MARYLAND REAL ESTATE COMPREHENSIVE EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Amortized - ✔✔Debt that is paid off by making periodic payments mostly consisting
of interest and principal
✔✔Straight line - ✔✔Mortgage where installment payments change, with the borrower
making higher installment payments at the beginning of the loan
✔✔Graduated Payments - ✔✔Loan where the payments are adjusted (usually up) at
specified periods over the life of the loan
✔✔Pledged Account - ✔✔type of graduated payment mortgage in which the buyer
deposits funds into a savings account with the lender
✔✔Growing Equity - ✔✔A fixed-rate mortgage where the monthly payments increase
over time according to a set schedule
✔✔Blanket - ✔✔Mortgage type where two or more properties are pledged as security
✔✔Shared Equity - ✔✔Mortgage type that allows the lender to receive a share of the
profits generated by the commercial property
✔✔Package - ✔✔Mortgage type where personal property is included in addition to the
real property, such as a retail space with its display fixtures
✔✔Buydowns - ✔✔Temporary down payments to reduce the mortgage rates
✔✔The Consumer Credit Protection Act (1968) - ✔✔The Consumer Credit Protection
Act (CCPA), created in 1968, includes the Truth in Lending Act (TILA). The intent of the
legislation was to safeguard the consumer in the use of residential credit by requiring
full disclosure of the terms and conditions in any offers of credit. TILA requires lenders
to make disclosures that allow consumers to compare the costs of making a purchase
using credit from different lenders, and to compare the cost of using credit with the cost
of using cash.
✔✔Truth and lending act - ✔✔Requires disclosure of loan terms and costs
✔✔RESPA (Real Estate Settlement Procedures Act) - ✔✔a law requiring full disclosure
of closing costs to buyer and seller.
✔✔Equal Credit Opportunity Act (ECOA) - ✔✔A federal act, which prohibits
discrimination by lenders on the basis of sex or marital status in any aspect of a credit
transaction.
, ✔✔Community Reinvestment Act - ✔✔Required banks to make loans available in low
income, minority communities
✔✔CDA - ✔✔comprised of three branches: multi-family, single-family, and CDA finance
✔✔Single family branch - ✔✔Provides homebuyer assistance programs for low- to
moderate-income home buyers
✔✔Finance Branch - ✔✔Raises capital to fund below-market interest rates for
homebuyers
✔✔Direct Loan Program - ✔✔Provides payment assistance for low-income borrowers in
rural areas (Section 502 Direct Loan)
✔✔HID Program - ✔✔Provides home loan assistance for disabled individuals
✔✔Maryland Commission on Civil Rights - ✔✔entity regulates fair housing law in
Maryland
✔✔Lease - ✔✔The contract that allows a tenant to live on the property and establishes
the rights and obligations of the tenant
✔✔Lease hold estate - ✔✔The right that allows a tenant to live on the property
✔✔nonfreehold estate - ✔✔An estate that conveys possession and control. Also known
as a leasehold estate.
✔✔Gross Lease (commercial) - ✔✔All expenses are paid by the landlord
✔✔Full service lease (commercial) - ✔✔Tenant pays base rent plus a prorated share of
the building's or complex' operating expenses (Most common in multi story office
buildings)
✔✔Proprietary lease - ✔✔A lease given by the corporation that owns a cooperative
apartment building to the shareholder for the shareholder's right as a tenant to an
individual apartment.
✔✔Ground Lease - ✔✔the tenant leases property on which the tenant intends to build.
The lease term is designed to be long enough for the tenant to recoup the investment
for the outlay of cash to build the building. When the lease expires, the improvement
belongs to the landowner. Generally a net lease is used where the tenant must pay rent
plus taxes, insurance and maintenance (plus repairs). A net ground lease typically has a
term of just under 50 years.
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Amortized - ✔✔Debt that is paid off by making periodic payments mostly consisting
of interest and principal
✔✔Straight line - ✔✔Mortgage where installment payments change, with the borrower
making higher installment payments at the beginning of the loan
✔✔Graduated Payments - ✔✔Loan where the payments are adjusted (usually up) at
specified periods over the life of the loan
✔✔Pledged Account - ✔✔type of graduated payment mortgage in which the buyer
deposits funds into a savings account with the lender
✔✔Growing Equity - ✔✔A fixed-rate mortgage where the monthly payments increase
over time according to a set schedule
✔✔Blanket - ✔✔Mortgage type where two or more properties are pledged as security
✔✔Shared Equity - ✔✔Mortgage type that allows the lender to receive a share of the
profits generated by the commercial property
✔✔Package - ✔✔Mortgage type where personal property is included in addition to the
real property, such as a retail space with its display fixtures
✔✔Buydowns - ✔✔Temporary down payments to reduce the mortgage rates
✔✔The Consumer Credit Protection Act (1968) - ✔✔The Consumer Credit Protection
Act (CCPA), created in 1968, includes the Truth in Lending Act (TILA). The intent of the
legislation was to safeguard the consumer in the use of residential credit by requiring
full disclosure of the terms and conditions in any offers of credit. TILA requires lenders
to make disclosures that allow consumers to compare the costs of making a purchase
using credit from different lenders, and to compare the cost of using credit with the cost
of using cash.
✔✔Truth and lending act - ✔✔Requires disclosure of loan terms and costs
✔✔RESPA (Real Estate Settlement Procedures Act) - ✔✔a law requiring full disclosure
of closing costs to buyer and seller.
✔✔Equal Credit Opportunity Act (ECOA) - ✔✔A federal act, which prohibits
discrimination by lenders on the basis of sex or marital status in any aspect of a credit
transaction.
, ✔✔Community Reinvestment Act - ✔✔Required banks to make loans available in low
income, minority communities
✔✔CDA - ✔✔comprised of three branches: multi-family, single-family, and CDA finance
✔✔Single family branch - ✔✔Provides homebuyer assistance programs for low- to
moderate-income home buyers
✔✔Finance Branch - ✔✔Raises capital to fund below-market interest rates for
homebuyers
✔✔Direct Loan Program - ✔✔Provides payment assistance for low-income borrowers in
rural areas (Section 502 Direct Loan)
✔✔HID Program - ✔✔Provides home loan assistance for disabled individuals
✔✔Maryland Commission on Civil Rights - ✔✔entity regulates fair housing law in
Maryland
✔✔Lease - ✔✔The contract that allows a tenant to live on the property and establishes
the rights and obligations of the tenant
✔✔Lease hold estate - ✔✔The right that allows a tenant to live on the property
✔✔nonfreehold estate - ✔✔An estate that conveys possession and control. Also known
as a leasehold estate.
✔✔Gross Lease (commercial) - ✔✔All expenses are paid by the landlord
✔✔Full service lease (commercial) - ✔✔Tenant pays base rent plus a prorated share of
the building's or complex' operating expenses (Most common in multi story office
buildings)
✔✔Proprietary lease - ✔✔A lease given by the corporation that owns a cooperative
apartment building to the shareholder for the shareholder's right as a tenant to an
individual apartment.
✔✔Ground Lease - ✔✔the tenant leases property on which the tenant intends to build.
The lease term is designed to be long enough for the tenant to recoup the investment
for the outlay of cash to build the building. When the lease expires, the improvement
belongs to the landowner. Generally a net lease is used where the tenant must pay rent
plus taxes, insurance and maintenance (plus repairs). A net ground lease typically has a
term of just under 50 years.
