VALID Maryland-Real-Estate-Salesperson Exam Dumps For Certification Exam Preparation
Maryland-Real-Estate-Salesperson Dumps PDF 2026 Strategy Your Preparation Efficiently
NEW QUESTION # 10
When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher- quality property. What economic principle of value is this?
- A. Anticipation
- B. Progression
- C. Regression
- D. Contribution
Answer: C
Explanation:
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.
Reference:Maryland 60-Hour Principles and Practices Course - "Real Estate Appraisal and Valuation" Topic; Appraisal Principles and FIRREA-based Standards.
NEW QUESTION # 11
How do you decide which party you represent in a transaction?
- A. It's based on compensation. If the seller is paying you, you work for the seller.
- B. It's based on priority. A seller's duties come before a buyer's duties.
- C. It's based on the implied agreement between you and the party whom you represent.
- D. It's based on the express written agreement between you and the party whom you represent.
Answer: D
Explanation:
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.
References:
Maryland Business Occupations & Professions Article, Title 17 - written brokerage agreement requirement and agency disclosures.
COMAR 09.11.02 (MREC regulations) - content and use of brokerage agreements; disclosure obligations.
Maryland 60-Hour Principles & Practices Course - Real Estate Brokerage & Agency Module (written agreements and representation).
NEW QUESTION # 12
At its most basic level, which type of antitrust violation is a conspiracy between business competitors to set their prices to buy or sell goods or services at a certain price point?
- A. Tie-in arrangement
- B. Price fixing
- C. Group boycotting
- D. Market allocation
Answer: B
Explanation:
Price fixing occurs when competing firms agree to set prices, fees, or commission rates rather than allowing them to be independently determined. In real estate, this includes agreements among brokers to set commission rates or fee structures-an antitrust violation. Market allocation divides territories or clients, group boycotts are concerted refusals to deal, and tie-in arrangements force the purchase of a second product/service as a condition of sale.
Reference: Maryland pre-licensing curriculum - Brokerage Operations (antitrust compliance: price fixing, market allocation, boycotts, tie-ins).
NEW QUESTION # 13
What's the purpose of a listing agreement in Maryland?
- A. To specify the agreement between the listing broker and the seller
- B. To guarantee a sale
- C. To guarantee payment for the listing agent
- D. To bind the seller to one agent
Answer: A
Explanation:
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.
NEW QUESTION # 14
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:
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 # 15
The National Fair Housing Alliance believes in promoting the message that neighborhoods are stronger
______ neighborhoods.
- A. Diverse
- B. Transit-oriented
- C. Segregated
- D. Gated
Answer: A
Explanation:
Fair housing education emphasizes that inclusive, diverse neighborhoods support opportunity, stability, and equity-values aligned with the federal Fair Housing Act and Maryland fair housing objectives. In pre- licensing training, learners are taught that promoting diversity (and avoiding steering, blockbusting, or discriminatory practices) is both an ethical obligation and a legal requirement.
References: Federal Fair Housing Act (Title VIII, Civil Rights Act of 1968, as amended); Maryland Fair Housing content in the Maryland 60-Hour Principles & Practices Course - Fair Housing and Ethics module.
NEW QUESTION # 16
What type of property is a condominium?
- A. A condo always includes landownership.
- B. A condo is a multi-family property.
- C. A condo is a single-family property.
- D. A condo has a proprietary lease.
Answer: B
Explanation:
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.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Forms of Real Estate Ownership" Module Maryland Condominium Act, Real Property Article 11-101 et seq.
NEW QUESTION # 17
How does the income from property taxes benefit the community?
- A. It's used to build new shopping malls.
- B. It's used to fund essential services and public works.
- C. It's used to build high-end housing.
- D. It's used to determine property tax increases.
Answer: B
Explanation:
Property taxes collected by local jurisdictions in Maryland support essential public services such as schools, police and fire departments, infrastructure maintenance, libraries, and sanitation. The revenue forms the primary funding source for county and municipal budgets. These taxes do not automatically determine future tax rates; rather, they sustain ongoing community operations and improvements.
Reference:Maryland 60-Hour Course - "Land Use Controls and Property Development" topic; Maryland Tax- Property Article 6-201 and Local Government Finance Overview.
NEW QUESTION # 18
Which type of events are generally on a title insurance policy's schedule of exceptions?
