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

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 tax-deferred exchange, also known as a 1031 exchange, allows investors to exchange one qualifying investment or business property for another “like-kind” property and defer payment of capital gains taxes until the new property is sold.

This provision falls under Internal Revenue Code §1031.

In the Maryland pre-licensing curriculum, this is explained under the “Real Estate Financing and Investment” section to show how investors legally postpone capital gains recognition by following IRS guidelines.

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 real property conveyance, certain interests and transfers occur by operation of law and therefore supersede contrary provisions in a will. Common examples include joint tenancy with right of survivorship, tenancy by the entirety, life estates with a named remainderman, and properly created transfer-on-death/beneficiary designations. These interests vest automatically at death and are not controlled by the decedent’s will.

“Intestate” refers to dying without a valid will and does not itself take precedence over a will. The heirs’ wishes have no legal effect against properly vested interests. Therefore, where applicable, operation of law controls over will terms regarding those interests.

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.

Antitrust violations occur when individuals or companies engage in activities that restrict competition in the marketplace and limit consumer choice.

In real estate, this includes price-fixing, group boycotts, market allocation, and tie-in agreements, all of which are prohibited under the Sherman Antitrust Act and Federal Trade Commission Act.

Maryland’s real estate license law reinforces these prohibitions, and the Maryland 60-Hour Course covers antitrust compliance under “Fair Housing and Ethics” to ensure licensees act in the public’s best interest and avoid practices that restrain trade.

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.

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.

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.

A buyer representation agreement establishes an agency relationship between a buyer and a broker, outlining the broker’s duties and compensation for assisting the buyer in finding and purchasing a property.

This agreement serves the same purpose as a listing agreement does for a seller—it defines the relationship, responsibilities, and authority between client and broker.

Both agreements are legally binding contracts and must include the terms of representation, duration, and agency disclosures as required by Maryland Real Estate Commission (MREC) regulations.

The escrow agent (often the broker, title company, or attorney) is the fiduciary who receives and holds trust money in a regulated escrow account until contract terms are fulfilled. In Maryland, the broker is responsible for maintaining escrow records and depositing all trust money promptly in accordance with COMAR 09.11.02.19. “Escrow master” and “mortgage agent” are not legal titles under Maryland law, and “special agent” refers to the agency relationship, not handling of funds.

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.

Personal property (also known as chattel) refers to movable items that are not permanently attached to the land or the improvements on it.

Examples include furniture, vehicles, and trade equipment. In contrast, real property includes land, improvements, and the legal rights associated with ownership.

The distinction between real and personal property is a core principle of real estate law covered early in the Maryland 60-Hour Course under “Real Property and the Law.”

An exclusive right-to-sell listing (and other listing forms) is an employment contract between the seller and the listing brokerage (through the broker). The buyer is not a party to the listing agreement. In this scenario, the parties are Guy (the seller) and Sara (the listing broker/brokerage).

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.

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.

Within “Real Estate Brokerage Operations” (advertising and solicitation compliance), the course emphasizes federal rules governing outreach to consumers:

The Do Not Call Implementation Act (and related FTC/FCC rules) regulates telemarketing, requiring scrubbing against the National Do Not Call Registry, time-of-day restrictions, identification requirements, and record-keeping.

The CAN-SPAM Act governs commercial email, requiring accurate header information, a truthful subject line, clear identification as an advertisement (where applicable), a clear opt-out mechanism, and honoring opt-out requests promptly.

The Junk Fax Prevention Act (amending the TCPA) restricts unsolicited fax advertisements, allowing them only under specific conditions (e.g., established business relationship, proper opt-out notice).

These are the primary federal solicitation rules covered for prospecting; antitrust and fair housing laws are also taught but address different risk areas (competition and discrimination, respectively) rather than direct telemarketing/email/fax solicitation mechanics.

References (Course Outline/Study Topics):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course — “Real Estate Brokerage Operations” (Advertising & Solicitation Compliance: Do Not Call rules, CAN-SPAM, Junk Fax Prevention Act; distinctions from antitrust and fair housing requirements).

Puffery refers to subjective statements of opinion or sales talk that a reasonable person would not take as a factual representation.

Phrases like “best views,” “dream home,” or “finest neighborhood” are considered puffing, not misrepresentation.

Maryland’s pre-licensing course distinguishes puffery (legally permissible) from misrepresentation, which involves false statements of material fact that can lead to disciplinary action or liability.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Ethical Conduct and Misrepresentation section.

– Maryland Business Occupations and Professions Article §17-322 (Grounds for Disciplinary Action).

