Real Estate 2
Real Estate 2
REAL2
1. Sara with Homes Realty was referred a customer from Dave and attorney. Dave has assisted Sara with the transaction
by helping fill out documents and acting as closing agent. Which statement below is true?
A. Dave can receive a referral fee as long as he has a real estate license
B. Dave cannot receive a referral fee.
C. Dave is not able to charge closing fees as he is not trained as a closing agent.
D. It is a conflict of interest for Dave to help with both the transaction and the closing.
2. Pat Jones is offering a lottery for a home listed with her Real Estate Broker. Chances are selling for $500 per ticket
with proceeds going to the winning purchaser. The Broker is
A. In violation of MD. Law.
B. Not in violation of the MD Law.
C. Allowed to offer the lottery since it is in the best interest of their client.
D. In violation of Fair Housing Laws.
3. A compliant is made to the Real Estate Commission about a particular fraudulent act by a licensee. The licensee told
the buyers that the woods behind their lot would never be built on, when in fact, a major new highway was to be built
there in the next two years. The commission determined there were grounds for disciplinary action. What is the next
step to be taken by the Commission?
A. The Commission may immediately revoke the license of the licensee.
B. A Hearing Board will hold a hearing on the matter and file its recommendations with the Commission.
C. The license in question will be fined up to $5,000 with an automatic revocation of his/her license.
D. The license may file a stay of decision before the hearing.
4. Mary, a salesperson for XYZ Reality is the listing agent on a property. Sally, another salesperson in the same company
represents a buyer under a Buyer agreement. The buyer wants to purchase the home Mary has listed. Both
buyer and seller have agreed in writing to dual agency. How does the Maryland law apply?
A. Mary and Sally are now Intra-Company agents, fully able to represent their inspective clients and the
Broker of XYZ Reality becomes the dual agent.
B. The broker becomes the dual agent, but must designate two different salesperson to work with the
buyer and the seller.
C. Mary could be the dual agent only if both parties agree in writing.
D. None of the above.
5. The protection of Homeowner in Foreclosure Act (PHIFA) was passed forbidding mortgage fraud. It is defined as
which of the following?
A. The lender knowingly making any deliberate misstatements, misrepresentation or omission during
the lending process.
B. Recording any documents related to a mortgage loan the filer knows may contain misstatements.
C. Violations of this law can bring felony convictions and penalties.
D. All of the above
6. What are the actions by a Broker that could cause a Summary Suspension?
A. Broker did not deposit trust monies within 7 days from the contract which is a violation.
B. Broker commingled personal funds with trust monies.
C. Broker fails to display to the Commission all records, books and accounts for any funds held in trust.
D. All of the above
7. After closing a difficult sale, the listing agent, an associate broker, received a thank-you letter and a bonus check for
$1000.00 from the seller of the house. The associate broker cashed the check because he felt it was earned. In this
situation, which of the following is correct?
A. The associate broker may accept the bonus because he is licensed as an
associate broker.
B. Accepting the money is allowed if a period of more than 45 days has
elapsed since the closing.
C. The associate broker may accept the money if his broker permits him to do so.
D. Accepting the money directly is a violation of the Brokers Act.
8. Regarding trust monies held by a Broker in Maryland which of the following is incorrect?
A. Earnest monies must be deposited no later than seven business days after acceptance of the contract by
both parties.
B. When a Broker transfers a Trust account to another bank, the Broker must notify the Maryland Real Estate
Commission in writing within ten days of such action.
C. Earnest money deposits must be deposited no later than ten business days.
D. If a real estate transaction fails, the Broker will notify the owner and the beneficial owner of the Brokers
intent to disperse the earnest money to the party who in the Brokers opinion is entitled to receive it.
9. The Maryland Real Estate Commission can do which of the following
A. Issue, renew, suspend or revoke licenses.
B. Approves content of Continuing Education courses.
C. Orders investigations, and holds hearings.
D. All of the above.
10. The supervisory duties of the Branch Office Manager are in addition to, not in lieu of the supervisory duties of the
Broker. Which of the following would not be considered a supervisory duty?
A. Regular training and education sessions.
B. Restrictions on the sale and lease of a licensee’s real property and the purchase or leasing of real property
by a licensee for their personal use.
