Free and Premium Real Estate Maryland-Real-Estate-Salesperson Dumps Questions Answers

In a sub-agency relationship, the cooperating licensee (sub-agent) works with a buyer but represents the seller, not the buyer.

Kip, as a sub-agent, owes fiduciary duties of loyalty, obedience, confidentiality, and disclosure to the seller (May), the same client represented by Sheila, the listing agent.

The buyer, Charlie, is treated as a customer, not a client, meaning no fiduciary obligations exist beyond honesty and fair dealing.

This principle is covered in Maryland’s Law of Agency and Brokerage Operations modules.

Reference (Maryland Source):

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

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

Maryland law prohibits self-help eviction, which occurs when a landlord takes direct action—such as locking out a tenant or removing their belongings—without a court order.

Only a sheriff or court-appointed officer may evict a tenant following a court judgment for possession.

A landlord who locks out a tenant to recover rent is acting illegally, even if rent is overdue.

This topic is addressed in the Leasing and Property Management module of the pre-licensing course.

Reference (Maryland Source):

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

– Real Property Article §8-216 – Prohibited Acts of Landlord (Self-Help Eviction).

In the closing/title section of the pre-licensing course, learners are taught that a title policy contains Schedules—most notably Schedule A (coverage basics) and Schedule B (exceptions). Schedule B—Exceptions lists specific matters found of record prior to the policy’s effective date (e.g., recorded easements, covenants, restrictions, prior-of-record liens, and taxes/assessments) that are excluded from coverage unless affirmatively insured over or removed.

While policies also include standard exceptions (which can address certain unrecorded matters), the items “generally” shown on the schedule of exceptions are the recorded encumbrances discovered in the title search that predate the policy.

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.

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, buyers have the right to receive full disclosure of any additions, alterations, or improvements made to a property. This is crucial because such modifications may have required building permits and inspections under state and local building codes.

A buyer wants to know whether permits were obtained to ensure that:

The work was done legally and safely,

It meets local code requirements, and

There are no future liability or resale issues.

Unpermitted work can lead to enforcement actions or costly repairs. The Maryland Property Disclosure and Disclaimer Statement (per Real Property §10-702) requires sellers to disclose known material defects or improvements.

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.

The agency module explains that agency may be created by express agreement (written or verbal) or by implication through conduct. When parties act as if an agency relationship exists—for example, a licensee regularly advising and assisting buyers without a signed agreement—this can form implied agency. Because no express (written or oral) agreement exists in this scenario, the relationship described is implied agency, created by the parties’ behavior and course of dealings.

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.

Maryland recognizes dual agency within a brokerage when the brokerage represents both sides of a transaction. With the informed written consent of both parties, the broker (or branch manager) serves as the dual agent, and the broker may appoint separate associated licensees to represent each party; those appointees are called intra-company agents. Each intra-company agent owes undivided fiduciary duties to their respective client, while the broker maintains neutrality as the dual agent. This structure is specific to Maryland’s agency framework.

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).

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.

The course teaches that the title insurance policy itself specifies coverage and exclusions. Coverage basics appear on Schedule A, while Schedule B—Exceptions clearly lists matters excluded from coverage (e.g., specific recorded easements or restrictions, taxes, and other encumbrances identified in the title search). Therefore, to determine what is not covered, parties must review the policy’s schedule of exceptions.

Appreciation refers to the increase in a property's value over time due to factors such as market demand, improvements, inflation, or location desirability.

It is the opposite of depreciation, which is a decline in value. Appreciation may result from physical improvements (e.g., renovations) or external factors (e.g., neighborhood development).

This concept is emphasized in the Maryland 60-Hour Course within the “Real Estate Appraisal and Valuation” module as a key element of market analysis and investment potential.

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.

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.

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.

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.

Under Section 1031 of the Internal Revenue Code, an investor may defer recognition of capital gains taxes by exchanging one investment or business property for another of like kind.

This is known as a 1031 tax-deferred exchange.

The Maryland pre-licensing course covers this as a financing and investment concept, explaining that it defers, not eliminates, the tax obligation and that investors must comply with strict timelines and rules set by the IRS.

Licensees should avoid offering tax advice but can inform clients of the potential to explore this option with a qualified tax professional or attorney.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Investment and Taxation Concepts section.

– Internal Revenue Code §1031 (Like-Kind Exchanges).

In the “Math for Real Estate and Practical Applications” portion, area and measurement conversions are foundational. An acre is defined as 43,560 square feet. Option B (“43,560 feet”) is incorrect because it omits the necessary square unit. The course emphasizes accurate units and conversions for calculations involving land area, price-per-square-foot/acre, and legal descriptions.

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Math for Real Estate” (Area/acre conversions; unit accuracy).

Under Maryland’s agency law, a licensee must establish a relationship of trust, confidence, and loyalty with a client.

Meeting face-to-face helps the agent explain agency relationships, present the Understanding Whom Real Estate Agents Represent disclosure, and begin building rapport and confidence, which are critical in fiduciary relationships.

As emphasized in the Brokerage and Agency module, personal contact helps ensure informed consent and professional transparency—never to collect personal demographic or financial data outside proper procedures.

Reference (Maryland Source):

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

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

Under the first-time homebuyer exception for IRAs, qualified individuals may withdraw up to $10,000 (lifetime limit) to pay qualified acquisition costs (e.g., down payment and closing costs) without the 10% early withdrawal penalty. Standard income tax may still apply to traditional IRA distributions (Roth rules differ for contributions vs. earnings and five-year holding). Therefore, penalty-free (not tax-free) withdrawals up to $10,000 are permitted for first-time home purchase needs.

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;

Regardless of who pays the commission, the client is the person named in the agency agreement—in this case, Sadie, the property owner.

The Maryland Real Estate Brokers Act defines the client as the party with whom the broker or salesperson has an agency relationship, not necessarily the one providing compensation.

Third-party payments do not alter the contractual relationship or fiduciary duties.

Under Maryland’s Code of Ethics and Professional Conduct, licensees must act with honesty, integrity, and reasonable skill and care.

If a licensee lacks experience in a specialized area, they must disclose that fact to the client and either refer the client or seek assistance from a qualified professional—with the client’s informed consent.

By being transparent and collaborating with an experienced commercial broker, Manny fulfills his ethical obligation of competence and disclosure while protecting his client’s interests.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Ethics and Professional Conduct section.

– COMAR 09.11.02.01 – Code of Ethics for Real Estate Licensees.

– Business Occupations and Professions Article §17-322.

A home inspection is a professional, non-invasive evaluation of the property’s physical condition (systems and components) to inform buyers about defects and needed repairs. It is not an appraisal (value) and doesn’t set list price; while it can reveal “red flags,” its primary purpose is to provide the buyer an accurate picture of condition to inform negotiations and contingency decisions.

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.

A corporation is a single legal entity, separate from its shareholders. When it holds title to real property, ownership is in severalty, meaning “sole” ownership by one legal person. Unlike joint tenancy or tenancy in common, there are no co-owners in severalty; the corporate entity alone holds all rights of ownership. This principle is highlighted in the ownership portion of the Maryland pre-licensing curriculum.

The loan-to-value (LTV) ratio compares the loan amount to the property’s appraised value or purchase price, whichever is less. An LTV of 90/100 (or 90%) means the borrower’s loan equals 90% of the property’s value, and the borrower provides a 10% down payment.

Lenders use the LTV ratio to assess risk and determine if mortgage insurance is required. Maryland’s pre-licensing course explains this formula in the “Real Estate Financing” section under “Loan Underwriting and Ratios.”

Under “Leases and Property Management,” the course explains that a net lease requires the tenant to pay base rent plus some or all of the operating expenses, such as property taxes, insurance, and maintenance (often abbreviated as T, I, M). Variations include single-net (N), double-net (NN), and triple-net (NNN) leases.

A gross lease has the landlord paying most operating expenses, with the tenant paying a single rent figure. A percentage lease bases part of rent on the tenant’s gross sales (common in retail). A sublease is a transfer arrangement, not a lease type that determines expense responsibility.

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Leases and Property Management” (Gross vs. net vs. percentage leases; expense allocations).

Under the Maryland Real Estate Brokers Act (Business Occupations and Professions Article, §17-613), it is unlawful for any person to engage in real estate brokerage activities without a valid Maryland license.

