How to Pass the Maryland Real Estate Exam on Your First Try

Maryland's real estate salesperson exam is 110 questions — 80 national and 30 state-specific — with a 70% passing threshold. While the state section is shorter than most states, Maryland's specific laws around agency and disclosure are distinct enough to trip up underprepared candidates.

Maryland Exam Fast Facts - Questions: 110 (80 national + 30 state) - Passing score: 70% on each section (56 national, 21 state) - Time limit: 3.5 hours - Provider: PSI - Pre-license education: 60 hours (salesperson) - Governing body: Maryland Real Estate Commission (MREC, under the Department of Labor)

The Maryland Real Estate Commission

MREC has 11 members: 7 licensees and 4 public members. The Commission enforces the Maryland Real Estate Brokers Act (MD Code, Business Occupations and Professions, Title 17).

Key MREC facts: - Salesperson licenses renew every 2 years; 15 hours of CE required - New salespersons must complete a 15-hour post-license course within 6 months of licensure - The Maryland Real Estate Recovery Fund provides compensation; max $25,000 per transaction, $50,000 per licensee - Maryland requires salespersons to work under a licensed broker

Maryland Agency Law

Maryland requires the Understanding Whom Real Estate Agents Represent disclosure form at first contact. Maryland recognizes:

• Seller's agent: full fiduciary duties
• Buyer's agent: full fiduciary duties
• Dual agent: represents both with written consent
• Intra-company agent: broker represents both parties through designated agents within the same firm

The intra-company agent designation is Maryland-specific terminology. It functions similarly to designated agency — each designated agent within the brokerage represents one party with full fiduciary duties, while the broker acts as a limited dual agent.

Maryland Transfer Tax

Maryland imposes a state transfer tax of 0.5% of the sale price. In addition, each county and some municipalities impose their own transfer taxes. For example: - Montgomery County: 1% transfer tax - Baltimore City: 1.5% transfer tax

First-time homebuyer exemption: First-time homebuyers in Maryland are exempt from the state transfer tax portion.

This is heavily tested — know the state rate (0.5%), know that counties add their own, and know the first-time homebuyer exemption.

Maryland Disclosure Requirements

Maryland's Residential Property Disclosure and Disclaimer Statement is required for most residential sales. Sellers choose one of two options: 1. Disclosure: Seller completes and discloses all known defects 2. Disclaimer: Seller sells the property "as-is," disclaiming any warranties (limited to properties where the buyer accepts the risk)

Buyers who receive a disclaimer (not a full disclosure) should be advised to conduct thorough inspections.

MDE (Maryland Department of the Environment) disclosures: Sellers must disclose known environmental issues including underground storage tanks and lead paint. Maryland's lead paint law for rental properties is stricter than federal requirements.

Maryland Specific Topics

Chesapeake Bay Critical Area: Properties within 1,000 feet of tidal waters are subject to the Critical Area Act, which restricts development to protect the Bay. Agents must know these restrictions apply and where to direct clients for more information.

HOA and Condo Resale Packages: Maryland requires sellers to provide buyers with an HOA/Condo Resale Package before contract. The buyer has a 5-day right of rescission after receiving the package.

Topics That Catch Candidates Off Guard

Disclosure vs. disclaimer: Maryland's two-option system is unique. Know when each applies and what rights the buyer has under each.

Intra-company agent terminology: Maryland's specific term for designated agency within a firm — this will appear on the state section and is easy to confuse with dual agency.

Transfer tax first-time homebuyer exemption: This specific exemption is frequently tested.

Chesapeake Bay Critical Area: Properties near tidal waters have special restrictions. Know the 1,000-foot buffer zone.

Your 4-Week Maryland Study Plan

Week 1: National — agency, contracts, ownership, land use Week 2: National — financing, valuation, math, environmental Week 3: Maryland-specific — MREC, intra-company agent, transfer tax, disclosure vs. disclaimer Week 4: Full practice exams. Target 75%+. Drill transfer tax rate and exemptions, 5-day HOA rescission, and intra-company agent rules.

Practice for the Maryland Exam

[CARealestate.com/states/maryland](https://carealestate.com/states/maryland) has Maryland-specific practice questions covering MREC rules, agency law, transfer tax, and disclosure requirements. 5 free questions, no signup needed.

Maryland's state section is only 30 questions, but 21 out of 30 correct is still required. The transfer tax rules and the intra-company agent designation are Maryland's most distinctive exam topics.