MD CE Shop Final Exam Prep 2026/2027 –
Key Concepts, Practice Questions &
Solutions
Two agents from the same team represent the seller and the other represents the
buyer- Is this dual agency in MD - correct answer-NOT an example of legal dual
agency in Maryland
Timothy is moving out of his neighborhood because his neighbors host raucous
parties at all hours of the night. - Does he need to disclose? - correct answer-NOT
a material fact requiring disclosure in Maryland
When a payment is made on your behalf from the Guaranty Fund, what happens
to your real estate license - correct answer-It is suspended
The commission may reprimand, impose fines, and suspend and/or revoke
licenses, but it may not impose prison sentences. - correct answer-possible
penalties imposed by the commission for a violation of the Maryland Code of
Ethics
Amelia, a retired community college professor who used to teach about home
improvement - correct answer-People that would be eligible to be one of MREC's
consumer members
,What type of ownership interest needs to be disclosed in writing to all parties -
correct answer-Property held directly or indirectly by the licensee, the licensee's
immediate family member, the licensee's firm, or a member of the licensee's firm
Tom and Rosanne are interested in a property in Maryland, but before making an
offer, they want to make sure there aren't any registered sex offenders living in
the neighborhood. Which statement is most accurate - correct answer-It's up to
the buyer to perform due diligence and research whether sex offenders live in the
area. Licensees can direct clients to the state's registry.
Sam is an independent contractor Maryland licensee working for B & L Realty.
Since Sam is an independent contractor, what supervisory responsibility does
Sam's broker have - correct answer-Sam is considered an employee for licensing
law purposes, but he's still an independent contractor for IRS purposes.
Which of the following is NOT a relief option that the nine-member Maryland
Commission on Civil Rights may order if it determines that housing discrimination
has occurred? - correct answer-Criminal action against the party who
discriminated
Roz, representing the buyer, sees the seller coming at the grocery store. Roz has
just heard from her buyer client that he's willing to budge on a couple of home
inspection repair issues. What should Roz do? - correct answer-Smile and greet
the seller, engage in small talk as needed, but not mention the buyer's decision.
Because Lisa's agent didn't inform her that she needed to pull a permit to build a
deck off the back of her home, she spent $11,000 having it installed, $7,000
having it removed when the homeowners association discovered she didn't pull a
permit, and another $5,000 in legal fees fighting her agent in court over it. How
, much money is she entitled to seek from the Guaranty Fund? - correct answer-
$18,000 - because 5,000 is legal fees
April has some crazy listings in her current portfolio; it seems as if everything that
could've gone wrong with them has gone wrong. According to Maryland
disclosure law, which of these defects should April disclose? - correct answer-The
mansion on Monroe Street is a former cat sanctuary, and the drywall near where
the litter boxes were shows signs of "water" damage.
Which licensee has violated Maryland license law concerning the use of
unlicensed assistants? - correct answer-Antonio paid his assistant $100 for staying
late one evening to help a client fill out an offer form when Antonio had to leave
unexpectedly.
Commissions may not be paid to unlicensed individuals based on their
performance of real estate activities for which a license is required.
Dante lives in Maryland and purchased property in Pennsylvania. His real estate
agent lied to him about a material defect, and it ended up costing Dante $52,000.
Can Dante file a claim against the Guaranty Fund? - correct answer-No, the
property purchased was in Pennsylvania.
Which of the following is NOT a required inclusion in a Maryland buyer
representation agreement? - correct answer-The address of the property the
buyer is purchasing
Marjorie has been a licensed broker in Maryland for 45 years. She's sick of having
to go through the renewal process every two years and wants to petition to allow
seasoned licensees like her to renew every four years instead. Which entity
should Marjorie contact about this idea? - correct answer-The Maryland Real
Estate Commission
Key Concepts, Practice Questions &
Solutions
Two agents from the same team represent the seller and the other represents the
buyer- Is this dual agency in MD - correct answer-NOT an example of legal dual
agency in Maryland
Timothy is moving out of his neighborhood because his neighbors host raucous
parties at all hours of the night. - Does he need to disclose? - correct answer-NOT
a material fact requiring disclosure in Maryland
When a payment is made on your behalf from the Guaranty Fund, what happens
to your real estate license - correct answer-It is suspended
The commission may reprimand, impose fines, and suspend and/or revoke
licenses, but it may not impose prison sentences. - correct answer-possible
penalties imposed by the commission for a violation of the Maryland Code of
Ethics
Amelia, a retired community college professor who used to teach about home
improvement - correct answer-People that would be eligible to be one of MREC's
consumer members
,What type of ownership interest needs to be disclosed in writing to all parties -
correct answer-Property held directly or indirectly by the licensee, the licensee's
immediate family member, the licensee's firm, or a member of the licensee's firm
Tom and Rosanne are interested in a property in Maryland, but before making an
offer, they want to make sure there aren't any registered sex offenders living in
the neighborhood. Which statement is most accurate - correct answer-It's up to
the buyer to perform due diligence and research whether sex offenders live in the
area. Licensees can direct clients to the state's registry.
Sam is an independent contractor Maryland licensee working for B & L Realty.
Since Sam is an independent contractor, what supervisory responsibility does
Sam's broker have - correct answer-Sam is considered an employee for licensing
law purposes, but he's still an independent contractor for IRS purposes.
Which of the following is NOT a relief option that the nine-member Maryland
Commission on Civil Rights may order if it determines that housing discrimination
has occurred? - correct answer-Criminal action against the party who
discriminated
Roz, representing the buyer, sees the seller coming at the grocery store. Roz has
just heard from her buyer client that he's willing to budge on a couple of home
inspection repair issues. What should Roz do? - correct answer-Smile and greet
the seller, engage in small talk as needed, but not mention the buyer's decision.
Because Lisa's agent didn't inform her that she needed to pull a permit to build a
deck off the back of her home, she spent $11,000 having it installed, $7,000
having it removed when the homeowners association discovered she didn't pull a
permit, and another $5,000 in legal fees fighting her agent in court over it. How
, much money is she entitled to seek from the Guaranty Fund? - correct answer-
$18,000 - because 5,000 is legal fees
April has some crazy listings in her current portfolio; it seems as if everything that
could've gone wrong with them has gone wrong. According to Maryland
disclosure law, which of these defects should April disclose? - correct answer-The
mansion on Monroe Street is a former cat sanctuary, and the drywall near where
the litter boxes were shows signs of "water" damage.
Which licensee has violated Maryland license law concerning the use of
unlicensed assistants? - correct answer-Antonio paid his assistant $100 for staying
late one evening to help a client fill out an offer form when Antonio had to leave
unexpectedly.
Commissions may not be paid to unlicensed individuals based on their
performance of real estate activities for which a license is required.
Dante lives in Maryland and purchased property in Pennsylvania. His real estate
agent lied to him about a material defect, and it ended up costing Dante $52,000.
Can Dante file a claim against the Guaranty Fund? - correct answer-No, the
property purchased was in Pennsylvania.
Which of the following is NOT a required inclusion in a Maryland buyer
representation agreement? - correct answer-The address of the property the
buyer is purchasing
Marjorie has been a licensed broker in Maryland for 45 years. She's sick of having
to go through the renewal process every two years and wants to petition to allow
seasoned licensees like her to renew every four years instead. Which entity
should Marjorie contact about this idea? - correct answer-The Maryland Real
Estate Commission
