MARYLAND REAL ESTATE EXAMS SCRIPT 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Fee Simple Determinable - ✔✔A type of fee simple defeasible, this ends
automatically when the stated event or condition occurs. The original owner retains a
possibility of reversion. Property is retained "while," "during," or "so long as" the
condition occurs; this is the language most often seen in the deed.
✔✔Fee Simple on Condition Subsequent - ✔✔A type of fee simple defeasible, and also
known as a fee on condition, this is created when an estate is given on the condition
that the owner does or doesn't take a specific action. The grantor has the right of reentry
if the condition is violated. The estate doesn't automatically revert to the original owner;
it may require legal action on the part of the original owner.
✔✔Dower - ✔✔The wifes rights on her husbands property
✔✔living trust - ✔✔is created during a person's lifetime and is often used when minor
children are involved. The property may be placed within the trust for their use in their
lifetime or when they reach the age determined by the person who creates the trust. In
the meantime, the trustee will manage it for them according to the terms of the trust. A
living trust differs from a living will in that a living trust is established to convey property,
whereas a living will is created to dictate terms of care in the event the trust maker
becomes incapacitated.
✔✔Testamentary Trust - ✔✔is one created according to the terms of the will of a
deceased person. Unlike living trusts, testamentary trusts do not avoid probate.
✔✔Estate at Sufferance - ✔✔non-lawful possession after the expiration of a lease. The
owner "suffers" the illegal tenant's continued presence on the property.
✔✔Comparative Market Analysis (CMA) - ✔✔is an unbiased estimate or opinion of the
market value of real property by a real estate licensee who isn't a licensed or certified
appraiser. It's usually provided to a seller, though they're sometimes done for another
party.
✔✔broker's price opinion (BPO) - ✔✔is usually ordered by a lender in a foreclosure
situation. They don't want to shell out the bucks for a full appraisal, so they'll hire some
real estate broker to give them an opinion of price. Basically, it's just a CMA with a
different name for a different purpose. Sometimes a relocation company will ask a
broker to do a BPO.
✔✔Anticipation - ✔✔The value of property today is the current value of the total
anticipated future benefits. For example, a commercial property is leased for $12,000
per year for 30 years. The value of the property is based on the income that is expected
to be received in the future.
, ✔✔Plottage - ✔✔The joining or assemblage of two neighboring land parcels increases
the property value. In such a case, 1+ 1 often equals 3 or even 5. So two parcels worth
$40,000 separately might be worth $120,000 when joined.
✔✔Regression - ✔✔This is the value a higher-quality property loses by being near a
lower-quality property.
✔✔Progression - ✔✔This is the value a lower-quality property gains by being near a
higher-quality property. For example, if your neighbor builds on a second story in a
quality remodel, the bump in value that your property receives is progression.
✔✔Substitution - ✔✔A property's value is determined by what it would cost to purchase
a similar substitute property. If someone offered you a car that is an exact replica of
another car but was $3,000 less, it would impact your perceived value of the other car.
✔✔Income Approach - ✔✔Used to value analyzes a property's ability to earn future
income and is typically used for single-family houses (where the primary use is as a
rental property) and for two- to four-family units.
✔✔With the cost approach to value, what is the reproduction cost? - ✔✔The
reproduction cost is the cost to build an exact replica of the subject with the same
materials and deficiencies, as opposed to the replacement cost, which is the cost to
build a functionally equivalent improvement.
✔✔The GRM for Sunny Hills is 147. If a three-bedroom, one-bath house in Sunny Hills
rents for $820 monthly and sold for $125,000, what is the suggested value of a house
that leases for $1,000 monthly based on the GRM? - ✔✔This question asks you to find
the value of a house based on the GRM of 147. The value of the home that rents for
$820 monthly isn't relevant to your calculation, which is 147 x $1,000 = $147,000.
Remember that GRM is just an estimate of value.
✔✔Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) -
✔✔requires that federally related appraisals be conducted by a state-licensed or
certified appraiser.
✔✔Questions to ask at the first meeting For a CMA - ✔✔Have you done any recent
upgrades?
Is there anything you're planning to do to prepare the property for sale before you list?
When do you need to sell?
Do you know where you're moving next?
Have you had a recent appraisal done? If so, what were the numbers?
Do you have a price range in mind that you need to get from the property?
What do you currently owe on the property?
Is there anyone else who will need to be involved in the decision to sell?
