MARYLAND STATE EXAM LIFE INSURANCE LICENSE PRACTICE QUESTIONS AND
ANSWERS 2025
According to Maryland disclosure guidelines, upon which of the following events is it NOT appropriate to
give the buyer the opportunity to review the seller's disclosure/disclaimer statement?
The day of the home inspection
When the buyer expresses interest in purchasing the property
When the buyer makes an offer
When the property goes on the market - (ANSWER)The day of the home inspection
Nancy, a broker in Annapolis, is going over the listing agreement with her new client, Josie, who asks,
"What if I need to cancel the agreement early?" What should Nancy tell her?
"I'm always flexible. If we need to, we'll add an amendment to the agreement granting you permission
to cancel early."
"Listing agreements in Maryland must be for a definite amount of time. If it would make you more
comfortable, we can set the expiration date for one month, then have it automatically renew unless you
decide to cancel."
"There's a provision right here that gives either of us permission to cancel the agreement early."
"You may cancel early. But per Maryland law, since listing agreements must have a definite termination
date, if you do cancel I'll have to charge you a nominal cancellation fee." - (ANSWER)"There's a provision
right here that gives either of us permission to cancel the agreement early."
Fatima, a salesperson, is hosting an open house in Annapolis for her seller client Ramona. Two
interested buyers come in, and after Fatima gives them a tour they tell her they'd like her to represent
them in making an offer. Since her seller client has already consented to dual agency, she gladly offers to
represent the buyers and helps them write an offer right there at the open house, making sure that they
also sign a Consent for Dual Agency form. What's wrong with this scenario?
Fatima doesn't need them to sign the Consent for Dual Agency form since her seller client already has.
,MARYLAND STATE EXAM LIFE INSURANCE LICENSE PRACTICE QUESTIONS AND
ANSWERS 2025
Fatima isn't permitted to act as a dual agent.
Fatima must wait until the open house is finished to have her new clients sign the Consent for Dual
Agency form.
Fatima needs to reaffirm the seller's dual agency consent before she can help the buyers make their
offer. - (ANSWER)Fatima isn't permitted to act as a dual agent.
Only brokers may act as dual agents. For this scenario to be legal, Fatima would represent one side of
the transaction as an intra-company agent, and her broker would appoint another licensee in Fatima's
brokerage to represent the other party.
evon and Courtney both consented to dual agency when they signed their listing agreement with Chad
from Crab Shack Homes, the Eastern Shore's premiere vacation home brokerage. But when another
licensee from Crab Shack presented Chad with an offer, the couple got cold claws and decided they
didn't want the potential conflict of interest with dual agency and withdrew their consent. Which of the
following is NOT a potential outcome?
Crab Shack may terminate the listing agreement.
Devon and Courtney may terminate their agency relationship with Crab Shack and find another broker.
Devon and Courtney will be held to their previous dual agency consent and the transaction will continue
unhindered.
The buyers may find another broker to represent them. - (ANSWER)Devon and Courtney may terminate
their agency relationship with Crab Shack and find another broker.
Bridget represents Colin, who's buying Hugh's house. Darcy represents Hugh. Hugh completed and
signed the Residential Property Disclosure/Disclaimer Statement, and Colin reviewed and signed it. Hugh
, MARYLAND STATE EXAM LIFE INSURANCE LICENSE PRACTICE QUESTIONS AND
ANSWERS 2025
and Colin also signed the Section 10-702 notice form, and their agents made sure a copy of the form and
the disclosure statement were included in the finalized contract. What's missing from this scenario?
Only the disclosure statement needs to be included in the final contract.
Only the notice form needs to be included in the final contract.
The buyer and seller don't need to sign the notice form, the licensees do.
The licensees also need to sign the notice form. - (ANSWER)Both the buyer and seller must sign the
notice form to acknowledge that they have received the notice and that the licensee(s) have informed
them of their rights under Section 10-702 of the Maryland Code. The licensees must also sign.
Charlie and her girlfriend, Frankie, are buying a house together. Having found the perfect home, they
made an offer without first having seen the seller's property disclosure/disclaimer statement. The
statement arrived two days after they entered into the contract with the seller. How many days do
Charlie and her girlfriend have to rescind their offer if they find something in the disclosure that makes
them uncertain about the property? - (ANSWER)Five days
Monica's business is booming. She's representing an owner who's selling a $500,000 home on one side
of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens,
the seller and buyer both know each other from church and have been talking to others about Monica's
talents, which has brought in several new leads for her to pursue. What type of agency relationship does
Monica have with the seller and buyer?
She is each party's agent.
She's a dual agent, since the seller and buyer know each other.
She's the buyer's agent and the seller's sub-agent.
She's the seller's agent and the buyer's sub-agent. - (ANSWER)She is each party's agent.