In dual agency (and Maryland’s intra-company/dual agency framework), an agent cannot provide undivided loyalty to both clients in the same transaction. Maryland requires written, informed consent and limits the fiduciary duty of loyalty because representing opposing interests precludes undivided advocacy. The agent still owes honesty, disclosure of material facts, reasonable skill and care, and confidentiality (within statutory limits), but undivided loyalty is expressly curtailed in dual agency.

Under Section 1031 of the Internal Revenue Code, an investor may defer recognition of capital gains taxes by exchanging one investment or business property for another of like kind.

This is known as a 1031 tax-deferred exchange.

The Maryland pre-licensing course covers this as a financing and investment concept, explaining that it defers, not eliminates, the tax obligation and that investors must comply with strict timelines and rules set by the IRS.

Licensees should avoid offering tax advice but can inform clients of the potential to explore this option with a qualified tax professional or attorney.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Investment and Taxation Concepts section.

– Internal Revenue Code §1031 (Like-Kind Exchanges).

In subdivision and zoning review, density is evaluated using physical and regulatory site controls—minimum lot size, setbacks, yard requirements, lot coverage, height limits, open space ratios, and boundaries—to determine how many dwelling units may be placed per acre and how they’re arranged. While property values and federal approvals can be relevant to other processes, density determinations rest primarily on local zoning metrics such as setbacks and boundaries.

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).

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.

Under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and the Maryland Lead Poisoning Prevention Program, sellers and landlords of housing built before 1978 must:

Provide the EPA-approved pamphlet on lead hazards.

Disclose known lead-based paint or hazards and supply any available records.

Allow buyers a 10-day inspection period (unless waived).

A licensee’s duty is to ensure that the sellers comply with these disclosure requirements and to remind them to deliver the proper forms and pamphlet.

The licensee is not responsible for testing or remediation but must ensure all disclosures are completed prior to ratification of the contract.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Environmental Issues and Disclosures section.

– 42 U.S.C. §4852d (Residential Lead-Based Paint Hazard Reduction Act).

– COMAR 26.16.02 (Maryland Lead Poisoning Prevention Program).

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.

The course’s Environmental Issues content explains that while owners can perform basic prevention (reducing moisture, sealing entry points, monitoring for signs, installing vapor barriers), the application of many pesticides—particularly restricted-use pesticides and termite treatments—must be performed by properly licensed pest management professionals due to health, safety, and regulatory requirements. Real estate professionals should know when to recommend qualified, licensed contractors for inspections and treatment and understand disclosure duties regarding known infestations and prior treatments.

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.

VA loans (for eligible veterans/servicemembers) and USDA Rural Development loans both allow 0% down payment (100% financing), subject to program eligibility and property/location requirements. FHA loans require a minimum down payment (commonly 3.5%) and therefore are not 100% financing.

Under the Uniform Commercial Code (UCC) Article 3 principles taught in real estate financing, a negotiable instrument (e.g., a promissory note) must be an unconditional promise or order to pay a fixed amount of money. Thus, if it does not contain an order to pay, it must contain a promise to pay. The amount must be fixed (not “flexible”), and while signatures are required for enforceability, notarization is not a UCC requirement for negotiability.

Maryland law requires licensees to present and explain the statutory agency disclosure—commonly titled “Understanding Whom Real Estate Agents Represent”—at the first scheduled face-to-face meeting with a prospective party. This disclosure explains the types of agency relationships available in Maryland (seller/landlord representation, buyer/tenant representation, and dual agency with possible intra-company agents) and clarifies whom the licensee represents. This requirement is part of Maryland’s agency framework and consumer-protection emphasis in the pre-licensing curriculum.

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 Closing Disclosure (CD) is a federally required document under the TILA-RESPA Integrated Disclosure Rule (TRID).

It must be provided to the borrower at least three business days prior to closing and itemizes loan terms, fees, and total closing costs.

The Loan Estimate (LE) is given earlier in the process—within three business days of loan application—while the Closing Disclosure confirms final figures.

Maryland licensees must understand both forms as part of the Closing and Settlement Procedures portion of their coursework.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Closing Procedures and Federal Disclosure Requirements section.

– TILA-RESPA Integrated Disclosure Rule (TRID), 12 C.F.R. §1026.19(f).

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.

Maryland license law allows the earnest-money deposit (good-faith deposit) to be paid in cash, certified funds, or personal check, provided the terms are disclosed in the sales contract. A post-dated check or promissory note is not considered “good funds” unless all parties agree in writing. Verbal assurances never satisfy the deposit requirement. The broker must promptly deposit the funds in a designated trust (escrow) account.

