Maryland-Real-Estate-Salesperson Sample Questions Answers

Foreclosure is the legal process by which a lender exercises its right to force the sale of mortgaged property when the borrower defaults on the note or deed of trust.

In Maryland—a judicial foreclosure state—the lender must file a court action before selling the property.

Proceeds from the sale are used to satisfy the debt, accrued interest, and foreclosure costs.

This definition is covered in the Financing module under Mortgage Default and Foreclosure Remedies.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Financing and Foreclosure Procedures section.

– Maryland Real Property Article §7-105 et seq.

The principle of regression states that a property of higher value may decrease in worth when located near or among lower-quality properties. Conversely, the principle of progression means a lower-valued property can gain value by proximity to higher-quality ones.

This concept is emphasized in the Maryland pre-licensing module “Real Estate Appraisal and Valuation” to explain how neighborhood characteristics influence market value.

While a client (in this case, Ben) may terminate a listing agreement at any time, the termination does not necessarily release the client from contractual obligations that have already been incurred.

A listing agreement is a bilateral contract between the seller and the broker. If a client ends the agreement without cause, the broker may still be entitled to compensation for expenses or commissions if the property sells to a ready, willing, and able buyer who was introduced during the term.

The Maryland course explains that unilateral termination may constitute breach of contract, depending on the agreement’s terms.

In dual agency (and Maryland’s intra-company/dual agency framework), an agent cannot provide undivided loyalty to both clients in the same transaction. Maryland requires written, informed consent and limits the fiduciary duty of loyalty because representing opposing interests precludes undivided advocacy. The agent still owes honesty, disclosure of material facts, reasonable skill and care, and confidentiality (within statutory limits), but undivided loyalty is expressly curtailed in dual agency.

In Maryland, when a new salesperson applicant identifies a supervising broker on the license application, the applicant receives an active license.

An inactive license is issued only if no broker is designated.

An active license authorizes the salesperson to conduct real estate activities under the supervision of the sponsoring broker, in compliance with MREC rules.

The brokerage operations/MLS compliance section explains that sensitive showing instructions—such as gate codes, lockbox combinations, alarm details, and security instructions—must not appear in public-facing remarks. With the seller’s written permission, these details, when necessary, may be placed only in “Private” (Agent) Remarks, which are visible to MLS participants/subscribers (licensees) but not to the public. This protects seller security and complies with MLS rules and professional standards on advertising and confidentiality.

References (Course Outline/Study Topics):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course — “Real Estate Brokerage Operations” (MLS usage and compliance: public vs. private/agent remarks, confidentiality, seller permissions for showing/access instructions).

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.

In Maryland, agency is established by an express, written brokerage agreement that identifies the client, defines the scope of services, and sets compensation terms and required disclosures. Who pays compensation does not determine agency; payment can come from any party or through the cooperative compensation system (e.g., MLS offers) without changing whom the licensee represents. Implied agency is not an acceptable substitute for the required written agreement in Maryland.

The course’s Environmental Issues content explains that while owners can perform basic prevention (reducing moisture, sealing entry points, monitoring for signs, installing vapor barriers), the application of many pesticides—particularly restricted-use pesticides and termite treatments—must be performed by properly licensed pest management professionals due to health, safety, and regulatory requirements. Real estate professionals should know when to recommend qualified, licensed contractors for inspections and treatment and understand disclosure duties regarding known infestations and prior treatments.

A condominium is a form of ownership, not a type of structure.

It typically consists of multiple units (multi-family or multi-unit buildings) in which each owner holds title to their individual unit and shares ownership of common areas (e.g., hallways, pools, grounds) through the condominium association.

This differs from a cooperative (co-op), where residents hold shares and a proprietary lease.

Interest is the cost of borrowing money, expressed as a rate applied to the outstanding principal. Principal is the loan amount itself. Discount points are prepaid finance charges used to adjust the loan’s yield/interest rate. Usury refers to charging an illegally high interest rate, not the ordinary charge itself.

