Maryland-Real-Estate-Salesperson Maryland Real Estate Salesperson Examination Questions and Answers

The course stresses that licensees must protect a seller’s privacy and personal security when marketing property. Photos that display personal possessions such as firearms, medications, financial documents, or valuables should never be published. Revealing these items can create a safety and liability risk for the seller and may violate professional ethical standards regarding confidentiality.

Therefore, the image showing the owner’s collection of antique guns should not be made public.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Listing and Marketing Property section.

– Maryland Code of Ethics for Real Estate Licensees, COMAR 09.11.02.01 et seq.

An owner’s (buyer’s) title insurance policy provides financial protection to the buyer after closing against covered defects in title (e.g., undisclosed liens, errors in the public record, forgeries) that existed as of the policy date. An abstract of title and a chain of title are historical summaries used in the examination of title but do not provide indemnity . An attorney’s opinion of title is an expert assessment, not an insurance contract, and similarly does not indemnify the buyer against losses from covered defects discovered later.

Maryland practice (as taught in pre-licensing) recognizes a customary 50/50 split of transfer and recordation taxes between buyer and seller, subject to local custom and negotiation . Parties may allocate differently in the contract, and some jurisdictions have varying defaults; however, exam-prep materials present 50/50 as the standard custom unless otherwise agreed.

Underground storage tanks (USTs), particularly older ones made of steel, may corrode and leak, releasing hazardous substances such as oil or fuel into the soil and groundwater.

Maryland environmental law and the 60-Hour Course emphasize that sellers must disclose known environmental hazards, and buyers should be aware of potential remediation costs.

The Maryland Department of the Environment (MDE) regulates USTs, requiring proper registration, maintenance, and closure procedures to prevent contamination.

The course teaches that residences built prior to 1978 may contain lead-based paint , which poses health risks—particularly to children and pregnant individuals. Federal law requires the Lead-Based Paint Disclosure for most pre-1978 housing, plus delivery of the EPA pamphlet and opportunity for lead evaluation. Maryland materials reinforce these requirements and Maryland-specific lead rules for certain rentals.

Maryland permits dual agency only under strict disclosure and consent rules (typically implemented as intra-company agency , where a broker designates separate intra-company agents for each party). Written, informed consent from both parties must be obtained before the licensee(s) act in a dual/intra-company capacity for a specific transaction and, in any event, prior to the parties entering into a contract . Maryland uses a MREC-prescribed Consent for Dual Agency disclosure form for this purpose. Early disclosure is encouraged at the formation of the brokerage relationship, but transaction-specific informed consent must be secured before contract .

References (Maryland Sources / Pre-Licensing Core Content):

Maryland Business Occupations and Professions Article, Title 17 (Real Estate Brokers Act) — agency disclosures; dual/intra-company agency framework; written informed consent requirements.

MREC forms/guidance: Consent for Dual Agency (transaction-specific written consent).

Maryland 60-Hour Pre-Licensing Course: “Maryland Agency Law” (dual agency; intra-company agency; timing and form of consent).

A promissory note is a borrower’s written promise to repay a specified amount of money under agreed terms.

A mortgage is the security instrument that pledges real property as collateral for that note.

Together, they form the legal and financial foundation for most real estate loans.

If the borrower defaults, the lender may foreclose on the property under the rights granted by the mortgage.

The Maryland 60-Hour Course explains that while some states use deeds of trust instead of mortgages, Maryland primarily uses mortgages and promissory notes in conventional real estate financing.

The Property Management section of the Maryland pre-licensing course teaches that licensees must monitor their listings for fraudulent online activity, such as rental scams where criminals copy legitimate ads and re-post them with false contact details.

Setting up automated alerts through tools like Google Alerts or If This, Then That (IFTTT) can help licensees detect unauthorized use of their listings or identifying information.

These monitoring tools allow quick corrective action and protect both the brokerage and the public from scams.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Property Management and Advertising Compliance section.

– Maryland Code of Ethics, COMAR 09.11.02.01–.02.

A condominium is a form of ownership, not a type of structure.

It typically consists of multiple units (multi-family or multi-unit buildings) in which each owner holds title to their individual unit and shares ownership of common areas (e.g., hallways, pools, grounds) through the condominium association.

This differs from a cooperative (co-op), where residents hold shares and a proprietary lease.