Under the Maryland Real Estate Brokers Act (Business Occupations and Professions Article, §17-613), it is unlawful for any person to engage in real estate brokerage activities without a valid Maryland license.

The Maryland Real Estate Commission (MREC) may impose civil fines for unlicensed activity as follows:

Up to $5,000 for a first offense

Up to $15,000 for two offenses

Up to $25,000 for three or more offenses, but no more than $10,000 per violation

Therefore, for multiple offenses, the maximum fine per violation is $10,000.

A key tax advantage of owning income-producing real property is depreciation, which allows investors to deduct a portion of the property’s cost basis (excluding land) over its useful life for tax purposes. This non-cash expense can shelter rental income and reduce taxable income. By contrast, insurance expenses and transfer taxes are ordinary expenses/costs (not advantages), and taxable gains are a potential liability upon disposition, not a benefit.

In Maryland, earnest money (“trust money”) is disbursed strictly according to the purchase contract and escrow instructions, and a broker must hold it in escrow until: (1) the contract terms specify its release (e.g., upon default or a “non-refundable”/“hard” deposit provision), (2) the parties sign a mutual written release, or (3) there is a court order.

“Hard money” (non-refundable deposit) is contractually designated as the seller’s if the buyer terminates for reasons not protected by a contingency. If the buyer agreed to hard money and then cancels due to a low appraisal after waiving or not having an appraisal/financing contingency, the deposit is typically forfeited to the seller per the contract.

If the buyer properly invokes an appraisal (or related financing) contingency (Option A), the earnest money is generally returned to the buyer, not disbursed to the seller.

Conversion by an escrow agent (Option C) is misconduct, not a lawful disbursement.

If the seller wrongfully cancels (Option D), the buyer usually receives the deposit back and may pursue additional remedies.

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

Maryland 60-Hour Course: “Closing the Real Estate Transaction” and “Real Estate Brokerage Operations” (trust/escrow money handling; release conditions; default and liquidated damages).

Business Occupations & Professions (Maryland Real Estate Brokers Act), Title 17 (broker escrow duties; release only per contract, mutual release, or court order).

COMAR 09.11.01 (Trust/escrow accounts), COMAR 09.11.02 (standards of practice; prohibition on conversion).

In Maryland, a licensee owes clients fiduciary duties that include reasonable skill and care, loyalty, obedience to lawful instructions, disclosure, confidentiality, accounting, and prompt presentation of all written offers. Failing to present an offer promptly breaches the duty of reasonable care and the professional standard of practice and is treated as negligence (a failure to exercise the care a reasonably prudent licensee would exercise under similar circumstances). This is distinct from:

Fraud (intentional deception),

Misrepresentation (false statement or omission of material fact),

Puffing (non-factual opinion or sales talk).

Because the buyer’s financial harm flowed from the licensee’s carelessness (delay), the appropriate theory is negligence.

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

Maryland Business Occupations and Professions Article, Title 17 (Real Estate Brokers Act) — duties to clients; grounds for discipline for incompetence or negligence.

COMAR 09.11.02 (MREC Code of Ethics) — obligation to promptly present all written offers and perform with reasonable skill and care.

Maryland 60-Hour Pre-Licensing Course: “Real Estate Brokerage and the Law of Agency” (fiduciary duties; standards of care; prompt presentation of offers).

In a seller-agency relationship, the agent owes the client (seller) fiduciary duties, which include loyalty, obedience (lawful instructions), disclosure, confidentiality, accounting, and reasonable care. Practical responsibilities include advising the seller on pricing and marketing strategy, actively marketing the property, presenting offers, and negotiating in the seller’s best interests. Duties owed to buyers (customers) are limited to honesty and disclosure of material facts, not advocacy. Therefore, “Market and sell the property” reflects the seller’s agent’s core duty; negotiating for the buyer or representing the buyer would conflict with loyalty to the seller unless properly disclosed and permitted as dual agency under Maryland law.

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).

In leasing, a covenant is a binding promise or agreement contained within the lease. It can require or restrict certain actions by either the lessor (landlord) or lessee (tenant)—for example, a covenant of quiet enjoyment, a covenant to pay rent, or a covenant to maintain the property. These promises are enforceable under contract and property law.

For pre-1978 residential housing, federal law (Title X) requires the lead-based paint disclosure, EPA pamphlet delivery, and an opportunity for a lead assessment. This is a material, mandatory disclosure. Medical history of prior occupants (e.g., HIV, Ebola) is not disclosed and implicates fair housing and privacy. Number of prior owners is not a material defect by itself.

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.

