Maryland Practice Test → Maryland License Law (alternative)

Maryland Maryland License Law (alternative)
Practice Questions & Answers (2026)

Maryland license law questions make up a substantial portion of the MD state exam and cover rules that are specific to Maryland — national study materials often miss these details entirely. The Maryland Real Estate Commission tests its own licensing requirements, broker supervision standards, trust account rules, continuing education mandates, and advertising regulations. Candidates who pass the national portion comfortably often struggle on the state portion specifically because of these Maryland-specific provisions. Every question in this section tests something the Maryland Real Estate Commission enforces directly, so study each answer explanation carefully for the specific MD rule being tested.

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Updated May 2026 · Maryland Real Estate Commission exam outline

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Practice Questions

Maryland Maryland License Law (alternative) — Practice Questions & Answers

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

Q1. A Maryland licensee who practices without completing required continuing education is subject to:

A.No penalty if their license hasn't expired yet
B.MREC disciplinary action and potential license suspension upon discovery
C.Automatic fee waiver at next renewal
D.Only an administrative fine payable to the county

Explanation

Practicing with a license not supported by completed continuing education is a violation of MREC requirements and can result in disciplinary action.

Q2. In Maryland, a licensee who is found to have engaged in 'bait and switch' advertising — advertising a property unavailable at the stated price to attract customers — may face:

A.Only consumer education requirements
B.MREC disciplinary action and potential FTC or Maryland consumer protection charges
C.Only a fine from the local Board of REALTORS®
D.No consequences if the ad was removed quickly

Explanation

Bait and switch advertising violates Maryland real estate advertising regulations, the Maryland Consumer Protection Act, and potentially FTC guidelines, exposing the licensee to multiple forms of discipline.

Q3. A Maryland real estate broker is required to maintain a physical (or electronic) copy of each listing agreement for at least:

A.1 year
B.3 years
C.5 years
D.10 years

Explanation

Maryland brokers must retain transaction and listing agreement records for at least 5 years. Under Maryland licensing law, this requirement ensures public protection and professional standards.. The correct answer is 5 years.

Q4. An out-of-state broker who wants to refer a Maryland buyer to a Maryland broker in exchange for a referral fee:

A.Cannot receive a referral fee under any circumstances
B.May receive a referral fee if the out-of-state broker is licensed in their state and the fee is paid broker-to-broker
C.Must first obtain a Maryland license
D.Must be approved by MREC

Explanation

Maryland allows referral fees paid broker-to-broker between a Maryland licensed broker and an out-of-state broker who is licensed in their home state. Fees cannot be paid to unlicensed persons.

Q5. In Maryland, which of the following is required for a real estate license application?

A.Membership in NAR
B.Completion of pre-license education, passing the state exam, and association with a licensed broker
C.Ownership of real property in Maryland
D.A Maryland driver's license

Explanation

A Maryland real estate salesperson license requires completion of 60 hours of pre-license education, passing the state licensing exam, and affiliation with a licensed Maryland broker.

Q6. MREC's authority to suspend a license 'on an emergency basis' (without a full hearing) applies when:

A.The licensee has been inactive for more than 6 months
B.There is an immediate threat to public health or safety that warrants immediate action
C.The licensee fails to report a change of address
D.A consumer files a complaint

Explanation

MREC can impose an emergency suspension without a prior hearing in cases where the licensee poses an immediate and serious threat to the public, followed by a prompt formal hearing.

Q7. In Maryland, a 'designated broker' or 'principal broker' must:

A.Be a member of the NAR
B.Hold a Maryland broker's license and be responsible for the brokerage's compliance with real estate law
C.Own at least 51% of the brokerage
D.Have 10 years of real estate experience

Explanation

The principal (designated) broker holds the broker's license for the firm, bears legal responsibility for the firm's activities, and must supervise all affiliated licensees.

Q8. In Maryland, a licensee who receives a consumer complaint through MREC has the right to:

A.Ignore the complaint if they believe it is baseless
B.Respond to the complaint and present their case at a formal MREC hearing
C.Have the complaint dismissed without investigation
D.Appeal directly to the Governor

Explanation

Maryland law provides due process — licensees facing complaints have the right to be notified, respond, and present their case at a formal hearing before MREC takes disciplinary action.

Q9. A Maryland real estate course provider must receive approval from:

A.The Maryland Department of Education
B.MREC, which approves pre-license and continuing education courses and providers
C.The Maryland Insurance Administration
D.Only the National Association of REALTORS®

Explanation

MREC approves both pre-license education providers and courses, as well as continuing education providers and course content, ensuring quality and compliance with licensing requirements.

Q10. Maryland law provides that the seller of residential property must provide the Residential Property Disclosure/Disclaimer to the buyer:

A.At or before entering a contract
B.Only if the buyer asks
C.After the inspection is completed
D.At settlement only

Explanation

Maryland's Residential Property Disclosure Act requires disclosure to be provided at or before the time the buyer enters into the purchase contract — before an offer is made.

Q11. A Maryland licensee who is declared bankrupt must report this to:

A.MREC within 30 days
B.Only their employing broker
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