Maryland-Real-Estate-Salesperson Exam Questions and Answers (Page: 2)

QUESTION: 9

What is it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate?

Act of waste
Escheat
Estate at sufferance
Reversionary interest

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

A life tenant holds possession for the duration of a measured life but must maintain the property and preserve its value for the remainderman or reversionary owner.

When the life tenant damages, neglects, or depletes the property, that conduct is termed an act of waste.

The future interest holder may take legal action to stop such waste.

The concept appears under "Interests in Real Estate" when describing life estates and their limitations.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Estates in Land chapter.

Maryland Real Property Article §14-101 et seq.

Reveal Solution Next Question

QUESTION: 10

In a real estate transaction, what's a real estate licensee's responsibility regarding household lead hazards for homes built before 1978?

To disclose to buyers that there's lead-based paint in a home
To instruct the seller to remediate the lead-based paint
To make sure all lead is removed by a licensed professional
To remind the sellers to disclose the possible presence of lead-based paint to a buyer

Answer(s): D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and the Maryland Lead Poisoning Prevention Program, sellers and landlords of housing built before 1978 must:

Provide the EPA-approved pamphlet on lead hazards.

Disclose known lead-based paint or hazards and supply any available records.

Allow buyers a 10-day inspection period (unless waived).

A licensee's duty is to ensure that the sellers comply with these disclosure requirements and to remind them to deliver the proper forms and pamphlet.

The licensee is not responsible for testing or remediation but must ensure all disclosures are completed prior to ratification of the contract.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Environmental Issues and Disclosures section.

42 U.S.C. §4852d (Residential Lead-Based Paint Hazard Reduction Act).

COMAR 26.16.02 (Maryland Lead Poisoning Prevention Program).

Reveal Solution Next Question

QUESTION: 11

A veteran licensee always has a face-to-face meeting before he works with any buyer.
What might be a good reason for this?

To build trust and rapport
To determine the buyer's ethnicity
To get the buyer's FICO score, credit report, and tax receipts
To look the buyer in the eye to see if the buyer is hiding anything

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Under Maryland's agency law, a licensee must establish a relationship of trust, confidence, and loyalty with a client.

Meeting face-to-face helps the agent explain agency relationships, present the Understanding Whom Real Estate Agents Represent disclosure, and begin building rapport and confidence, which are critical in fiduciary relationships.

As emphasized in the Brokerage and Agency module, personal contact helps ensure informed consent and professional transparency--never to collect personal demographic or financial data outside proper procedures.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices Course, Law of Agency and Broker-Client Relationships section.

Business Occupations and Professions Article §17-530 through §17-534.

Reveal Solution Next Question

QUESTION: 12

An organization with many investors who jointly participate in a real estate investment and must adhere to the rules and regulations of the Securities and Exchange Commission is a

C corporation
Partnership
S corporation
Syndicate

Answer(s): D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

A syndicate is an association of two or more investors who unite their capital to own or develop real estate projects.

When investment interests are offered to the public, the syndicate becomes subject to federal securities regulations administered by the Securities and Exchange Commission (SEC).

Maryland's pre-licensing course explains that syndications may take the form of limited partnerships, corporations, or real-estate investment trusts (REITs), but the unifying element is pooled investor participation under securities law oversight.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices Course, Forms of Ownership and Syndication section.

Securities Act of 1933 and 1934 (SEC Regulations).

Reveal Solution Next Question

QUESTION: 13

What's a foreclosure?

A property sale that occurs in less than one week
A sale that fails to receive a high enough bid at auction and then falls to the bank's ownership
The forced sale of a property due to the borrower defaulting on the mortgage loan
The sale of a property when the market value of the home is less than what is owed, plus closing cost

Answer(s): C

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Foreclosure is the legal process by which a lender exercises its right to force the sale of mortgaged property when the borrower defaults on the note or deed of trust.

In Maryland--a judicial foreclosure state--the lender must file a court action before selling the property.

Proceeds from the sale are used to satisfy the debt, accrued interest, and foreclosure costs.

This definition is covered in the Financing module under Mortgage Default and Foreclosure Remedies.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices Course, Financing and Foreclosure Procedures section.

Maryland Real Property Article §7-105 et seq.

Reveal Solution Next Question

QUESTION: 14

Octogenarians Gertie and Frank both have advanced Alzheimer's disease and met in Sunset Living, a skilled nursing center for people with advanced Alzheimer's disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a _____ contract.

An executory
An implied
An invalid
A valid

Answer(s): C

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

For any contract to be legally enforceable, the parties must possess legal capacity--they must understand the nature and consequences of the agreement.

Individuals suffering from advanced Alzheimer's disease lack contractual capacity, making the agreement void (invalid) from its inception.

The Contracts module stresses that an invalid or void contract has no legal effect because one or more essential elements--competent parties, lawful objective, consideration, mutual consent, and legal form--are missing.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices Course, Elements of a Valid Contract section.

Maryland Contract Law Principles, General Common Law Doctrine on Capacity.

Reveal Solution Next Question

QUESTION: 15

You represent a buyer of a $1 million property. The seller's agent offers a 2.5% cooperative agent compensation.
Who's your client?

The buyer
The seller
The seller's agent
The seller's agent's broker

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Under Maryland law, agency relationships are determined by who the licensee represents, not by who pays the compensation.

Even though the buyer's agent may receive payment from the listing broker via a cooperative compensation (often shared through the MLS), that payment does not make the buyer's agent an agent of the seller.

The licensee's fiduciary duties--loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting--belong solely to the buyer, the client under the brokerage agreement.

This principle is detailed under the Maryland Agency Law section of the pre-licensing course.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices Course, Law of Agency module.

Business Occupations and Professions Article §17-530 through §17-534.

COMAR 09.11.07.01 Disclosure of Agency Relationships.

Reveal Solution Next Question

QUESTION: 16

Which type of antitrust violation involves two or more businesses conspiring against another business?

Group boycotting
Market allocation
Price fixing
Tie-in arrangement

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

A group boycott occurs when two or more competitors conspire to refuse to deal with another firm or individual, thereby attempting to eliminate competition.

This is a violation of the Sherman Antitrust Act and the Clayton Act, both covered in the "Ethics and Antitrust" section of the Maryland pre-licensing course.

Examples include two brokerages agreeing not to cooperate with a third brokerage or to exclude another licensee from access to listings.

Maryland law and the National Association of REALTORS® Code of Ethics prohibit any conduct that restricts trade or limits consumer choice.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices Course, Fair Housing and Ethics / Antitrust section.

Sherman Antitrust Act (15 U.S.C. §1).

Clayton Antitrust Act (15 U.S.C. §1227).

Reveal Solution Next Question

Real Estate Licensing Maryland-Real-Estate-Salesperson Exam (page: 2) Real Estate Licensing Maryland Real Estate Salespersonination Updated on: 07-Feb-2026

QUESTION: 9

Explanation:

QUESTION: 10

Explanation:

QUESTION: 11

Explanation:

QUESTION: 12

Explanation:

QUESTION: 13

Explanation:

QUESTION: 14

Explanation:

QUESTION: 15

Explanation:

QUESTION: 16

Explanation:

Real Estate Licensing Maryland-Real-Estate-Salesperson Exam (page: 2)
Real Estate Licensing Maryland Real Estate Salespersonination
Updated on: 07-Feb-2026