Real Estate Licensing Maryland Real Estate Salesperson Examination Maryland-Real-Estate-Salesperson Exam Practice Test

Answer : A

Comprehensive and Detailed

In Maryland, when a new salesperson applicant identifies a supervising broker on the license application, the applicant receives an active license.

An inactive license is issued only if no broker is designated.

An active license authorizes the salesperson to conduct real estate activities under the supervision of the sponsoring broker, in compliance with MREC rules.

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

Md. Business Occupations and Professions Article 17-301--17-303 -- License Activation and Supervision.

Answer : C

Comprehensive and Detailed

An 80/20 loan structure means the borrower finances 80% of the purchase price through a first mortgage and 20% through a second mortgage, leaving no down payment.

For a $600,000 property:

80% $600,000 = $480,000 (first loan)

20% $600,000 = $120,000 (second loan)Total financing = $480,000 + $120,000 = $600,000.Therefore, Carson is financing $480,000 through the first loan, corresponding to the ''80%'' part referenced in the question's options.

Answer : C

Comprehensive and Detailed

In Maryland, all compensation earned by a licensed salesperson or associate broker must be paid through their supervising broker.

Salespersons are not permitted to receive direct payments from clients, customers, mortgage brokers, or other settlement service providers.

Violations can result in disciplinary action or license suspension.

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

Md. Business Occupations and Professions Article 17-322(b)(17) -- Receiving Compensation Through Proper Channel.

Answer : A

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

Tenancy by the entirety is a special form of ownership available only to married couples in Maryland. It provides each spouse with an equal, undivided interest and includes the right of survivorship---if one spouse dies, the surviving spouse automatically owns the entire property.

However, when the couple divorces, the marriage relationship---essential for this ownership form---no longer exists. The law automatically converts the ownership to tenancy in common, unless otherwise specified in the divorce decree or a subsequent agreement.

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Forms of Real Estate Ownership'' Section

Maryland Real Property Article, 2-117 -- Estates by Entirety; Effect of Divorce.

Answer : A

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.

Answer : D

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

A listing agreement is a legally binding contract between a seller and a licensed real estate broker that establishes the broker's authority to market the property and represent the seller's interests in finding a ready, willing, and able buyer.

It outlines the terms of representation, including price, commission, duration, and the duties of both parties.

The agreement does not guarantee a sale; rather, it ensures mutual understanding of responsibilities and compensation should a sale occur.

This principle is covered in the Listing Agreements and Buyer Representation module.

Reference (Maryland Source):

-- Maryland 60-Hour Principles and Practices Course, Listing Agreements and Brokerage Contracts section.

-- Business Occupations and Professions Article 17-534.

Answer : C

Comprehensive and Detailed

Under the Statute of Frauds, all conveyances of real property must be in writing to be enforceable. A valid Maryland deed therefore includes: a competent grantor and identifiable grantee, a granting clause, an adequate legal description, consideration, signature of the grantor, delivery, and acceptance --- and it must be in writing. Oral (nuncupative) or judge-approved deeds are not recognized.