Free Maryland Real Estate Practice Exam

Q1.A real estate salesperson is showing homes in a suburban neighborhood. A prospective buyer, who is Hispanic, asks whether many families of their background live in the area. The salesperson responds by steering the buyer toward a different neighborhood with a higher Hispanic population rather than showing homes throughout the entire market area. Which federal law has the salesperson most likely violated?

• A.The Real Estate Settlement Procedures Act (RESPA)
• B.The Fair Housing Act of 1968
• C.The Equal Credit Opportunity Act (ECOA)
• D.The Truth-in-Lending Act (TILA)

Q2.The bystander intervention strategy 'Distract' involves:

• A.Addressing the harassing behavior directly and calmly to the harasser
• B.Getting someone with more authority involved to address the conduct
• C.Interrupting the situation without confronting the harasser — pulling the target away
• D.Checking in with the targeted person after the harasser has moved on

Q3.Under the Fair Housing Act, which of the following actions by a real estate licensee would constitute illegal discrimination?

• A.Requiring all applicants to meet the same income qualifications
• B.Showing only properties within a client's stated price range
• C.Refusing to show properties in certain neighborhoods based on a client's race
• D.Requiring a security deposit from all tenants

Q4.A real estate salesperson is showing homes to a Hispanic couple and consistently steers them toward neighborhoods with a high concentration of Hispanic residents, avoiding other areas where the couple could qualify financially. Which federal Fair Housing Act violation has the salesperson most likely committed?

• A.Blockbusting
• B.Redlining
• C.Steering
• D.Panic peddling

Q5.Under the Fair Housing Act, housing for older persons is exempt from familial status protections if the housing is intended for and solely occupied by persons who are:

• A.60 years of age or older
• B.65 years of age or older
• C.70 years of age or older
• D.55 years of age or older

Q6.Under the Truth-in-Lending Act (TILA), lenders must disclose which key information to borrowers?

• A.Property tax amounts only
• B.Neighborhood crime statistics
• C.Previous owners' payment history
• D.Annual Percentage Rate (APR) and finance charges

Q7.A condominium owner holds which type of estate in the individual unit and common areas respectively?

• A.Life estate in the unit, easement in common areas
• B.Leasehold in the unit, license in common areas
• C.Fee simple in the unit, tenancy in common in common areas
• D.Fee simple in the unit, easement appurtenant in common areas

Q8.The Maryland Real Estate Commission wishes to adopt a new regulation requiring all licensees to complete a specific fair housing course as part of continuing education. Under Maryland's Administrative Procedure Act and the Maryland Real Estate Brokers Act, what process must the Commission follow before this new rule takes effect?

• A.The Commission chairman may issue the new rule by executive order effective immediately, subject to later legislative ratification
• B.The Commission must publish the proposed regulation, allow a public comment period, and follow the formal rulemaking process under the Maryland Administrative Procedure Act before the rule becomes effective
• C.The Commission needs only a simple majority vote of its members at a public meeting, after which the rule is immediately effective
• D.The Commission must obtain written approval from the Governor before any new continuing education regulation can be published or enforced

Q9.A seller's property contains an underground storage tank that has been leaking petroleum into the surrounding soil for several years. Under CERCLA, which of the following statements best describes the seller's liability for the cleanup of this contamination?

• A.The seller is only liable if they personally caused the leak.
• B.The seller has no liability once the property is sold to a new owner.
• C.The seller may be held strictly liable for cleanup costs regardless of fault.
• D.Liability is limited to the current market value of the property.

Q10.A mortgage loan applicant is denied credit by a lender. Under the Equal Credit Opportunity Act (ECOA) and Regulation B, within how many days must the lender provide the applicant with a written notice of adverse action, and what must that notice include?

• A.30 days; a statement of the specific reasons for denial or a disclosure of the applicant's right to request those reasons within 60 days
• B.60 days; a general statement that the application did not meet the lender's underwriting standards
• C.15 days; only the name and address of the federal agency that regulates the lender
• D.45 days; a copy of the credit report used in the decision but no explanation of reasons

Q11.A Maryland salesperson is representing a seller and becomes aware that the property has a history of flooding in the basement that was not disclosed on the Maryland Residential Property Disclosure and Disclaimer Statement. The salesperson tells the buyers nothing about the flooding and the sale closes. Under the Maryland Real Estate Brokers Act, the salesperson has most likely committed:

• A.No violation, because disclosure obligations belong solely to the seller, not the salesperson
• B.A violation for willful misrepresentation or omission of a material fact, which is a prohibited practice under the Maryland Real Estate Brokers Act
• C.A minor procedural violation subject only to a letter of reprimand
• D.A violation only if the salesperson personally inspected the basement and confirmed the flooding

Q12.Under the Truth in Lending Act (TILA), which of the following loan types would be exempt from the requirement to provide specific APR disclosures?

• A.A residential mortgage loan for a primary residence
• B.A business loan secured by the borrower's primary residence
• C.A home equity line of credit for personal use
• D.A commercial loan for business purposes not secured by the borrower's residence

Q13.A Maryland salesperson wants to form a real estate team within their brokerage. Under Maryland law, who retains supervisory responsibility over the team members' real estate activities?

• A.The team leader, because they direct the team's daily operations
• B.Each team member individually, because they hold their own licenses
• C.The affiliated broker, because the Maryland Real Estate Brokers Act places supervision with the broker
• D.The Maryland Real Estate Commission, because teams must register with MREC

Q14.The Equal Credit Opportunity Act (ECOA) requires lenders to notify applicants of adverse action on a credit application within how many days of receiving the completed application?

• A.15 days
• B.30 days
• C.45 days
• D.60 days

Q15.A Maryland real estate salesperson's license expires and the licensee continues to perform brokerage services for 45 days without renewing. Under Md. Code, Bus. Occ. & Prof. § 17-402 and § 17-404, which of the following best describes the legal consequence?

• A.The licensee may continue to work under a 60-day grace period automatically granted by the Maryland Real Estate Commission (MREC)
• B.The licensee is practicing without a license and is subject to a civil fine of up to $5,000 per violation and may be criminally prosecuted as a misdemeanor
• C.The licensee's broker assumes full liability for the unlicensed activity but the salesperson faces no individual penalty
• D.The licensee automatically receives a temporary 30-day operating permit from MREC upon submitting a late renewal application