Under “Leases and Property Management,” the course explains that a net lease requires the tenant to pay base rent plus some or all of the operating expenses , such as property taxes, insurance, and maintenance (often abbreviated as T , I , M ). Variations include single-net (N) , double-net (NN) , and triple-net (NNN) leases.

A gross lease has the landlord paying most operating expenses, with the tenant paying a single rent figure. A percentage lease bases part of rent on the tenant’s gross sales (common in retail). A sublease is a transfer arrangement, not a lease type that determines expense responsibility.

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Leases and Property Management” (Gross vs. net vs. percentage leases; expense allocations).

A group boycott occurs when two or more competitors conspire to refuse to deal with another firm or individual, thereby attempting to eliminate competition.

This is a violation of the Sherman Antitrust Act and the Clayton Act, both covered in the “Ethics and Antitrust” section of the Maryland pre-licensing course.

Examples include two brokerages agreeing not to cooperate with a third brokerage or to exclude another licensee from access to listings.

Maryland law and the National Association of REALTORS® Code of Ethics prohibit any conduct that restricts trade or limits consumer choice.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Fair Housing and Ethics / Antitrust section.

– Sherman Antitrust Act (15 U.S.C. §1).

– Clayton Antitrust Act (15 U.S.C. §12–27).

Fair housing education emphasizes that inclusive, diverse neighborhoods support opportunity, stability, and equity—values aligned with the federal Fair Housing Act and Maryland fair housing objectives. In pre-licensing training, learners are taught that promoting diversity (and avoiding steering, blockbusting, or discriminatory practices) is both an ethical obligation and a legal requirement.

In the Fair Housing and Ethics module, the course emphasizes that unlawful housing discrimination often occurs in subtle or less visible forms , including steering , disparate impact , selective marketing , inconsistent application of qualifiers, and micro-level decision-making that the public may not observe. The fact that discrimination is illegal does not eliminate hidden practices; therefore, practitioners must know the protected classes, recognize subtle violations, and implement consistent, documented, and neutral business practices.

The course teaches that the title insurance policy itself specifies coverage and exclusions . Coverage basics appear on Schedule A , while Schedule B—Exceptions clearly lists matters excluded from coverage (e.g., specific recorded easements or restrictions, taxes, and other encumbrances identified in the title search). Therefore, to determine what is not covered, parties must review the policy’s schedule of exceptions .

Under Maryland’s Fair Housing laws (Title 20, State Government Article), limited exemptions exist for owner-occupied buildings with four or fewer rental units.

In these cases, the owner may exercise limited discretion in selecting tenants; however, race discrimination is never permitted.

The pre-licensing course explains that while federal law (the Fair Housing Act) allows some exemptions, Maryland law still prohibits discriminatory advertising and extends protections to include sexual orientation, gender identity, marital status, and source of income.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Maryland Fair Housing Law section.

– State Government Article, Title 20, §20-704.

Under Maryland license law and the Maryland Code of Ethics (COMAR 09.11.02.33), licensees are expected to cooperate with other licensees when doing so serves their client’s best interest. Cooperation often involves sharing information or coordinating showings, but does not require compensation unless there is a written agreement specifying how commissions will be shared. The client’s interest always takes priority over cooperative obligations.

Under sub-agency, a cooperating broker or licensee assists the listing broker in selling the property and represents the seller as a sub-agent of the listing broker.

A key drawback is that the listing broker is legally responsible for the sub-agent’s actions because the sub-agent owes fiduciary duties to the same principal (the seller).

Any misrepresentation, negligence, or violation by the sub-agent can expose the listing broker to disciplinary action or civil liability.

This is why many Maryland brokers now prefer buyer agency over sub-agency.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Agency Relationships and Sub-Agency section.

– Business Occupations and Professions Article §17-534.

In the Environmental Issues and Disclosures section, the course teaches that radon is a naturally occurring, colorless, odorless, radioactive gas that results from the decay of uranium in soil, rock, and water. Radon can migrate into buildings through foundation cracks and openings and accumulate to levels that pose health risks. Licensees must understand radon basics, testing options, mitigation methods, and disclosure responsibilities in transactions.

An option contract gives the optionee (Monique) the exclusive right to purchase a property within a specified period and under specific terms, but not the obligation to do so.