- A. Claims from an owner with an unrecorded deed
- B. Liens or encumbrances that aren't in the public record
- C. Mechanic's liens filed prior to a title insurance policy's effective date
- D. Claims that were filed in the public record before a title insurance policy's effective date
Answer: D
Explanation:
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.
References: Maryland 60-Hour Principles and Practices of Real Estate - Closing and Title Insurance: policy structure (Schedule A and Schedule B), title searches, recorded encumbrances, and exceptions to coverage.
NEW QUESTION # 19
Homes built before 1978 may have what environmental hazard in their paint?
- A. Radiation
- B. Lead
- C. Arsenic
- D. Asbestos
Answer: B
Explanation:
The course teaches that residences built prior to 1978 may contain lead-based paint, which poses health risks-particularly to children and pregnant individuals. Federal law requires the Lead-Based Paint Disclosure for most pre-1978 housing, plus delivery of the EPA pamphlet and opportunity for lead evaluation. Maryland materials reinforce these requirements and Maryland-specific lead rules for certain rentals.
References: Maryland 60-Hour Course - Environmental Issues and Disclosures (Lead-Based Paint rules for pre-1978 housing; disclosure and pamphlet requirements); Fair Housing and Ethics (health & safety disclosures).
NEW QUESTION # 20
Why was the Civil Rights Act of 1866 monumental among fair housing and antidiscrimination laws?
- A. It abolished slavery.
- B. It provided no exceptions for discrimination based on race or color.
- C. It added sexual orientation as a protected class.
- D. It was adopted by the United Nations.
Answer: B
Explanation:
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.
NEW QUESTION # 21
Which type of deed offers the strongest and broadest form of guarantee and protection of title to the grantee?
- A. Bargain and sale deed
- B. Full covenant and warranty deed
- C. Executor's deed
- D. Quitclaim deed
Answer: B
Explanation:
In the deed section of the pre-licensing course, learners are taught that the full covenant and warranty deed (often called a general warranty deed) provides the broadest protection for the grantee because the grantor warrants good title, free from encumbrances, and defends the title against all claims, whether they arose before or during the grantor's ownership. The deed typically carries the full set of common law covenants (seisin, right to convey, against encumbrances, quiet enjoyment, further assurances, and warranty). By contrast, a quitclaim deed offers no warranties, a bargain and sale deed implies ownership but gives limited or no warranties, and executor's or personal representative deeds convey title on behalf of an estate without full warranties.
References: Maryland 60-Hour Principles and Practices of Real Estate - Transfer of Title: types of deeds; scope of warranties; general (full covenant) warranty vs. special warranty vs. bargain and sale vs. quitclaim; estate and fiduciary deeds.
NEW QUESTION # 22
What does PITI stand for?
- A. Property, interest, title, and insurance
- B. Property, insurance, taxes, and interest
- C. Principal, interest, taxes, and insurance
- D. Principal, insurance, title, and interest
Answer: C
Explanation:
PITI is the standard mortgage-payment acronym: Principal (loan balance reduction), Interest (finance charge), Taxes (property taxes, typically escrowed), and Insurance (homeowner's and, when applicable, mortgage insurance). Lenders use PITI to calculate housing ratios and total debt-to-income requirements during underwriting-core content in the financing section of Maryland's pre-licensing course.
References: Maryland 60-Hour Principles & Practices Course - Real Estate Financing and Math for Real Estate modules; Conventional/FHA/VA underwriting concepts included in curriculum standards.
NEW QUESTION # 23
When a client understands what dual agency is and agrees in writing to allow a firm to act as a dual agent for them in a real estate transaction, this is known as ________.
- A. Representation by proxy
- B. Mutual agreement
- C. Informed consent
- D. Double dipping
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Informed consent is a legal requirement under Maryland Agency Law when a brokerage represents both a buyer and a seller in the same real estate transaction (dual agency).
In this arrangement, the broker acts as the dual agent, while separate intra-company agents may represent each party.
The client must receive full disclosure of the potential conflicts of interest and consent in writing before dual agency can occur.
Without informed, written consent, dual agency is prohibited under Maryland Real Estate Commission (MREC) regulations.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Maryland Agency Law" Module Md. Business Occupations and Professions Article §17-530-§17-532 - Disclosure and Consent to Dual Agency.