In Maryland-specific coverage within “Leases and Property Management,” the course explains ground leases and the unique Maryland concept of ground rents. A redeemable ground rent permits the leasehold owner (tenant) to redeem—that is, buy out—the ground rent interest by paying a statutory redemption amount, thereby merging the leasehold and reversionary interests and effectively ending the ground rent. This contrasts with irreedeemable/irretrievable arrangements (not permitted for new creations under current Maryland law) where no buyout right exists.

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Leases and Property Management” (Ground leases and Maryland ground rents; redeemable ground rent concept and tenant redemption).

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.

Under Maryland license law and the Maryland Code of Ethics (COMAR 09.11.02.33), licensees are expected to cooperate with other licensees when doing so serves their client’s best interest. Cooperation often involves sharing information or coordinating showings, but does not require compensation unless there is a written agreement specifying how commissions will be shared. The client’s interest always takes priority over cooperative obligations.

The course’s antitrust module identifies group boycotts as agreements among competitors to refuse to deal with a particular person or firm, thereby restraining trade. By contrast:

Option B describes a tying arrangement;

Option C is market allocation;

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.

A listing agreement is a legally binding contract that establishes an agency relationship between the seller (client) and the listing broker (agent).

The agreement authorizes the broker to market the property and represent the seller’s interests in finding a ready, willing, and able buyer.

While the salesperson may work directly with the seller, the contractual relationship exists between the broker and the seller—not the individual licensee.

This principle is emphasized in the Maryland course under “Listing Agreements and Buyer Representation.”

In the “Real Property and the Law” segment, the course distinguishes between real property (land, improvements, and appurtenances) and personal property (movable items not affixed to land). Emblements—also called fructus industriales—are annually cultivated crops (e.g., corn, wheat, vegetables) produced through tenant labor and industry. These are treated as personal property belonging to the person who planted them, typically the tenant, even if the crops mature after the tenancy ends. By contrast, fructus naturales (e.g., trees, shrubs, perennial plants) are part of the land and therefore real property until severed.

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Real Property and the Law” (Real vs. personal property; fructus industriales/emblements vs. fructus naturales).

Appraisers generally employ three approaches to value: the Sales Comparison Approach (market data), the Cost Approach (replacement/reproduction cost minus depreciation plus land value), and the Income Approach (capitalizing net operating income). Maryland’s pre-licensing curriculum teaches all three as standard methodology, with applicability depending on property type and data availability.

Maryland’s Real Estate Agency Law (§17-530, Business Occupations and Professions Article) mandates that written agency disclosure be provided to all parties in any residential lease transaction exceeding 90 days.

This ensures transparency in representation and prevents misunderstandings regarding whom the licensee represents in the transaction.

The disclosure must occur no later than the first scheduled face-to-face meeting with the prospective tenant or landlord.

Only licensed or certified appraisers may perform an appraisal for a fee in a federally related transaction.

A real estate licensee, however, may prepare a Comparative Market Analysis (CMA) or Broker Price Opinion (BPO) to help a seller decide on a listing price or a buyer to make an offer.

A CMA compares recent sales, active listings, and expired listings of similar properties to estimate a realistic price range.

This procedure is emphasized in the “Appraisal and Valuation” module as a permitted pricing tool for real estate professionals.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Valuation and CMA section.

– Business Occupations and Professions Article §17-511 (b).

Under the Statute of Frauds, all conveyances of real property must be in writing to be enforceable. A valid Maryland deed therefore includes: a competent grantor and identifiable grantee, a granting clause, an adequate legal description, consideration, signature of the grantor, delivery, and acceptance — and it must be in writing. Oral (nuncupative) or judge-approved deeds are not recognized.

A federally related transaction is defined as any real estate-related financial transaction that involves a federal financial institution regulator, such as the Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Office of the Comptroller of the Currency (OCC), or any transaction intended for sale to a government-sponsored enterprise like Fannie Mae or Freddie Mac.

Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), federal agencies require that real estate appraisals used in federally related transactions be performed by state-licensed or state-certified appraisers.

In Maryland’s 60-Hour Pre-Licensing Course, this concept is taught within the “Real Estate Appraisal and Valuation” topic to ensure future licensees understand when a certified appraisal is legally mandated. The course emphasizes that federally related transactions generally include:

The sale, lease, purchase, investment, or exchange of real property.

