Maryland Real Estate National Exam
Questions with Answers
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?
1. "I'm always flexible. If we need to, we'll add an amendment to the agreement granting you
permission to cancel early."
2. "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."
3. "There's a provision right here that gives either of us permission to cancel the agreement
early."
4. "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." - ✔✔3.
"There's a provision right here that gives either of us permission to cancel the agreement
early."
Sheila filed a discrimination complaint against her landlord. She's worried that when he finds
out about her complaint, he's going to evict her. However, he knows not to evict her just
because she filed a complaint. Why?
1. He must wait to evict her until after the complaint has been investigated.
2. Landlords must wait 180 days to evict parties who file a discrimination complaint.
3. Parties who file a discrimination complaint may not be evicted for any reason.
4. Retaliation against parties who file a discrimination complaint is illegal. - ✔✔4. Retaliation
against parties who file a discrimination complaint is illegal.
For sale signs on ground rent properties that show the price of the property must also state
which of the following?
1. Annual ground rent
2. Annual ground rent plus the full cost of capitalization
3. Price for which the land could be purchased
, 4. The market value of the property - ✔✔2. Annual ground rent plus the full cost of
capitalization
Raul, a broker licensed in Maryland, has just signed on to manage a landlord's 15-unit
apartment building. Which of the following tasks may Raul NOT perform without the owner's
express knowledge and consent?
1. Accept a rebate from the laundry machine company.
2. Collect each tenant's rent on the first of the month.
3. Maintain the building's landscaping.
4. Return security deposits to tenants after they move out. - ✔✔1. Accept a rebate from the
laundry machine company.
In Maryland, transaction records may be stored electronically as long as ______.
1. Licensees are able to provide a paper copy upon commission request
2. The electronic storage system has unlimited capacity
3. The storage system used is on the commission's approved systems list
4. They're stored for at least six years - ✔✔1. Licensees are able to provide a paper copy upon
commission request
Jim's had one heck of a time getting his latest listing sold. His seller client nitpicked every single
item that the buyers asked her to repair after the home inspection. She was about to let the
deal fall through over it until Jim offered to rebate 0.5% of his commission back to the seller.
Does Maryland license law permit Jim to do this?
1. No. Licensees aren't permitted to pay (or rebate) compensation to unlicensed individuals.
2. No. The commission rate written into the listing agreement is binding.
3. Yes, as long as he documents the commission reduction in writing and discloses it to all
parties.
4. Yes, but only if the listing agreement is also updated to reflect the new commission rate. -
✔✔3. Yes, as long as he documents the commission reduction in writing and discloses it to all
parties.
,After 15 years of building her business as a salesperson, Estrella has gotten her broker's license
and is striking out on her own. She's creating new business cards, and it's been so long since she
had to do them on her own, she's double-checking that they comply with Maryland real estate
advertising law. What does she need to be sure to include?
1. Estrella must include her name, her picture, and either her business's phone number or
address.
2. She doesn't need to worry about complying, since business cards aren't considered
advertising in Maryland.
3. She needs to include her name, her business's phone number, and her license number.
4. The cards must include her name as it appears on her license. - ✔✔4. The cards must include
her name as it appears on her license.
Monique received four offers on her client's listing. Offer A is a written offer that the buyer's
agent dropped off at Monique's office. Offer B is an offer that the buyer's agent communicated
to Monique over the phone. Offer C is a written offer that Monique received via email. Offer D
is a written counter-offer from a buyer that Monique's client countered earlier in the week.
Which offers must Monique present to her client?
1. All of them
2. Only offer D, since it's a counter-offer
3. Only offers A, B, and C, since they supersede a counter-offer
4. Only offers A, C, and D, since they're in writing - ✔✔Only offers A, C, and D, since they're in
writing
In which of the following settings is a prize offering permitted in Maryland?
1. Buyer education seminar
2. Closing
3. Listing presentation
4. Open house - ✔✔1. Buyer education seminar
Which of these documents does NOT establish an agency relationship between a client and a
licensee?
, 1. Brokerage agreement
2. Buyer representation agreement
3. Listing agreement
4. Purchase agreement - ✔✔4. Purchase agreement
Ben and Leslie received their finalized purchase contract on April 10, just moments after the
sellers put their final signatures on it. Ben and Leslie decided that since the home they're buying
was built in 1920, they'd like to have it inspected for lead-based paint. When is the latest that
the couple can have the inspection performed if they want to be able to back out of the
contract?
1. 10 days from the home inspection date
2. April 15
3. April 20
4. May 10 - ✔✔3. April 20
Blaire apparently hasn't learned her lesson. She paid a $5,000 penalty when MREC found her
guilty of misrepresentation, a $10,000 penalty when she was found guilty of placing a for sale
sign in someone's yard without permission, and now she's committed three more violations by
placing a series of discriminatory ads. What's the maximum penalty MREC can levy for these
new violations?
1. $100,000
2. $25,000
3. $50,000
4. $75,000 - ✔✔4. $75,000
License law violators may incur penalties of $5,000 for the first violation, $15,000 for the
second violation and up to $25,000 per violation after three or more violations.
Phoebe's New Jersey real estate license was revoked after she was convicted of intentional
misrepresentation. When the Maryland Real Estate Commission learns of this, it summarily
revokes her Maryland salesperson's license. Does it have the power to do this?
