Maryland Practice TestProperty Ownership (alternative)

Maryland Property Ownership (alternative)
Practice Questions & Answers (2026)

Property ownership questions on the Maryland exam test forms of ownership, how title is held, and the rights that come with different ownership structures. Maryland tests joint tenancy, tenancy in common, tenancy in severalty, and the specific unities required to create each form. The Maryland Real Estate Commission frequently tests what happens to ownership when one co-owner dies under each ownership form. These questions are foundational but often contain traps for candidates who memorize definitions without understanding the real-world implications tested by the MD exam.

Updated May 2026 · Maryland Real Estate Commission exam outline

Practice Questions

Maryland Property Ownership (alternative) — Practice Questions & Answers

66 questions on Property Ownership (alternative) from the Maryland real estate question bank. First 10 are free — sign up to unlock all 66.

Q1. In Maryland, water rights to a navigable waterway (such as the Chesapeake Bay) are:

A.Owned by the adjacent property owner to the center of the water
B.Held in public trust by the state for all citizens
C.Owned by the federal government exclusively
D.Available to the highest bidder through SDAT

Explanation

Under the public trust doctrine, navigable waters and their shoreline (to mean high water) are held in trust by the state of Maryland for public use and cannot be privately owned.

Q2. Maryland's 'Maryland Heritage Structure Rehabilitation Tax Credit' incentivizes:

A.Demolition and replacement of historic structures
B.Rehabilitation and preservation of historic structures through state income tax credits
C.New construction adjacent to historic areas
D.Sale of historic properties to museums

Explanation

Maryland's Heritage Structure Rehabilitation Tax Credit provides income tax credits to property owners who rehabilitate certified historic structures, preserving historic character and promoting investment.

Q3. A Maryland property owner who erects a fence that encroaches on a neighbor's property may be required by a court to:

A.Pay a nominal fine and keep the fence
B.Remove the fence and potentially pay damages for the encroachment
C.Obtain a variance from the zoning board
D.File for adverse possession

Explanation

An encroaching fence can be ordered removed by a Maryland court, and the encroaching party may be required to pay damages for the use of the neighbor's land.

Q4. Maryland's 'Business Personal Property Tax' applies to:

A.Real estate owned by businesses
B.Furniture, fixtures, equipment, and inventory used in business operations — not real property
C.All property owned by LLCs
D.Only commercial real estate

Explanation

Maryland's business personal property tax is assessed by SDAT on tangible personal property (furniture, equipment, fixtures) used in a business, separate from the real property tax.

Q5. In Maryland, property owned in 'fee simple subject to a condition subsequent' reverts to the grantor (or heirs) only if:

A.The property is sold within 10 years
B.The grantee violates the specified condition AND the grantor exercises their right of re-entry
C.The property value declines
D.The local zoning changes

Explanation

Unlike a fee simple determinable (which reverts automatically), a fee simple subject to a condition subsequent requires the grantor to actively exercise their right of re-entry (power of termination) after a breach.

Q6. Maryland property owners who use their home as a principal residence may qualify for the:

A.Commercial exemption credit
B.Homestead Property Tax Credit, which limits annual assessment increases used for tax calculation
C.Zero-assessment status for 3 years
D.Flat tax reduction of $2,000 annually

Explanation

The Maryland Homestead Property Tax Credit limits annual increases in the taxable assessment of owner-occupied primary residences to 10% (or a locally lower cap), protecting homeowners from rapid tax increases.

Q7. In Maryland, a deed restriction that violates public policy or the Fair Housing Act (such as a racially restrictive covenant) is:

A.Enforceable if it predates the Fair Housing Act
B.Void and unenforceable, though it may remain in the chain of title as a historical document
C.Enforceable only between the original parties
D.Subject to MREC review and possible approval

Explanation

Racially restrictive covenants and other deed restrictions violating public policy or the Fair Housing Act are void and unenforceable under Maryland and federal law, although they may physically remain in older deeds.

Q8. The 'bundle of rights' in Maryland real property includes the rights to:

A.Own, sell, exclude, use, and encumber (mortgage) the property
B.Only use and possess the property
C.Possess and use, but not sell without government permission
D.Develop, lease, and inherit only

Explanation

The bundle of rights in real property includes: the right to possess, use, enjoy, exclude others, transfer (sell/gift/devise), and encumber (mortgage) the property — often described as 'PETE' (Possess, Enjoy, Transfer, Exclude).

Q9. Maryland's Condominium Act requires sellers of new condominiums to provide buyers with a public offering statement that includes:

A.Only the floor plan
B.Detailed financial information, governing documents, plat, and other disclosures required for an informed purchase decision
C.Only the seller's identity and price
D.A title insurance commitment only

Explanation

Maryland's Condominium Act requires developers selling new condominiums to provide a public offering statement containing governing documents, budget, reserve study, plat, and other disclosures enabling an informed decision.

Q10. In Maryland, a 'long-term ground lease' for land typically runs for:

A.5 to 10 years
B.50 to 99 years (or longer)
C.Exactly 20 years
D.The life of the lessee

Explanation

Long-term ground leases typically run for 50 to 99+ years, allowing improvements to be financed and amortized over an economically useful period.

Q11. A Maryland property described as Parcel 3 in Block 7 of 'Smith's Addition to Annapolis' uses which type of legal description?

A.Metes and bounds
B.Lot and block (recorded plat)
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