Maryland Escrow & Title (alternative)
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Maryland exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Maryland uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Maryland law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Maryland practice.
Updated May 2026 · Maryland Real Estate Commission exam outline
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Maryland Escrow & Title (alternative) — Practice Questions & Answers
41 questions on Escrow & Title (alternative) from the Maryland real estate question bank. First 10 are free — sign up to unlock all 41.
Q1. A Maryland deed must include an adequate property description to be valid. Which of the following is an adequate legal description?
Explanation
A valid Maryland legal description must be specific enough to identify the property uniquely — a lot and block reference to a recorded plat is a legally sufficient description.
Q2. In Maryland, which type of deed would a trustee use to convey property after a foreclosure sale?
Explanation
In a foreclosure sale, the trustee or substitute trustee conveys the property by a trustee's deed. The deed carries no warranty of title, and the buyer accepts the property subject to any claims.
Q3. Title insurance in Maryland does NOT protect against:
Explanation
Title insurance covers title defects that existed before the policy was issued. It does not cover post-policy events like new liens placed after closing or future zoning changes.
Q4. In Maryland, a 'deed in lieu of foreclosure' allows a borrower to:
Explanation
A deed in lieu of foreclosure is an alternative to foreclosure where the borrower voluntarily transfers title to the lender, and in exchange, the lender releases the mortgage — avoiding the formal foreclosure process.
Q5. In Maryland, when a buyer purchases a condominium, they receive fee simple title to:
Explanation
Maryland condominium owners receive fee simple title to their unit (the airspace within the unit boundaries) plus an undivided ownership interest in the common elements with all other unit owners.
Q6. A Maryland title company that detects a 'cloud on title' before settlement should:
Explanation
A cloud on title (any recorded claim that casts doubt on the owner's clear title) should be resolved before settlement. The title company may require curative action or refuse to insure over certain issues.
Q7. In Maryland, a 'subordination agreement' in real estate means:
Explanation
A subordination agreement allows an existing lienholder to agree to a lower priority position — commonly used when refinancing, where the existing second lien agrees to subordinate to the new first mortgage.
Q8. A Maryland title company discovers that a prior deed in the chain of title was forged. Under the owner's title insurance policy, the buyer is protected because:
Explanation
Forgery is one of the core covered risks of title insurance. An owner's policy protects the buyer against losses arising from forged documents in the chain of title.
Q9. In Maryland, a 'standard coverage' title insurance policy is typically:
Explanation
Standard coverage title insurance policies are an older, more limited form. In Maryland and most of the country, ALTA policies are the standard and provide broader coverage.
Q10. In Maryland, the typical closing cost that is split between buyer and seller is the:
Explanation
Maryland state transfer tax (0.5%) is typically split equally between buyer and seller, though first-time homebuyers pay no transfer tax and the full amount falls to the seller.
Q11. Maryland is considered an 'attorney closing state,' which means:
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