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

In the pre-licensing curriculum’s “Interests in Real Estate” module, a life estate is defined as a freehold estate measured by the life of a specified individual (often the grantee). The life tenant holds present possessory rights until death, at which point the estate terminates automatically and either reverts to the original grantor (reversion) or passes to a named third party (remainder).

A fee simple estate (absolute) is of potentially infinite duration and does not end at a person’s death by its terms.

A homestead estate is a statutory protection for a primary residence, not a conveyance measured by life.

A leasehold estate is a non-freehold estate with a definite term held by a tenant, not measured by a life.

References (Course Outline/Study Topics):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course — “Interests in Real Estate” (Life Estates: life tenant rights, reversion, remainder; freehold vs. non-freehold estates).

Within “Real Estate Brokerage Operations” (advertising and solicitation compliance), the course emphasizes federal rules governing outreach to consumers:

The Do Not Call Implementation Act (and related FTC/FCC rules) regulates telemarketing, requiring scrubbing against the National Do Not Call Registry, time-of-day restrictions, identification requirements, and record-keeping.

The CAN-SPAM Act governs commercial email, requiring accurate header information, a truthful subject line, clear identification as an advertisement (where applicable), a clear opt-out mechanism, and honoring opt-out requests promptly.

The Junk Fax Prevention Act (amending the TCPA) restricts unsolicited fax advertisements, allowing them only under specific conditions (e.g., established business relationship, proper opt-out notice).

These are the primary federal solicitation rules covered for prospecting; antitrust and fair housing laws are also taught but address different risk areas (competition and discrimination, respectively) rather than direct telemarketing/email/fax solicitation mechanics.

References (Course Outline/Study Topics):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course — “Real Estate Brokerage Operations” (Advertising & Solicitation Compliance: Do Not Call rules, CAN-SPAM, Junk Fax Prevention Act; distinctions from antitrust and fair housing requirements).

For pre-1978 residential properties, federal law (Title X) requires disclosure of any known lead-based paint or hazards, provision of the EPA pamphlet, and a 10-day inspection opportunity (unless waived). Licensees must ensure required disclosure forms are completed and disclose known material facts, but they must not state lead exists if they do not actually know. Licensees are not responsible for abatement and must never assist in concealing hazards.

Under Maryland Agency Law (Business Occupations and Professions Article, Title 17, Subtitle 5), a listing agent represents the seller and owes the seller the fiduciary duties of loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting.

A primary fiduciary obligation is to promote the interests of the client at all times during the transaction, as outlined in the Maryland Real Estate Commission’s Agency Disclosure materials.

While the listing agent must disclose all material facts to all parties (facts that affect value or desirability), the agent’s duty of loyalty and advocacy is owed to the seller client.

Therefore, the correct answer is that a listing agent must promote the client’s interests throughout the entire transaction.

A package loan (package mortgage) finances both real property and personal property (chattels) together in a single loan—common with new homes that include appliances or furnishings. A blanket loan covers multiple parcels; a wrap-around is junior financing that “wraps” an existing loan; “security” is not a loan type but a general concept.

Under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and the Maryland Lead Poisoning Prevention Program, sellers and landlords of housing built before 1978 must:

Provide the EPA-approved pamphlet on lead hazards.

Disclose known lead-based paint or hazards and supply any available records.

Allow buyers a 10-day inspection period (unless waived).

A licensee’s duty is to ensure that the sellers comply with these disclosure requirements and to remind them to deliver the proper forms and pamphlet.

The licensee is not responsible for testing or remediation but must ensure all disclosures are completed prior to ratification of the contract.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Environmental Issues and Disclosures section.

– 42 U.S.C. §4852d (Residential Lead-Based Paint Hazard Reduction Act).

– COMAR 26.16.02 (Maryland Lead Poisoning Prevention Program).

The financing module defines a Growing Equity Mortgage (GEM) as a fixed-rate loan with scheduled payment increases applied directly to principal, accelerating amortization and reducing total interest over the life of the loan. This differs from negative amortization (where payments don’t cover interest and the balance grows), blanket mortgages (cover multiple parcels with a release clause), and pledged account mortgages (use a pledged savings account to subsidize payments).

Amortization is the process of systematically paying down a loan balance over time through periodic payments that cover interest and principal, according to an amortization schedule.

Installment refers to a single periodic payment, not the full process.

Loan is the debt itself.

Mortgage is the security instrument (lien) that pledges property as collateral for the loan.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Financing” (amortization schedules; principal vs. interest; fully vs. partially amortized loans).

Basic finance terminology as standardized across pre-licensing materials.

The Fair Housing Act of 1968 (Title VIII of the Civil Rights Act) prohibits discrimination in housing-related transactions and targets discriminatory practices including blockbusting (inducing sales by suggesting the entry of protected classes), steering (directing clients to or from areas based on protected characteristics), and redlining (denying or varying terms for loans or insurance based on neighborhood demographics).

Marital status, sexual orientation, and source of income are not federal protected classes in the 1968 Act’s original text; however, Maryland law provides broader protections at the state level.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Fair Housing and Ethics” (federal protected classes; prohibited practices—blockbusting, steering, redlining).

Federal Fair Housing Act (Title VIII) concepts as taught in the Maryland curriculum; Maryland Human Relations Law adds state protections.

In Maryland, a licensee owes clients fiduciary duties that include reasonable skill and care, loyalty, obedience to lawful instructions, disclosure, confidentiality, accounting, and prompt presentation of all written offers. Failing to present an offer promptly breaches the duty of reasonable care and the professional standard of practice and is treated as negligence (a failure to exercise the care a reasonably prudent licensee would exercise under similar circumstances). This is distinct from:

Fraud (intentional deception),

Misrepresentation (false statement or omission of material fact),

Puffing (non-factual opinion or sales talk).

Because the buyer’s financial harm flowed from the licensee’s carelessness (delay), the appropriate theory is negligence.

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

Maryland Business Occupations and Professions Article, Title 17 (Real Estate Brokers Act) — duties to clients; grounds for discipline for incompetence or negligence.

COMAR 09.11.02 (MREC Code of Ethics) — obligation to promptly present all written offers and perform with reasonable skill and care.

Maryland 60-Hour Pre-Licensing Course: “Real Estate Brokerage and the Law of Agency” (fiduciary duties; standards of care; prompt presentation of offers).