MD State Practice Exam Questions with Verified Solutions

MD State Practice Exam Questions with Verified Solutions When a payment is made on your behalf from the Guaranty Fund, what happens to your real estate license? It is suspended Peter represents an owner who's selling an investment property. The property is listed at $245,000, which Peter knows is too high. He encourages his business partner, Mel, to offer $235,000 and convinces the seller to take it. After closing, Peter and Mel flip the house and make a handsome profit. What illegal activity has Peter engaged in? Self-Dealing Licensed property managers in Maryland must maintain related records for at least five years, beginning on the date ______. The property management agreement terminates Which of these incentives would be legal according to Maryland license law? Ben runs a "Spring into Summer" ad offering sellers a reduced commission rate for the next three months. Which of the following is NOT cause for the Maryland Real Estate Commission to summarily suspend a licensee's real estate license? The licensee fails to disclose personal interest in a transaction. Which of these is NOT a circumstance that would result in a Maryland broker releasing trust money she was holding? The buyer needed his earnest money back in order to pay the down payment. LaTonya represents the seller of a property that's got an interested buyer. She's emailing the buyer, who's unrepresented, some documentation based on some questions he had and has included the Understanding Whom Real Estate Agents Represent form so she can disclose her agency relationship with the seller. Is this permissible? Yes, LaTonya may disclose her agency relationship through whatever medium is used when first contacting the unrepresented party. Rumi was on vacation in St. Croix when he received a written offer, via email, for his seller client's property, which had been on the market for two months with no offers. He decided to hold onto it until he got back a week later, so he could present it to his client in person. The next day, his seller client called Rumi's office to cancel the listing. When Rumi told the former client that he'd had an offer, she complained to MREC about him. What are the possible penalties Rumi could face? He could be disciplined by the commission and receive a possible lawsuit for intentional interference Shawn and his life partner, Dennis, recently put an in an offer on a home. The seller tells his agent to reject the offer, because he won't sell to "gays." Are Shawn and Dennis protected under fair housing laws? Yes, under state fair housing laws; Maryland's state fair housing laws prohibit discrimination based on the protected class of sexual orientation; federal fair housing laws do not offer such protection. Broker Barry has just received a letter from MREC informing him that one of Barry's associated licensees, Pat, has had a complaint filed against him. What information is NOT included in this letter? Contact information for MREC's legal hotline; Licensees and their brokers are notified when a complaint is being investigated. The charges, potential penalties, and a copy of the complaint are included in the notification, and the licensees must respond with a full explanation. MREC received a complaint from Rose, stating that licensee Stan had placed a sign on her property without her permission. As a result, she received a $250 fine from her homeowners association for illegal signage. MREC notified Stan and his broker about the complaint, and Stan's broker responded by sending a copy