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Under Maryland law, agency relationships are determined by who the licensee represents, not by who pays the compensation.

Even though the buyer’s agent may receive payment from the listing broker via a cooperative compensation (often shared through the MLS), that payment does not make the buyer’s agent an agent of the seller.

The licensee’s fiduciary duties—loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting—belong solely to the buyer, the client under the brokerage agreement.

This principle is detailed under the Maryland Agency Law section of the pre-licensing course.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Law of Agency module.

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

– COMAR 09.11.07.01 – Disclosure of Agency Relationships.

The U.S. Department of Agriculture (USDA) Rural Development Loan Program provides financing for low- to moderate-income borrowers in rural areas.

The Maryland course teaches that Section 502 Direct Loans may offer repayment terms of up to 38 years, depending on borrower income and property location.

These loans are designed to promote homeownership in eligible rural communities and may include payment assistance or subsidies to reduce monthly payments.

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.

Under sub-agency, a cooperating broker or licensee assists the listing broker in selling the property and represents the seller as a sub-agent of the listing broker.

A key drawback is that the listing broker is legally responsible for the sub-agent’s actions because the sub-agent owes fiduciary duties to the same principal (the seller).

Any misrepresentation, negligence, or violation by the sub-agent can expose the listing broker to disciplinary action or civil liability.

This is why many Maryland brokers now prefer buyer agency over sub-agency.

Reference (Maryland Source):

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

– Business Occupations and Professions Article §17-534.

According to the Maryland Real Estate Brokers Act, which governs the Maryland Real Estate Commission (MREC), the Commission consists of nine members appointed by the Governor of Maryland with the advice and consent of the Senate. Each member serves a four-year term and may remain in office until a successor is appointed and qualified. Members may be reappointed for additional terms.

The composition of the Commission is as follows:

Five licensed real estate professionals, each representing one of Maryland’s five geographic regions.

Four consumer members, who are not licensed real estate professionals and have no substantial financial interest in the real estate industry.

This organizational and term structure ensures both professional and public representation within the Commission’s regulatory activities. The information is directly derived from Title 17 of the Business Occupations and Professions Article, §17-202 of the Annotated Code of Maryland — the same statute summarized in the Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course under the “Maryland License Law and Regulations” section.

Reference (Maryland Source):

Maryland Business Occupations and Professions Article, Title 17, §17-202 – Maryland Real Estate Commission; Membership; Terms.

VA loans (for eligible veterans/servicemembers) and USDA Rural Development loans both allow 0% down payment (100% financing), subject to program eligibility and property/location requirements. FHA loans require a minimum down payment (commonly 3.5%) and therefore are not 100% financing.

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.

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.

A special agent (also called a limited agent) is authorized to perform a single, specific act or transaction—such as assisting in the purchase or sale of a property.

Real estate brokers and salespersons generally act as special agents, with limited authority defined in the brokerage agreement.

They may not bind their clients to contracts without express permission.

This principle appears in the Law of Agency module and is contrasted with general agents (brokers’ affiliated licensees) and universal agents (power-of-attorney representatives).

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Law of Agency section.

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

Once a building permit is issued, the local building department monitors the construction process through inspections at key stages (foundation, framing, electrical, plumbing, final).

The purpose of these inspections is to ensure that work complies with state and local building codes and safety standards.

Maryland’s pre-licensing course explains that certified building inspectors—not peers or the builder—conduct these inspections.

Only after passing all required inspections will the department issue a certificate of occupancy (CO) confirming code compliance and permitting lawful use of the structure.