The financing, refinancing, or use of real property as security for a loan.

Transactions regulated by federal financial agencies.

Therefore, the correct definition of a federally related transaction is a real estate transaction in which a federal financial agency or regulatory authority is involved.

Reference (Maryland and Federal Sources):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course – “Real Estate Appraisal and Valuation” Module (Appraisal Standards Section)

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Title XI – Appraisal Standards

12 U.S.C. § 3350 – Definitions (Federally Related Transaction)

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).

In Maryland, licensees must disclose material facts that are adverse, that they actually know, and that are physical to the property or the transaction—even to customers (non-clients). The MAAP framework (Material, Adverse, Actually known, Physical) is taught in pre-licensing to help practitioners decide what must be disclosed and to distinguish disclosable facts from confidential information or client motivations that must be protected. Examples include known structural defects, roof leaks, or latent physical conditions. This aligns with Maryland’s duties of honesty, disclosure of material facts, and prohibition against misrepresentation.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Brokerage and the Law of Agency” (brokerage duties to clients and customers; disclosure vs. confidentiality; MAAP decision tool).

COMAR 09.11.02 (standards of practice: honesty; disclosure of material facts; avoidance of misrepresentation).

Business Occupations & Professions, Title 17 (grounds for discipline related to disclosure and misrepresentation).

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.

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.

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).

An 80/20 loan structure means the borrower finances 80% of the purchase price through a first mortgage and 20% through a second mortgage, leaving no down payment.

For a $600,000 property:

80% × $600,000 = $480,000 (first loan)

20% × $600,000 = $120,000 (second loan)Total financing = $480,000 + $120,000 = $600,000.Therefore, Carson is financing $480,000 through the first loan, corresponding to the “80%” part referenced in the question’s options.

The standard net-to-seller calculation is:

Net to seller = Sales price × (100% − commission rate) − closing costs.

Thus, the missing element is Sales price. (Commission is calculated on the sales price, then other seller-paid closing costs are subtracted to arrive at net.)

The land use module distinguishes among zoning relief mechanisms:

A use variance permits a land use otherwise prohibited in the zoning district and typically requires proof of unnecessary hardship unique to the property.

An area (dimensional) variance addresses dimensional departures (setbacks, height) and usually requires practical difficulty rather than hardship.

A special use permit (special exception) authorizes uses listed as conditionally allowed if specific criteria are met.

A moratorium is a temporary halt on development.Because the question describes permission to conduct a prohibited use upon showing unnecessary hardship, the correct term is use variance.

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.

The Maryland Commission on Civil Rights (MCCR) is the state agency responsible for enforcing fair housing laws within Maryland.

Under the Maryland Fair Housing Act (found in Title 20 of the State Government Article), the MCCR investigates complaints of discrimination in housing based on race, color, religion, sex, familial status, national origin, marital status, sexual orientation, gender identity, and disability.

The MCCR’s duties include:

Receiving and investigating housing discrimination complaints.

Attempting conciliation between parties when possible.

Referring cases to the U.S. Department of Housing and Urban Development (HUD) when they fall under federal jurisdiction.

Enforcing penalties and ensuring compliance with both state and federal fair housing standards.

In the Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, this information is covered under the “Maryland Fair Housing and Ethics Requirements” module, emphasizing that licensees must understand and comply with both federal Fair Housing Act provisions and Maryland’s additional protected classes enforced by the MCCR.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course – “Maryland Fair Housing and Ethics Requirements” Module

Annotated Code of Maryland, State Government Article, Title 20 – Human Relations, §§ 20-701 to 20-711 (Maryland Fair Housing Act).

Polychlorinated biphenyls (PCBs) are synthetic chemical compounds formerly used as coolants and insulators in electrical equipment, hydraulic systems, and fluorescent-light ballasts. They are toxic, persistent in the environment, and regulated by the U.S. EPA under the Toxic Substances Control Act (TSCA). Maryland’s course covers PCBs among major environmental hazards requiring disclosure or remediation.