C. Attending the National Association of Realtors convention.
D. Review of advertisements and contracts by supervisory personnel.
11. Licensee Al has just listed a property and wants to do some advertising in the local community papers. Al wants the
buyers to call his cell phone. What does the law state he must do to be in compliance?
A. The law requires only the Brokers name and office number appears in the advertising.
B. Al would be able to place his number first as long as he discloses his broker’s name.
C. It is not illegal for Al to advertise using only his phone number since it is the local paper not a large
circulation paper.
D. Al may use his cell number but must disclose his license status by including the Brokers name and the
main office phone number where the caller can reach the Broker or the Branch Office Manger.
12. Maryland has substantially equivalent Fair Housing laws. Which of the following statements is incorrect under Maryland
Law?
A. Maryland has added marital status and sexual orientation as protected classes.
B. To be exempt owner occupied housing must be four or less units in one building.
C. Maryland does not consider profits motivation to be required in blockbusting.
D. HUD cases are heard in Maryland courts.
13. Licensing Law is specific regarding record keeping. The law requires:
A. Copies of listings and any other documents must be kept for ten years starting from the date of closing.
B. Records must be kept in a file cabinet available to licensees who need to communicate documents to
perspective purchasers agents.
C. Records can be kept electronically if a reliable indexing system is created so it cannot be erased and must
have chronological arrangement of stored records.
D. The broker must allow the Maryland Real Estate Commission access to trust fund records and other
required records even if requested after business hours.
14. Client A hired Realtor B to list his home for sale. The first weekend, Realtor B met an interested buyer. After making
all disclosures, Realtor B helped the buyer write an offer, which was accepted by Client A. During the following week,
Realtor B accompanied the buyer on an inspection of the home and recommended several lenders to the buyer.
A. The buyer correctly understood the Realtor B was his agent, since Realtor B has created an agency
relationship by implication.
B. Realtor B acted properly by performing ministerial acts to assist in the transaction.
C. Realtor B should have asked another agent in his office to work the buyer.
D. Client A could file a complaint with the Real Estate Commission that Realtor B acted improperly by
assisting the buyer.
15. Seller Winfred list her home for sale with Realtor Sam of ABC Real Estate. Realtor Sam asks her to fill out a
property Condition Disclosure or Disclaimer Form, but she forgets. An offer is received from a buyer and a sales
Contract is ratified.
A. The buyer has not asked for any property condition information from the seller and is having a home
inspection performed anyway, so there is no need for the form from the seller.
B. The buyer can cancel the contract at any time, since he didn’t receive the required form.
C. Winfred has until 3 days from ratification of the contract to provide the form of the contract is automatically
void.
D. Realtor Sam can fill out the form and provide it to the buyer.
16. Tom Jones, a Realtor with Maryland Realty Company, meets a new buyer at the office. After reviewing the agency
disclosure forms, the buyer chooses not to hire Tom, but insist on looking at properties. Mr. Jones shows the buyer a
home listed by Acme Real Estate, Inc.
A. Tom Jones is considered a non agent (facilitator).
B. Tom Jones is representing the buyers as a presumed buyers agent, but cannot write a purchase offer for
the buyer until the buyer signs a brokerage agreement or declines Tom’s presumed buyer agency.
C. Tom Jones is representing the buyer as a buyer agent and can write an offer to purchase for the buyer.
D. Tom Jones is representing the buyer as a presumed buyer agent and can write a purchase offer for the buyer.
17. Bill Smith receives a call to do a Competitive Market Analysis on a property in a neighborhood he has always liked.
Bill lists the property and contacts his business partner who works with him in an LLC to purchase investment
properties. Bill submits an offer to his seller, from his LLC without disclosure he has a business relationship with his
business partner through the LLC. Under the Law of Agency,
A. Bill does not have to disclose his relationship to his partner to the seller.
B. Bill has an obligation to disclose his involvement in the LLC since it is a conflict of interest.
C. Bill has a fiduciary duty to the buyer to disclose the sellers pricing strategy.
D. Bill is working as dual agent and does not have to disclose to either party.
18. Which of the following people are required to have a license to sell Real Estate:
A. Financial Institution in the leasing or selling of property they acquired through foreclosure.
B. Home Builders in the rental or initial sale of the homes they built.
C. For consideration or for another person selling, buying, exchanging or leasing any real estate or collecting.
rents for its use.
D. Owners who subdivide and sell not more than 6 lots of unimproved property they own in any one calendar
year.
