Maryland Real Estate Regulations Quiz

Questions and Answers

Who appoints members to the Maryland Real Estate Commission?

The Governor of Maryland (correct)

The House of Delegates

The State Senate

The Executive Director of the Commission

Which of the following is true concerning the Maryland Real Estate Commission?

Its members are representative brokers from real estate boards or associations throughout Maryland

It has 4 professional and 5 consumer members

It has 5 members

3 out of its members are not real estate licensees and 5 are (correct)

What must be included in advertising by a broker?

The legal name of the licensed real estate broker

The name of the licensee who listed the property

The name of the broker's Realtor board or association or Realtist organization

The designated name of that broker as registered with the Commission (correct)

Which of the following is NOT required in advertising for a team?

The advertisement must contain the name of the team leader Signup and view all the answers

Whom may use a listing agreement form published by a multiple listing service?

Any licensed member of the organization that operates that listing system Signup and view all the answers

Brokers are not required to notify the Commission when?

Changes occur in the commission sharing Signup and view all the answers

What does the Brokers Act require to be done with earnest money deposits when there are no instructions to the contrary from their owner?

They must be deposited in an insured and approved financial institution in MD Signup and view all the answers

Which statement pertaining to licenses held by Maryland real estate brokerage licensees is NOT correct?

They are required for every person who sells real estate for consideration Signup and view all the answers

Which of the following satisfies the requirement that a broker maintain an office?

A definite place of business Signup and view all the answers

Relations with which of the following is NOT addressed in the Commission's Code of Ethics?

The Real Estate Commission Signup and view all the answers

In Maryland, who is primarily responsible for the real estate brokerage services provided through a corporation?

The licensed real estate broker or the firm Signup and view all the answers

Broker's principals are called?

Clients Signup and view all the answers

When can a brokerage lawfully perform dual agency?

When the firm's broker designates two company licensees, one to represent the seller and another for the buyer Signup and view all the answers

What is a requirement for a licensed real estate salesperson to deliver real estate brokerage service?

Performance of real estate acts only on behalf of the broker under whom they are licensed Signup and view all the answers

Which is TRUE when brokers handle the purchase and sale of residential real property?

They may not represent both buyer and seller in the same transaction without designating two intra-company agents Signup and view all the answers

What must be shown in ads placed by licensees for a property listed in their firm?

Designated name of the broker Signup and view all the answers

Licensees do NOT need to do which of the following to be 'qualified real estate agents' and be eligible to use Schedule C-Self-Employed when filing federal tax returns?

Be free from their broker's control of how the work is done Signup and view all the answers

Which type of residential listing agreement is illegal for a broker to use in Maryland?

Net Signup and view all the answers

Which statement about teams is FALSE?

A salesperson cannot be a team leader Signup and view all the answers

How is the executive director of the Commission chosen?

Appointed by the Secretary of Labor, Licensing and Regulation Signup and view all the answers

What is the effect on purchasers of having received the Maryland Residential Property Disclosure and Disclaimer Statement before signing their contract offer?

They may not rescind the contract based on any facts the statement discloses Signup and view all the answers

Which of the following would meet or exceed the requirement for prescriptive easement in Maryland?

25 years' continuous use Signup and view all the answers

If you are a licensed salesperson and receive a lead from a friend who is not a real estate licensee and then split the commission with your friend, which of the following will be true?

This is a violation of the license law Signup and view all the answers

At what minimum level must the Guaranty Fund be maintained at?

250,000 Signup and view all the answers

Which of the following does NOT end presumed buyer representation?

The licensee working with prospects fails to present a disclosure of representation form Signup and view all the answers

Which of the following is paid biennially?

Broker's and Salesperson's license renewal fee Signup and view all the answers

Study Notes

Maryland Real Estate Commission

Members are appointed by the governor of Maryland.
Commission consists of 3 non-licensee members and 5 licensed real estate professionals.

Advertising Regulations

Brokers must include their designated name as registered with the Commission in advertisements.
Team advertisements do not need to include the name of the team leader.

Listing Agreements and Practices

Listing agreement forms published by a multiple listing service can be used by any licensed member of the organization operating the service.
Net listing agreements are illegal for brokers to use in Maryland.

Financial Management

Earnest money deposits must be placed in insured and approved financial institutions in Maryland unless instructed otherwise.

Licensing Requirements

Real estate licenses are required for anyone selling real estate for consideration.
Licensees classified as "qualified real estate agents" must earn income primarily through commissions, and cannot only operate free from their broker’s control.

Agency Relationships

A brokerage can perform dual agency only if the broker designates two licensees, one for each party in a transaction.
Brokers cannot represent both buyer and seller without designating intra-company agents.

Compliance and Ethics

Brokers are not required to notify the Commission about changes in commission sharing or a salesperson's resignation.
The Commission's Code of Ethics addresses relations with clients, fellow licensees, and the public, but not with the Commission itself.

Residential Property Disclosure

Buyers receiving the Maryland Residential Property Disclosure and Disclaimer Statement may not rescind their contract based on disclosed facts.

Easement Requirements

A 25-year continuous use satisfies the requirement for establishing a prescriptive easement in Maryland.

Guaranty Fund

The Guaranty Fund for real estate in Maryland must be maintained at a minimum of $250,000.

Team Regulations

Teams must have at least two licensed members.
A salesperson can serve as a team leader.

Commission Splitting Regulations

A licensed salesperson splitting commission with a non-licensee without broker approval violates license law.

License Fees

The broker's and salesperson's license renewal fee is paid biennially.

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Description

Test your knowledge of Maryland's real estate regulations, including the roles of the Maryland Real Estate Commission, advertising requirements, listing agreements, and financial management practices. This quiz covers essential licensing requirements and guidelines that real estate professionals must follow in the state.