Under the Protection of Homeowners in Foreclosure Act (PHIFA), Maryland provides enhanced civil remedies to consumers harmed by foreclosure consultants’ unlawful practices. For intentional (willful) violations, a consumer who brings a private action may recover treble (three times) the actual damages, along with reasonable attorney’s fees and costs. This heightened remedy is designed to deter predatory conduct in distressed-homeowner contexts and is taught in the Maryland pre-licensing course under the state-specific consumer protection and license law sections.

In Maryland, a redeemable ground rent (ground lease) allows the leasehold tenant to redeem (buy out) the ground rent by paying the statutory redemption amount to the ground rent holder, typically with advance written notice (often 30 days) after a minimum period has elapsed. An irredeemable ground rent cannot be bought out by the tenant. The question’s facts—15 years of payments and the tenant giving 30 days’ notice to buy out—match the characteristics of a redeemable ground lease.

Maryland licensees may use pre-approved or attorney-drafted forms in the course of their duties.

However, they may not draft legal documents or interpret legal implications, as doing so constitutes unauthorized practice of law.

The Maryland Real Estate Commission (MREC) allows licensees to fill in the blanks of standard forms approved by the Maryland Association of REALTORS® (MAR) or by legal counsel, but all legal interpretations must be referred to an attorney.

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).

Under the Internal Revenue Code (IRC §168), depreciation is a method for recovering the cost of income-producing property over time.

Residential income-producing properties (such as apartment buildings) are depreciated over 27.5 years.

Commercial income-producing properties (such as office buildings) are depreciated over 39 years.These timelines are based on the Modified Accelerated Cost Recovery System (MACRS) used for tax purposes.This concept is included in the Maryland Pre-Licensing Course within the Appraisal and Valuation section, to ensure licensees understand property valuation and investment considerations.

The fair housing section explains that testing (often using paired testers) is designed to identify discriminatory housing practices that may not be visible to the public, such as unequal treatment in showings, terms, or availability disclosures. Testing compares how similarly qualified people from protected classes are treated relative to control testers, thereby uncovering hidden or subtle discrimination and supporting enforcement of fair housing laws.

In the Land Use Controls and Property Development content, the course explains that the primary impacts of a local development are local in scope, affecting nearby traffic patterns, school capacity, utilities, neighborhood character, and community aesthetics (e.g., subdivision layout, landscaping, design standards). Broader regional or federal effects are not the typical or most immediate consequences of a single local project.

Meeting potential buyer clients in-person allows the licensee to establish agency, verify identity, discuss representation agreements, and assess buyer motivation and qualifications. Maryland’s brokerage-operation standards emphasize that the licensee should determine whether prospects are ready, willing, and able to purchase before proceeding, ensuring compliance with agency-disclosure and record-keeping requirements.

Agreeing—or even coordinating—on a minimum commission or listing fee among competing brokerages is price fixing, a per se violation of antitrust law. Maryland pre-licensing emphasizes that competitors must not discuss or set commission rates, fees, or pricing policies; each brokerage must independently determine its fees.

Group boycotting = competitors conspiring to refuse to deal with a party.

Market allocation = dividing territories/customers.

Tie-in arrangement = conditioning sale of one product/service on purchase of another.

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

Maryland 60-Hour Course: “Real Estate Brokerage Operations” (antitrust compliance: price fixing, market allocation, group boycotts, tie-ins).

Sherman Antitrust Act principles as incorporated in Maryland real estate education.

COMAR 09.11.02 (ethical conduct; avoiding anticompetitive practices); MREC guidance on commissions being negotiable and set independently by each brokerage.

In Maryland, when a broker or brokerage firm represents both the buyer and the seller in the same transaction, dual agency may occur only with the informed written consent of both parties.

This consent must be initially obtained when the parties agree to representation and then reaffirmed in writing before either party signs the sales contract.

This ensures both understand the limitations on confidentiality and loyalty that dual agency imposes.

Reference (Maryland Source):

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

– Business Occupations and Professions Article §17-534.

– COMAR 09.11.07.07 – Consent to Dual Agency.

For pre-1978 residential housing, federal law (Title X) requires the lead-based paint disclosure, EPA pamphlet delivery, and an opportunity for a lead assessment. This is a material, mandatory disclosure. Medical history of prior occupants (e.g., HIV, Ebola) is not disclosed and implicates fair housing and privacy. Number of prior owners is not a material defect by itself.

