Maryland Contracts
Practice Questions & Answers (2026)
Contract law questions on the Maryland real estate exam test both general contract principles and Maryland-specific transaction requirements. The Maryland Real Estate Commission tests how Maryland contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Maryland law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong MD-specific timeframe or rule.
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Maryland Contracts — Practice Questions & Answers
145 questions on Contracts from the Maryland real estate question bank. First 10 are free — sign up to unlock all 145.
Q1. Under Maryland contract law, which of the following is a required element of a valid real estate contract?
Explanation
Mutual assent — a valid offer and acceptance — is a required element of every contract, including real estate contracts in Maryland.
Q2. In Maryland, a real estate contract that is signed by a 16-year-old is:
Explanation
A contract signed by a minor (under 18 in Maryland) is voidable at the minor's option. The minor may disaffirm the contract; the adult party cannot avoid the contract on this basis.
Q3. In Maryland, a listing agreement is primarily a contract between:
Explanation
A listing agreement is a contract between the seller (principal) and the broker (agent), authorizing the broker to market and sell the property in exchange for a commission.
Q4. In Maryland, the Maryland Residential Property Disclosure and Disclaimer Statement must be provided to buyers of residential property:
Explanation
Maryland law requires the seller to provide the Property Condition Disclosure Statement to the buyer before the buyer makes an offer, ensuring informed decision-making.
Q5. Under the Maryland contract, if all contingencies are removed and the buyer refuses to close, the seller's most likely remedy is:
Explanation
If the buyer defaults after all contingencies have been removed, the seller may retain the earnest money deposit as liquidated damages, as specified in most Maryland purchase agreements.
Q6. In Maryland, what is the purpose of an addendum to a purchase contract?
Explanation
An addendum modifies, adds, or clarifies specific terms of the original contract. It is signed by all parties and becomes part of the purchase agreement.
Q7. Under Maryland law, which of the following is required for a real estate contract to be enforceable under the Statute of Frauds?
Explanation
The Statute of Frauds requires real estate contracts to be in writing and signed by the party against whom enforcement is sought.
Q8. In Maryland, a buyer's offer becomes a binding contract when:
Explanation
A contract is formed when the seller's acceptance is communicated back to the buyer (mirror-image acceptance); the earnest money deposit does not create the contract.
Q9. A Maryland contract of sale includes a financing contingency. The buyer cannot obtain financing and properly invokes the contingency. What happens to the earnest money?
Explanation
When a buyer properly invokes a financing contingency because financing cannot be obtained, the earnest money deposit is returned to the buyer.
Q10. What is the legal term for a contract that appears valid but may be set aside by one party due to a legal defect (e.g., signed by a minor)?
Explanation
A voidable contract is one that is binding unless one party (e.g., a minor) elects to void it; it is not automatically void.
Q11. In Maryland, when a seller counters a buyer's offer, the original offer is:
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