Maryland Real Estate Salesperson
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. A property owner in Baltimore County lists their commercial warehouse for
sale. The listing agreement specifies a 6% commission structure. During the
negotiation phase, the seller discloses that the property has an
underground storage tank that was removed in 2015 but never formally
certified by the Maryland Department of the Environment. The buyer's
agent discovers this discrepancy during due diligence. Under Maryland
procurement regulations regarding disclosure obligations, which action
must the salesperson take?
A) Advise the seller to obtain retroactive certification before proceeding with
contract execution
B) Immediately terminate the contract and return all earnest money deposits to
the buyer
C) Proceed with the transaction but include an indemnification clause protecting
the buyer
D) Recommend that both parties sign a waiver acknowledging the environmental
condition
Answer: Advise the seller to obtain retroactive certification before proceeding
with contract execution
Maryland law requires full disclosure of environmental hazards, and underground
storage tanks must be properly certified. The salesperson's ethical obligation
,includes advising clients to remedy material defects before contract execution to
ensure compliance with state regulations and maintain fiduciary duties.
2. A procurement officer for Montgomery County is soliciting bids for a new
municipal building project valued at $2.8 million. The evaluation committee
receives seven proposals, with bids ranging from $2.1 million to $3.5
million. The lowest bidder, ABC Construction, has a history of project delays
and contract disputes. Under the Maryland Public Procurement Act and
best value procurement principles, the evaluation committee may:
A) Award the contract to the lowest responsive bidder without considering past
performance
B) Reject ABC Construction's bid based solely on subjective concerns about past
performance
C) Consider past performance as a factor in determining the overall best value to
the county
D) Require all bidders to submit new bids after disclosing ABC Construction's
performance history
Answer: Consider past performance as a factor in determining the overall best
value to the county
Maryland's procurement regulations permit consideration of past performance,
technical capability, and other quality factors when awarding contracts. Best value
procurement allows agencies to evaluate more than just price, ensuring public
funds are used effectively and efficiently.
3. A real estate salesperson is representing a buyer interested in purchasing a
historic property in Annapolis that is listed on the National Register of
Historic Places. The property requires significant restoration work, and the
buyer plans to apply for Maryland historic preservation tax credits. During
contract negotiations, the seller's agent refuses to include a contingency
, clause for the tax credit approval. Under ethical standards governing real
estate practice, the salesperson should:
A) Advise the buyer to proceed without the contingency because tax credits are
virtually guaranteed
B) Recommend that the buyer obtain legal counsel to evaluate the risk of
proceeding without the contingency
C) Proceed with the transaction and apply for the tax credits after closing
D) Withdraw from representation because the property presents too many
complications
Answer: Recommend that the buyer obtain legal counsel to evaluate the risk of
proceeding without the contingency
Real estate salespersons have a duty to provide competent advice and recommend
appropriate professional consultation when complex legal or financial matters
arise. Historic preservation tax credits involve specialized knowledge beyond the
scope of typical real estate practice.
4. In the context of public procurement regulations in Maryland, the concept
of "competitive negotiation" is defined as a procurement method that:
A) Requires sealed bids to be opened publicly and awarded to the lowest bidder
B) Allows for negotiation with offerors after submission of proposals to determine
best value
C) Eliminates the need for formal evaluation criteria and documentation
requirements
D) Permits government agencies to contract directly with any qualified vendor
without competition
Answer: Allows for negotiation with offerors after submission of proposals to
determine best value
Competitive negotiation is a procurement method that enables agencies to
engage in discussions and negotiations with offerors to refine proposals and
, achieve the best value. This method is particularly appropriate when the agency
cannot clearly define its requirements or when technical expertise is critical.
5. A supplier relationship management specialist is evaluating a long-term
contract with a major office supply vendor serving multiple state agencies in
Maryland. The vendor has consistently performed well but has recently
been acquired by a larger corporation with a different corporate culture.
The specialist notices that order fulfillment times have increased by 15%
over the past quarter. Under contract administration principles, the most
appropriate initial response is to:
A) Immediately terminate the contract and seek a new vendor
B) Schedule a formal performance review meeting with the vendor to discuss
service levels
C) Initiate legal proceedings for breach of contract based on the performance
decline
D) Reduce the contract value to reflect the diminished performance levels
Answer: Schedule a formal performance review meeting with the vendor to
discuss service levels
Effective contract administration requires proactive communication and
performance monitoring. Scheduling a review meeting allows both parties to
address performance issues collaboratively, identify root causes, and develop
corrective action plans before resorting to termination or legal action.
6. A real estate salesperson is preparing a comparative market analysis (CMA)
for a residential property in Columbia, Maryland. The property has unique
features, including a solar panel system and a geothermal heating system.
The salesperson discovers that comparable properties with similar green
features sold for premiums ranging from 5% to 12% over market average.
