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Maryland Real Estate Practice Exam
(Free Questions & Answers)

The Maryland real estate exam is administered by the Maryland Real Estate Commission (MREC) and is known for heavy testing of Maryland's dual transfer and recordation tax structure — buyers and sellers in Maryland each pay different portions of these taxes, and calculation questions appear regularly. Maryland has extensive lead paint disclosure requirements due to the state's older housing stock, and specific Maryland lead paint law questions are common. The Maryland Residential Property Disclosure and Disclaimer Statement is also tested.

Administered by: Maryland Real Estate Commission · 110 questions · Passing score: 70%

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Free Maryland Real Estate Practice Exam Questions

Test your knowledge with these Maryland real estate practice questions. Each question is based on topics from the Maryland Real Estate Commission exam and includes detailed explanations.

Q1. Which state agency regulates real estate licenses in Maryland?

A.Maryland Department of Commerce
B.Maryland Real Estate Commission (MREC)
C.Maryland Bureau of Professional Licensing
D.Maryland Office of Consumer Protection

Explanation

The Maryland Real Estate Commission (MREC) is the state agency responsible for licensing and regulating real estate salespersons and brokers in Maryland.

Q2. In Maryland, which disclosure form must a licensee provide to a buyer or seller at the first meeting involving a specific property?

A.The Maryland Property Condition Disclosure
B.The Understanding Whom Real Estate Agents Represent (UWAR) form
C.The Lead Paint Disclosure
D.The MREC fee schedule

Explanation

Maryland requires licensees to provide the 'Understanding Whom Real Estate Agents Represent' (UWAR) form at the first meeting involving a specific property to disclose the nature of agency relationships.

Q3. Under Maryland contract law, which of the following is a required element of a valid real estate contract?

A.Notarization
B.Mutual assent (offer and acceptance)
C.Recording at the county circuit court
D.Approval by the MREC

Explanation

Mutual assent — a valid offer and acceptance — is a required element of every contract, including real estate contracts in Maryland.

Q4. Maryland offers a down payment assistance program through the:

A.Maryland Real Estate Commission
B.Maryland Mortgage Program (MMP) through CDA
C.Maryland Department of Transportation
D.Federal Housing Finance Agency

Explanation

The Maryland Mortgage Program (MMP), administered by the Community Development Administration (CDA), provides down payment assistance and competitive interest rates to eligible Maryland homebuyers.

Q5. In Maryland, tenancy by the entirety is available to:

A.Any two or more co-owners
B.Business partners only
C.Married couples only
D.Parents and children

Explanation

Tenancy by the entirety is available only to married couples in Maryland, providing the right of survivorship and protection from individual creditors of one spouse.

Q6. In a competitive market analysis (CMA), a Maryland real estate agent compares the subject property to:

A.Only current active listings
B.Recently sold, currently active, and expired listings
C.Properties in other states
D.Only properties listed in the past week

Explanation

A CMA analyzes recently sold properties (what buyers paid), currently active listings (competition), and expired listings (prices the market rejected) to estimate a property's market value.

Q7. Maryland's fair housing law adds which protected classes beyond the seven federal protected classes?

A.Age and marital status
B.Sexual orientation, gender identity, and marital status
C.Income source and occupation
D.Political affiliation and criminal history

Explanation

Maryland's fair housing law adds sexual orientation, gender identity, and marital status as protected classes, providing broader protections than the federal Fair Housing Act.

Q8. In Maryland, where are deeds and other real property documents recorded?

A.At the Maryland Real Estate Commission
B.At the land records office in the county circuit court
C.At the state capital in Annapolis
D.At the local municipal office

Explanation

In Maryland, deeds and other real property instruments are recorded at the land records office of the circuit court in the county where the property is located.

Q9. A Maryland home is appraised at $480,000. The buyer makes a 15% down payment. What is the loan amount?

A.$72,000
B.$380,000
C.$388,000
D.$408,000

Explanation

Down payment = $480,000 × 0.15 = $72,000. Loan amount = $480,000 − $72,000 = $408,000.

Q10. What is the Maryland Bay Restoration Fund fee associated with?

A.A fee charged to all new construction projects near the Chesapeake Bay
B.A septic system upgrade fund financed by a fee on nitrogen-based nutrients to improve Chesapeake Bay water quality
C.A tax on waterfront property sales
D.An environmental impact fee on commercial developments

Explanation

The Bay Restoration Fund (flush tax) is a fee on septic and sewer users to fund upgrades that reduce nitrogen in the Chesapeake Bay watershed.