When properly executed and supported by consideration (the option fee), the option is a binding contract on the property owner (Mark) and any subsequent owners who take title with constructive notice of the existing option.

Therefore, when Monique exercises her valid option within the option period, Shelly must honor it—the property must be sold to Monique under the agreed terms.

Wetlands provide critical ecosystem services —they serve as wildlife habitat, enhance aesthetics, control erosion , store floodwaters, and filter pollutants . Because of these public benefits, wetlands are protected under federal and state law, and Maryland licensees are trained to recognize that development near wetlands often triggers permitting, setbacks, and disclosure obligations .

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Environmental Issues and Disclosures” (wetlands functions; permitting; protected resources).

Overview of federal/state wetland protections as discussed in course materials.

According to the Maryland Real Estate Brokers Act, which governs the Maryland Real Estate Commission (MREC), the Commission consists of nine members appointed by the Governor of Maryland with the advice and consent of the Senate. Each member serves a four-year term and may remain in office until a successor is appointed and qualified. Members may be reappointed for additional terms.

The composition of the Commission is as follows:

Five licensed real estate professionals, each representing one of Maryland’s five geographic regions.

Four consumer members, who are not licensed real estate professionals and have no substantial financial interest in the real estate industry.

This organizational and term structure ensures both professional and public representation within the Commission’s regulatory activities. The information is directly derived from Title 17 of the Business Occupations and Professions Article, §17-202 of the Annotated Code of Maryland — the same statute summarized in the Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course under the “Maryland License Law and Regulations” section.

Reference (Maryland Source):

Maryland Business Occupations and Professions Article, Title 17, §17-202 – Maryland Real Estate Commission; Membership; Terms.

Under the federal Fair Housing Act , “handicap” (disability) is a protected class. HIV/AIDS is considered a disability , and making statements or disclosures that identify or single out someone based on a protected characteristic is prohibited. Disclosing that an owner (or occupant) has HIV is treated as discriminatory, violates fair housing standards, and also breaches confidentiality. Maryland fair housing law mirrors and expands federal protections, and the pre-licensing course emphasizes that licensees must never disclose information tied to protected classes because it can facilitate or signal discriminatory treatment (e.g., steering, discouraging, or differential terms).

A percentage lease (common in retail) typically combines a lower base rent with an additional rent component based on a percentage of gross sales above a breakpoint. Tenants accept the percentage-of-sales feature in exchange for reduced fixed/base rent , aligning occupancy cost with sales performance.

Maryland’s Fair Housing Law (State Government Article, Title 20, Subtitle 7) expands on the federal Fair Housing Act by adding additional protected categories: marital status, sexual orientation, gender identity, and source of income. This means licensees cannot discriminate in the sale, rental, or financing of housing based on these traits. The course emphasizes that local jurisdictions (e.g., Baltimore City, Montgomery County) may have even broader protections.

The Statute of Frauds requires that certain contracts—including those for the sale or transfer of real property—be in writing and include:

The names of the parties,

Identification of the property, and

The essential terms and conditions (such as price and contingencies).This ensures the agreement is legally enforceable in court.

Courts commonly consider (1) method of attachment (annexation) , (2) adaptation to the property’s use , and (3) agreement of the parties to determine whether an item is a fixture (real property) or personal property . “Acknowledgement,” “accessory,” and “reimbursement” are not part of the legal fixture tests.

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.

An appraisal is a professionally developed opinion of value for a specific property as of a specific effective date , performed in accordance with USPAP (Uniform Standards of Professional Appraisal Practice) and, when required (e.g., federally related transactions), by a state-licensed or state-certified appraiser .

An assessment is the value assigned by a taxing authority for property tax purposes.

An evaluation may be an estimate of value that does not necessarily comply with USPAP or require a state-licensed appraiser (often for certain banking purposes where an appraisal is not required).

An inspection is an examination of a property’s condition, not an opinion of value.

References (Maryland/Federal Sources / Pre-Licensing Core Content):

USPAP (definition of appraisal; effective date of value).

Maryland Business Occupations and Professions, Title 16 (Real Estate Appraisers) — licensure/certification framework.

FIRREA Title XI (federally related transactions require state-licensed/certified appraisers).

Maryland 60-Hour Pre-Licensing Course: “Real Estate Appraisal and Valuation” (definitions; scope; USPAP).