QUESTIONS AND SOLUTIONS RATED A+
✔✔Fee Simple Determinable - ✔✔A type of fee simple defeasible, this ends
automatically when the stated event or condition occurs. The original owner retains a
possibility of reversion. Property is retained "while," "during," or "so long as" the
condition occurs; this is the language most often seen in the deed.
✔✔Fee Simple on Condition Subsequent - ✔✔A type of fee simple defeasible, and also
known as a fee on condition, this is created when an estate is given on the condition
that the owner does or doesn't take a specific action. The grantor has the right of reentry
if the condition is violated. The estate doesn't automatically revert to the original owner;
it may require legal action on the part of the original owner.
✔✔Dower - ✔✔The wifes rights on her husbands property
✔✔living trust - ✔✔is created during a person's lifetime and is often used when minor
children are involved. The property may be placed within the trust for their use in their
lifetime or when they reach the age determined by the person who creates the trust. In
the meantime, the trustee will manage it for them according to the terms of the trust. A
living trust differs from a living will in that a living trust is established to convey property,
whereas a living will is created to dictate terms of care in the event the trust maker
becomes incapacitated.
✔✔Testamentary Trust - ✔✔is one created according to the terms of the will of a
deceased person. Unlike living trusts, testamentary trusts do not avoid probate.
✔✔Estate at Sufferance - ✔✔non-lawful possession after the expiration of a lease. The
owner "suffers" the illegal tenant's continued presence on the property.
✔✔Comparative Market Analysis (CMA) - ✔✔is an unbiased estimate or opinion of the
market value of real property by a real estate licensee who isn't a licensed or certified
appraiser. It's usually provided to a seller, though they're sometimes done for another
party.
✔✔broker's price opinion (BPO) - ✔✔is usually ordered by a lender in a foreclosure
situation. They don't want to shell out the bucks for a full appraisal, so they'll hire some
real estate broker to give them an opinion of price. Basically, it's just a CMA with a
different name for a different purpose. Sometimes a relocation company will ask a
broker to do a BPO.
✔✔Anticipation - ✔✔The value of property today is the current value of the total
anticipated future benefits. For example, a commercial property is leased for $12,000
per year for 30 years. The value of the property is based on the income that is expected
to be received in the future.
, ✔✔Plottage - ✔✔The joining or assemblage of two neighboring land parcels increases
the property value. In such a case, 1+ 1 often equals 3 or even 5. So two parcels worth
$40,000 separately might be worth $120,000 when joined.
✔✔Regression - ✔✔This is the value a higher-quality property loses by being near a
lower-quality property.
✔✔Progression - ✔✔This is the value a lower-quality property gains by being near a
higher-quality property. For example, if your neighbor builds on a second story in a
quality remodel, the bump in value that your property receives is progression.
✔✔Substitution - ✔✔A property's value is determined by what it would cost to purchase
a similar substitute property. If someone offered you a car that is an exact replica of
another car but was $3,000 less, it would impact your perceived value of the other car.
✔✔Income Approach - ✔✔Used to value analyzes a property's ability to earn future
income and is typically used for single-family houses (where the primary use is as a
rental property) and for two- to four-family units.
✔✔With the cost approach to value, what is the reproduction cost? - ✔✔The
reproduction cost is the cost to build an exact replica of the subject with the same
materials and deficiencies, as opposed to the replacement cost, which is the cost to
build a functionally equivalent improvement.
✔✔The GRM for Sunny Hills is 147. If a three-bedroom, one-bath house in Sunny Hills
rents for $820 monthly and sold for $125,000, what is the suggested value of a house
that leases for $1,000 monthly based on the GRM? - ✔✔This question asks you to find
the value of a house based on the GRM of 147. The value of the home that rents for
$820 monthly isn't relevant to your calculation, which is 147 x $1,000 = $147,000.
Remember that GRM is just an estimate of value.
✔✔Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) -
✔✔requires that federally related appraisals be conducted by a state-licensed or
certified appraiser.
✔✔Questions to ask at the first meeting For a CMA - ✔✔Have you done any recent
upgrades?
Is there anything you're planning to do to prepare the property for sale before you list?
When do you need to sell?
Do you know where you're moving next?
Have you had a recent appraisal done? If so, what were the numbers?
Do you have a price range in mind that you need to get from the property?
What do you currently owe on the property?
Is there anyone else who will need to be involved in the decision to sell?
