MD REAL ESTATE TEST QUESTIONS
AND ANSWERS
Funds belonging to others must be maintained in an escrow account by the broker and
-Interest may accrue to the purchaser
-The banking institution must be insured
-The broker may not deposit his personal or business funds into this account
-All of the above - Answer- -All of the above
In the State of Maryland a person must follow requirement to obtain property through
adverse possession
-Use the property for 20 years
-Get permission from the owner of the land
-Use the property every other year •
-Post a sign on the subject property - Answer- -Use the property for 20 years
All funds received by a salesperson for the account of others
-Must be kept by the salesperson in a separate escrow account
-Must be kept in the office safe until the transaction is completed
-Must be kept with brokers business account
-Must be deposited into the company's escrow account by the Broker - Answer- -Must
be deposited into the company's escrow account by the Broker
A real estate broker's license may be suspended or revoked for
-Keeping a separate escrow account
-Being accused of violating any provision of the license law
-Failure to account for or remit funds belonging to others
-Firing a salesperson - Answer- -Failure to account for or remit funds belonging to
others
A broker may satisfy the requirements for a place of business by
-Maintaining a commercial answering service for this purpose
-Maintaining an office in the place where his real estate business is regularly transacted
-Having a secretary in his residence
-Having a home answering machine - Answer- -Maintaining an office in the place where
his real estate business is regularly transacted
Without instructions to the contrary, from the owner and beneficial owner, the Brokers
Act states that earnest money deposits
-May be commingled with the broker's funds
, -May be withdrawn at any time prior to settlement as long as a licensee's signature
appears on the escrow check
-Are to be placed in an interest-bearing account
-Must be deposited in a non interest bearing trust account in a financial institution
insured and approved in Maryland - Answer- -Must be deposited in a non interest
bearing trust account in a financial institution insured and approved in Maryland
If the disclosure/disclaimer form is given to the purchasers after the date of contract
ratification but before settlement, the purchaser has the right to cancel the contract
within
-5 days after receipt of the form
-7 days after receipt of the form
-15 days after receipt of the form
-30 days after receipt of the form - Answer- -5 days after receipt of the form
An unlicensed personal assistant may
-Submit listings and changes to a multiple listing service
-Hold an open house only if licensed
-Show listed properties
-Be paid on the basis of percentage of commission - Answer- -Submit listings and
changes to a multiple listing service
If a broker changes business location without notifying the REC, all licenses issued to
members of the firm are
-Automatically suspended until compliance
-Automatically canceled until compliance
-Automatically revoked until compliance
-Not affected - Answer- -Automatically suspended until compliance
An applicant who fails the state examination must
-Retake the basic course
-Retake only the failed portion of the exam
-Retake the entire exam
-Wait at least 60 days before retaking the exam - Answer- -Retake only the failed
portion of the exam
Upon the acceptance of a contract for the sale of a home, the broker received $2,500 in
earnest money
-The money must be placed in an escrow account
-At settlement, the $2,500 must be paid to the principal by certified check
-The $2,500 must not accrue interest while on deposit
-The $2,500 must always accrue interest while on deposit - Answer- -The money must
be placed in an escrow account
When a claimant receives compensation from the Guaranty Fund because of a
licensee's transgressions
AND ANSWERS
Funds belonging to others must be maintained in an escrow account by the broker and
-Interest may accrue to the purchaser
-The banking institution must be insured
-The broker may not deposit his personal or business funds into this account
-All of the above - Answer- -All of the above
In the State of Maryland a person must follow requirement to obtain property through
adverse possession
-Use the property for 20 years
-Get permission from the owner of the land
-Use the property every other year •
-Post a sign on the subject property - Answer- -Use the property for 20 years
All funds received by a salesperson for the account of others
-Must be kept by the salesperson in a separate escrow account
-Must be kept in the office safe until the transaction is completed
-Must be kept with brokers business account
-Must be deposited into the company's escrow account by the Broker - Answer- -Must
be deposited into the company's escrow account by the Broker
A real estate broker's license may be suspended or revoked for
-Keeping a separate escrow account
-Being accused of violating any provision of the license law
-Failure to account for or remit funds belonging to others
-Firing a salesperson - Answer- -Failure to account for or remit funds belonging to
others
A broker may satisfy the requirements for a place of business by
-Maintaining a commercial answering service for this purpose
-Maintaining an office in the place where his real estate business is regularly transacted
-Having a secretary in his residence
-Having a home answering machine - Answer- -Maintaining an office in the place where
his real estate business is regularly transacted
Without instructions to the contrary, from the owner and beneficial owner, the Brokers
Act states that earnest money deposits
-May be commingled with the broker's funds
, -May be withdrawn at any time prior to settlement as long as a licensee's signature
appears on the escrow check
-Are to be placed in an interest-bearing account
-Must be deposited in a non interest bearing trust account in a financial institution
insured and approved in Maryland - Answer- -Must be deposited in a non interest
bearing trust account in a financial institution insured and approved in Maryland
If the disclosure/disclaimer form is given to the purchasers after the date of contract
ratification but before settlement, the purchaser has the right to cancel the contract
within
-5 days after receipt of the form
-7 days after receipt of the form
-15 days after receipt of the form
-30 days after receipt of the form - Answer- -5 days after receipt of the form
An unlicensed personal assistant may
-Submit listings and changes to a multiple listing service
-Hold an open house only if licensed
-Show listed properties
-Be paid on the basis of percentage of commission - Answer- -Submit listings and
changes to a multiple listing service
If a broker changes business location without notifying the REC, all licenses issued to
members of the firm are
-Automatically suspended until compliance
-Automatically canceled until compliance
-Automatically revoked until compliance
-Not affected - Answer- -Automatically suspended until compliance
An applicant who fails the state examination must
-Retake the basic course
-Retake only the failed portion of the exam
-Retake the entire exam
-Wait at least 60 days before retaking the exam - Answer- -Retake only the failed
portion of the exam
Upon the acceptance of a contract for the sale of a home, the broker received $2,500 in
earnest money
-The money must be placed in an escrow account
-At settlement, the $2,500 must be paid to the principal by certified check
-The $2,500 must not accrue interest while on deposit
-The $2,500 must always accrue interest while on deposit - Answer- -The money must
be placed in an escrow account
When a claimant receives compensation from the Guaranty Fund because of a
licensee's transgressions
