Free Maryland Real Estate Practice Exam

Q1.A Maryland listing agent is working with a seller client. A prospective buyer who is NOT represented by an agent contacts the listing agent directly and makes an offer. Which of the following best describes the listing agent's duty to that unrepresented buyer under the Maryland Real Estate Brokers Act?

• A.The listing agent owes the buyer the same fiduciary duties owed to the seller client
• B.The listing agent owes the buyer honesty and disclosure of material facts but does not represent the buyer
• C.The listing agent must refuse to work with any unrepresented buyer
• D.The listing agent automatically becomes a dual agent for both parties

Q2.Under RESPA Section 8, a broker learns that one of her affiliated salespersons has been accepting $50 gift cards from a title company after each closed transaction. The broker has never established a written anti-kickback policy. Which statement BEST describes the broker's obligations?

• A.The broker has no obligation because the gift cards are under $100 and are considered de minimis under RESPA.
• B.The broker must immediately establish a written policy prohibiting RESPA Section 8 kickbacks, direct the salesperson to cease accepting the gifts, and document the corrective action taken.
• C.The broker should report the title company to HUD but is not required to take any action against the salesperson.
• D.The broker's only duty is to ensure the salesperson reports the gift cards as income on their tax return.

Q3.Under RESPA (Real Estate Settlement Procedures Act), which practice is specifically prohibited regarding escrow accounts?

• A.Requiring borrowers to deposit two months of property taxes at closing
• B.Conducting an annual escrow analysis to adjust monthly payments
• C.Maintaining a cushion of more than two months of escrow payments
• D.Requiring flood insurance premiums to be escrowed

Q4.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

Q5.A property was the site of a methamphetamine laboratory that was properly remediated according to state standards. The current seller was never involved in the drug activity and purchased the property after remediation was completed. What is the seller's disclosure obligation regarding this information?

• A.No disclosure required since the property was properly remediated
• B.Must disclose as it may affect the property's value or desirability
• C.Must disclose only if specifically asked by the buyer
• D.Disclosure prohibited as it would constitute housing discrimination

Q6.A licensed Maryland real estate salesperson wishes to upgrade to an associate broker license. Which of the following requirements is unique to the associate broker classification and distinguishes it from the salesperson classification under Maryland law?

• A.The applicant must pass a separate Maryland associate broker state examination administered by PSI
• B.The applicant must have been actively licensed as a salesperson in Maryland for at least three years immediately preceding the application
• C.The applicant must complete 135 hours of approved pre-licensing education before applying
• D.The applicant must obtain errors and omissions insurance independently before the license is issued

Q7.Under the Equal Credit Opportunity Act (ECOA), which factor may a lender legally consider when evaluating a mortgage loan application?

• A.The applicant's marital status
• B.The applicant's national origin
• C.The applicant's debt-to-income ratio
• D.The applicant's plans for having children

Q8.A consumer who obtained a civil judgment against a Maryland real estate licensee for fraudulent conduct in a real estate transaction wants to file a claim against the Maryland Real Estate Guaranty Fund. Which is a prerequisite the consumer must satisfy before the Fund will pay the claim?

• A.The consumer must have first obtained a civil court judgment against the licensee and be unable to collect the judgment from the licensee
• B.The consumer must file the claim within 30 days of the date the fraudulent transaction closed
• C.The consumer must show that the licensee's broker also participated in the fraud before the Fund will pay
• D.The consumer must have filed a complaint with the Better Business Bureau before approaching the Fund

Q9.A broker manages a team that includes two buyer's agents, a listing agent, and an unlicensed transaction coordinator. A competing broker alleges that the transaction coordinator regularly answers substantive questions about contract terms from clients without broker supervision. Under federal and general brokerage conduct principles, which describes the broker's PRIMARY exposure?

