Pass the Real Estate Maryland Real Estate Maryland-Real-Estate-Salesperson Questions and answers with Dumpstech

In the closing/title section of the pre-licensing course, learners are taught that a title policy contains Schedules—most notably Schedule A (coverage basics) and Schedule B (exceptions). Schedule B—Exceptions lists specific matters found of record prior to the policy’s effective date (e.g., recorded easements, covenants, restrictions, prior-of-record liens, and taxes/assessments) that are excluded from coverage unless affirmatively insured over or removed.

While policies also include standard exceptions (which can address certain unrecorded matters), the items “generally” shown on the schedule of exceptions are the recorded encumbrances discovered in the title search that predate the policy.

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.

Courts commonly consider (1) method of attachment (annexation), (2) adaptation to the property’s use, and (3) agreement of the parties to determine whether an item is a fixture (real property) or personal property. “Acknowledgement,” “accessory,” and “reimbursement” are not part of the legal fixture tests.

Under Maryland Business Occupations and Professions Article §17-322 and the Code of Maryland Regulations (COMAR) 09.11.02, the Maryland Real Estate Commission (MREC) may impose disciplinary action on a licensee who violates license law or the Commission’s Code of Ethics. Sanctions can include a formal reprimand, monetary fine, license suspension, or license revocation. Imprisonment does not apply to ethical or administrative violations unless accompanied by criminal fraud. Each case is reviewed individually by the Commission.

Licensees owe duties of honesty, good faith, and disclosure of material facts. A planned freeway immediately behind the property is a material fact affecting value and desirability and must be disclosed to prospective buyers. If a seller instructs the agent to conceal material facts, the agent must refuse to withhold such information; if the seller insists, the appropriate course is to decline or terminate the listing rather than participate in misrepresentation.

Option C shows conflicting promises to the client; the correct ethical and legal approach is to require disclosure as a condition of representation (Option D).

Misrepresentation occurs when a licensee omits or falsifies a material fact or makes false, deceptive, or misleading statements in advertising or communications. In Maryland, misrepresentation is a violation under §17-322(a)(1) and COMAR 09.11.02.01 (Advertising). A material fact is any information that could influence a consumer’s decision in a real-estate transaction. Intentional misrepresentation may also lead to civil liability for fraud.

Once a contract is ratified, buyers who need a loan must promptly submit a written loan application and provide required documentation so the lender can process, underwrite, and issue a loan commitment within the time frames stated in the contract and financing addenda. This step triggers required disclosures, appraisal ordering (when applicable), and rate/lock options; delays can jeopardize financing contingencies and settlement timelines.

Bulk zoning regulates the intensity of land use—controlling density through standards such as lot size, setbacks, height limits, floor-area ratio (FAR), and open-space requirements. Its primary purpose is to restrict density and prevent overcrowding, not to group similar uses (which is the role of traditional/Euclidean zoning). This is taught in the course’s Land Use Controls and Property Development section.

When personal property (chattel) is physically attached to real property in such a way that it becomes part of the real estate, it becomes a fixture. Fixtures transfer with the property upon sale unless specifically excluded in the contract. The determination depends on attachment, adaptation, and intent. Maryland’s course addresses fixtures under “Real Property and the Law,” emphasizing how they affect ownership and conveyance.

Maryland permits dual agency only under strict disclosure and consent rules (typically implemented as intra-company agency, where a broker designates separate intra-company agents for each party). Written, informed consent from both parties must be obtained before the licensee(s) act in a dual/intra-company capacity for a specific transaction and, in any event, prior to the parties entering into a contract. Maryland uses a MREC-prescribed Consent for Dual Agency disclosure form for this purpose. Early disclosure is encouraged at the formation of the brokerage relationship, but transaction-specific informed consent must be secured before contract.

References (Maryland Sources / Pre-Licensing Core Content):

Maryland Business Occupations and Professions Article, Title 17 (Real Estate Brokers Act) — agency disclosures; dual/intra-company agency framework; written informed consent requirements.

MREC forms/guidance: Consent for Dual Agency (transaction-specific written consent).

Maryland 60-Hour Pre-Licensing Course: “Maryland Agency Law” (dual agency; intra-company agency; timing and form of consent).