The Maryland Real Estate Commission (MREC) may impose civil fines for unlicensed activity as follows:

Up to $5,000 for a first offense

Up to $15,000 for two offenses

Up to $25,000 for three or more offenses, but no more than $10,000 per violation

Therefore, for multiple offenses, the maximum fine per violation is $10,000.

When an agency relationship ends (expiration, completion, mutual agreement, or termination), certain duties survive: chiefly confidentiality (protecting client confidences and motivations) and accounting (proper handling and return of money, keys, and documents; final accounting for trust funds). Duties such as loyalty and reasonable skill and care do not continue after termination.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Maryland Agency Law” (scope of fiduciary duties; duties that survive agency termination).

COMAR 09.11.02 (confidentiality and accounting obligations).

Under the federal Fair Housing Act, “handicap” (disability) is a protected class. HIV/AIDS is considered a disability, and making statements or disclosures that identify or single out someone based on a protected characteristic is prohibited. Disclosing that an owner (or occupant) has HIV is treated as discriminatory, violates fair housing standards, and also breaches confidentiality. Maryland fair housing law mirrors and expands federal protections, and the pre-licensing course emphasizes that licensees must never disclose information tied to protected classes because it can facilitate or signal discriminatory treatment (e.g., steering, discouraging, or differential terms).

In real property conveyance, certain interests and transfers occur by operation of law and therefore supersede contrary provisions in a will. Common examples include joint tenancy with right of survivorship, tenancy by the entirety, life estates with a named remainderman, and properly created transfer-on-death/beneficiary designations. These interests vest automatically at death and are not controlled by the decedent’s will.

“Intestate” refers to dying without a valid will and does not itself take precedence over a will. The heirs’ wishes have no legal effect against properly vested interests. Therefore, where applicable, operation of law controls over will terms regarding those interests.

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.

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 landlord-tenant law, the landlord must return the tenant’s security deposit, with any required interest, within 45 days after the end of the tenancy, less any permissible deductions for unpaid rent or damages beyond ordinary wear and tear. The landlord must also provide an itemized statement of any deductions. The 45-day deadline is statutory and is emphasized in Maryland pre-licensing instruction within property management and leasing modules.

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

Maryland Real Property Article §8-203 (Security Deposits) — return within 45 days; interest; itemization of deductions.

Maryland 60-Hour Pre-Licensing Course: “Leases and Property Management” (security deposits; deadlines; itemized statements).

In leasing, a covenant is a binding promise or agreement contained within the lease. It can require or restrict certain actions by either the lessor (landlord) or lessee (tenant)—for example, a covenant of quiet enjoyment, a covenant to pay rent, or a covenant to maintain the property. These promises are enforceable under contract and property law.

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.

The course states that an exclusive right-to-sell listing is a brokerage employment agreement between the seller and the listing brokerage (through the authorized broker), not with the buyer. The listing contract authorizes the brokerage to market the property and earn compensation upon a sale during the listing term, regardless of who procures the buyer. Therefore, the parties are the seller (Chuck) and the listing brokerage (Nevin’s brokerage).

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).

Escheat is the government’s power to take title to property when someone dies intestate (without a will) and no heirs or creditors can be found. This differs from eminent domain (the government’s power to take private property for public use with just compensation) and from a taking (the act under eminent domain). A life estate is a private freehold interest measured by a person’s lifetime, not a government power. These core definitions are covered in the Real Property and the Law module.

Under Maryland agency law, a real estate licensee represents a client—the party with whom the licensee has an express, written brokerage agreement. A customer is an unrepresented party who may receive ministerial acts and required disclosures but is not owed fiduciary duties of representation. Who pays compensation does not determine representation; the written agreement does.

The Maryland pre-licensing course explains that the Maryland Real Estate Guaranty Fund is designed to compensate members of the public who suffer actual financial loss due to certain acts or omissions of Maryland licensees in the provision of real estate brokerage services. Claims must be based on verifiable monetary damages; non-economic harms such as embarrassment, inconvenience, or pain and suffering are not compensable under the Fund. The course also outlines claimant eligibility and procedural requirements established in Title 17 (Real Estate Brokers) of the Maryland Business Occupations and Professions Article.