Under professional standards and procurement planning principles, the
salesperson should:
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A property owner in Baltimore County lists their commercial warehouse for
sale. The listing agreement specifies a 6% commission structure. During the
negotiation phase, the seller discloses that the property has an
underground storage tank that was removed in 2015 but never formally
certified by the Maryland Department of the Environment. The buyer's
agent discovers this discrepancy during due diligence. Under Maryland
procurement regulations regarding disclosure obligations, which action
must the salesperson take?
A) Advise the seller to obtain retroactive certification before proceeding with
contract execution
B) Immediately terminate the contract and return all earnest money deposits to
the buyer
C) Proceed with the transaction but include an indemnification clause protecting
the buyer
D) Recommend that both parties sign a waiver acknowledging the environmental
condition
Answer: Advise the seller to obtain retroactive certification before proceeding
with contract execution
Maryland law requires full disclosure of environmental hazards, and underground
storage tanks must be properly certified. The salesperson's ethical obligation
,includes advising clients to remedy material defects before contract execution to
ensure compliance with state regulations and maintain fiduciary duties.
2. A procurement officer for Montgomery County is soliciting bids for a new
municipal building project valued at $2.8 million. The evaluation committee
receives seven proposals, with bids ranging from $2.1 million to $3.5
million. The lowest bidder, ABC Construction, has a history of project delays
and contract disputes. Under the Maryland Public Procurement Act and
best value procurement principles, the evaluation committee may:
A) Award the contract to the lowest responsive bidder without considering past
performance
B) Reject ABC Construction's bid based solely on subjective concerns about past
performance
C) Consider past performance as a factor in determining the overall best value to
the county
D) Require all bidders to submit new bids after disclosing ABC Construction's
performance history
Answer: Consider past performance as a factor in determining the overall best
value to the county
Maryland's procurement regulations permit consideration of past performance,
technical capability, and other quality factors when awarding contracts. Best value
procurement allows agencies to evaluate more than just price, ensuring public
funds are used effectively and efficiently.
3. A real estate salesperson is representing a buyer interested in purchasing a
historic property in Annapolis that is listed on the National Register of
Historic Places. The property requires significant restoration work, and the
buyer plans to apply for Maryland historic preservation tax credits. During
contract negotiations, the seller's agent refuses to include a contingency
, clause for the tax credit approval. Under ethical standards governing real
estate practice, the salesperson should:
A) Advise the buyer to proceed without the contingency because tax credits are
virtually guaranteed
B) Recommend that the buyer obtain legal counsel to evaluate the risk of
proceeding without the contingency
C) Proceed with the transaction and apply for the tax credits after closing
D) Withdraw from representation because the property presents too many
complications
Answer: Recommend that the buyer obtain legal counsel to evaluate the risk of
proceeding without the contingency
Real estate salespersons have a duty to provide competent advice and recommend
appropriate professional consultation when complex legal or financial matters
arise. Historic preservation tax credits involve specialized knowledge beyond the
scope of typical real estate practice.
4. In the context of public procurement regulations in Maryland, the concept
of "competitive negotiation" is defined as a procurement method that:
A) Requires sealed bids to be opened publicly and awarded to the lowest bidder
B) Allows for negotiation with offerors after submission of proposals to determine
best value
C) Eliminates the need for formal evaluation criteria and documentation
requirements
D) Permits government agencies to contract directly with any qualified vendor
without competition
Answer: Allows for negotiation with offerors after submission of proposals to
determine best value
Competitive negotiation is a procurement method that enables agencies to
engage in discussions and negotiations with offerors to refine proposals and
, achieve the best value. This method is particularly appropriate when the agency
cannot clearly define its requirements or when technical expertise is critical.
5. A supplier relationship management specialist is evaluating a long-term
contract with a major office supply vendor serving multiple state agencies in
Maryland. The vendor has consistently performed well but has recently
been acquired by a larger corporation with a different corporate culture.
The specialist notices that order fulfillment times have increased by 15%
over the past quarter. Under contract administration principles, the most
appropriate initial response is to:
A) Immediately terminate the contract and seek a new vendor
B) Schedule a formal performance review meeting with the vendor to discuss
service levels
C) Initiate legal proceedings for breach of contract based on the performance
decline
D) Reduce the contract value to reflect the diminished performance levels
Answer: Schedule a formal performance review meeting with the vendor to
discuss service levels
Effective contract administration requires proactive communication and
performance monitoring. Scheduling a review meeting allows both parties to
address performance issues collaboratively, identify root causes, and develop
corrective action plans before resorting to termination or legal action.
6. A real estate salesperson is preparing a comparative market analysis (CMA)
for a residential property in Columbia, Maryland. The property has unique
features, including a solar panel system and a geothermal heating system.
The salesperson discovers that comparable properties with similar green
features sold for premiums ranging from 5% to 12% over market average.
Under professional standards and procurement planning principles, the
salesperson should:
