Maryland Real Estate Exam
1,490+ Practice Questions & Answers
Every question includes a detailed explanation. Organized by the 24 topics on the Maryland real estate salesperson exam.
Maryland License Law
78 questions- Which state agency regulates real estate licenses in Maryland?
- How many hours of pre-license education are required to sit for the Maryland real estate salesperson exam?
- The Maryland real estate salesperson licensing exam consists of how many questions?
- What is the minimum passing score on the Maryland real estate licensing exam?
- Under Maryland law, a real estate salesperson license must be held under:
- In Maryland, what is the license renewal period for real estate licensees?
- How many hours of continuing education must Maryland licensees complete per two-year renewal period?
- Maryland requires real estate licensees to provide buyers with a mandatory disclosure form. Which of the following is the primary disclosure document used in most Maryland residential transactions?
- In Maryland, which of the following persons is generally exempt from needing a real estate license?
- Under Maryland license law, a licensee found to have committed misrepresentation may face which penalties from the MREC?
- Which of the following activities requires a real estate license in Maryland?
- In Maryland, a new salesperson must complete which additional step within 18 months of initial licensure?
- How many hours of continuing education must a Maryland real estate licensee complete each two-year renewal cycle?
- What is the minimum experience requirement to apply for a Maryland broker's license?
- How many hours of pre-license education are required for a Maryland broker's license?
- Under Maryland law, what is the penalty for practicing real estate without a license?
- The Maryland Real Estate Commission is composed of how many members?
- Which of the following activities does NOT require a Maryland real estate license?
- What must a Maryland real estate licensee do within 10 days of changing their employing broker?
- In Maryland, a broker's license may be held in which of the following business structures?
- What is the maximum period a Maryland real estate license may remain on inactive status?
- A Maryland associate broker differs from a salesperson in that the associate broker:
- Which article of the Maryland Annotated Code governs real estate licensing?
- A Maryland real estate salesperson license is valid for how long before renewal is required?
- How many continuing education hours must a Maryland salesperson complete per renewal cycle?
- MREC stands for:
- How many members serve on the Maryland Real Estate Commission?
- Under Maryland law, which of the following requires a real estate license?
- A Maryland broker's license requires how many hours of pre-license education beyond the salesperson requirement?
- A Maryland salesperson who has not yet affiliated with a broker may:
- The Maryland Real Estate Commission Education and Research Fund is primarily funded by:
- A Maryland licensee who changes their employing broker must notify MREC within:
- A Maryland real estate license is NOT required for which of the following?
- Which of the following actions could result in MREC revoking a Maryland real estate license?
- Maryland's real estate license law prohibits a licensee from engaging in:
- A Maryland licensee who fails to disclose a material fact about a property may be disciplined by MREC. A 'material fact' is one that:
- In Maryland, a team of agents operating under one broker must:
- A Maryland broker who operates a real estate brokerage as an LLC must:
- A Maryland salesperson who wishes to become a broker must have been actively licensed as a salesperson for at least:
- A Maryland licensee who wants to advertise using a nickname must ensure:
- Which of the following is an example of 'commingling' under Maryland law?
- Maryland law requires licensees to keep transaction records for at least:
- Maryland's 'pocket listing' law requires that:
- A Maryland licensee who has their license suspended may:
- Which of the following individuals does NOT need a Maryland real estate license?
- A Maryland real estate broker's primary responsibility to their salespersons includes:
- In Maryland, continuing education for real estate licensees must include a mandatory:
- A Maryland real estate licensee who violates the Business Occupations and Professions Article §17 may face:
- A Maryland real estate licensee who is convicted of a crime involving moral turpitude must:
- What is the purpose of the Maryland Real Estate Guaranty Fund?
- A Maryland salesperson who wants to operate as an independent contractor must:
- Maryland's reciprocity agreements allow out-of-state agents to obtain a Maryland license if:
- A Maryland licensee who acts as a property manager for a single-family home for a relative:
- A Maryland broker who allows an unlicensed person to perform real estate activities may face:
- In Maryland, a licensee's advertising must NOT:
- Maryland requires that a 'for sale by owner' (FSBO) seller who is also a licensee must:
- Which of the following is considered 'practicing real estate' without a license in Maryland?
- Under Maryland law, which entity is responsible for investigating complaints against real estate licensees?
- A Maryland licensee's obligation to a seller regarding the listing price is to:
- In Maryland, referral fees paid between licensees must be:
- A Maryland real estate license that has been inactive for more than 2 years may require the licensee to:
- A licensed Maryland broker who personally purchases a property listed by another broker:
- A Maryland broker who moves their office to a new location must:
- In Maryland, a 'branch office' of a brokerage must:
- The Maryland Real Estate Commission has the authority to investigate complaints how long after the alleged violation?
- Which of the following is true about Maryland real estate license reciprocity?
- A Maryland licensee who solicits a listed property directly from the seller without going through the listing agent is:
- A Maryland broker must maintain escrow (trust) account records that are:
- A Maryland licensee must provide a buyer with the Maryland Residential Property Disclosure:
- A 'team name' used by a Maryland real estate team in advertising must:
- In Maryland, a real estate licensee who has been found guilty of fraud in a real estate transaction may face maximum penalties from MREC of:
- Maryland requires that any change of a licensee's personal home address be reported to MREC within:
- A Maryland licensee who is convicted of mortgage fraud must report this conviction to:
- Which of the following Maryland license categories can independently operate a real estate brokerage?
- In Maryland, a real estate licensee who assists in the purchase of their own property must:
- Under Maryland law, a real estate brokerage must have a 'principal broker' who is responsible for:
- Maryland MREC may conduct an investigation of a licensee's activities:
- In Maryland, a real estate licensee who receives an earnest money check must:
Property Ownership
76 questions- In Maryland, tenancy by the entirety is available to:
- Which of the following is an example of real property in Maryland?
- In Maryland, what is 'ground rent'?
- In Maryland, ground rent can be redeemed (extinguished) by the homeowner by:
- A homeowner in Maryland sells their property subject to a deed of trust. The deed of trust is an example of what type of encumbrance?
- In Maryland, when two unmarried people own property as joint tenants, the ownership includes the right of:
- Which form of co-ownership is available ONLY to married couples in Maryland and provides full survivorship rights along with protection from individual creditors?
- A tenant in common can convey their ownership interest:
- What type of deed provides the greatest protection to a buyer, containing covenants that warrant title against all claims by anyone?
- A quitclaim deed in Maryland conveys:
- An easement appurtenant benefits:
- Under Maryland law, the doctrine of adverse possession requires continuous, open, hostile, actual, and exclusive possession for how many years?
- A life estate in Maryland is an ownership interest that:
- Which of the following is an example of personal property (chattel) that could be confused with a fixture?
- In Maryland, recording a deed in the land records provides:
- In Maryland, when two people own property as joint tenants with right of survivorship and one dies, the property:
- Maryland recognizes tenancy by the entirety for:
- In Maryland, SDAT stands for:
- Maryland property assessments are conducted by SDAT on what cycle?
- The Maryland Homestead Tax Credit limits property tax increases on owner-occupied principal residences to:
- In Maryland, an easement appurtenant benefits:
- A Maryland homeowner fails to pay property taxes for several years. The county may:
- In Maryland, a fee simple absolute estate is best described as:
- A Maryland property owner grants a life estate to their parent. When the parent dies, the property:
- Under Maryland law, adverse possession requires continuous, open, notorious, hostile, and exclusive possession for:
- A deed of trust in Maryland involves how many parties?
- In Maryland, which of the following is an example of real property?
- The trade fixture doctrine in Maryland provides that trade fixtures installed by a commercial tenant:
- In Maryland, a lis pendens recorded in the land records provides notice that:
- In Maryland, a mechanic's lien may be filed by:
- A Maryland property owner has a mortgage but also takes out a home equity line of credit (HELOC). The HELOC is typically:
- In Maryland, the rule of capture applies to:
- An encroachment in Maryland refers to:
- The Maryland Condominium Act governs:
- In a Maryland condominium, the 'common elements' are owned by:
- In Maryland, a deed must contain which of the following to be valid?
- In Maryland, a deed that is signed but not delivered to the grantee:
- Maryland's Ground Rent system, historically found in Baltimore City, involves:
- Under Maryland's 2007 Ground Rent Reform Act, homeowners with ground rent leases may:
- A Maryland property owner who uses their property as a primary business location and derives income from it may dedicate it as a:
- In Maryland, a condominium owner's unit boundary is typically defined as:
- The Maryland Homeowners Association Act governs:
- In Maryland, restrictive covenants recorded in deeds are enforceable by:
- A Maryland property owner's rights do NOT typically extend to:
- Under Maryland law, a prescriptive easement (easement by prescription) can be established by:
- In Maryland, the doctrine of after-acquired title (estoppel by deed) means:
- In Maryland, a quitclaim deed conveys:
- In Maryland, riparian rights relate to:
- Accretion in Maryland real estate refers to:
- Avulsion in Maryland refers to:
- In Maryland, the holder of a dominant tenement's appurtenant easement may:
- In Maryland, a property owner may terminate a neighbor's prescriptive easement by:
- In Maryland, a property held in trust by a trustee for the benefit of beneficiaries means:
- Maryland real property tax is imposed by:
- The Maryland Renters' Tax Credit is available to:
- In Maryland, the legal description of a property can be established by all of the following methods EXCEPT:
- A metes and bounds legal description in Maryland typically:
- In Maryland, a property owner who sells a portion of their land must ensure the legal description of the remaining parcel is:
- In Maryland, the public land records are maintained by the:
- In Maryland, the Maryland Parcel Identifier (Tax Account Number) is used by SDAT to:
- In Maryland, the term 'seisin' in a warranty deed means the grantor is warranting that:
- A Maryland fee simple defeasible estate is one where:
- In Maryland, a condominium association (council of unit owners) has the authority to:
- A Maryland homeowner who grants a conservation easement to a land trust is:
- Maryland's Chesapeake Bay Critical Area program classifies land into three management areas. The most developed category is:
- In Maryland, joint tenancy requires which four unities?
- In Maryland, a tenancy by the entirety gives each spouse:
- A Maryland couple holding property as tenants by the entirety divorces. Their ownership automatically converts to:
- A Maryland co-owner of a tenancy in common who wants to force a division or sale of the property can file for:
- Maryland's 'Ground Rent Redemption Act' allowed homeowners to:
- In Maryland, the Uniform Trust Code (UTC) provides rules for:
- A Maryland leasehold estate grants the tenant:
- In Maryland, a 'remainder interest' in real property is:
- In Maryland, emblements refer to:
- Maryland law protects a surviving spouse's right to inherit a portion of the deceased spouse's estate through the concept of:
- In Maryland, the legal doctrine of 'merger' in property law occurs when:
Maryland License Law (alternative)
75 questions- A Maryland licensee who practices without completing required continuing education is subject to:
- 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 Maryland real estate broker is required to maintain a physical (or electronic) copy of each listing agreement for at least:
- An out-of-state broker who wants to refer a Maryland buyer to a Maryland broker in exchange for a referral fee:
- In Maryland, which of the following is required for a real estate license application?
- MREC's authority to suspend a license 'on an emergency basis' (without a full hearing) applies when:
- In Maryland, a 'designated broker' or 'principal broker' must:
- In Maryland, a licensee who receives a consumer complaint through MREC has the right to:
- A Maryland real estate course provider must receive approval from:
- Maryland law provides that the seller of residential property must provide the Residential Property Disclosure/Disclaimer to the buyer:
- A Maryland licensee who is declared bankrupt must report this to:
- A Maryland broker who operates in a name other than their registered brokerage name must:
- A Maryland licensee's failure to account for funds received from a client is known as:
- Maryland's BOP Article §17 requires licensees to:
- A Maryland licensee who signs a blank or incomplete contract on behalf of a client without authorization is:
- In Maryland, a real estate licensee who accepts compensation from the seller and a fee from the buyer in the same transaction without disclosure to both parties is:
- A Maryland broker who allows a salesperson to operate without a license after it expires is:
- In Maryland, a person performing real estate services for compensation as a 'finder' or 'bird dog' without a license is:
- A Maryland broker's trust (escrow) account is audited by MREC and found to be short. This could indicate:
- In Maryland, a real estate broker who violates MREC regulations and is ordered to pay a fine must pay it to:
- Maryland's continuing education must include a minimum number of hours focused on:
- A Maryland real estate company advertises using a logo that resembles the MREC seal. This is:
- A Maryland licensee who moves from one broker to another must transfer their license by:
- A Maryland licensee who wishes to also act as a mortgage loan originator (MLO) must:
- In Maryland, the MREC can issue a 'consent order' to a licensee, which means:
- Maryland's reciprocity statute requires that out-of-state applicants for a Maryland license have:
- A Maryland licensee who violates the Americans with Disabilities Act (ADA) in a commercial transaction may face liability under:
- In Maryland, a broker who receives an offer to purchase a vacant lot (not residential) is still required to:
- Under Maryland law, a real estate licensee who maintains a website must include on the site:
- Which of the following is an example of 'misrepresentation' in a Maryland real estate transaction?
- A Maryland licensee who uses the designation 'REALTOR®' must be:
- In Maryland, a real estate brokerage firm that closes must ensure:
- A Maryland broker who charges a buyer-client an undisclosed fee in addition to what the seller pays is engaging in:
- Under Maryland's BOP §17, a real estate licensee's duty of confidentiality to a client prevents disclosure of:
- A Maryland broker must maintain errors and omissions (E&O) insurance for their brokerage to:
- Under Maryland law, a salesperson's license is 'inactive' when:
- Maryland defines 'real estate activity' as including which of the following?
- A Maryland real estate team leader must ensure that all team members:
- A Maryland real estate licensee must complete their initial continuing education within how long of obtaining their license?
- Under Maryland law, a broker who changes the location of the principal office must:
- A Maryland salesperson who wishes to operate independently without a supervising broker must first:
- A Maryland real estate licensee who has been convicted of a crime involving moral turpitude must report it to MREC within:
- The Maryland Real Estate Commission consists of how many members?
- Which Maryland license type allows the holder to receive compensation directly from consumers for real estate services?
- Under Maryland law, a licensed salesperson who receives an earnest money deposit must:
- A Maryland broker's escrow account may NOT be used for:
- The Maryland Real Estate Education and Training Fund is funded by:
- A Maryland licensee who advertises real estate services on social media must:
- Under BOP Article §17, the Maryland Real Estate Commission has authority to do all of the following EXCEPT:
- A Maryland real estate licensee who operates a team must ensure that all team advertising:
- A Maryland broker's license is renewed every:
- A Maryland broker who fails to properly supervise a salesperson may face disciplinary action including:
- The Maryland Consumer Protection Act applies to real estate licensees by prohibiting:
- A Maryland licensee who is convicted of a crime related to the practice of real estate faces potential MREC action including:
- In Maryland, the Real Estate Guaranty Fund provides compensation to consumers who have suffered losses from:
- When a Maryland salesperson's license is placed on inactive status, the licensee may:
- Maryland pre-license education for a salesperson license requires:
- Under Maryland law, a real estate license applicant must be at least:
- A Maryland licensee who acts as a principal in a real estate transaction (buying or selling for their own account) must:
- Maryland continuing education requirements for license renewal include how many hours per 2-year cycle?
- Which of the following individuals is required to hold a Maryland real estate license?
- A Maryland real estate license may be denied for which of the following reasons?
- A Maryland broker who wants to own and operate their own real estate company must first obtain a:
- A Maryland real estate brokerage that wishes to operate under a trade name must:
- A Maryland licensee who provides false information on a license renewal application may face:
- Under MREC regulations, which of the following actions by a Maryland licensee constitutes 'misrepresentation'?
- A Maryland real estate licensee who is also a mortgage broker must:
- Maryland's real estate licensing law is found primarily in:
- Under Maryland law, a broker can only operate a branch office if:
- Maryland requires all real estate teams to be:
- MREC may impose which of the following as a disciplinary sanction against a Maryland licensee?
- Maryland's BOP Article §17-527 requires a licensed Maryland broker to keep transaction records for at least:
- A Maryland licensee convicted of mortgage fraud may face:
- A Maryland real estate broker who violates the Consumer Protection Act's prohibition on deceptive practices may be subject to penalties administered by:
- The Maryland Real Estate Commission (MREC) operates under which article of the Maryland Code?
Agency (alternative)
75 questions- A Maryland sub-agent of the seller discovers during a showing that the buyer is planning to demolish the home and build a larger one. The sub-agent should:
- In Maryland, a listing agent who earns additional compensation from a buyer's lender for referring the buyer's business without disclosure is:
- A Maryland buyer is working with a buyer's agent but also contacts the listing agent directly. The listing agent should:
- A Maryland buyer's agent whose license expires mid-transaction may:
- A Maryland listing agent who knows the septic system is at or near capacity should:
- The Maryland agency disclosure law is primarily intended to ensure that consumers:
- In Maryland, which of the following could create an implied dual agency?
- Under Maryland law, a seller's agent who receives information suggesting the buyer has inspection concerns about the roof should:
- In Maryland, a buyer who tours a model home in a new subdivision is typically being assisted by:
- In Maryland, an agent who acts as a buyer's agent without a signed buyer-broker agreement:
- In Maryland, which of the following would most clearly constitute a material fact requiring disclosure by an agent?
- When a Maryland buyer asks their agent 'What's the lowest the seller will take?' the agent should respond:
- Maryland requires that the brokerage relationship disclosure be provided:
- In Maryland, the duty of confidentiality means a former client's information must be protected:
- In Maryland, a seller who fires their listing agent before the listing expires must still pay a commission if:
- A Maryland real estate agent who acts as a principal (buying or selling for themselves) rather than as an agent must still:
- In Maryland, a property management company that manages both a condo association's common elements and sells individual units within the same building may have a:
- Under Maryland law, a buyer's agent who receives confidential information about a seller from a past listing engagement should:
- In Maryland, a seller's agent who learns the buyer plans to flip the property is:
- In Maryland, a buyer's agent who knows their buyer is willing to pay full price should:
- When a Maryland agent refers a client to a related home inspection company and receives a fee, RESPA requires:
- A Maryland listing agent who accepts a back-up offer while the primary contract is pending must:
- In Maryland, the term 'procuring cause' determines which agent is entitled to a commission when:
- A Maryland seller's agent who learns their listing is likely to be in foreclosure should:
- In Maryland, the duty of a buyer's agent to 'negotiate on behalf of the buyer' means the agent should:
- A Maryland real estate firm where one agent listed a property and another showed the same property to a buyer they represent — without in-house agency disclosure — may have violated:
- A Maryland agent working with a buyer who is pre-approved for $500,000 but looking only at $350,000 homes should:
- In Maryland, a 'net listing' is prohibited primarily because:
- In Maryland, which form of agency creates the highest potential for conflict of interest?
- In Maryland, when a property is listed as a short sale requiring lender approval, the agent must:
- A Maryland buyer's agent who misrepresents to a seller that their buyer has financing in place when they have not yet applied for a mortgage has:
- In Maryland, a listing agent who recommends a specific home inspector and does not disclose a business relationship between them has potentially:
- A Maryland seller's agent who fails to present an offer because they personally believe it is too low has:
- In Maryland, an agent represents the seller. A buyer's agent submits an offer with unusual contingencies. The listing agent's duty is to:
- A Maryland licensee who provides services to both the buyer and seller in the same transaction as a 'transaction broker' (where Maryland allows it) does NOT owe either party:
- A Maryland listing agent who advertises on social media must include which information per MREC guidelines?
- In Maryland, a buyer who purchases a home for investment (not primary residence) and is represented by a buyer's agent — the agent's duty of loyalty still requires the agent to:
- When a Maryland real estate agent retires from practice, their duty of confidentiality to former clients:
- In Maryland, which of the following is NOT a fiduciary duty owed by an agent to their client?
- In Maryland, a designated agent owes fiduciary duties to:
- A Maryland listing agent who learns the seller's minimum acceptable price must:
- Under Maryland agency law, an agent's duty of 'accounting' requires the agent to:
- Under Maryland's dual agency rules, a dual agent must obtain informed consent from:
- When a Maryland buyer's agent submits an offer below list price, the agent is:
- The Maryland Disclosure of Agency form must be provided to prospective buyers and sellers:
- Under Maryland law, the termination of a listing agency agreement occurs automatically upon:
- An agent's duty of 'obedience' to a principal in Maryland means the agent must:
- When a Maryland buyer's agent is also representing the seller (dual agency) and cannot give full loyalty to either party, the agent must:
- A Maryland buyer-broker agreement that is exclusive and for a definite term means:
- Under Maryland law, can a real estate agent represent a buyer in a transaction where the agent's own brokerage holds the listing?
- Under Maryland law, a subagent is an agent who:
- Under Maryland's transaction brokerage model (non-agency), the facilitator:
- When a Maryland seller refuses to accept a legitimate offer brought by the listing agent, the agent's duty is to:
- In Maryland, an open listing allows the seller to:
- Under Maryland law, an agent must disclose material facts that affect the value or desirability of property. This duty applies to:
- A Maryland agent who discovers that a property has a material defect that the seller has not disclosed must:
- A Maryland broker who represents both parties in a single transaction as a dual agent must disclose this to:
- Maryland's requirement that agents present all written offers to the seller applies:
- Which of the following actions would MOST likely terminate an agency relationship in Maryland?
- A Maryland licensee who advertises a property must ensure the advertising is in the name of:
- Under Maryland law, an agent's fiduciary duty of 'care' requires the agent to:
- Under Maryland law, a listing broker may share commission with a cooperating broker from another brokerage who represents the buyer. This is:
- When a Maryland buyer's agent helps a buyer prepare a competitive offer, they are performing the agency function of:
- Under Maryland law, if a buyer's agent enters a new buyer-broker agreement with a buyer who is already represented by another broker, the agent should:
- In Maryland, the duty of 'loyalty' means an agent must NOT:
- A Maryland buyer's agent who is negotiating repairs after a home inspection is acting in the buyer's best interest by:
- In Maryland, an agent who inadvertently overhears information about the opposing party's negotiating position should:
- Under Maryland law, an agent who receives a gift from a third party (such as a title company) for referring a client must:
- Under Maryland agency law, ratification of an unauthorized act by an agent occurs when:
- An agency coupled with an interest in Maryland is:
- A Maryland agent's duty of confidentiality to a client survives:
- Under Maryland law, an agent who represents the buyer in a transaction involving the agent's own listed property is automatically in:
- Under Maryland law, apparent authority of an agent arises when:
- Under Maryland law, what information may a dual agent share with both parties?
- Under Maryland's agency framework, a 'gratuitous agent' is an agent who:
Contracts (alternative)
74 questions- In Maryland, a novation in a real estate contract occurs when:
- In Maryland, an assignment of a real estate contract means:
- In Maryland, when a buyer terminates a contract within a statutory rescission period (such as for a condo purchase), they are entitled to:
- A Maryland buyer's agent who submits an offer electronically has satisfied the contract's requirement for a written agreement if:
- A Maryland new construction contract typically includes a specification sheet that:
- In Maryland, a builder's warranty typically covers new construction against defects for what minimum period?
- A Maryland buyer who cannot attend the settlement may:
- In Maryland, a 'right of first refusal' in a lease is triggered when:
- Under Maryland law, a listing agreement that has no stated expiration date is:
- In Maryland, a buyer who makes an offer 'subject to attorney review' is providing:
- In Maryland, 'earnest money' serves primarily as:
- In Maryland, a purchase contract's 'walk-through inspection' provision typically allows the buyer to:
- A Maryland purchase agreement that includes a survey contingency allows the buyer to review the property survey and:
- In Maryland, the concept of 'anticipatory breach' occurs when:
- In Maryland, the 'merger doctrine' in real estate contracts states that:
- A Maryland buyer's home inspection contingency typically gives the buyer the right to:
- Under Maryland contract law, 'mutual mistake' may allow a contract to be:
- In Maryland, a contract 'subject to the sale of the buyer's home' is an example of a:
- In Maryland, a listing agent who becomes aware that another offer is being submitted while negotiating an offer must:
- In Maryland, when a real estate contract is 'assigned,' the original buyer who assigns their rights remains liable unless:
- In Maryland, a 'subject to financing' contingency in a buyer's offer protects the buyer if:
- A Maryland buyer's offer states 'purchase price $350,000, all cash, no contingencies.' This offer is:
- In Maryland, a seller who accepts a contingent offer but continues to receive offers keeps them as:
- Maryland's Residential Property Disclosure is NOT required for which of the following transactions?
- A Maryland real estate purchase contract that becomes 'void' is:
- In Maryland, a 'buyer's remorse' situation — where the buyer simply changes their mind after signing — generally means the buyer:
- In Maryland, an option contract typically expires if the optionee (buyer):
- A Maryland seller-provided disclosure form that contains material misrepresentations gives the buyer the right to:
- In Maryland, a purchase contract contingent on the sale of the buyer's home can be made more attractive to the seller by including a:
- In Maryland, the phrase 'time is of the essence' in a purchase contract means that:
- In Maryland, a seller who accepts two offers on the same property simultaneously has:
- In Maryland, a 'purchase and sale agreement' is essentially the same as a:
- A Maryland seller refuses to close after all contingencies have been removed and the buyer is ready to proceed. The buyer's best remedy is likely:
- In Maryland, a purchase contract that requires the buyer to use a specific title company is:
- A Maryland home sale contract where the buyer pays the 'as-is price' and the seller agrees to no repairs means:
- In Maryland, earnest money forfeited by a defaulting buyer typically goes to:
- In Maryland, a real estate contract signed under duress is generally:
- In Maryland, the 'Doctrine of Impossibility' may excuse a party's contractual performance when:
- In Maryland, the primary purpose of the settlement statement (Closing Disclosure or HUD-1) is to:
- A Maryland contract of sale contains a financing contingency with no specific deadline. This is:
- Under the Maryland Statute of Frauds, which contract must be in writing to be enforceable?
- In Maryland, earnest money in a real estate contract is typically held by:
- A Maryland buyer who defaults on a real estate contract without legal justification may lose their:
- Under Maryland law, a real estate contract signed by a 16-year-old is:
- A Maryland listing agreement that does not specify an expiration date is:
- The Maryland Residential Property Disclosure/Disclaimer form is provided to buyers:
- In Maryland, 'time is of the essence' language in a real estate contract means:
- A Maryland addendum to a purchase contract is valid when it:
- In Maryland, consideration in a real estate contract can be:
- A Maryland buyer presents a full-price, cash offer with no contingencies. The seller is legally required to:
- A Maryland real estate contract requires mutual assent, which means:
- A Maryland contract provides for a $5,000 home inspection contingency repair credit in lieu of repairs. At closing, this amount appears as:
- A Maryland buyer includes a home sale contingency in an offer. This means the contract is contingent upon:
- Under Maryland law, a counteroffer to a real estate purchase contract:
- A Maryland real estate contract that requires one party to perform a specific act (convey title, pay the purchase price) may be enforced through:
- Rescission of a Maryland real estate contract means:
- A Maryland seller who receives multiple offers simultaneously is:
- Under Maryland law, a real estate contract where one party was under duress when signing is:
- A Maryland buyer's offer that is accepted by the seller creates a:
- Under Maryland law, which of the following makes a real estate contract void (not voidable)?
- A Maryland home inspection contingency typically gives the buyer the right to:
- A Maryland installment land contract (land contract or contract for deed) differs from a standard sale because:
- Maryland's Residential Property Disclaimer means the seller is stating:
- A Maryland exclusive right-to-sell listing guarantees the listing broker a commission if the property sells during the listing period:
- A Maryland real estate contract provision that says the buyer's obligation is contingent on obtaining financing at no more than 6% interest is a:
- A Maryland property seller accepts an offer and then receives a higher offer. The seller may:
- Under Maryland law, an option contract in real estate gives the optionee the right to:
- In Maryland, which party typically pays the buyer's closing costs associated with obtaining a mortgage?
- In Maryland, liquidated damages in a real estate contract represent:
- A Maryland buyer who cannot close due to genuine inability to obtain financing despite good faith efforts, and who has a proper financing contingency, is entitled to:
- In Maryland, an exclusive agency listing differs from an exclusive right to sell because:
- A Maryland purchase agreement includes an 'as-is' clause. This means the buyer:
- A Maryland escrow agent who receives conflicting instructions from buyer and seller regarding earnest money must:
- A Maryland seller who inserts a 'kick-out clause' in an accepted offer with a home sale contingency means that:
Finance (alternative)
73 questions- In Maryland, a 'blanket mortgage' covers:
- The Maryland Homebuyer Education requirement for certain state mortgage programs requires borrowers to complete:
- In Maryland, the Home Affordable Modification Program (HAMP) was designed to:
- In Maryland, a borrower's PITI payment includes:
- Maryland's predatory lending laws are designed to protect borrowers from:
- A Maryland borrower seeking a reverse mortgage must be at least:
- A Maryland borrower using an FHA loan is required to pay Mortgage Insurance Premium (MIP). The MIP differs from PMI because it:
- In Maryland, a 'portfolio loan' is one that:
- In Maryland, the APR on a mortgage will be equal to the stated interest rate when:
- In Maryland, a 'construction loan' for a new home is typically converted to a:
- Maryland's Section 8 Housing Choice Voucher program is administered by:
- A Maryland borrower who selects a 'no-cost mortgage' should understand that:
- Under Dodd-Frank's Qualified Mortgage (QM) rule, a Maryland borrower generally cannot have a debt-to-income ratio exceeding:
- A Maryland bridge loan is typically secured by:
- In Maryland, the 'loan-to-value' ratio of 80% on a $350,000 purchase price means the loan is:
- A Maryland buyer qualifies for an FHA loan with 3.5% down. On a $320,000 purchase, the upfront MIP premium is 1.75% of the loan amount. The upfront MIP is:
- Under RESPA in Maryland, a lender must provide the Loan Estimate (LE) within how many business days of a complete loan application?
- In Maryland, a property with a 'deed of trust' versus a 'mortgage' — in both cases, what secures the loan?
- A Maryland borrower with a 680 FICO score applying for a conventional loan should expect compared to a borrower with 760 FICO:
- In Maryland, a 'hard money loan' is typically characterized by:
- In Maryland, a 'wraparound mortgage' involves:
- Maryland buyers who receive gifts for down payments typically must provide the lender with a:
- In Maryland, 'assumption of a mortgage' means the buyer:
- In Maryland, the 'secondary mortgage market' functions primarily to:
- Maryland's 'deed tax' is another term for the:
- In Maryland, a buyer's PITI of $2,400 per month on a gross monthly income of $7,500 results in a front-end ratio of:
- A Maryland buyer borrows $425,000 at 6.75% for 30 years. Using a monthly payment factor of $6.49 per $1,000, the monthly P&I is approximately:
- Under Regulation Z, which Maryland transaction requires a 3-business-day right of rescission?
- In Maryland, 'prepayment penalty' clauses on mortgages are:
- In Maryland, a 'purchase money mortgage' given by the seller means:
- In Maryland, the 'primary mortgage market' refers to:
- Maryland's Homebuyer Transfer Tax Exemption for first-time buyers applies to the:
- In Maryland, 'seller-paid buyer closing costs' are also called:
- In Maryland, the maximum seller concession allowed on a VA loan is:
- In Maryland, 'correspondent lending' refers to:
- A Maryland home buyer's total monthly debt obligations include $350 for car payment, $150 for student loan, and $1,850 PITI. Gross monthly income is $8,000. Back-end DTI is:
- The 'yield spread premium' (YSP) paid by lenders to mortgage brokers was regulated by RESPA because it:
- Maryland's 'Homeowners Association Disclosure Act' requires that buyers of homes in HOA communities receive:
- A Maryland buyer taking a $400,000 mortgage with 2 points paid upfront is paying:
- The Maryland HomeCredit program provides eligible buyers with:
- A Maryland FHA borrower with less than 10% down must pay mortgage insurance premium (MIP) for:
- A Maryland veteran using a VA loan benefits from which unique feature?
- Maryland's Community Development Block Grant (CDBG) funds are primarily used for:
- A Maryland adjustable-rate mortgage (ARM) has an initial rate of 4% and annual adjustment cap of 2%. After one year, if the index rises 3%, the new rate is:
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within three business days?
- A Maryland homebuyer's annual property taxes are $3,600. Their lender requires them to be escrowed. Monthly escrow for taxes is:
- The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) which differs from the interest rate because APR includes:
- Maryland's Department of Housing and Community Development (DHCD) administers the Maryland Mortgage Program, which primarily assists:
- In Maryland, the prepayment penalty on a residential mortgage loan with a term of 6 or fewer years:
- Maryland's Homeowners' Property Tax Credit program provides relief to:
- A Maryland seller who takes back a purchase money mortgage from the buyer is acting as:
- Under RESPA, a kickback or unearned fee paid in connection with a Maryland real estate settlement service is:
- Maryland's first-time homebuyer exemption from state transfer tax means:
- Maryland usury laws set limits on:
- A Maryland reverse mortgage allows homeowners aged 62 or older to:
- A Maryland borrower's debt-to-income (DTI) ratio is calculated as:
- A Maryland home equity line of credit (HELOC) is secured by:
- Maryland's HomeCredit (MCC) program reduces a qualifying buyer's federal tax liability by allowing them to claim a credit of up to what percentage of annual mortgage interest?
- What is the purpose of mortgage insurance (PMI or MIP) in a Maryland home purchase?
- The primary purpose of the Real Estate Settlement Procedures Act (RESPA) is to:
- Under the Home Mortgage Disclosure Act (HMDA), Maryland lenders must report mortgage lending data to:
- Maryland's foreclosure process requires judicial proceedings, which means:
- A Maryland borrower with excellent credit qualifies for a conventional loan with 20% down. This borrower avoids:
- What does the term 'amortization' mean in the context of a Maryland mortgage?
- When a Maryland borrower's loan is sold to the secondary market by the originating lender, the borrower:
- Maryland's Foreclosure Mediation Program (FMP) requires:
- Maryland's Community Reinvestment Act (CRA) assessment encourages lenders to:
- A Maryland USDA Rural Development loan is available to buyers purchasing homes in:
- A Maryland 'wraparound mortgage' is a form of seller financing where:
- Maryland's transfer and recordation taxes must be paid at the time of:
- Maryland's law on mortgage fraud makes it illegal to:
- A Maryland 'bridge loan' is a short-term financing arrangement used by buyers to:
- A Maryland real estate professional advising a first-time homebuyer on mortgage options should recommend they review the Consumer Financial Protection Bureau's (CFPB) resources because:
Contracts
70 questions- Under Maryland contract law, which of the following is a required element of a valid real estate contract?
- In Maryland, a real estate contract that is signed by a 16-year-old is:
- In Maryland, a listing agreement is primarily a contract between:
- In Maryland, the Maryland Residential Property Disclosure and Disclaimer Statement must be provided to buyers of residential property:
- Under the Maryland contract, if all contingencies are removed and the buyer refuses to close, the seller's most likely remedy is:
- In Maryland, what is the purpose of an addendum to a purchase contract?
- Under Maryland law, which of the following is required for a real estate contract to be enforceable under the Statute of Frauds?
- In Maryland, a buyer's offer becomes a binding contract when:
- 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?
- 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)?
- In Maryland, when a seller counters a buyer's offer, the original offer is:
- A Maryland sales contract that lacks consideration is:
- What is an 'as-is' addendum in a Maryland sales contract?
- In Maryland, the right of rescission on a contract for the purchase of a timeshare is:
- An option contract in Maryland gives the optionee the:
- Which of the following best describes a 'time is of the essence' clause in a Maryland real estate contract?
- In Maryland, a real estate sales contract is legally enforceable if it meets which basic requirements?
- The Maryland Residential Contract of Sale typically requires the buyer to deposit earnest money:
- In Maryland, earnest money held by a broker must be deposited into:
- A Maryland contract clause stating 'time is of the essence' means:
- A Maryland buyer includes a home inspection contingency. If the inspection reveals significant defects, the buyer may:
- Under Maryland law, a contract for the sale of real property must be:
- A Maryland seller accepts a buyer's offer. The next day the seller receives a higher offer. The seller may:
- In Maryland, a counteroffer legally:
- The Maryland Residential Contract of Sale financing contingency protects the buyer if:
- In Maryland, an escalation clause in a purchase offer automatically:
- A Maryland listing agreement is a contract between:
- An exclusive right-to-sell listing in Maryland means:
- An exclusive agency listing in Maryland differs from an exclusive right-to-sell because:
- An open listing in Maryland allows the seller to:
- The Maryland Residential Property Disclosure and Disclaimer Statement requires sellers to:
- When a Maryland seller selects the 'disclaimer' option on the Residential Property Disclosure form, the buyer:
- In Maryland, the statute of limitations for breach of a written real estate contract is typically:
- A Maryland buyer makes an offer but dies before the seller accepts. The offer is:
- In Maryland, specific performance as a remedy in a real estate contract means:
- A Maryland sales contract includes an appraisal contingency. If the home appraises at $20,000 below the purchase price, the buyer may:
- In Maryland, the doctrine of equitable conversion means that once a sales contract is signed:
- A Maryland real estate purchase contract is considered 'ratified' when:
- A Maryland buyer includes a 'right of first refusal' clause in a lease agreement. This means the buyer has the right to:
- In Maryland, a bilateral contract in real estate is one where:
- A Maryland option contract gives the buyer the right to:
- In Maryland, a lease-purchase agreement differs from a lease-option in that:
- In Maryland, a buyer's agent who prepares an offer on behalf of a buyer is acting as a(n):
- A Maryland seller discovers after signing a contract that the buyer has a history of defaulting on real estate contracts. The seller may:
- In Maryland, if an agent makes a promise to a buyer outside the written contract, the buyer should understand that:
- A Maryland purchase contract contains a 'kick-out clause.' This means:
- In Maryland, a contract for the sale of real estate that lacks adequate consideration is:
- In Maryland, an executed contract is one where:
- A Maryland buyer submits an offer that the seller partially accepts — accepting some terms but not all. This constitutes a:
- In Maryland, a buyer who defaults on a purchase contract without justification may:
- In Maryland, a seller who defaults on a sales contract after the buyer has fully performed may be sued for:
- A Maryland buyer submits an offer with an earnest money deposit check. Before the seller accepts, the buyer calls to withdraw the offer. The earnest money check:
- In Maryland, a contingency in a purchase contract that is not satisfied or waived by its deadline typically results in:
- In Maryland, 'as-is' language in a real estate contract means the buyer:
- In Maryland, a mortgage contingency that expires before the buyer obtains financing means the buyer:
- A Maryland contract that is 'voidable' differs from one that is 'void' in that:
- In Maryland, a real estate contract signed by a minor is generally:
- A Maryland contract clause requiring any disputes to be settled by arbitration is:
- In Maryland, a broker cannot collect a commission from both buyer and seller in the same transaction unless:
- In Maryland, a seller who misrepresents a material fact in the Residential Property Disclosure may face:
- A Maryland buyer's offer includes a closing date of June 30. Settlement is delayed to July 15 by mutual agreement. To extend the settlement date, the parties should:
- In Maryland, a listing agreement that states the seller cannot list with any other broker during the term is a(n):
- When a Maryland home under contract is damaged by fire before settlement, which party typically bears the risk of loss?
- A Maryland buyer who cannot sell their existing home before closing on a new home could include a:
- In Maryland, the 'integration clause' in a real estate contract states that:
- In Maryland, a 'hold harmless' clause in a buyer-broker agreement typically protects the broker from:
- In Maryland, an addendum to a purchase contract is typically used to:
- A Maryland listing agreement that has expired but the seller continues to show the property with the original listing broker is:
- A Maryland condominium buyer has a right to review the condo documents and HOA financials before settlement. If they are dissatisfied, they may:
- A Maryland purchase contract provides for 'liquidated damages' of the earnest money if the buyer defaults. This means the parties have agreed that:
Finance
70 questions- Maryland offers a down payment assistance program through the:
- What is the debt-to-income (DTI) ratio, and why is it important in mortgage underwriting?
- Which of the following statements about FHA loans is correct?
- A transfer tax in Maryland is typically:
- A mortgage note is best described as:
- What is the loan-to-value (LTV) ratio on a $320,000 home with a $272,000 mortgage?
- A Maryland buyer is obtaining an FHA loan. What is the minimum down payment required?
- What is the purpose of a loan discount point on a mortgage?
- Under RESPA, a lender must provide a Loan Estimate to a borrower within how many business days of receiving a loan application?
- A conventional loan with less than 20% down typically requires:
- What type of mortgage has an interest rate that adjusts periodically based on a market index?
- A Maryland buyer assumes the seller's existing mortgage. The buyer's credit and income are not evaluated by the original lender. What type of assumption is this?
- The Truth-in-Lending Act (TILA) requires lenders to disclose the:
- A balloon mortgage is best described as a loan that:
- Which federal law prohibits redlining and other geographic discrimination in mortgage lending?
- The Maryland transfer tax rate paid by the seller at closing is:
- Maryland recordation tax is based on:
- A first-time homebuyer in Maryland purchasing a principal residence may be exempt from:
- Maryland's recordation tax rate for most counties is approximately:
- In Maryland, who typically pays the recordation tax on a new mortgage?
- A property in Maryland sells for $400,000. The state transfer tax is 0.5%. What is the state transfer tax?
- The Maryland Mortgage Program (MMP) is administered by:
- A Maryland lender charges 2 discount points on a $300,000 loan. How much will the buyer pay in points?
- In Maryland, a conventional loan with less than 20% down payment typically requires:
- A Maryland borrower takes a 30-year fixed mortgage at 7% interest on a $350,000 loan. The monthly P&I payment is approximately $2,329. How much interest is paid in the first month?
- A Maryland buyer obtains an FHA loan. The minimum down payment required is:
- The VA home loan benefit available to eligible Maryland veterans requires:
- In Maryland, a 'jumbo loan' refers to a mortgage that:
- TRID (TILA-RESPA Integrated Disclosure) requires lenders to provide the Loan Estimate to buyers within:
- The Closing Disclosure under TRID must be provided to the buyer at least how many business days before settlement?
- An adjustable-rate mortgage (ARM) in Maryland has a 5/1 structure. This means:
- In Maryland, seller financing (purchase money mortgage) is a transaction where:
- Maryland judicial foreclosure means:
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- In Maryland, 'points' paid to a lender at closing are also called:
- A Maryland lender's 'lock-in' allows the buyer to:
- Annual Percentage Rate (APR) on a Maryland mortgage is higher than the stated interest rate because:
- In Maryland, the debt-to-income (DTI) ratio that many conventional lenders use as a guideline for qualification is:
- A Maryland borrower takes a 15-year mortgage instead of a 30-year mortgage at the same loan amount and rate. Compared to the 30-year loan, the 15-year loan has:
- A Maryland home buyer who qualifies for a USDA Rural Development loan must purchase a property:
- In Maryland, a 'balloon mortgage' requires:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in credit decisions based on:
- Under Regulation Z, a Maryland lender must give borrowers a right of rescission on which type of loan?
- Maryland's Community Development Block Grant (CDBG) programs provide funding to:
- In Maryland, a 'purchase money second mortgage' occurs when:
- The Maryland HomeCredit program offers qualifying first-time buyers a:
- A Maryland buyer is told their loan-to-value (LTV) ratio is 90%. This means:
- Under the Community Reinvestment Act (CRA), Maryland banks and savings institutions are evaluated on their:
- A Maryland property sells for $550,000. The buyer obtains an 80% LTV conventional loan. The loan amount is:
- A Maryland buyer's debt-to-income ratio is calculated by dividing:
- In Maryland, the primary secondary market for residential mortgages includes:
- A Maryland borrower with a conforming loan has a loan amount that:
- In Maryland, private mortgage insurance (PMI) is typically required until the borrower's equity reaches:
- A Maryland home equity line of credit (HELOC) is typically structured as a:
- Maryland's mortgage recording requirements mean that a mortgage not recorded in the land records:
- In Maryland, a 'subject-to' transaction means the buyer:
- Under the Home Mortgage Disclosure Act (HMDA), Maryland lenders must report:
- A Maryland borrower who is 'underwater' on their mortgage owes:
- Maryland's foreclosure mediation program gives homeowners the right to:
- A Maryland lender's 'origination fee' is typically expressed as:
- In Maryland, a 'short sale' occurs when:
- Maryland's transfer tax exemption for first-time homebuyers applies when:
- In Maryland, a lender providing a bridge loan to a homebuyer is providing:
- A Maryland borrower's loan application is denied. Under the Equal Credit Opportunity Act, the lender must:
- Maryland's Energy Efficient Mortgage (EEM) allows buyers to:
- A Maryland seller offers to pay 3% of the purchase price toward the buyer's closing costs. On a $400,000 sale, this 'seller concession' amounts to:
- Under TRID, which of the following is a 'zero tolerance' fee that CANNOT increase from Loan Estimate to Closing Disclosure?
- In Maryland, a buyer who is self-employed typically needs to provide a lender with at least how many years of tax returns?
- A Maryland home sold for $450,000 with a 25% down payment. The loan amount is $337,500. At a 7% annual rate, the first month's principal and interest payment (using approximate factor of $6.65 per $1,000) is approximately:
- A Maryland borrower who closes on a new home on March 15 will owe prepaid interest at closing for:
Environmental (alternative)
66 questions- In Maryland, a seller of property with a known underground oil tank must:
- The Maryland Green Building Tax Credit incentivizes construction of:
- Maryland requires homebuyers to receive a disclosure about the presence of a Maryland Registered Pesticide Use Record if:
- A Maryland property's stormwater management pond is typically:
- Maryland Healthy Air Act requirements for large power plants are relevant to real estate near power plants because they may affect:
- A Maryland property owner who removes a large regulated tree without a permit from their county may face:
- The Maryland Recycling Act requires counties with certain populations to achieve minimum recycling rates. For real estate professionals, this means:
- In Maryland, the discovery of black mold (Stachybotrys) in a property being sold must be:
- A Maryland property owner in a FEMA-designated 'Zone X' flood zone:
- Maryland's ban on phosphorus fertilizer applications on established lawns (except with a soil test showing need) was enacted primarily to:
- A Maryland property's well water should be tested for which contaminants before purchase?
- In Maryland, the 'Chesapeake and Atlantic Coastal Bays Trust Fund' is funded by:
- A Maryland property located in an 'attainment area' for air quality means:
- When a Maryland property inspection reveals evidence of past or present termite activity, the buyer should:
- Maryland's 'Forest Interior Dwelling Species' (FIDS) provisions under the Forest Conservation Act protect:
- In Maryland, properties in certain counties require a 'well and septic system inspection' before sale. This inspection verifies:
- Maryland's Clean Air Act compliance (in alignment with federal standards) is important in real estate near industrial areas because:
- A Maryland home buyer discovers an oil tank has leaked fuel into the soil under the property. The buyer should know that:
- Maryland's Chesapeake Bay Critical Area regulations require that development in the buffer must minimize impervious surfaces (paved areas) to:
- Maryland's 'Living Shorelines' program promotes:
- Under Maryland's oil control regulations, homeowners with heating oil tanks that are out of service for more than 12 months must:
- A Maryland property near a former landfill may have elevated levels of:
- Maryland's Chesapeake Bay Program has set goals to restore oyster populations primarily because oysters:
- A Maryland property developer who fails to file a required Forest Conservation Plan before clearing forested land may face:
- Maryland's ban on single-use plastic bags in many jurisdictions is related to real estate practice in that:
- The 'Chesapeake Bay Watershed Compact' is significant for Maryland real estate because:
- Maryland property owners who install qualifying energy efficient systems may be eligible for:
- Under Maryland's Stormwater Remediation Fee (impervious surface fee), property owners in some jurisdictions may be charged based on:
- An old Maryland property has painted surfaces with deteriorated, chalking paint. A lead inspection may be warranted because:
- Under Maryland law, sellers of properties with qualifying septic systems built after a certain date in certain counties must disclose:
- A Maryland property adjacent to a power transmission line has easements that may restrict the owner from:
- In Maryland, environmental due diligence for commercial real estate transactions typically starts with a:
- Maryland's 'Scenic and Wild Rivers Act' protects certain waterways from:
- A Maryland school property that was built on a former industrial site may have legal liability concerns related to:
- Maryland's Chesapeake Bay Critical Area Act protects tidal waters and land within how many feet of the Bay?
- Under Maryland law, landlords renting pre-1950 residential property must comply with which lead paint standard?
- Under Maryland law, sellers of property with an underground storage tank (UST) must:
- The Maryland Department of the Environment (MDE) regulates which environmental aspect of real estate transactions?
- Radon is a known carcinogen. In Maryland real estate transactions, radon disclosure is:
- Wetlands in Maryland require what agency's permit before filling or altering?
- Asbestos found in a Maryland commercial building built before 1980 must be addressed according to:
- Mold disclosure in Maryland residential real estate transactions is:
- Under Maryland law, which hazardous material must be disclosed in the sale of pre-1978 residential properties?
- Under Maryland's Smart Growth policy, 'Rurally Areas' (Rural Legacy Areas) are designated to:
- Properties in Maryland's Chesapeake Bay Critical Area are classified into three zones. Which zone allows the least development?
- Maryland's Septic System Upgrade Program provides financial assistance to:
- The Maryland Voluntary Cleanup Program (VCP) administered by MDE allows:
- A Maryland property located in a FEMA Special Flood Hazard Area (SFHA) with a federally-backed mortgage requires:
- A Maryland buyer discovers that the property they are purchasing has a history of oil spills from an old heating oil tank. The best course of action is to:
- Which federal law requires disclosure of known polychlorinated biphenyls (PCBs) in commercial real estate?
- Maryland's Brownfields Revitalization Incentive Program provides which benefit to developers of contaminated sites?
- Under Maryland law, disclosure of known oil tanks (above and below ground) is required on the:
- Maryland's Forest Conservation Act applies to development projects that disturb more than:
- Under the federal Residential Lead-Based Paint Hazard Reduction Act (42 USC 4852d), which disclosure must Maryland sellers of pre-1978 homes provide?
