[May 08, 2026] Valid Maryland-Real-Estate-Salesperson Test Answers & Real Estate Maryland-Real-Estate-Salesperson Exam PDF

Realistic Maryland-Real-Estate-Salesperson Exam Dumps with Accurate & Updated Questions

NEW QUESTION # 25
What's the area of a rectangular building that's 40 feet by 20 feet?

• A. 800 square feet
• B. 80 feet
• C. 80 square feet
• D. 800 feet

Answer: A

Explanation:
Area of a rectangle = length × width. Here, 40 ft × 20 ft = 800 square feet. Area is always expressed in square units.
Reference: Maryland pre-licensing curriculum - Math for Real Estate (area of rectangles/squares; unit labeling for area vs. linear measures).

NEW QUESTION # 26
Which of these situations would result in the earnest money being disbursed to the seller?

• A. The seller gets cold feet and cancels the transaction.
• B. The buyer backs out when the appraisal comes in too low to satisfy the contingency.
• C. The escrow agent converts the earnest money.
• D. The buyer includes hard money in the purchase offer, then terminates the sale when the appraisal comes in low.

Answer: D

Explanation:
In Maryland, earnest money ("trust money") is disbursed strictly according to the purchase contract and escrow instructions, and a broker must hold it in escrow until: (1) the contract terms specify its release (e.g., upon default or a "non-refundable"/"hard" deposit provision), (2) the parties sign a mutual written release, or (3) there is a court order.
* "Hard money" (non-refundable deposit) is contractually designated as the seller's if the buyer terminates for reasons not protected by a contingency. If the buyer agreed to hard money and then cancels due to a low appraisal after waiving or not having an appraisal/financing contingency, the deposit is typically forfeited to the seller per the contract.
* If the buyer properly invokes an appraisal (or related financing) contingency (Option A), the earnest money is generally returned to the buyer, not disbursed to the seller.
* Conversion by an escrow agent (Option C) is misconduct, not a lawful disbursement.
* If the seller wrongfully cancels (Option D), the buyer usually receives the deposit back and may pursue additional remedies.
References (Maryland Sources / Pre-Licensing Core Content):
* Maryland 60-Hour Course: "Closing the Real Estate Transaction" and "Real Estate Brokerage Operations" (trust/escrow money handling; release conditions; default and liquidated damages).
* Business Occupations & Professions (Maryland Real Estate Brokers Act), Title 17 (broker escrow duties; release only per contract, mutual release, or court order).
* COMAR 09.11.01 (Trust/escrow accounts), COMAR 09.11.02 (standards of practice; prohibition on conversion).

NEW QUESTION # 27
An organization with many investors who jointly participate in a real estate investment and must adhere to the rules and regulations of the Securities and Exchange Commission is a

• A. Syndicate
• B. S corporation
• C. Partnership
• D. C corporation

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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).

NEW QUESTION # 28
What is one drawback of sub-agency from a listing broker's standpoint?

• A. The listing broker and listing agent can be liable for the sub-agent's actions.
• B. There aren't any drawbacks.
• C. The listing broker will have to pay two agents' commissions.
• D. Both parties must agree to dual agency.

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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.

NEW QUESTION # 29
Why might a property owner avoid paying capital gains tax on a property sale?

• A. He didn't convey the property.
• B. He didn't file his taxes correctly.
• C. He didn't sell the property.
• D. He did a tax-deferred exchange.

Answer: D

Explanation:
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.
Reference: Maryland 60-Hour Principles and Practices - "Real Estate Financing and Investment"; Internal Revenue Code 1031.

NEW QUESTION # 30
Between commercial and residential properties, which type of property is depreciated for a longer time?

• A. Residential income-producing properties are depreciated longer (39 years) than commercial income- producing properties (27.5 years) are.
• B. Commercial income-producing properties are depreciated longer (39 years) than residential income- producing properties (27.5 years) are.
• C. You cannot depreciate income-producing properties.
• D. Both commercial and residential income-producing properties are depreciated according to the same schedule.

Answer: B

Explanation:
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.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Real Estate Appraisal and Valuation" Module Internal Revenue Code 168 - MACRS Depreciation Rules.

NEW QUESTION # 31
________ pay earnest money to solidify their commitment to completing a real estate transaction.

• A. Brokers
• B. Sellers
• C. Lenders
• D. Buyers

Answer: D

Explanation:
Earnest money is a good-faith deposit tendered by the buyer with an offer to purchase, demonstrating the buyer's commitment and providing liquidated damages/security per the contract terms. The deposit is typically held in a broker or title/escrow trust account and is credited to the buyer at closing or disbursed according to the contract if the transaction does not close.
References: Maryland pre-licensing curriculum-Real Estate Contracts (offer and acceptance; consideration; earnest money deposits; escrow/trust account handling).

