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

In Maryland, agency exists when a licensee represents a client under a brokerage agreement. If the seller has a written listing agreement with a broker, the seller is the client.

An unrepresented buyer is considered a customer, not a client. The licensee owes customers limited duties—honesty, fair dealing, and disclosure of material facts—but does not owe fiduciary duties such as loyalty, confidentiality, or obedience.

Therefore, in this case, the seller is the only client.

In Maryland practice, standard residential contracts (e.g., the Maryland REALTORS® Residential Contract of Sale) require parties to initial and date each page. This page-by-page acknowledgment demonstrates that both buyer and seller reviewed and consented to the specific terms on every page, reducing disputes over omitted or altered provisions. Final signatures execute the agreement, but initials and dates on each page evidence assent to the entire document as presented.

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), enacted in 1980 and commonly known as “Superfund,” authorizes the Environmental Protection Agency (EPA) to identify and clean up sites contaminated with hazardous substances.

CERCLA also establishes liability for potentially responsible parties (PRPs)—including current and past owners, operators, and those who arranged for disposal of hazardous substances.

Maryland’s pre-licensing course covers CERCLA as a federal regulation that affects real estate transactions involving contaminated properties, as buyers and sellers must be aware of any cleanup responsibilities before transfer.

An appraisal is a professionally developed opinion of value for a specific property as of a specific effective date, performed in accordance with USPAP (Uniform Standards of Professional Appraisal Practice) and, when required (e.g., federally related transactions), by a state-licensed or state-certified appraiser.

An assessment is the value assigned by a taxing authority for property tax purposes.

An evaluation may be an estimate of value that does not necessarily comply with USPAP or require a state-licensed appraiser (often for certain banking purposes where an appraisal is not required).

An inspection is an examination of a property’s condition, not an opinion of value.

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

USPAP (definition of appraisal; effective date of value).

Maryland Business Occupations and Professions, Title 16 (Real Estate Appraisers) — licensure/certification framework.

FIRREA Title XI (federally related transactions require state-licensed/certified appraisers).

Maryland 60-Hour Pre-Licensing Course: “Real Estate Appraisal and Valuation” (definitions; scope; USPAP).

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.

In the buyer representation section, the course contrasts common forms:

Exclusive right to represent: the brokerage is owed compensation if the buyer purchases during the term, regardless of who finds the property.

Exclusive agency: the brokerage is the only broker engaged, but the buyer reserves the right to purchase without the broker and owe no commission if the buyer self-procures the property.

Under COMAR 09.11.02.33A(5) and the Maryland Code of Ethics, a licensee must promptly present all written offers to the property owner until an offer has been accepted. After acceptance, new offers need not be presented unless the seller specifically requests. This rule ensures fair treatment and full disclosure to clients while maintaining professional standards of practice.

HUD and fair housing organizations use paired testing to identify covert or subtle discriminatory practices that may not be openly admitted—i.e., hidden discrimination—such as disparate treatment in availability, terms, steering, or information provided. Testing is an investigative tool to enforce the Fair Housing Act, not a revenue or punitive scheme in itself.

Maryland agency law requires fiduciary duties to each client—loyalty, confidentiality, disclosure, obedience, reasonable care—but it does not prohibit a licensee from showing the same property to multiple buyer clients. A licensee must avoid disclosing one client’s confidential information (e.g., willingness to pay more) and provide fair, diligent service to each, but there is no exclusivity right entitling a buyer to first refusal unless contractually agreed. Therefore, no violation occurred when Renae showed the property to more than one client.

For a valid conveyance by deed, in addition to other deed validity requirements (competent grantor, identifiable grantee, granting clause, adequate description, consideration recited, execution, etc.), there must be “delivery and acceptance”. Delivery by the grantor and acceptance by the grantee are the operative acts that pass title. An exchange of money is not required to effect the legal transfer (consideration may be nominal and need not be physically exchanged at that moment). Judicial validation is not a standard requirement for voluntary conveyances.