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

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.

Maryland licensees may fill in blanks on approved contract forms and explain business terms (e.g., common contingencies, offer strategies, earnest money customs). But giving legal advice—interpreting legal consequences, drafting custom legal clauses, or advising on rights/remedies—is considered the unauthorized practice of law unless the licensee is a Maryland attorney. Clients should be referred to legal counsel for legal questions.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Contracts” (use of approved forms; scope of practice; prohibition on legal advice).

Maryland Real Estate Commission guidance (practice limits; unauthorized practice of law).

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 title examination (title search) is a review of public records to establish the chain of title, identify liens, encumbrances, or defects, and confirm the seller’s ability to convey marketable title—customarily extending 60 years or more. A title report is the product issued after the examination; a correction deed cures a specific deed error; a limited search covers a shorter period or scope.

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 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.

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).

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.

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).

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).