Maryland law establishes that the Maryland Real Estate Commission has nine members: five must be licensed real estate professionals (one from each of Maryland’s five geographic regions) and four must be consumer members who are not engaged in the real estate business. This composition ensures both industry expertise and public representation. The pre-licensing course presents this under Maryland License Law and MREC structure, aligning with the Maryland Business Occupations and Professions Article, Title 17 (§17-202).

Under Maryland Business Occupations and Professions Article §17-322 and the Code of Maryland Regulations (COMAR) 09.11.02, the Maryland Real Estate Commission (MREC) may impose disciplinary action on a licensee who violates license law or the Commission’s Code of Ethics. Sanctions can include a formal reprimand, monetary fine, license suspension, or license revocation. Imprisonment does not apply to ethical or administrative violations unless accompanied by criminal fraud. Each case is reviewed individually by the Commission.

Area of a rectangle = length × width. Here, 40 ft × 20 ft = 800 square feet. Area is always expressed in square units.

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.

An option contract gives the optionee (Monique) the exclusive right to purchase a property within a specified period and under specific terms, but not the obligation to do so.

When properly executed and supported by consideration (the option fee), the option is a binding contract on the property owner (Mark) and any subsequent owners who take title with constructive notice of the existing option.

Therefore, when Monique exercises her valid option within the option period, Shelly must honor it—the property must be sold to Monique under the agreed terms.

When a life estate is measured by the life of a life tenant (Jacob) and the grantor (Janice) specifies that, upon the life tenant’s death, the property passes to a third party, that third party holds a remainder interest (a present, non-possessory future interest). If the property were set to return to the grantor instead, the grantor would hold a reversionary interest.

A short sale occurs when the lender agrees to accept less than the total amount owed on the mortgage to release its lien so that the property can be sold.

The lender must approve the sale before closing.

This typically happens when the market value of the property is less than the outstanding loan balance, but foreclosure is avoided.

In the pre-licensing course, short sales are discussed under Financing and Foreclosure Alternatives, highlighting licensees’ duties to disclose the short-sale status to buyers and comply with lender requirements.

Reference (Maryland Source):

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

– Maryland Real Property Article §7-105.1 (Mortgage Default Remedies).

Bulk zoning regulates the intensity of land use—controlling density through standards such as lot size, setbacks, height limits, floor-area ratio (FAR), and open-space requirements. Its primary purpose is to restrict density and prevent overcrowding, not to group similar uses (which is the role of traditional/Euclidean zoning). This is taught in the course’s Land Use Controls and Property Development section.

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.

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.

A contract assignment occurs when a buyer (the assignor) transfers his or her contractual rights to another party (the assignee) before closing.

However, this is only allowed if the original purchase contract permits assignment—that is, if it includes an assignability clause or does not prohibit assignment.

If the contract specifically states “non-assignable” or “assignment requires seller consent,” the assignor must comply with those terms.

This concept appears in the Contracts and Transaction Procedures section of the course.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Real Estate Contracts and Assignments section.

– Maryland Contract Law Principles (General Common Law on Assignability).

A group boycott occurs when two or more competitors conspire to refuse to deal with another firm or individual, thereby attempting to eliminate competition.

This is a violation of the Sherman Antitrust Act and the Clayton Act, both covered in the “Ethics and Antitrust” section of the Maryland pre-licensing course.

Examples include two brokerages agreeing not to cooperate with a third brokerage or to exclude another licensee from access to listings.

Maryland law and the National Association of REALTORS® Code of Ethics prohibit any conduct that restricts trade or limits consumer choice.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Fair Housing and Ethics / Antitrust section.

– Sherman Antitrust Act (15 U.S.C. §1).

– Clayton Antitrust Act (15 U.S.C. §12–27).

Personal property (also known as chattel) refers to movable items that are not permanently attached to the land or the improvements on it.

Examples include furniture, vehicles, and trade equipment. In contrast, real property includes land, improvements, and the legal rights associated with ownership.

The distinction between real and personal property is a core principle of real estate law covered early in the Maryland 60-Hour Course under “Real Property and the Law.”

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.

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.