Questions with Answers
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?
1. "I'm always flexible. If we need to, we'll add an amendment to the agreement granting you
permission to cancel early."
2. "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."
3. "There's a provision right here that gives either of us permission to cancel the agreement
early."
4. "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." - ✔✔3.
"There's a provision right here that gives either of us permission to cancel the agreement
early."
Sheila filed a discrimination complaint against her landlord. She's worried that when he finds
out about her complaint, he's going to evict her. However, he knows not to evict her just
because she filed a complaint. Why?
1. He must wait to evict her until after the complaint has been investigated.
2. Landlords must wait 180 days to evict parties who file a discrimination complaint.
3. Parties who file a discrimination complaint may not be evicted for any reason.
4. Retaliation against parties who file a discrimination complaint is illegal. - ✔✔4. Retaliation
against parties who file a discrimination complaint is illegal.
For sale signs on ground rent properties that show the price of the property must also state
which of the following?
1. Annual ground rent
2. Annual ground rent plus the full cost of capitalization
3. Price for which the land could be purchased
, 4. The market value of the property - ✔✔2. Annual ground rent plus the full cost of
capitalization
Raul, a broker licensed in Maryland, has just signed on to manage a landlord's 15-unit
apartment building. Which of the following tasks may Raul NOT perform without the owner's
express knowledge and consent?
1. Accept a rebate from the laundry machine company.
2. Collect each tenant's rent on the first of the month.
3. Maintain the building's landscaping.
4. Return security deposits to tenants after they move out. - ✔✔1. Accept a rebate from the
laundry machine company.
In Maryland, transaction records may be stored electronically as long as ______.
1. Licensees are able to provide a paper copy upon commission request
2. The electronic storage system has unlimited capacity
3. The storage system used is on the commission's approved systems list
4. They're stored for at least six years - ✔✔1. Licensees are able to provide a paper copy upon
commission request
Jim's had one heck of a time getting his latest listing sold. His seller client nitpicked every single
item that the buyers asked her to repair after the home inspection. She was about to let the
deal fall through over it until Jim offered to rebate 0.5% of his commission back to the seller.
Does Maryland license law permit Jim to do this?
1. No. Licensees aren't permitted to pay (or rebate) compensation to unlicensed individuals.
2. No. The commission rate written into the listing agreement is binding.
3. Yes, as long as he documents the commission reduction in writing and discloses it to all
parties.
4. Yes, but only if the listing agreement is also updated to reflect the new commission rate. -
✔✔3. Yes, as long as he documents the commission reduction in writing and discloses it to all
parties.
,After 15 years of building her business as a salesperson, Estrella has gotten her broker's license
and is striking out on her own. She's creating new business cards, and it's been so long since she
had to do them on her own, she's double-checking that they comply with Maryland real estate
advertising law. What does she need to be sure to include?
1. Estrella must include her name, her picture, and either her business's phone number or
address.
2. She doesn't need to worry about complying, since business cards aren't considered
advertising in Maryland.
3. She needs to include her name, her business's phone number, and her license number.
4. The cards must include her name as it appears on her license. - ✔✔4. The cards must include
her name as it appears on her license.
Monique received four offers on her client's listing. Offer A is a written offer that the buyer's
agent dropped off at Monique's office. Offer B is an offer that the buyer's agent communicated
to Monique over the phone. Offer C is a written offer that Monique received via email. Offer D
is a written counter-offer from a buyer that Monique's client countered earlier in the week.
Which offers must Monique present to her client?
1. All of them
2. Only offer D, since it's a counter-offer
3. Only offers A, B, and C, since they supersede a counter-offer
4. Only offers A, C, and D, since they're in writing - ✔✔Only offers A, C, and D, since they're in
writing
In which of the following settings is a prize offering permitted in Maryland?
1. Buyer education seminar
2. Closing
3. Listing presentation
4. Open house - ✔✔1. Buyer education seminar
Which of these documents does NOT establish an agency relationship between a client and a
licensee?
, 1. Brokerage agreement
2. Buyer representation agreement
3. Listing agreement
4. Purchase agreement - ✔✔4. Purchase agreement
Ben and Leslie received their finalized purchase contract on April 10, just moments after the
sellers put their final signatures on it. Ben and Leslie decided that since the home they're buying
was built in 1920, they'd like to have it inspected for lead-based paint. When is the latest that
the couple can have the inspection performed if they want to be able to back out of the
contract?
1. 10 days from the home inspection date
2. April 15
3. April 20
4. May 10 - ✔✔3. April 20
Blaire apparently hasn't learned her lesson. She paid a $5,000 penalty when MREC found her
guilty of misrepresentation, a $10,000 penalty when she was found guilty of placing a for sale
sign in someone's yard without permission, and now she's committed three more violations by
placing a series of discriminatory ads. What's the maximum penalty MREC can levy for these
new violations?
1. $100,000
2. $25,000
3. $50,000
4. $75,000 - ✔✔4. $75,000
License law violators may incur penalties of $5,000 for the first violation, $15,000 for the
second violation and up to $25,000 per violation after three or more violations.
Phoebe's New Jersey real estate license was revoked after she was convicted of intentional
misrepresentation. When the Maryland Real Estate Commission learns of this, it summarily
revokes her Maryland salesperson's license. Does it have the power to do this?
