MARYLAND REAL ESTATE EVALUATION EXAM 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔As is - ✔✔Specifies that the seller and buyer agree to sell/purchase the property
with no inspections or contingencies
✔✔Conservation Easement - ✔✔Gives notice to the buyer of any restrictions that limit
or affect property use
✔✔Affiliated Business Disclosure - ✔✔Reveals a broker's business relationships with
settlement service providers
✔✔Seller Contribution - ✔✔Identifies the amount the seller will credit the buyer towards
the buyer's settlement costs
✔✔Purchase Price Escalation - ✔✔Gives buyers the chance to compete against other
offers and to set a maximum offer amount
✔✔Transfer charges - ✔✔Identifies which party is responsible for recordation, state,
and local transfer taxes
✔✔Settlement costs - ✔✔Specifies the fees associated with the sales transaction that
the seller and buyer must pay.
✔✔Adjustments - ✔✔Identifies miscellaneous charges that must be adjusted to the day
of settlement.
✔✔Conservation Easements - ✔✔States that contracts for property that is encumbered
by a conservation easement must contain a notice about the easement.
✔✔Forest Conservation Act - ✔✔States that owners of tracts of land with 40,000 square
feet or more must comply with the provisions of the Forest Conservation Notice.
✔✔Wetlands Notice - ✔✔States that a building permit granting the approval of the US
Army Corps of Engineers is required before building on wetland property.
✔✔Coastal Bays Critical Area - ✔✔States that homes near designated bay areas are
subject to additional zoning, land use, and resource protection regulations.
✔✔Contingencies - ✔✔are conditions that must be met before the agreement of sale is
complete and enforceable. They usually include the actions necessary to remove the
condition, a deadline for its removal, and the party responsible for the accompanying
actions or costs involved. Contingencies must be removed prior to closing; usually, they
, must be removed by certain dates. In some cases, contingencies are passively
removed if they're not invoked by their specified deadlines.
✔✔Commingling - ✔✔Illegally mixing deposits or monies, collected from a client, with
one's personal or business account. Taking money out too soon or putting it into escrow
too late (10 banking days).
✔✔Conversion - ✔✔or illegally use money that they received on behalf of the principals
✔✔Constructive notice - ✔✔A legal term that means people are assumed to have
knowledge about what exists in the public record.
✔✔Acknowlegment - ✔✔An oath by a subscribing witness, such as a notary public, that
the grantor's signing of the deed is a voluntary act.
✔✔Delivery and Acceptance - ✔✔An oath by a subscribing witness, such as a notary
public, that the grantor's signing of the deed is a voluntary act.
✔✔Deed - ✔✔Used to provide proof of ownership
✔✔Survey - ✔✔Proves that no encroachments exist with the property
✔✔Chain of title - ✔✔Establishes path and proof of ownership
✔✔Abstract of title - ✔✔Provides a summary of the title history
✔✔Title insurance policy - ✔✔Insures the policy owner against financial loss if the title
to the real estate has defects
✔✔Affidavit of Title - ✔✔Seller's sworn statement assuring there are no other title
defects not shown in the title search.
✔✔Title Search - ✔✔A search of public records to provide a title commitment or
abstract of title.
✔✔Marketable title - ✔✔Title to property is free and clear of liens and only subject to
loan payoff and any taxes owed.
✔✔Evidence of title - ✔✔Proves ownership of the property.
✔✔Taxpayer Relief Act of 1997 - ✔✔allows first-time homebuyers to use up to $10,000
of their IRA funds to pay the down payment and closing costs of their new home, and
the early distribution penalty is waived. However, they still have to pay taxes on the
distribution, just as they would any time they withdraw funds from their IRA.
QUESTIONS AND SOLUTIONS RATED A+
✔✔As is - ✔✔Specifies that the seller and buyer agree to sell/purchase the property
with no inspections or contingencies
✔✔Conservation Easement - ✔✔Gives notice to the buyer of any restrictions that limit
or affect property use
✔✔Affiliated Business Disclosure - ✔✔Reveals a broker's business relationships with
settlement service providers
✔✔Seller Contribution - ✔✔Identifies the amount the seller will credit the buyer towards
the buyer's settlement costs
✔✔Purchase Price Escalation - ✔✔Gives buyers the chance to compete against other
offers and to set a maximum offer amount
✔✔Transfer charges - ✔✔Identifies which party is responsible for recordation, state,
and local transfer taxes
✔✔Settlement costs - ✔✔Specifies the fees associated with the sales transaction that
the seller and buyer must pay.
✔✔Adjustments - ✔✔Identifies miscellaneous charges that must be adjusted to the day
of settlement.
✔✔Conservation Easements - ✔✔States that contracts for property that is encumbered
by a conservation easement must contain a notice about the easement.
✔✔Forest Conservation Act - ✔✔States that owners of tracts of land with 40,000 square
feet or more must comply with the provisions of the Forest Conservation Notice.
✔✔Wetlands Notice - ✔✔States that a building permit granting the approval of the US
Army Corps of Engineers is required before building on wetland property.
✔✔Coastal Bays Critical Area - ✔✔States that homes near designated bay areas are
subject to additional zoning, land use, and resource protection regulations.
✔✔Contingencies - ✔✔are conditions that must be met before the agreement of sale is
complete and enforceable. They usually include the actions necessary to remove the
condition, a deadline for its removal, and the party responsible for the accompanying
actions or costs involved. Contingencies must be removed prior to closing; usually, they
, must be removed by certain dates. In some cases, contingencies are passively
removed if they're not invoked by their specified deadlines.
✔✔Commingling - ✔✔Illegally mixing deposits or monies, collected from a client, with
one's personal or business account. Taking money out too soon or putting it into escrow
too late (10 banking days).
✔✔Conversion - ✔✔or illegally use money that they received on behalf of the principals
✔✔Constructive notice - ✔✔A legal term that means people are assumed to have
knowledge about what exists in the public record.
✔✔Acknowlegment - ✔✔An oath by a subscribing witness, such as a notary public, that
the grantor's signing of the deed is a voluntary act.
✔✔Delivery and Acceptance - ✔✔An oath by a subscribing witness, such as a notary
public, that the grantor's signing of the deed is a voluntary act.
✔✔Deed - ✔✔Used to provide proof of ownership
✔✔Survey - ✔✔Proves that no encroachments exist with the property
✔✔Chain of title - ✔✔Establishes path and proof of ownership
✔✔Abstract of title - ✔✔Provides a summary of the title history
✔✔Title insurance policy - ✔✔Insures the policy owner against financial loss if the title
to the real estate has defects
✔✔Affidavit of Title - ✔✔Seller's sworn statement assuring there are no other title
defects not shown in the title search.
✔✔Title Search - ✔✔A search of public records to provide a title commitment or
abstract of title.
✔✔Marketable title - ✔✔Title to property is free and clear of liens and only subject to
loan payoff and any taxes owed.
✔✔Evidence of title - ✔✔Proves ownership of the property.
✔✔Taxpayer Relief Act of 1997 - ✔✔allows first-time homebuyers to use up to $10,000
of their IRA funds to pay the down payment and closing costs of their new home, and
the early distribution penalty is waived. However, they still have to pay taxes on the
distribution, just as they would any time they withdraw funds from their IRA.