Q11. A nonconforming use in Maryland is a use that:

A.Has always been prohibited under local zoning
B.Legally existed before current zoning regulations were enacted but does not comply with current zoning
C.Requires a special exception to operate
D.Is permitted only in agricultural zones

Explanation

A nonconforming use predates the current zoning ordinance; it is allowed to continue but is generally not allowed to be expanded or rebuilt if destroyed.

Q12. In Maryland, a property manager who collects rent and manages property for others is required to:

A.Hold only a property management certification
B.Hold a real estate broker's or salesperson's license under a broker
C.Hold only a business license from the county
D.No license is required for property managers in Maryland

Explanation

In Maryland, managing property and collecting rent for others for compensation constitutes a real estate activity requiring a real estate license.

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Maryland Real Estate Exam — What to Expect

Licensing Authority
Maryland Real Estate Commission
Total Questions
110 multiple choice
Passing Score
70%
Time Limit
3 hours
Exam Fee
$44
Pre-License Hours
60 hours required
First-Time Pass Rate
54%
Official Website
Maryland Real Estate Commission

What Is On The Maryland Real Estate Exam?

The Maryland real estate salesperson exam is administered by the Maryland Real Estate Commission and tests both national real estate principles and Maryland-specific laws and regulations. The exam contains 110 multiple-choice questions, and you must score at least 70% to pass.

The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Maryland — including regulations set by the Maryland Real Estate Commission, Maryland agency disclosure requirements, and state-specific contract and closing practices.

Topics covered on the Maryland exam include: Property Ownership, Agency Law, Contracts, Finance, Maryland License Law. Candidates who struggle on the MD exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Maryland law questions require targeted preparation.

How Many Questions Are On The Maryland Exam?

The Maryland real estate salesperson exam has 110 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Maryland-specific laws administered by the Maryland Real Estate Commission. You have 3 hours to complete the exam.

Maryland Real Estate Exam Passing Score

You need a 70% to pass the Maryland real estate exam. The first-time pass rate in Maryland is approximately 54%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the MD-specific portion. Our Maryland practice exam is built specifically around the Maryland Real Estate Commission exam outline.

Most Difficult Topics On The Maryland Exam

These are the areas where Maryland candidates most commonly lose points.

Transfer & Recordation Tax

Maryland has a dual tax structure — both transfer tax and recordation tax — with different rates for buyers, sellers, and owner-occupants vs. investors. Tax calculation questions appear on the Maryland state exam.

Lead Paint Disclosure

Maryland has some of the most stringent lead paint disclosure requirements in the country, given the state's older housing stock. Maryland-specific lead paint law provisions go beyond federal requirements and are tested on the state exam.

MREC License Law

Maryland Real Estate Commission requirements — including the 60-hour pre-license course, broker supervision rules, and continuing education mandates — are tested on the state portion with Maryland-specific rules.

Property Disclosure Statement

Maryland's Residential Property Disclosure and Disclaimer Statement has specific categories and exemptions. The difference between a full disclosure and a disclaimer, and when each is appropriate, is a common state exam topic.

Maryland Real Estate Math

The Maryland real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the MD exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.

How To Get Your Maryland Real Estate License

  1. 1Complete 60 hours of state-approved pre-license education covering topics required by the Maryland Real Estate Commission.
  2. 2Submit your application to the Maryland Real Estate Commission and pay the required fees (exam fee: $44).
  3. 3Pass the Maryland real estate salesperson exam (110 questions, 70% to pass).
  4. 4Complete a background check and fingerprinting as required by Maryland law.
  5. 5Find a licensed sponsoring/employing broker to activate your license.
  6. 6Complete any required post-licensing education within the timeframe set by the Maryland Real Estate Commission.

Best Study Strategy For The Maryland Exam

Start with Maryland license law first. State-specific regulations administered by the Maryland Real Estate Commission make up a significant portion of the MD exam and are not covered in most national study materials.

Master the math early. The Maryland real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.

Take timed practice exams. The Maryland exam has 110 questions within a 3 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.

Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the MD exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Maryland law.

Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Maryland may have additional protected classes. Know both federal and Maryland-specific protections cold — this topic appears on virtually every exam.

Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.

Maryland Real Estate Exam — Frequently Asked Questions

How many questions are on the Maryland real estate exam?
The Maryland real estate exam has 110 questions. The passing score is 70%.
What topics are on the Maryland real estate practice exam?
The Maryland exam covers: Property Ownership, Agency Law, Contracts, Finance, Maryland License Law.
What is the passing score for the Maryland real estate exam?
You need a 70% to pass the Maryland real estate exam, administered by the Maryland Real Estate Commission.
How much does the Maryland real estate exam cost?
The Maryland real estate exam fee is $44.

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