Which of these documents does NOT establish an agency relationship between a client and a licensee?
ANSWERS 2025
According to Maryland disclosure guidelines, upon which of the following events is it NOT appropriate to
give the buyer the opportunity to review the seller's disclosure/disclaimer statement?
The day of the home inspection
When the buyer expresses interest in purchasing the property
When the buyer makes an offer
When the property goes on the market - (ANSWER)The day of the home inspection
Nancy, a broker in Annapolis, is going over the listing agreement with her new client, Josie, who asks,
"What if I need to cancel the agreement early?" What should Nancy tell her?
"I'm always flexible. If we need to, we'll add an amendment to the agreement granting you permission
to cancel early."
"Listing agreements in Maryland must be for a definite amount of time. If it would make you more
comfortable, we can set the expiration date for one month, then have it automatically renew unless you
decide to cancel."
"There's a provision right here that gives either of us permission to cancel the agreement early."
"You may cancel early. But per Maryland law, since listing agreements must have a definite termination
date, if you do cancel I'll have to charge you a nominal cancellation fee." - (ANSWER)"There's a provision
right here that gives either of us permission to cancel the agreement early."
Fatima, a salesperson, is hosting an open house in Annapolis for her seller client Ramona. Two
interested buyers come in, and after Fatima gives them a tour they tell her they'd like her to represent
them in making an offer. Since her seller client has already consented to dual agency, she gladly offers to
represent the buyers and helps them write an offer right there at the open house, making sure that they
also sign a Consent for Dual Agency form. What's wrong with this scenario?
Fatima doesn't need them to sign the Consent for Dual Agency form since her seller client already has.
,MARYLAND STATE EXAM LIFE INSURANCE LICENSE PRACTICE QUESTIONS AND
ANSWERS 2025
Fatima isn't permitted to act as a dual agent.
Fatima must wait until the open house is finished to have her new clients sign the Consent for Dual
Agency form.
Fatima needs to reaffirm the seller's dual agency consent before she can help the buyers make their
offer. - (ANSWER)Fatima isn't permitted to act as a dual agent.
Only brokers may act as dual agents. For this scenario to be legal, Fatima would represent one side of
the transaction as an intra-company agent, and her broker would appoint another licensee in Fatima's
brokerage to represent the other party.
evon and Courtney both consented to dual agency when they signed their listing agreement with Chad
from Crab Shack Homes, the Eastern Shore's premiere vacation home brokerage. But when another
licensee from Crab Shack presented Chad with an offer, the couple got cold claws and decided they
didn't want the potential conflict of interest with dual agency and withdrew their consent. Which of the
following is NOT a potential outcome?
Crab Shack may terminate the listing agreement.
Devon and Courtney may terminate their agency relationship with Crab Shack and find another broker.
Devon and Courtney will be held to their previous dual agency consent and the transaction will continue
unhindered.
The buyers may find another broker to represent them. - (ANSWER)Devon and Courtney may terminate
their agency relationship with Crab Shack and find another broker.
Bridget represents Colin, who's buying Hugh's house. Darcy represents Hugh. Hugh completed and
signed the Residential Property Disclosure/Disclaimer Statement, and Colin reviewed and signed it. Hugh
, MARYLAND STATE EXAM LIFE INSURANCE LICENSE PRACTICE QUESTIONS AND
ANSWERS 2025
and Colin also signed the Section 10-702 notice form, and their agents made sure a copy of the form and
the disclosure statement were included in the finalized contract. What's missing from this scenario?
Only the disclosure statement needs to be included in the final contract.
Only the notice form needs to be included in the final contract.
The buyer and seller don't need to sign the notice form, the licensees do.
The licensees also need to sign the notice form. - (ANSWER)Both the buyer and seller must sign the
notice form to acknowledge that they have received the notice and that the licensee(s) have informed
them of their rights under Section 10-702 of the Maryland Code. The licensees must also sign.
Charlie and her girlfriend, Frankie, are buying a house together. Having found the perfect home, they
made an offer without first having seen the seller's property disclosure/disclaimer statement. The
statement arrived two days after they entered into the contract with the seller. How many days do
Charlie and her girlfriend have to rescind their offer if they find something in the disclosure that makes
them uncertain about the property? - (ANSWER)Five days
Monica's business is booming. She's representing an owner who's selling a $500,000 home on one side
of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens,
the seller and buyer both know each other from church and have been talking to others about Monica's
talents, which has brought in several new leads for her to pursue. What type of agency relationship does
Monica have with the seller and buyer?
She is each party's agent.
She's a dual agent, since the seller and buyer know each other.
She's the buyer's agent and the seller's sub-agent.
She's the seller's agent and the buyer's sub-agent. - (ANSWER)She is each party's agent.
Which of these documents does NOT establish an agency relationship between a client and a licensee?