Once a building permit is issued, the local building department monitors the construction process through inspections at key stages (foundation, framing, electrical, plumbing, final).

The purpose of these inspections is to ensure that work complies with state and local building codes and safety standards.

Maryland’s pre-licensing course explains that certified building inspectors—not peers or the builder—conduct these inspections.

Only after passing all required inspections will the department issue a certificate of occupancy (CO) confirming code compliance and permitting lawful use of the structure.

Under the Protection of Homeowners in Foreclosure Act (PHIFA) , Maryland provides enhanced civil remedies to consumers harmed by foreclosure consultants’ unlawful practices. For intentional (willful) violations , a consumer who brings a private action may recover treble (three times) the actual damages , along with reasonable attorney’s fees and costs . This heightened remedy is designed to deter predatory conduct in distressed-homeowner contexts and is taught in the Maryland pre-licensing course under the state-specific consumer protection and license law sections.

Escheat is the government’s power to take title to property when someone dies intestate (without a will) and no heirs or creditors can be found. This differs from eminent domain (the government’s power to take private property for public use with just compensation) and from a taking (the act under eminent domain). A life estate is a private freehold interest measured by a person’s lifetime, not a government power. These core definitions are covered in the Real Property and the Law module.

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).

The U.S. Department of Agriculture (USDA) Rural Development Loan Program provides financing for low- to moderate-income borrowers in rural areas.

The Maryland course teaches that Section 502 Direct Loans may offer repayment terms of up to 38 years, depending on borrower income and property location.

These loans are designed to promote homeownership in eligible rural communities and may include payment assistance or subsidies to reduce monthly payments.

In the pre-licensing curriculum’s “Interests in Real Estate” module, a life estate is defined as a freehold estate measured by the life of a specified individual (often the grantee). The life tenant holds present possessory rights until death , at which point the estate terminates automatically and either reverts to the original grantor ( reversion ) or passes to a named third party ( remainder ).

A fee simple estate (absolute) is of potentially infinite duration and does not end at a person’s death by its terms.

A homestead estate is a statutory protection for a primary residence, not a conveyance measured by life.

A leasehold estate is a non-freehold estate with a definite term held by a tenant, not measured by a life.

References (Course Outline/Study Topics):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course — “Interests in Real Estate” (Life Estates: life tenant rights, reversion, remainder; freehold vs. non-freehold estates).

Earnest money is a good-faith deposit tendered by the buyer with an offer to purchase, demonstrating the buyer’s commitment and providing liquidated damages/security per the contract terms. The deposit is typically held in a broker or title/escrow trust account and is credited to the buyer at closing or disbursed according to the contract if the transaction does not close.

In Maryland, agency exists when a licensee represents a client under a brokerage agreement. If the seller has a written listing agreement with a broker, the seller is the client.

An unrepresented buyer is considered a customer, not a client. The licensee owes customers limited duties—honesty, fair dealing, and disclosure of material facts—but does not owe fiduciary duties such as loyalty, confidentiality, or obedience.

Therefore, in this case, the seller is the only client.

The Maryland pre-licensing course explains that the Maryland Real Estate Guaranty Fund is designed to compensate members of the public who suffer actual financial loss due to certain acts or omissions of Maryland licensees in the provision of real estate brokerage services. Claims must be based on verifiable monetary damages ; non-economic harms such as embarrassment, inconvenience, or pain and suffering are not compensable under the Fund. The course also outlines claimant eligibility and procedural requirements established in Title 17 (Real Estate Brokers) of the Maryland Business Occupations and Professions Article .

In Maryland-specific coverage within “Leases and Property Management,” the course explains ground leases and the unique Maryland concept of ground rents . A redeemable ground rent permits the leasehold owner (tenant) to redeem —that is, buy out —the ground rent interest by paying a statutory redemption amount, thereby merging the leasehold and reversionary interests and effectively ending the ground rent. This contrasts with irreedeemable/irretrievable arrangements (not permitted for new creations under current Maryland law) where no buyout right exists.

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Leases and Property Management” (Ground leases and Maryland ground rents; redeemable ground rent concept and tenant redemption).

