Real Estate Licensing Maryland-Real-Estate-Salesperson Exam Questions Instant Access

Question 1

Which of the following is a method a real estate licensee uses to determine an appropriate listing price range?

AAppraisal

BComparative market analysis

CMarket process

DProforma

Answer : B

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

Only licensed or certified appraisers may perform an appraisal for a fee in a federally related transaction.

A real estate licensee, however, may prepare a Comparative Market Analysis (CMA) or Broker Price Opinion (BPO) to help a seller decide on a listing price or a buyer to make an offer.

A CMA compares recent sales, active listings, and expired listings of similar properties to estimate a realistic price range.

This procedure is emphasized in the ''Appraisal and Valuation'' module as a permitted pricing tool for real estate professionals.

Reference (Maryland Source):

-- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Valuation and CMA section.

-- Business Occupations and Professions Article 17-511 (b).

Question 2

________ can be defined as everything that's not real property.

ALand property

BPersonal property

CPrivate property

DReal estate

Answer : B

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

Personal property (also known as chattel) refers to movable items that are not permanently attached to the land or the improvements on it.

Examples include furniture, vehicles, and trade equipment. In contrast, real property includes land, improvements, and the legal rights associated with ownership.

The distinction between real and personal property is a core principle of real estate law covered early in the Maryland 60-Hour Course under ''Real Property and the Law.''

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Real Property and the Law'' Module

Common Law Property Definitions recognized by the Maryland Real Estate Commission.

Question 3

What are PCBs?

AA chemical compound that occurs naturally in the environment

BA substance resulting from the decay of uranium

CA substance that grows due to moisture problems

DChemical compounds used in cooling and insulating, mainly in electrical transformers

Answer : D

Comprehensive and Detailed Explanation:

Polychlorinated biphenyls (PCBs) are synthetic chemical compounds formerly used as coolants and insulators in electrical equipment, hydraulic systems, and fluorescent-light ballasts. They are toxic, persistent in the environment, and regulated by the U.S. EPA under the Toxic Substances Control Act (TSCA). Maryland's course covers PCBs among major environmental hazards requiring disclosure or remediation.

Maryland 60-Hour Course -- ''Environmental Issues and Disclosures'' Module; EPA TSCA (15 U.S.C. 2605) PCB Regulations.

Question 4

In terms of encumbrances, what's a license?

APermission to alter someone's land or property

BPermission to do something on another's land while also possessing an interest or ownership in the land

CPermission without possession, interest, or ownership

DProcess by which a non-owner gains possession of a property after a certain amount of time

Answer : C

Comprehensive and Detailed Explanation:

A license is a personal, revocable privilege to perform some act on another person's land without any possessory right or ownership interest. Unlike an easement, a license does not transfer with the land and can be revoked at any time by the licensor. Examples include permission to hunt, park, or attend an event on private property.

In Maryland's pre-licensing course, this concept is taught under ''Interests in Real Estate'' as a type of encumbrance that affects property use but not ownership.

Maryland 60-Hour Principles and Practices Course -- ''Interests in Real Estate'' Topic; Maryland Real Property Article 14-101 et seq. (encumbrances and property rights definitions).

Question 5

Sandra enters a contract to sell her home to Paul. Under the statute of frauds, the written contract must name the contracting parties, identify the subject matter of the contract, and ________.

AAchieve a result that is fair to all parties

BBe handwritten

CBe signed by two or more attorneys

DPresent the essential terms and conditions of the contract

Answer : D

Comprehensive and Detailed Explanation:

The Statute of Frauds requires that certain contracts---including those for the sale or transfer of real property---be in writing and include:

The names of the parties,

Identification of the property, and

The essential terms and conditions (such as price and contingencies).

This ensures the agreement is legally enforceable in court.

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Real Estate Contracts'' Module

Maryland Courts and Judicial Proceedings Article 5-901 -- Statute of Frauds (Real Property).

Question 6

Which of the following is a potential drawback to a real property exchange?

ADeferment

BDepreciation

CEquity

DTaxable gains

Answer : D

Comprehensive and Detailed Explanation:

A real property exchange, often called a 1031 exchange, allows investors to defer paying capital gains taxes when swapping one investment property for another of like kind. However, if the transaction does not meet IRS requirements or if ''boot'' (cash or non-like-kind property) is received, the gain becomes taxable. The Maryland course identifies taxable gains as the main drawback when the exchange fails to fully qualify for deferral.

Question 7

When a client understands what dual agency is and agrees in writing to allow a firm to act as a dual agent for them in a real estate transaction, this is known as ________.

ADouble dipping

BInformed consent

CMutual agreement

DRepresentation by proxy

Answer : B

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

Informed consent is a legal requirement under Maryland Agency Law when a brokerage represents both a buyer and a seller in the same real estate transaction (dual agency).

In this arrangement, the broker acts as the dual agent, while separate intra-company agents may represent each party.

The client must receive full disclosure of the potential conflicts of interest and consent in writing before dual agency can occur.

Without informed, written consent, dual agency is prohibited under Maryland Real Estate Commission (MREC) regulations.

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Maryland Agency Law'' Module

Md. Business Occupations and Professions Article 17-530--17-532 -- Disclosure and Consent to Dual Agency.

Real Estate Licensing Maryland Real Estate Salesperson Examination Maryland-Real-Estate-Salesperson Exam Questions