NEW QUESTION # 32
Under which type of buyer agency agreement does a buyer reserve the right to self-represent?

• A. Personal agency
• B. Exclusive right to represent
• C. Exclusive agency
• D. Open agency

Answer: C

Explanation:
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.
References: Maryland 60-Hour Principles and Practices of Real Estate - Buyer Representation Agreements:
exclusive right vs. exclusive agency vs. open agreements; commission and self-procurement provisions.

NEW QUESTION # 33
How does the building department ensure that a builder who has obtained a permit builds according to code?

• A. The builder submits a monthly progress report.
• B. The builder is required to submit to weekly inspections performed by peers in the industry.
• C. The building department sends inspectors to inspect the work.
• D. The builder signs an affidavit to that effect.

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Land Use Controls and Property Development" Module Maryland Building Performance Standards (COMAR Title 09, Subtitle 12, Chapter 51).

NEW QUESTION # 34
What do you call the person or entity that oversees trust or escrow money?

• A. Escrow agent
• B. Special agent
• C. Escrow master
• D. Mortgage agent

Answer: A

Explanation:
Comprehensive and Detailed
The escrow agent (often the broker, title company, or attorney) is the fiduciary who receives and holds trust money in a regulated escrow account until contract terms are fulfilled. In Maryland, the broker is responsible for maintaining escrow records and depositing all trust money promptly in accordance with COMAR 09.11.02.19. "Escrow master" and "mortgage agent" are not legal titles under Maryland law, and "special agent" refers to the agency relationship, not handling of funds.

NEW QUESTION # 35
Shelly buys Mark's house, which is still in an option period with Monique. Monique decides to exercise her option after Shelly moves in. What will happen?

• A. Mark will have to refund Monique's option fee.
• B. Nothing will happen, as long as Shelly has a fully executed sales contract with Mark.
• C. Shelly will have to sell the house to Monique.
• D. Shelly and Mark must form a new option agreement.

Answer: C

Explanation:
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.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Real Estate Contracts" Module Maryland Contract Law Principles - Option Contracts and Specific Performance.

NEW QUESTION # 36
Which of the following is the best definition of a covenant between a lessor and lessee?

• A. A rent escalation
• B. An agreement or promise made between the parties
• C. An addendum to a contract added after it's signed
• D. A provision for which neither party to a contract is willing to compromise

Answer: B

Explanation:
Comprehensive and Detailed
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.

NEW QUESTION # 37
Which type of antitrust violation involves two or more businesses conspiring against another business?

• A. Group boycotting
• B. Tie-in arrangement
• C. Market allocation
• D. Price fixing

Answer: A

Explanation:
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).

NEW QUESTION # 38
Isabelle just took on a new listing, in which the owner is selling because a new freeway is being built right behind the house. The owner is concerned about the noise and other activity the freeway will bring, but doesn't want prospective buyers to know this. Which action best demonstrates good faith in this scenario?

• A. Isabelle decides not to take the listing, since the property will be impossible to sell.
• B. Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.
• C. Isabelle takes the listing, tells the seller she won't discuss the new freeway, then discloses this fact to prospective buyers, since it's material to the property.
• D. Isabelle takes the listing and, per her client's instructions, doesn't tell prospective buyers about the planned road construction.

Answer: B

Explanation:
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).
References: Maryland pre-licensing curriculum-Fair Housing and Ethics and Maryland Agency Law (duties to clients and customers; disclosure of material facts; prohibition on misrepresentation and concealment).

NEW QUESTION # 39
Down the Road Brokerage has an in-house transaction situation and has appointed one of its licensees to represent the buyer client and one to represent the seller client. The two licensees are acting as what type of agents?

• A. The buyer agent is acting as a general agent and the seller agent is acting as an assigned agent.
• B. The buyer agent is acting as a special agent and the seller agent is acting as an appointed agent.
• C. Both are acting as special agents.
• D. Both are acting as intra-company agents.

Answer: D

Explanation:
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.
References:
Maryland Business Occupations & Professions Article, Title 17 (Real Estate Brokers Act) - dual agency and intra-company agency framework.
COMAR 09.11.02 (MREC regulations) - agency disclosures and intra-company appointments.
Maryland 60-Hour Principles & Practices Course - Maryland Agency Law Module (dual agency & intra- company agency).

NEW QUESTION # 40
Which document is provided to borrowers at least three days prior to closing and provides disclosures about the costs of the transaction?

