Free Maryland Real Estate Practice Exam

Q1.A salesperson's client wants to sell their home and asks the salesperson to 'only bring offers from families without children.' Under the Fair Housing Act, how must the salesperson respond?

• A.Comply with the client's request, because a seller has the right to choose their buyer.
• B.Comply only if the home has fewer than four bedrooms.
• C.Refuse to comply, because familial status is a protected class under federal law.
• D.Comply if the seller provides a written, signed instruction to do so.

Q2.A deed contains a covenant restricting the lot to single-family residential use. A buyer wants to operate a daycare from the property. This restriction is best described as:

• A.A financial encumbrance, like a mortgage
• B.An easement granting access rights to neighboring properties
• C.A non-financial encumbrance — a restrictive covenant in the deed that limits the permitted use of the property
• D.A zoning variance that can be modified through a city planning process

Q3.A dual agent representing both seller and buyer in a residential transaction learns during negotiations that the seller is experiencing severe financial distress and must close within 30 days or face foreclosure. The buyer has not asked about the seller's motivation. Under the general principles of dual agency, what is the MOST appropriate course of action for the broker?

• A.The broker must maintain confidentiality of the seller's financial distress and cannot disclose it to the buyer, as this information was provided in confidence by the seller-client.
• B.The broker must disclose the seller's financial distress to the buyer because all material facts must be shared with both parties in a dual-agency relationship.
• C.The broker should withdraw from the transaction because the existence of confidential seller information creates an irreconcilable conflict of interest in a dual-agency setting.
• D.The broker is required to disclose the financial distress only if the seller consents in writing to waive confidentiality.

Q4.Under Maryland Real Property Article §17-530, how many days does a buyer have to rescind a contract for the purchase of residential real property after receiving the required disclosure/disclaimer statement from the seller?

• A.3 days
• B.5 days
• C.7 days
• D.10 days

Q5.A flyer displays a team name but obscures the employing broker's identity. Which Arizona advertising principle is implicated?

• A.Advertising should be accurate and the employing broker should be clearly identified
• B.Every flyer must state the trust-account balance
• C.Only print advertising is regulated
• D.A team name always replaces the broker's identity

Q6.A broker's affiliated salesperson, while working with a prospective buyer, learns that the buyer is originally from Nigeria and has a strong West African accent. The salesperson begins steering the buyer exclusively toward listings in neighborhoods with large immigrant populations, telling the buyer those areas would be 'more comfortable' for someone 'like him.' The broker becomes aware of this conduct. Under the Fair Housing Act and the broker's supervisory obligations, which of the following is most accurate?

• A.The broker has no liability because the salesperson, not the broker, made the steering decision, and individual licensees are solely responsible for their own discriminatory acts.
• B.The broker may face vicarious liability under the Fair Housing Act for the salesperson's discriminatory steering based on national origin, and the broker's own failure to supervise can independently constitute a fair housing violation.
• C.The broker is liable only if the steering resulted in a lost sale, because the Fair Housing Act requires proof of actual economic damages to establish a violation.
• D.The broker avoids liability by immediately terminating the salesperson, since prompt corrective action fully immunizes the employing broker from Fair Housing Act exposure.

Q7.Two friends purchase an investment property as joint tenants. One friend dies. What happens to her ownership interest?

• A.Her interest passes to her heirs through her estate
• B.Her interest is split equally among all surviving relatives
• C.Her interest is sold by the estate and proceeds distributed
• D.Her interest automatically transfers to the surviving joint tenant through the right of survivorship, bypassing probate

Q8.Under Truth-in-Lending Act (TILA), the Annual Percentage Rate (APR) must include which costs in addition to the interest rate?

• A.Only the stated interest rate and loan origination fees
• B.All closing costs including title insurance and appraisal fees
• C.Interest rate plus a standardized 1% administrative fee
• D.Interest rate, points, broker fees, and certain other finance charges spread over the loan term

Q9.Under the Truth in Lending Act (TILA), which of the following best describes the Annual Percentage Rate (APR) as it relates to a mortgage loan?

• A.The interest rate used to calculate the monthly principal and interest payment
• B.The total cost of credit expressed as a yearly rate, including fees and other charges
• C.The maximum interest rate the lender may charge over the life of the loan
• D.The rate used by the secondary market to price mortgage-backed securities

Q10.A team lead conditioning referrals and mentorship opportunities on personal social interactions with team members is an example of:

• A.Quid pro quo harassment in an internal professional hierarchy
• B.Hostile environment harassment between co-equal agents
• C.Third-party harassment by a client
• D.Neither — real estate teams are not covered by harassment law

Q11.A buyer files a HUD complaint alleging a licensee refused to show homes in certain neighborhoods. HUD investigates and finds reasonable cause. What happens next if both parties don't elect federal court?

• A.The complaint is dismissed
• B.The case proceeds before a HUD Administrative Law Judge, who may award damages, civil penalties up to ~$24K (first offense), and injunctive relief
• C.The case is automatically referred to a criminal prosecutor
• D.Only state-court remedies remain

Q12.Under COMAR 09.11.04.10 and the Maryland Real Estate Brokers Act, a dual agency relationship is created in a Maryland real estate transaction. Which of the following actions is a Maryland licensee strictly PROHIBITED from doing while serving as a dual agent?

• A.Disclosing to both parties that a dual agency relationship exists
• B.Disclosing the seller's minimum acceptable price to the buyer without the seller's written consent
• C.Presenting all offers and counteroffers in a timely manner to both parties
• D.Explaining the general terms and conditions of comparable properties to both parties

Q13.Under COMAR 09.11.03.07, the Maryland Real Estate Commission (MREC) requires that a brokerage's agency disclosure be made to a prospective buyer or seller at which specific point in a transaction?

• A.At or before the time the buyer makes an offer or the seller signs a listing agreement
• B.Only at settlement, when all parties are present
• C.Within 48 hours after the first substantive contact with a consumer
• D.At the first scheduled showing of any property

Q14.A lender provides a buyer with a Loan Estimate three business days after receiving a completed loan application for the purchase of a primary residence. The buyer later claims the disclosure was untimely. Under the TILA-RESPA Integrated Disclosure (TRID) rule, which statement BEST describes the lender's compliance?

• A.The lender complied because TRID requires the Loan Estimate within five business days of application.
• B.The lender violated TRID because the Loan Estimate must be delivered or placed in the mail no later than three business days after receiving a completed application, meaning day three is the deadline, not day three of delivery.
• C.The lender violated TRID because the Loan Estimate must be provided within one business day of application.
• D.The lender complied because TRID requires the Loan Estimate to be delivered within three business days of application.

Q15.Which of the following actions would most likely create an implied agency relationship between a salesperson and a buyer?

• A.The salesperson regularly provides the buyer with negotiating advice and counsels them on what price to offer
• B.The salesperson shows the buyer several homes listed in the MLS
• C.The salesperson gives the buyer a copy of a property disclosure form
• D.The salesperson tells the buyer the listing price of a home