In Maryland, agency is established by an express, written brokerage agreement that identifies the client, defines the scope of services, and sets compensation terms and required disclosures. Who pays compensation does not determine agency ; payment can come from any party or through the cooperative compensation system (e.g., MLS offers) without changing whom the licensee represents. Implied agency is not an acceptable substitute for the required written agreement in Maryland.

Polychlorinated biphenyls (PCBs) are synthetic chemical compounds formerly used as coolants and insulators in electrical equipment, hydraulic systems, and fluorescent-light ballasts. They are toxic, persistent in the environment, and regulated by the U.S. EPA under the Toxic Substances Control Act (TSCA). Maryland’s course covers PCBs among major environmental hazards requiring disclosure or remediation.

The Civil Rights Act of 1866 was the first federal law to address discrimination in housing and property rights. It declares that all U.S. citizens shall have the same rights as white citizens to inherit, purchase, lease, sell, hold, and convey real and personal property, regardless of race or color.

Unlike later fair housing laws, this Act includes no exemptions—it applies to all property transactions, public or private.

This law is a foundation of modern fair housing legislation, and its absolute prohibition on racial discrimination still applies today.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Fair Housing and Ethics section.

– Civil Rights Act of 1866, 42 U.S.C. §1982.

Property taxes collected by local jurisdictions in Maryland support essential public services such as schools, police and fire departments, infrastructure maintenance, libraries, and sanitation. The revenue forms the primary funding source for county and municipal budgets. These taxes do not automatically determine future tax rates; rather, they sustain ongoing community operations and improvements.

In a sub-agency relationship, the cooperating licensee (sub-agent) works with a buyer but represents the seller, not the buyer.

Kip, as a sub-agent, owes fiduciary duties of loyalty, obedience, confidentiality, and disclosure to the seller (May), the same client represented by Sheila, the listing agent.

The buyer, Charlie, is treated as a customer, not a client, meaning no fiduciary obligations exist beyond honesty and fair dealing.

This principle is covered in Maryland’s Law of Agency and Brokerage Operations modules.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Agency Relationships and Sub-Agency sections.

– Business Occupations and Professions Article §17-530 – §17-534.

Amortization is the process of systematically paying down a loan balance over time through periodic payments that cover interest and principal , according to an amortization schedule.

Installment refers to a single periodic payment, not the full process.

Loan is the debt itself.

Mortgage is the security instrument (lien) that pledges property as collateral for the loan.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Financing” (amortization schedules; principal vs. interest; fully vs. partially amortized loans).

Basic finance terminology as standardized across pre-licensing materials.

Misrepresentation occurs when a licensee omits or falsifies a material fact or makes false, deceptive, or misleading statements in advertising or communications. In Maryland, misrepresentation is a violation under §17-322(a)(1) and COMAR 09.11.02.01 (Advertising). A material fact is any information that could influence a consumer’s decision in a real-estate transaction. Intentional misrepresentation may also lead to civil liability for fraud.

Under the first-time homebuyer exception for IRAs, qualified individuals may withdraw up to $10,000 (lifetime limit) to pay qualified acquisition costs (e.g., down payment and closing costs ) without the 10% early withdrawal penalty . Standard income tax may still apply to traditional IRA distributions (Roth rules differ for contributions vs. earnings and five-year holding). Therefore, penalty-free (not tax-free) withdrawals up to $10,000 are permitted for first-time home purchase needs.

In the deed section of the pre-licensing course, learners are taught that the full covenant and warranty deed (often called a general warranty deed ) provides the broadest protection for the grantee because the grantor warrants good title, free from encumbrances , and defends the title against all claims , whether they arose before or during the grantor’s ownership. The deed typically carries the full set of common law covenants (seisin, right to convey, against encumbrances, quiet enjoyment, further assurances, and warranty). By contrast, a quitclaim deed offers no warranties , a bargain and sale deed implies ownership but gives limited or no warranties , and executor’s or personal representative deeds convey title on behalf of an estate without full warranties .

The cost approach to appraisal is based on the principle of substitution, which assumes that a buyer will not pay more for a property than it would cost to purchase a similar site and construct a comparable building with equal utility.

The process involves:

Estimating the value of the land as if vacant,

Estimating the current cost to reproduce or replace the improvements,

Subtracting depreciation (physical, functional, or external), and

Adding the land value to the depreciated improvement cost.Thus, the cost approach measures the cost to acquire the land and construct a reproduction or replacement of the improvements—making option A correct.