19. When an agent places their license on inactive status, which of the following is true:
A. An agent on inactive status may provide Real Estate services.
B. Placement of a license on inactive status suspends the Real Estate Commissions ability to revoke the
license.
C. Before reactivation, all continuing education requirements must be completed.
D. While on inactice status an agent can referral fees.
20. Agency disclosure must be presented to the buyer at which of the following times?
A. Not later than the first scheduled face to face meeting.
B. Before the first property showing.
C. First Contact
D. At time of contract
21. A seller’s agent receives an offer from the Buyer through the Buyers Agent. The offer is badly written. What should
Seller’s agent do?
A. Return the offer and ask the buyer agent to correct it and then resubmit to the seller.
B. Correct the mistakes himself.
C. Present the offer to the Seller as it is written.
D. Call the Selling Agents broker.
22. Even though an agent’s primary responsibility is to the principal, the agent also has duties to third parties. The
licensee’s duties to a customer include,
A. Reasonable care and skill in performance; honest and fair dealing.
B. Disclosure of all facts that the licensee knows or should reasonably be expected to know that materially
affect the value or desirability of the property.
C. Neither A or B
D. Both A and B
23. Which of the following statements is/are true concerning undisclosed dual agency?
A. A broker may not intend to create a dual agency; however, it may unintentionally or inadvertently.
B. Giving s buyer any specific advice on how much to offer can lead him or her to believe that the
salesperson represents the buyers interests and is acting as the buyers advocate.
C. An undisclosed dual agency violates licensing laws and could result in the rescission of a sale contact as
well as possible license problems.
D. All the statements are true.
24. In order to renew a license, a license must have taken 15 hours of Continuing Education to include.
A. 3 house of Legislative Update, 1.5 hours Fair Housing.
B. 3 hours of Agency every four years.
C. 3 hours Code of Ethics with Predatory Lending and Flipping every two years.
D. All of the above
25. Realtor May is working with an investor of properties. The investor wants to write offers for three properties on the
same day. He wants to write only one check and present a copy of the check with all three of the offers.
A. This is clearly a violation of the Code of Ethics and the Broker act for taking false consideration.
B. This is a logical way to reduce writing checks for unacceptable offers.
C. This is a legal way to present more than one offer at a time.
D. There is no violation of any laws or Code of Ethics since he required to obey all instructions from his client.
26. A licensed salesperson is told by ABC Title Company that the Title Company will pay a $500 rebate to the agent if the
agent brings their clients to settle though ABC Title. Can an agent accept the rebate without disclosure to their client?
A. Their rebate is allowed as long as the agent tells the buyer to use the Title Company.
B. Accepting a rebate is a violation of the Brokers Act.
C. The Agent can accept the rebate personally.
D. The rebate must go through the Broker.
27. Read the following statements concerning Maryland real estate law and choose the incorrect statement:
A. Guaranty fund must be maintained at a level of at least $250,000; otherwise, a special assessment
levied against all individuals holding licenses.
B. The pay-out of a claim from the guaranty fund may never be more than $25,000 for any one claim.
C. The Commission orders payment of claims in the order in which they were awarded.
D. There are nine members of the real estate commission, four of whom are licensees and five who are
consumer members.
28. Two salespeople affiliated with different brokers are involved in a transaction. One salesperson, Andrea, has not
disclosed a material fact to her client. Salesperson Brenda from the other broker has full knowledge of this violation
but has done nothing to rectify the situation. If a complaint were filed to the commission about Andrea’s failure to
disclose a materials fact, what would be the end result from the commission regarding Brenda’s inaction?
A. Brenda is cleared of any wrong doing since it was Andrea’s action that caused the complaint.
B. Andrea’s license will be immediately suspended, and Brenda will be reprimanded.
C. Brenda and Andrea can both be found in violation of the Broker’s Act.
D. None of the above.
29. Licenses are granted for a two year term beginning on their date of issuance. Which of the following
is true?
A. Renewal must be accomplished before their license expires.
B. If your license expires you cannot continue to work until you renew.
C. You must complete all Continuing Education and pay the required renewal fees.
D. All of the above
30. What do we call an agent who is working with the Buyer, but representing the seller and who is
also not affiliated with the Listing agent’s broker?
A. Cooperating Agent.
B. Presumed Buyer Agent.
C. Seller’s Agent.
D. Undisclosed Dual Agent.