1. Maryland law requires you to be a real estate licensee if you

a. sell your own property.

b. perform one act of brokerage for which you receive compensation.

c. act under a power of attorney.

d. act as a personal representative for a will.

 

2. An unlicensed personal assistant may

a. earn a commission by making referrals to his/her boss.

b. split commissions with other licensees.

c. show properties when her/his boss is busy.

d. attend sales meetings.

 

3. The Real Estate Commissioners are

a. elected by the licensees.

b. appointed by the Secretary of Licensing and Regulation.

c. appointed by the Governor.

d. appointed by the Maryland Association of REALTORS.

 

4. Which of the following people are regulated by the Real Estate Commission?

a.  unlicensed people acting as licensees

b. lenders

c. public officials

d. home builders

 

5. The main job of the Real Estate Commission is to

a. educate licensees and the public.

b. protect the public.

c. elevate the level of competence of licensees.

d. provide business patterns.

 

6. Licenses are issued

a. to all applicants who pass the required educational requirements.

b.  by the Real Estate Boards.

c. to all salespeople who pass the salesman's exam.

d. by the Real Estate Commission.

 

7. Which of the following is not illegal?

a. A friend told an agent that I am moving. The agent obtained the listing and

    gave the friend $250 for the lead.

b. Your broker said he would get the owner $ 125,000 for her property, and any

     amount over that will be the broker's commission.

c. A salesman called on a for sale by owner and got i listing.

d. A salesman told a customer not to buy in a certain ares because of its ethnic composition.

 

8. A salesperson's license may only be issued to a natural person, but a broker's license may be issued to all except

a. a natural person.                                   c. a 21 year old only.

b. a corporation.                                      d. an associate broker.

 

9. A part-time salesperson must

a. not be licensed.

b. must have a part-time agent's license.

c. work at least 35 hours per week.

d. meet all of the salesman's requirements and be licensed with a broker.

 

10. A real estate salesperson, when advertising a property in Maryland, must

a. include the broker's name.

b. specify the group best suited for the property.

c. include the price,

d. reveal the financing terms.

 

11. The duty to fine a licensee who has blockbusted belongs to the

a. Commission                                        c. Boards of REALTORS

b. Courts                                                d. Secretary of Licensing

 

12. A broker's trust account

a. may include commission checks.

b. may be used to pay his rent.

c. is always an interest bearing account.

d. must be available for inspection by the Commission.

 

13. A salesperson engages in dishonest dealings with a client Her/his broker may be

penalized for failing to

a. report the salesman to the Board.

b. exercise reasonable supervision.

c. punish the salesman.

d. fine the salesman.

 

14. A salesperson may accept valuable compensation from

a. an extremely happy seller.

b. a grateful buyer.

c. any licensed broker.

d. his/her own broker.

 

15. A salesperson may manage a broker's branch office if

a. the salesperson has been licensed for at least 3 years.

b. the salesperson's license is displayed in the office.

c. the salesperson becomes an associate broker only.

d. the salesperson has a CRB designation.

 

16. If a salesman's license is issued now, it will expire

a. one year from the issue date.

b. at the end of the license term.

c. on March 30 of the even numbered years

d. three years from issue date.

 

17.  A minority group is moving into an area. A broker went to an adjacent area, offering to list homes at lower than his normal rate if the owners listed with him within 30 days. There is no mention of race or of any other area, just time. Which of the following is true?

a. This is blockbusting.

b. This is steering.

c. This is redlining.

d. This is not illegal.

 

18. A violation of the blockbusting prohibition in license taw

a. Is a misdemeanor.

b. is punishable by a fine of $ 3,000.

c. applies only in Baltimore City.

d. applies only in Montgomery County.

 

19. A current, unrevoked license may be put on inactive status for up to

a. 2 years                                                 c. 6 years

b. 4 years                                                 d. 1 year

 

20. The seller is entitled to receive from the broker all but one of the following?

a. a copy of the listing agreement

b. legal advise

c. a copy of the sales contract

d. honest, ethical treatment

 

21. Unlicensed persons found guilty of operating in the real estate business may be

fined by

a. the Board of REALTORS

b. the Commission

c. a Court

d. the Governor

 

22. Any licensee found guilty of misrepresentation may be penalized

a. by the Board of REALTORS.

b. by the Commission.

c. by the Court.

d. by the Governor.

 

23.Maryland requires brokers' offices to meet certain requirements. Which of the following is not one of those requirements?

a. The office must be managed by an associate broker.

b. There must be a sign outside stating what is done inside.

c. The Commission must always be kept informed of the office location.

d. The escrow records must be kept on the premises.

 

24. The Real Estate Commission may revoke the license of a salesperson or broker for

a. slandering a competitor.

b. heavy drinking.

c. violation of the speed limit.

d. misrepresentation.

 

25. The Executive Director of the Commission is

a.  appointed by the governor.

b. elected by the Commissioners.

c. appointed by the Secretary of licensing and Regulation.

d. d. chosen through the Maryland State Employees Classified System.

 

26. The real estate guaranty fund

a.  guarantees pensions for retired licensees.

b. is available to compensate a member of the public for money loss that can be

proven was caused by a licensee.

c. is available to compensate licensees who can prove that another licensee failed to share a commission.

d. to assure that licensees' attorneys are paid.

 

27. The irrevocable consent required by Maryland license law

a. provides that legal suits may be brought in Maryland against nonresident licensees who are licensed in   Maryland.

b. gives a broker who has only a Maryland license, the right to show and sell properties out of stale.

c. permits salespersons in Maryland to share commissions with unlicensed persons.

d. provides assurance that buyers will not default on real estate transactions.

 

28. Cases against licensees who are accused of violating Maryland license law are

a. required to originate in a court of law.

b. settled in small claims court

c. heard by a 3 member hearing board or panel.

d. heard by a judge and jury.

 

29. Salesperson Sam, who is working for Broker Ron, when showing or discussing a listed property with a prospective buyer

a. is required to know everything about the listed property.

b. is obligated to avoid exaggeration, error, misrepresentation and concealment of material facts.

c. may rely solely on the seller's statements.

d. need only answer certain questions only if asked by the buyer directly.

 

30. A broker's " definite place of business " can refer to

a. the place where the broker maintains records of transactions and escrow accounts in a safety deposit box.

b. a post office box.

c. an answering machine.

d. an office where real estate business is regularly transacted and licenses are hung on the wall.

Law Questions