In a gross lease , the landlord/lessor pays the property’s operating expenses—commonly including real estate taxes, property insurance, and maintenance —while the tenant pays a fixed rent. By contrast, in net and especially triple-net (NNN) leases, the tenant bears some or all of these operating costs (with NNN typically meaning taxes, insurance, and maintenance are all tenant-paid). A percentage lease bases rent (in whole or part) on the tenant’s gross sales and does not inherently shift taxes/insurance/maintenance to the landlord.

A license is a personal, revocable privilege to perform some act on another person’s land without any possessory right or ownership interest. Unlike an easement, a license does not transfer with the land and can be revoked at any time by the licensor. Examples include permission to hunt, park, or attend an event on private property.

In Maryland’s pre-licensing course, this concept is taught under “Interests in Real Estate” as a type of encumbrance that affects property use but not ownership.

A special agent (also called a limited agent) is authorized to perform a single, specific act or transaction—such as assisting in the purchase or sale of a property.

Real estate brokers and salespersons generally act as special agents, with limited authority defined in the brokerage agreement.

They may not bind their clients to contracts without express permission.

This principle appears in the Law of Agency module and is contrasted with general agents (brokers’ affiliated licensees) and universal agents (power-of-attorney representatives).

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Law of Agency section.

– Business Occupations and Professions Article §17-530 – §17-534.

Maryland licensees may fill in blanks on approved contract forms and explain business terms (e.g., common contingencies, offer strategies, earnest money customs). But giving legal advice —interpreting legal consequences, drafting custom legal clauses, or advising on rights/remedies—is considered the unauthorized practice of law unless the licensee is a Maryland attorney. Clients should be referred to legal counsel for legal questions.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Contracts” (use of approved forms; scope of practice; prohibition on legal advice).

Maryland Real Estate Commission guidance (practice limits; unauthorized practice of law).

A package loan (package mortgage) finances both real property and personal property (chattels) together in a single loan—common with new homes that include appliances or furnishings. A blanket loan covers multiple parcels; a wrap-around is junior financing that “wraps” an existing loan; “security” is not a loan type but a general concept.

Maryland law requires that a licensee acting as a seller’s agent must provide any unrepresented buyer with the " Understanding Whom Real Estate Agents Represent " disclosure at the first scheduled face-to-face meeting about a specific property.

The purpose is to ensure that consumers understand who represents whom before discussing confidential or motivational information.

This rule is clearly detailed in the Maryland Agency Law module of the pre-licensing course.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Maryland Agency Law section.

– Business Occupations and Professions Article §17-530 through §17-534.

– COMAR 09.11.07.01 – Agency Disclosure Requirements.

When personal property (chattel) is physically attached to real property in such a way that it becomes part of the real estate, it becomes a fixture. Fixtures transfer with the property upon sale unless specifically excluded in the contract. The determination depends on attachment, adaptation, and intent. Maryland’s course addresses fixtures under “Real Property and the Law,” emphasizing how they affect ownership and conveyance.

A lot-and-block legal description identifies land within a recorded subdivision plat, referencing a specific lot number, block number, map book, and page filed with the county recorder. It’s the most common method for urban and suburban properties in Maryland.

Choices B and D represent metes-and-bounds and rectangular survey systems, respectively; A is simply a street address.

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.

Under Maryland landlord-tenant law , the landlord must return the tenant’s security deposit, with any required interest, within 45 days after the end of the tenancy , less any permissible deductions for unpaid rent or damages beyond ordinary wear and tear. The landlord must also provide an itemized statement of any deductions. The 45-day deadline is statutory and is emphasized in Maryland pre-licensing instruction within property management and leasing modules.

References (Maryland Sources / Pre-Licensing Core Content):

Maryland Real Property Article §8-203 (Security Deposits) — return within 45 days ; interest; itemization of deductions.

Maryland 60-Hour Pre-Licensing Course: “Leases and Property Management” (security deposits; deadlines; itemized statements).

Under Maryland agency law, a real estate licensee represents a client —the party with whom the licensee has an express, written brokerage agreement . A customer is an unrepresented party who may receive ministerial acts and required disclosures but is not owed fiduciary duties of representation. Who pays compensation does not determine representation; the written agreement does.