• A. Loan Estimate
• B. Closing Disclosure
• C. The Mortgage Servicing Transfer Disclosure
• D. Escrow closing notice

Answer: B

Explanation:
The Closing Disclosure (CD) is a federally required document under the TILA-RESPA Integrated Disclosure Rule (TRID).
It must be provided to the borrower at least three business days prior to closing and itemizes loan terms, fees, and total closing costs.
The Loan Estimate (LE) is given earlier in the process-within three business days of loan application-while the Closing Disclosure confirms final figures.
Maryland licensees must understand both forms as part of the Closing and Settlement Procedures portion of their coursework.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Closing Procedures and Federal Disclosure Requirements section.
- TILA-RESPA Integrated Disclosure Rule (TRID), 12 C.F.R. 1026.19(f).

NEW QUESTION # 41
What's used to calculate the housing debt-to-income ratio and total debt-to-income ratio?

• A. Gross income
• B. Operating income
• C. Net income
• D. After-tax income

Answer: A

Explanation:
Lenders compute DTI ratios using the borrower's gross (pre-tax) monthly income.
* Housing DTI (front-end) = monthly housing costs ÷ gross monthly income.
References: Maryland 60-Hour Course: "Real Estate Financing" and "Math for Real Estate and Practical Applications" (front-end/back-end DTI; gross income basis).

NEW QUESTION # 42
What is self-dealing?

• A. Profiting from the purchase of a property
• B. Profiting from the sale of a property
• C. Having undisclosed personal interest in a transaction
• D. Insinuating your interest into a contract

Answer: C

Explanation:
Within the Agency/Fiduciary Duties portion of the course, self-dealing is identified as a breach of fiduciary duty that occurs when a licensee has a personal interest in a transaction and fails to disclose it fully and obtain informed consent. Examples include purchasing a client's property for oneself (or through an undisclosed third party), steering a client to a business in which the licensee has a hidden financial stake, or otherwise placing personal gain ahead of the client's interests without disclosure. Maryland law requires full disclosure of material interests and adherence to fiduciary duties of loyalty, disclosure, and obedience.
References: Maryland 60-Hour Principles and Practices of Real Estate - Maryland Agency Law: fiduciary duties, conflicts of interest, disclosure requirements, and prohibitions on self-dealing.

NEW QUESTION # 43
What must an agent do if they receive an undisclosed bonus from a seller to incentivize closing by a certain date?

• A. The agent must disclose the bonus to any buyers they are working with on the transaction.
• B. The agent should pay the bonus to the broker.
• C. The agent can accept the bonus without any disclosure requirements.
• D. The agent should keep the bonus confidential and not inform the broker.

Answer: A

Explanation:
Under Maryland Code of Ethics (COMAR 09.11.02.33A) and Maryland Business Occupations and Professions 17-322(a)(23), a licensee must disclose any compensation, commission, fee, or bonus received from a party other than their client in the transaction.
If a seller offers an undisclosed bonus to the buyer's agent, that bonus must be fully disclosed in writing to the buyer (the agent's client) before acceptance. Failure to do so constitutes an ethical and legal violation. The payment, once disclosed, must be processed through the agent's broker, who is responsible for all compensation distribution.
Reference:Maryland 60-Hour Principles and Practices Course - "Fair Housing and Ethics" Module; COMAR
09.11.02.33A(23); Maryland Business Occupations and Professions 17-322.
.

NEW QUESTION # 44
One of Mrs. Wilson's tenants is leaving in a few months. She hates to see this particular tenant go because he has been an ideal tenant-always paying his rent on time, keeping his place clean, and never a complaint.
Unlike so many of her other tenants, this tenant deserves to get back his security deposit. By law, when must Mrs. Wilson return the deposit to her tenant?

• A. Within two weeks of the lease ending.
• B. Within one month of the lease ending.
• C. Within 45 days of the lease ending.
• D. Within two months of the lease ending.

Answer: C

Explanation:
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).

NEW QUESTION # 45
Which of the following is a method a real estate licensee uses to determine an appropriate listing price range?

• A. Proforma
• B. Market process
• C. Appraisal
• D. Comparative market analysis

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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).

NEW QUESTION # 46
A valid deed must contain all of the essential elements, plus which of the following?

• A. It must be approved by the local judge.
• B. It must be in writing.
• C. It must be sent to all parties via registered mail.
• D. It must be in nuncupative form.

Answer: B

Explanation:
Comprehensive and Detailed
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.

NEW QUESTION # 47
......

Maryland-Real-Estate-Salesperson Exam Dumps - PDF Questions and Testing Engine: https://www.validexam.com/Maryland-Real-Estate-Salesperson-latest-dumps.html

Maryland-Real-Estate-Salesperson Dumps - The Sure Way To Pass Exam: https://drive.google.com/open?id=1kisddIft61nGfPwWSy0s4jDkzCEEMnEF