and how many are real estate professionals?

Options:

A.  

Four consumer and five real estate professionals

B.  

One attorney, one consumer, and seven real estate professionals

C.  

Seven consumer members and two real estate professionals

D.  

Two consumers, two salespersons, and five brokers

Discussion 0
Questions 57

Jorge is a dual agent in a single-license dual agency situation. He owes his clients all of the following fiduciary duties EXCEPT.

Options:

A.  

disclosure

B.  

honesty

C.  

reasonable skill and care

D.  

undivided loyalty

Discussion 0
Questions 58

In what type of lease does the landlord pay taxes, maintenance, and insurance?

Options:

A.  

Gross lease

B.  

Net lease

C.  

Percentage lease

D.  

Triple net lease

Discussion 0
Questions 59

Species habitat, beauty, erosion control, and pollution treatment are all reasons why wetlands are __________.

Options:

A.  

Developed

B.  

Not regulated

C.  

Not valuable resources

D.  

Protected

Discussion 0
Questions 60

To effect a transfer of title by deed, ______ must occur.

Options:

A.  

Deed review

B.  

Delivery and acceptance

C.  

Exchange of money

D.  

Judicial validation

Discussion 0
Questions 61

Options:

A.  

(Net amount + mortgage or other expenses) ÷ (100% - commission rate)

B.  

Sales price ÷ (100% - commission rate)

C.  

Sales price × (100% - commission rate)

D.  

Sales price - (100% - commission rate)

Discussion 0
Questions 62

Options:

A.  

Loan terms may be as long as 38 years.

B.  

They mirror the requirements for conventional loans.

C.  

They’re for farm loans only.

D.  

They’re for rural housing loans only.

Discussion 0