Maryland-Real-Estate-Salesperson Exam Questions Tutorials

In the valuation module, the course explains bracketing as an appraisal technique where the appraiser selects comparables that are both superior and inferior to the subject on key characteristics (e.g., gross living area, condition, lot size, age, quality, transaction price) to “bracket” the likely value range. Proper bracketing strengthens the sales comparison approach and supports a credible reconciliation by demonstrating the subject’s position within a range indicated by the market.

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).

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.

A tax-deferred exchange, also known as a 1031 exchange, allows investors to exchange one qualifying investment or business property for another “like-kind” property and defer payment of capital gains taxes until the new property is sold.

This provision falls under Internal Revenue Code §1031.

In the Maryland pre-licensing curriculum, this is explained under the “Real Estate Financing and Investment” section to show how investors legally postpone capital gains recognition by following IRS guidelines.