• A.The broker faces no liability because transaction coordinators are exempt from licensing under most state and federal laws.
• B.The broker faces disciplinary exposure and potential civil liability for permitting an unlicensed person to perform acts requiring a real estate license, and the broker's supervision duties require preventing such unauthorized practice.
• C.The broker's liability is limited to a written warning from the state commission because federal law does not regulate unlicensed activity in real estate.
• D.The broker is protected from liability because the unlicensed coordinator works under an independent contractor agreement.

Q10.RESPA (Real Estate Settlement Procedures Act) primarily regulates which aspect of real estate transactions?

• A.Closing costs and settlement procedures
• B.Property inspections
• C.Real estate licensing requirements
• D.Property tax assessments

Q11.Under the Maryland Real Estate Brokers Act, what is the PRIMARY distinction between a licensed salesperson and a licensed associate broker in Maryland?

• A.A salesperson may supervise other licensees, while an associate broker may not
• B.An associate broker has met additional education and experience requirements beyond those of a salesperson but still operates under a supervising broker
• C.An associate broker may open and operate their own independent brokerage, while a salesperson may not
• D.A salesperson license is valid for one year, whereas an associate broker license is valid for two years

Q12.A managing broker oversees a team of six salespersons. One salesperson, without the broker's knowledge, orally promises a seller that the brokerage will hold the earnest money deposit in a separate interest-bearing account solely for that transaction, and the buyer's funds are later commingled with the general operating account. Which supervisory obligation did the broker MOST directly fail to fulfill that contributed to this violation?

• A.The broker failed to establish and enforce written office policies and procedures governing trust account handling, which is a fundamental broker supervisory duty that could have prevented the salesperson from making unauthorized representations about escrow.
• B.The broker violated RESPA Section 8 by allowing an affiliated salesperson to discuss earnest money with a buyer.
• C.The broker's only obligation was to correct the commingling after discovering it; no prospective supervisory duty applies to salesperson oral representations.
• D.The broker is not responsible because salespersons are permitted to make earnest money representations within the ordinary course of showing property.

Q13.A managing broker oversees a branch office with ten salespersons. One salesperson advertises a listed property on social media without including the brokerage name. Under federal and general broker supervision principles, who bears primary regulatory responsibility for this advertising violation?

• A.The salesperson alone, because the advertisement was posted from the salesperson's personal account.
• B.Both the salesperson and the supervising broker, because the broker has an affirmative duty to establish and enforce advertising compliance policies.
• C.The listing client, because the client approved the marketing strategy.
• D.The social media platform, because it failed to flag the non-compliant advertisement.

Q14.A buyer's broker negotiating a commercial purchase contract insists on including a financing contingency that conditions the buyer's obligation on obtaining 'satisfactory financing.' The seller's attorney objects, arguing the clause is unenforceable as an illusory promise because 'satisfactory' is entirely subjective. To make the financing contingency legally enforceable and protect the buyer while satisfying the seller's concern, which contractual approach best reflects advanced contract drafting principles?

• A.Remove the contingency entirely and substitute a liquidated damages clause capping the seller's remedy at the earnest money deposit, which eliminates the buyer's financing risk.
• B.Replace the subjective 'satisfactory financing' standard with objective, specific loan terms — including loan amount, maximum interest rate, loan type, and a definite expiration date — and include a good-faith efforts obligation on the buyer to apply promptly and pursue approval diligently.
• C.Insert a clause stating that 'satisfactory' shall be determined in the buyer's sole and absolute discretion with no obligation to disclose reasons, which courts universally uphold as a valid condition precedent.
• D.Require the buyer to obtain a pre-approval letter before contract execution, which converts the financing contingency into a condition subsequent and makes the contract immediately binding on both parties.

Q15.In the eviction process, which federal constitutional protection must landlords ensure they do not violate when seeking to remove tenants for lease violations?

• A.Fourteenth Amendment due process requirements
• B.First Amendment right to free speech
• C.Fourth Amendment protection against unreasonable searches
• D.Eighth Amendment protection against cruel and unusual punishment