An owner’s (buyer’s) title insurance policy protects the buyer against covered title defects (e.g., undisclosed liens, errors, or prior claims) that surface after closing, and can reimburse for covered losses up to policy limits. Homeowners insurance covers casualty risks, not title defects. Lien proceeds and a special deed (e.g., special warranty) do not provide post-closing insurance coverage.

Tenancy by the entirety is a special form of ownership available only to married couples in Maryland. It provides each spouse with an equal, undivided interest and includes the right of survivorship—if one spouse dies, the surviving spouse automatically owns the entire property.

However, when the couple divorces, the marriage relationship—essential for this ownership form—no longer exists. The law automatically converts the ownership to tenancy in common, unless otherwise specified in the divorce decree or a subsequent agreement.

For any contract to be legally enforceable, the parties must possess legal capacity—they must understand the nature and consequences of the agreement.

Individuals suffering from advanced Alzheimer’s disease lack contractual capacity, making the agreement void (invalid) from its inception.

The Contracts module stresses that an invalid or void contract has no legal effect because one or more essential elements—competent parties, lawful objective, consideration, mutual consent, and legal form—are missing.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Elements of a Valid Contract section.

– Maryland Contract Law Principles, General Common Law Doctrine on Capacity.

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.

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.

A syndicate is an association of two or more investors who unite their capital to own or develop real estate projects.

When investment interests are offered to the public, the syndicate becomes subject to federal securities regulations administered by the Securities and Exchange Commission (SEC).

Maryland’s pre-licensing course explains that syndications may take the form of limited partnerships, corporations, or real-estate investment trusts (REITs), but the unifying element is pooled investor participation under securities law oversight.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Forms of Ownership and Syndication section.

– Securities Act of 1933 and 1934 (SEC Regulations).

Under Maryland Real Estate Brokers Act §17-530 and COMAR 09.11.02.08, dual agency is permitted only when informed, written consent is obtained from both buyer and seller. When licensees operate as part of a team, the broker (or office manager acting as the broker’s designee) may appoint intra-company agents (ICAs) from within that team to represent each party.

The broker or manager then acts as the dual agent, overseeing both sides without providing direct representation to either. This structure preserves confidentiality and compliance with Maryland’s agency disclosure requirements.

Radon is a naturally occurring radioactive gas that results from the decay of uranium found in soil, rock, and groundwater. It is colorless, odorless, and tasteless and can accumulate in enclosed spaces, such as basements and homes.

The U.S. Environmental Protection Agency (EPA) identifies radon exposure as a leading cause of lung cancer among nonsmokers.

In Maryland, the pre-licensing course emphasizes that while radon testing is not mandatory, sellers and licensees have a duty to disclose known environmental hazards to buyers.

A life tenant holds possession for the duration of a measured life but must maintain the property and preserve its value for the remainderman or reversionary owner.

When the life tenant damages, neglects, or depletes the property, that conduct is termed an act of waste.

The future interest holder may take legal action to stop such waste.

The concept appears under “Interests in Real Estate” when describing life estates and their limitations.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Estates in Land chapter.

– Maryland Real Property Article §14-101 et seq.

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).

Lenders compute DTI ratios using the borrower’s gross (pre-tax) monthly income.

Housing DTI (front-end) = monthly housing costs ÷ gross monthly income.

The metes and bounds system is the oldest method of land description used in the United States and is based on physical landmarks, measurements, and compass directions.

It begins at a defined point of beginning (POB) and traces the boundaries using distances (metes) and directions or angles (bounds), returning to the starting point.

In contrast:

Lot and block (option C) refers to recorded plats.

Rectangular survey (option D) uses township and range.

Street addresses (option A) are not legal descriptions.Maryland still recognizes metes and bounds for rural or irregular parcels.

For recordation in Maryland, a deed must be acknowledged (typically before a notary or other authorized officer). Acknowledgment authenticates the grantor’s execution of the instrument, satisfying recording requirements. “Conveyed” and “transferred” describe the act of alienation, not the statutory prerequisite to recording; “verified” is not the recording standard.