Free Practice Questions for Real Estate Maryland-Real-Estate-Salesperson Exam

Property taxes collected by local jurisdictions in Maryland support essential public services such as schools, police and fire departments, infrastructure maintenance, libraries, and sanitation. The revenue forms the primary funding source for county and municipal budgets. These taxes do not automatically determine future tax rates; rather, they sustain ongoing community operations and improvements.

The Civil Rights Act of 1866 was the first federal law to address discrimination in housing and property rights. It declares that all U.S. citizens shall have the same rights as white citizens to inherit, purchase, lease, sell, hold, and convey real and personal property, regardless of race or color.

Unlike later fair housing laws, this Act includes no exemptions—it applies to all property transactions, public or private.

This law is a foundation of modern fair housing legislation, and its absolute prohibition on racial discrimination still applies today.

Reference (Maryland Source):

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

– Civil Rights Act of 1866, 42 U.S.C. §1982.

A power of attorney (POA) is a legal document authorizing one person (the agent or attorney-in-fact) to act on behalf of another person (the principal) in specified matters.

When it comes to transferring real property, a valid, notarized, and recorded power of attorney gives the agent the authority to sign all necessary documents in place of the principal.

The Maryland 60-Hour Course explains this under “Transfer of Title,” emphasizing that all signatures must be properly acknowledged to be legally enforceable, and the power of attorney must be recorded with the deed.

Under the Maryland Real Estate Brokers Act (Business Occupations and Professions Article, §17-613), it is unlawful for any person to engage in real estate brokerage activities without a valid Maryland license.

The Maryland Real Estate Commission (MREC) may impose civil fines for unlicensed activity as follows:

Up to $5,000 for a first offense

Up to $15,000 for two offenses

Up to $25,000 for three or more offenses, but no more than $10,000 per violation

Therefore, for multiple offenses, the maximum fine per violation is $10,000.

Under the Uniform Commercial Code (UCC) Article 3 principles taught in real estate financing, a negotiable instrument (e.g., a promissory note) must be an unconditional promise or order to pay a fixed amount of money. Thus, if it does not contain an order to pay, it must contain a promise to pay. The amount must be fixed (not “flexible”), and while signatures are required for enforceability, notarization is not a UCC requirement for negotiability.

The course stresses that licensees must protect a seller’s privacy and personal security when marketing property. Photos that display personal possessions such as firearms, medications, financial documents, or valuables should never be published. Revealing these items can create a safety and liability risk for the seller and may violate professional ethical standards regarding confidentiality.

Therefore, the image showing the owner’s collection of antique guns should not be made public.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Listing and Marketing Property section.

– Maryland Code of Ethics for Real Estate Licensees, COMAR 09.11.02.01 et seq.

In subdivision and zoning review, density is evaluated using physical and regulatory site controls—minimum lot size, setbacks, yard requirements, lot coverage, height limits, open space ratios, and boundaries—to determine how many dwelling units may be placed per acre and how they’re arranged. While property values and federal approvals can be relevant to other processes, density determinations rest primarily on local zoning metrics such as setbacks and boundaries.

In a sub-agency relationship, the cooperating licensee (sub-agent) works with a buyer but represents the seller, not the buyer.

Kip, as a sub-agent, owes fiduciary duties of loyalty, obedience, confidentiality, and disclosure to the seller (May), the same client represented by Sheila, the listing agent.

The buyer, Charlie, is treated as a customer, not a client, meaning no fiduciary obligations exist beyond honesty and fair dealing.

This principle is covered in Maryland’s Law of Agency and Brokerage Operations modules.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Agency Relationships and Sub-Agency sections.

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

Under Maryland agency law, a real estate licensee represents a client—the party with whom the licensee has an express, written brokerage agreement. A customer is an unrepresented party who may receive ministerial acts and required disclosures but is not owed fiduciary duties of representation. Who pays compensation does not determine representation; the written agreement does.

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.