Maryland Practice TestAgency (alternative)

Maryland Agency (alternative)
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Maryland real estate exam, and it's also one of the most misunderstood. The Maryland Real Estate Commission expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Maryland law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for MD-specific rules are among the most common failures on the state portion.

Updated May 2026 · Maryland Real Estate Commission exam outline

Practice Questions

Maryland Agency (alternative) — Practice Questions & Answers

75 questions on Agency (alternative) from the Maryland real estate question bank. First 10 are free — sign up to unlock all 75.

Q1. A Maryland sub-agent of the seller discovers during a showing that the buyer is planning to demolish the home and build a larger one. The sub-agent should:

A.Share this with the buyer's broker only
B.Pass this information to the listing broker and seller, as it may affect the seller's negotiations
C.Keep it confidential as it belongs to the buyer
D.Report it to MREC as an unusual transaction

Explanation

A sub-agent represents the seller through the listing broker. Material information about the buyer that could affect negotiations should be reported to the listing broker and seller.

Q2. In Maryland, a listing agent who earns additional compensation from a buyer's lender for referring the buyer's business without disclosure is:

A.Entitled to the compensation as long as it comes from a third party
B.Violating RESPA's anti-kickback provisions and possibly Maryland law
C.Complying with normal referral fee practices
D.Required to split the fee with the seller

Explanation

RESPA (Real Estate Settlement Procedures Act) prohibits unearned fees and kickbacks between settlement service providers. Undisclosed referral arrangements with lenders violate RESPA.

Q3. A Maryland buyer is working with a buyer's agent but also contacts the listing agent directly. The listing agent should:

A.Freely discuss the buyer's offer strategy since they may also represent the buyer
B.Refer the buyer back to their buyer's agent and inform the buyer's agent of the contact
C.Immediately begin representing the buyer
D.Report the situation to MREC

Explanation

When a buyer is already represented, the listing agent should direct the buyer back to their agent and should not counsel the buyer in a way that undermines the buyer's existing agency relationship.

Q4. A Maryland buyer's agent whose license expires mid-transaction may:

A.Continue the transaction as the buyer's advocate without a license
B.Not legally continue to perform licensed activities until the license is reinstated
C.Continue for 30 days under a grace period
D.Transfer the transaction to an unlicensed assistant

Explanation

A license must be valid to perform real estate activities. An expired license removes the agent's authority to act as a licensed real estate professional until the license is properly renewed.

Q5. A Maryland listing agent who knows the septic system is at or near capacity should:

A.Fix the septic before listing without telling anyone
B.Disclose this material defect to prospective buyers and advise the seller to disclose it
C.Only mention it if the buyer's inspector discovers it
D.List the property as 'as-is' and make no disclosures

Explanation

A failing or capacity-limited septic system is a material defect that must be disclosed. A listing agent who knows of it must not conceal it, regardless of the listing terms.

Q6. The Maryland agency disclosure law is primarily intended to ensure that consumers:

A.Pay the highest possible commission
B.Understand who the real estate agent represents and what duties they owe to each party
C.Obtain at least three competitive bids from different brokerages
D.Sign listing agreements before viewing properties

Explanation

Maryland's agency disclosure law is designed to ensure consumers know who their agent represents, what type of agency relationship exists, and what duties the agent owes to them.

Q7. In Maryland, which of the following could create an implied dual agency?

A.Showing a buyer a property listed by another company
B.An agent from the same office showing a buyer a property listed by their office colleague, without written dual agency consent
C.A buyer visiting an open house without an agent
D.A seller's agent providing a buyer with the MLS sheet

Explanation

When agents from the same office represent the buyer and seller in the same transaction without proper disclosure and consent, an implied dual agency situation can arise that violates Maryland agency law.

Q8. Under Maryland law, a seller's agent who receives information suggesting the buyer has inspection concerns about the roof should:

A.Immediately tell the seller so they can offer a repair credit before being asked
B.Only respond if the buyer's agent officially requests disclosure
C.Provide this information to the seller as it relates to buyer motivation
D.Keep it confidential to maintain the sale

Explanation

Information about the buyer's concerns is relevant to the seller's position and negotiating strategy. A seller's agent should share buyer feedback (including inspection concerns) with their seller client.

Q9. In Maryland, a buyer who tours a model home in a new subdivision is typically being assisted by:

A.An independent buyer's agent
B.The builder's sales agent, who represents the builder/seller — not the buyer
C.A MREC-designated agent
D.A neutral transaction broker

Explanation

New home subdivision sales agents represent the builder (seller). Buyers in new home sales should understand the sales agent does not represent them and consider obtaining their own buyer's agent.

Q10. In Maryland, an agent who acts as a buyer's agent without a signed buyer-broker agreement:

A.Has no legal authority to represent the buyer
B.May still have an implied agency relationship and the fiduciary duties that come with it
C.Is automatically a sub-agent of the seller
D.Cannot receive any compensation

Explanation

Even without a written buyer-broker agreement, an agent's conduct can create an implied agency relationship with the buyer, triggering fiduciary duties regardless of the formal documentation.

Q11. In Maryland, which of the following would most clearly constitute a material fact requiring disclosure by an agent?

A.The seller's favorite color for exterior paint
B.The roof has active water infiltration causing damage
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