NEW QUESTION # 24
What type of agency exists because of the actions and behavior of the parties?
- A. Behavioral agency
- B. Action agency
- C. Express agency
- D. Implied agency
Answer: D
Explanation:
Agency may be created expressly (by written or oral agreement) or by implication through the conduct of the parties. When a licensee and consumer act as though an agency relationship exists-advice, advocacy, and services consistent with representation-without a signed agreement, this is implied agency. Maryland emphasizes avoiding unintended implied agency by using timely written agreements and required disclosures.
References: Maryland 60-Hour Principles and Practices of Real Estate - Maryland Agency Law: creation of agency (express vs. implied), duties arising from implied agency, risk management through written agreements and disclosures.
NEW QUESTION # 25
Which of the following refers to a situation where a third party intentionally disrupts a contractual relationship between two parties?
- A. Failure to disclose an agency relationship
- B. Contractual interference
- C. Making a substantial and willful misrepresentation
- D. Performing services that would qualify as practice of law
Answer: B
Explanation:
Encouraging a client under an existing agency agreement to terminate that agreement and switch representation constitutes contractual interference and a violation of the Maryland Real Estate Brokers Act.
Licensees must respect the exclusive representation agreements of others and may only solicit business after the prior contract expires.
This is treated as unethical conduct and may result in disciplinary action, including fines or suspension by the MREC.
Reference: Maryland 60-Hour Principles and Practices - "Fair Housing and Ethics / Professional Conduct"; Maryland Business Occupations and Professions Article 17-322(b)(23) - Interfering with Contractual Relationships.
NEW QUESTION # 26
Dan is buying Chuck's property, which is listed with Nevin's brokerage. Who are the parties to the exclusive right-to-sell listing agreement?
- A. Dan and Nevin
- B. Dan and Chuck
- C. Chuck and Nevin's brokerage
- D. Dan, Chuck, and Nevin
Answer: C
Explanation:
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).
References: Maryland 60-Hour Principles and Practices of Real Estate - Listing Agreements: parties to the agreement, broker's authority, and compensation provisions in exclusive right-to-sell listings.
NEW QUESTION # 27
What type of violation are you committing when you fail to include a material fact or make false or misleading advertising statements?
- A. Improper delivery of instruments
- B. Conflict of interest
- C. Misrepresentation
- D. Improper brokerage commission
Answer: C
Explanation:
Comprehensive and Detailed
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.
NEW QUESTION # 28
Fritz is buying Guy's property, which is listed with broker Sara. Who are the parties to the listing agreement?
- A. Guy and Sara
- B. Fritz and Sara
- C. Fritz, Guy, and Sara
- D. Fritz and Guy
Answer: A
Explanation:
An exclusive right-to-sell listing (and other listing forms) is an employment contract between the seller and the listing brokerage (through the broker). The buyer is not a party to the listing agreement. In this scenario, the parties are Guy (the seller) and Sara (the listing broker/brokerage).
References: Maryland 60-Hour Principles and Practices of Real Estate - Listing Agreements: parties to a listing, broker authority, compensation, and contractual obligations.
NEW QUESTION # 29
Which type of antitrust violation involves two or more businesses conspiring against another business?
- A. Tie-in arrangement
- B. Price fixing
- C. Market allocation
- D. Group boycotting
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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 # 30
Ellen and Sadie signed an agreement to list Sadie's condo for sale. After the contract was signed, Sadie's father, Grant, offered to pay Ellen's commission as a housewarming present. Sadie's mom and stepdad, Linda and Rick, also chipped in. Who is Ellen's client?
- A. Grant
- B. Linda
- C. Rick
- D. Sadie
Answer: D
Explanation:
Comprehensive and Detailed
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.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Law of Agency" Module Md. Business Occupations and Professions Article §17-530 - Agency Relationship and Duties.
NEW QUESTION # 31
________ pay earnest money to solidify their commitment to completing a real estate transaction.
- A. Sellers
- B. Buyers
- C. Lenders
- D. Brokers
Answer: B
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
What's a certified opinion or estimate of value of a particular property as of a particular date?
- A. Inspection
- B. Appraisal
- C. Evaluation
- D. Assessment
Answer: B
Explanation:
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).
NEW QUESTION # 33
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