Free Maine Real Estate Practice Exam

Q1.A broker represents both the seller and the buyer in the same transaction as a disclosed dual agent, with written informed consent from both parties. During negotiations, the buyer privately tells the broker, 'I'd pay $30,000 more than my offer if necessary.' Under dual agency principles, what must the broker do with this information?

• A.Disclose it to the seller immediately, because all material information must flow to both principals in a dual agency
• B.Keep it confidential from the seller, because a buyer's undisclosed motivation and maximum price ceiling remain protected confidential information even within a dual agency relationship
• C.Withdraw from representing the seller so she can freely advocate for the buyer's full financial position
• D.Document it in the transaction file and disclose it at closing so both parties have complete information

Q2.Under Maine law, a real estate sales agent who receives earnest money from a buyer must deliver those funds to which party?

• A.The buyer's attorney, to be held until closing
• B.The sales agent's personal bank account until the offer is accepted
• C.The designated broker, to be deposited into the brokerage's escrow account
• D.The seller directly, as the funds belong to the seller upon acceptance

Q3.An agent repeatedly shows buyers of one ethnicity only properties in certain neighborhoods and never shows them properties in other areas of equal value. This is an example of:

• A.Appropriate neighborhood specialization
• B.Blockbusting, which requires active misrepresentation
• C.Redlining, which is limited to lenders and insurers
• D.Illegal steering under the Fair Housing Act

Q4.A landlord in Maine refuses to rent an apartment to a qualified applicant because the applicant has a Section 8 Housing Choice Voucher. Under the Maine Human Rights Act, this refusal is:

• A.Permissible, because federal Section 8 vouchers are not a protected class under Maine law
• B.Permissible only if the landlord owns fewer than four rental units statewide
• C.A violation of the Maine Human Rights Act, which prohibits discrimination based on source of income in housing
• D.Permissible as long as the landlord applies the same policy to all government-assisted rental programs

Q5.A buyer includes a financing contingency in their purchase contract that requires them to obtain a loan commitment within 30 days. On day 25, the buyer's lender denies the loan application due to insufficient income. What is the buyer's best course of action to protect their earnest money deposit?

• A.Wait until day 30 to notify the seller of the loan denial
• B.Continue looking for alternative financing until day 30
• C.Immediately notify the seller in writing of the financing contingency failure
• D.Proceed to closing and secure financing after closing

Q6.Under the Real Estate Settlement Procedures Act (RESPA), which of the following practices is expressly prohibited?

• A.Charging a buyer a reasonable fee for title insurance
• B.A lender requiring escrow for property taxes and insurance
• C.A lender paying a referral fee to a real estate agent for sending loan business
• D.Providing a Loan Estimate to the borrower within three business days of application

Q7.A property has an annual net operating income of $48,000 and was purchased using a capitalization rate of 8%. Three years later, the cap rate for similar properties has decreased to 7%. What is the new estimated value of the property?

• A.$600,000
• B.$685,714
• C.$576,000
• D.$480,000

Q8.Under Maine's brokerage relationship law, which of the following duties does a Maine licensee owe to ALL parties in a transaction, including customers (non-clients)?

• A.Loyalty and confidentiality
• B.Obedience to all lawful instructions
• C.Honest and accurate disclosure of material facts about the property
• D.Negotiating the best possible price and terms on the party's behalf

Q9.Under the Maine Real Estate Brokerage Agency Act (32 M.R.S. § 13271–13281) and Commission disciplinary authority (32 M.R.S. § 13222), the Maine Real Estate Commission may take which of the following disciplinary actions against a broker's license WITHOUT first requiring a formal hearing, provided the broker consents?

• A.Permanent revocation of the broker's license and a civil monetary penalty not to exceed $5,000 per violation.
• B.Issuance of a consent agreement that may include a civil penalty, license suspension, probation, or required continuing education as negotiated between the broker and Commission.
• C.Automatic suspension of the broker's license pending investigation upon receipt of any written consumer complaint.
• D.Mandatory referral to the Maine Attorney General's office for criminal prosecution in lieu of Commission-issued penalties.

Q10.Under the Housing for Older Persons Act (HOPA), a community can legally exclude families with children only if it meets one of these qualifying tests:

• A.Any community can exclude children if its CC&Rs say so
• B.(1) HUD-designated 62-and-older housing, (2) 55-and-older with at least 80% of occupied units having one resident 55+ AND published policies AND age verification, OR (3) federally funded elderly housing
• C.Any community over 30 years old qualifies automatically
• D.Communities only need a majority of residents over 50

Q11.A buyer applies for a mortgage to purchase a Maine property located in a federally designated Special Flood Hazard Area (SFHA). Under the National Flood Insurance Act and related federal regulations, what disclosure obligation applies?

• A.The lender must notify the borrower in writing that the property is in an SFHA and that flood insurance will be required as a condition of the federally backed loan.
• B.Flood hazard disclosure is voluntary and left entirely to the seller's discretion under the Fair Housing Act.
• C.RESPA requires the listing broker to purchase flood insurance on behalf of the buyer before closing.
• D.The Truth-in-Lending Act requires flood zone information to be included in the Annual Percentage Rate calculation.

Q12.CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) is primarily concerned with which environmental issue?

• A.Air pollution from factories
• B.Cleanup of contaminated properties
• C.Water conservation requirements
• D.Noise pollution standards

Q13.A property management company requires all prospective tenants to provide proof of income equal to three times the monthly rent. This practice is:

• A.Legal if applied uniformly to all applicants
• B.Always illegal under the Fair Housing Act
• C.Only legal for month-to-month leases
• D.Prohibited by the Equal Credit Opportunity Act

Q14.At the closing table, the buyer's agent notices that a real estate broker referred the buyer to a title company and received a fee from that company without disclosing it to the buyer. This arrangement most likely violates which federal law?

• A.The Fair Housing Act
• B.ECOA
• C.RESPA
• D.CERCLA

Q15.Under 32 M.R.S. Chapter 114, which of the following accurately describes 'disclosed dual agency' in a Maine real estate transaction?

• A.A licensee represents two sellers in competing listings without informing either seller.
• B.A licensee represents both the buyer and the seller in the same transaction with the informed, written consent of both parties.
• C.Two separate licensees from different brokerages each represent one party, splitting the commission equally.
• D.A licensee represents a seller on one property and simultaneously shows that seller a replacement property as a buyer's agent without any written consent required.