Brokerage risk management includes cybersecurity best practices to protect client nonpublic information (e.g., transaction documents, IDs, financial data). Licensees are instructed to avoid unsecure/public networks and untrusted or suspicious websites, use secure/encrypted connections, maintain strong passwords and multi-factor authentication, and follow brokerage data security policies. Avoiding unsecure environments reduces exposure to malware, phishing, and interception.

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).

Foreclosure is the legal process by which a lender exercises its right to force the sale of mortgaged property when the borrower defaults on the note or deed of trust.

In Maryland—a judicial foreclosure state—the lender must file a court action before selling the property.

Proceeds from the sale are used to satisfy the debt, accrued interest, and foreclosure costs.

This definition is covered in the Financing module under Mortgage Default and Foreclosure Remedies.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Financing and Foreclosure Procedures section.

– Maryland Real Property Article §7-105 et seq.

In real estate, positive (affirmative) misrepresentation occurs when a licensee makes an affirmative statement of fact that is false. When the statement is knowingly false and causes reliance and harm, it rises to fraudulent misrepresentation—but it is still a positive (affirmative) misrepresentation because it is an overt, false assertion (as opposed to concealment/nondisclosure, sometimes called passive misrepresentation).

Option A describes an affirmative false statement that causes harm (i.e., a classic example of positive misrepresentation; intent makes it fraudulent).

Options B and C describe innocent/negligent errors but don’t clearly state an affirmative false statement of material fact.

Option D confuses “positive” with “beneficial outcome,” which is not what the term means.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Brokerage and the Law of Agency” (truthful dealing; material facts; affirmative vs. passive misrepresentation; fraudulent vs. negligent vs. innocent misrepresentation).

COMAR 09.11.02 (standards of practice: honesty, fair dealing, and prohibition against misrepresentation).

Maryland law prohibits self-help eviction, which occurs when a landlord takes direct action—such as locking out a tenant or removing their belongings—without a court order.

Only a sheriff or court-appointed officer may evict a tenant following a court judgment for possession.

A landlord who locks out a tenant to recover rent is acting illegally, even if rent is overdue.

This topic is addressed in the Leasing and Property Management module of the pre-licensing course.

Reference (Maryland Source):

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

– Real Property Article §8-216 – Prohibited Acts of Landlord (Self-Help Eviction).

In Maryland, licensees must disclose material facts that are adverse, that they actually know, and that are physical to the property or the transaction—even to customers (non-clients). The MAAP framework (Material, Adverse, Actually known, Physical) is taught in pre-licensing to help practitioners decide what must be disclosed and to distinguish disclosable facts from confidential information or client motivations that must be protected. Examples include known structural defects, roof leaks, or latent physical conditions. This aligns with Maryland’s duties of honesty, disclosure of material facts, and prohibition against misrepresentation.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Brokerage and the Law of Agency” (brokerage duties to clients and customers; disclosure vs. confidentiality; MAAP decision tool).

COMAR 09.11.02 (standards of practice: honesty; disclosure of material facts; avoidance of misrepresentation).

Business Occupations & Professions, Title 17 (grounds for discipline related to disclosure and misrepresentation).

The financing module defines a Growing Equity Mortgage (GEM) as a fixed-rate loan with scheduled payment increases applied directly to principal, accelerating amortization and reducing total interest over the life of the loan. This differs from negative amortization (where payments don’t cover interest and the balance grows), blanket mortgages (cover multiple parcels with a release clause), and pledged account mortgages (use a pledged savings account to subsidize payments).

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 fair housing section explains that testing (often using paired testers) is designed to identify discriminatory housing practices that may not be visible to the public, such as unequal treatment in showings, terms, or availability disclosures. Testing compares how similarly qualified people from protected classes are treated relative to control testers, thereby uncovering hidden or subtle discrimination and supporting enforcement of fair housing laws.

A land trust is a type of living trust in which real property is the only asset placed into the trust.

Under a land trust, the trustee (fiduciary) holds legal title to the property, while the beneficiary retains the rights to control, manage, and receive income or proceeds from the property.

The Maryland pre-licensing course explains that land trusts are commonly used for privacy, estate planning, and avoiding probate, since the property is owned and transferred through the trust rather than by individual deed.

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.

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.

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.

A life tenant holds possession for the duration of a measured life but must maintain the property and preserve its value for the remainderman or reversionary owner.

When the life tenant damages, neglects, or depletes the property, that conduct is termed an act of waste.

The future interest holder may take legal action to stop such waste.

The concept appears under “Interests in Real Estate” when describing life estates and their limitations.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Estates in Land chapter.

– Maryland Real Property Article §14-101 et seq.

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’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.