- Maryland requires sellers of residential property near a military installation to disclose:
- Maryland sellers must disclose which of the following conditions on the Residential Property Disclosure form?
- Under Maryland's bay-related environmental laws, a home on the Chesapeake Bay with an impervious surface covering 40% of the lot in the Critical Area must:
- When purchasing commercial property in Maryland, a Phase I Environmental Site Assessment (ESA) is primarily used to:
- Maryland's Chesapeake Bay Restoration Fund (the 'flush tax') primarily finances:
- Under Maryland law, the presence of Chinese Drywall (installed 2004–2007) in a home must be:
- In Maryland, a seller who is aware of a former dry cleaning operation on their property should disclose it because:
- Maryland's Nutrient Management Act requires farmers who apply fertilizers to complete a nutrient management plan to:
- Maryland property owners within 300 feet of tidal waters are subject to additional review under the Critical Area law for:
- Polycyclic Aromatic Hydrocarbons (PAHs) found in soil near a Maryland property are typically associated with:
- Under Maryland law, which party is typically responsible for conducting a lead paint risk assessment in a pre-1950 rental property?
- Maryland requires disclosure of known flooding issues on the Residential Property Disclosure form. Properties with a history of flooding are required to disclose because:
Property Management (alternative)
66 questions- A Maryland landlord who wants to increase rent on a month-to-month tenant in an area without rent control must give at least:
- A Maryland condo buyer should review which documents before purchasing?
- In Maryland, self-help eviction (changing locks without a court order) by a landlord is:
- In Maryland, the 'Failure to Pay Rent' court process allows a landlord to obtain a judgment for unpaid rent and, if the tenant does not pay, a Warrant of Restitution that:
- A Maryland HOA's authority to levy special assessments on homeowners typically requires:
- A Maryland tenant who has paid their last month's rent in advance can:
- Under Maryland's Rent Court (District Court), a landlord who obtains a money judgment for unpaid rent can:
- In Maryland, a commercial tenant's common area maintenance (CAM) charges typically cover:
- A Maryland property manager is responsible for a rental property during the landlord's extended absence abroad. The manager's authority is defined by:
- In Maryland, a residential tenant who sublets without the landlord's written consent may be:
- A Maryland commercial lease with a 'percentage rent' clause requires the tenant to pay:
- Under Maryland's Rent Escrow law, a tenant who has a major habitability problem may:
- A Maryland property manager who deposits security deposits into an interest-bearing account in a jurisdiction that requires it must pay interest to:
- A Maryland property manager who discovers a fair housing violation by the owner (e.g., refusing tenants based on race) should:
- A Maryland commercial property manager must understand that 'net effective rent' is:
- In Maryland, a residential landlord who installs a new roof and charges the cost to the tenant is:
- A Maryland HOA may place a lien on a unit owner's property for:
- In Maryland, 'net cash flow' from a rental property after debt service equals:
- Under Maryland law, a tenant who pays all rent in arrears before a rent court hearing has which right?
- In Maryland, a 'property condition disclosure' for a commercial property typically relies on:
- A Maryland property manager responsible for leasing residential units should ensure that all lease agreements comply with:
- A Maryland tenant who has complained to the local housing authority about code violations is protected from eviction by:
- In Maryland, an HOA board member who uses HOA funds for personal expenses may face:
- A Maryland property manager who is also a licensed real estate broker handling transactions involving properties they manage should ensure:
- In Maryland, a commercial property's 'base year' in an operating expense escalation clause is the year:
- A Maryland residential property manager should track which key performance indicator to measure vacancy performance?
- Maryland's 'Baltimore City Lead Paint Law' provides one of the country's most comprehensive lead paint frameworks for:
- Under Maryland law, a landlord who charges more than the allowed security deposit maximum (generally 2 months' rent) is:
- In Maryland, when a tenant in a commercial space requests to assign their lease to another business, the landlord's standard lease clause typically requires:
- A Maryland property management company that handles tenant move-outs should conduct a move-out inspection:
- When a Maryland residential lease expires and neither party takes action, the tenancy becomes:
- A Maryland commercial landlord seeking to increase rent must typically:
- In Maryland, a 'Warrant of Restitution' issued by District Court in an eviction case allows:
- A Maryland residential property manager should require prospective tenants to provide which information for a standard credit/background check?
- Under Maryland law, a residential landlord must return a security deposit within how many days after tenancy ends?
- Maryland's Rent Escrow law allows tenants to:
- When a Maryland tenant fails to pay rent, the landlord's first step in the eviction process is to file a:
- Under Maryland law, a residential lease for more than one year must be:
- Maryland's Prince George's County Rent Stabilization law limits annual rent increases to:
- Under Maryland landlord-tenant law, a landlord who enters a rental unit without proper notice may be:
- Under Maryland law, interest earned on security deposits held by landlords:
- When a Maryland commercial tenant holds over after lease expiration without a new agreement, the tenancy typically converts to:
- A Maryland property manager who collects rents must hold those funds in:
- Maryland's Montgomery County Rent Stabilization law applies to rental units in:
- Under Maryland law, a residential lease automatically renews on a month-to-month basis when:
- Under Maryland law, a landlord who willfully fails to return a security deposit or provide an itemized statement may be liable for:
- Under Maryland's Condominium Act, a condominium association has the power to:
- A Maryland commercial lease that requires the tenant to pay a base rent plus a portion of their gross sales is called a:
- A Maryland triple-net (NNN) lease requires the tenant to pay:
- A Maryland property manager who violates the terms of a property management agreement with the owner may face:
- In Maryland, when a landlord sells a property, existing residential leases:
- A Maryland property management company acting as an agent for the property owner has a fiduciary duty that includes which primary obligation?
- A Maryland residential lease must include all of the following EXCEPT:
- A Maryland property manager who receives a written complaint from a tenant about a habitability issue must:
- A Maryland commercial lease provision requiring the tenant to restore the premises to its original condition at the end of the lease is called a:
- Under Maryland law, a landlord who retaliates against a tenant for complaining to authorities about housing conditions is:
- A Maryland commercial landlord's right to distrain (seize) a tenant's personal property for unpaid rent:
- A Maryland property manager who signs a lease on behalf of the property owner must have:
- Under Maryland law, a tenant may terminate a lease without penalty if:
- In Maryland, a 'just cause' eviction standard (if applicable in a jurisdiction) means a landlord must have a legitimate reason to:
- A Maryland landlord must provide what minimum notice before raising rent on a month-to-month tenancy?
- Under Maryland law, a tenant who is constructively evicted may:
- A Maryland property manager's primary obligation when a tenant reports a broken heating system in winter is to:
- In Maryland, a property manager is required to give the property owner a written accounting of all funds received and disbursed:
- A Maryland landlord who locks a tenant out of their unit to force them to move is committing:
- Under Maryland law, what maximum security deposit may a landlord collect for a residential rental?
Property Ownership (alternative)
66 questions- In Maryland, water rights to a navigable waterway (such as the Chesapeake Bay) are:
- Maryland's 'Maryland Heritage Structure Rehabilitation Tax Credit' incentivizes:
- A Maryland property owner who erects a fence that encroaches on a neighbor's property may be required by a court to:
- Maryland's 'Business Personal Property Tax' applies to:
- In Maryland, property owned in 'fee simple subject to a condition subsequent' reverts to the grantor (or heirs) only if:
- Maryland property owners who use their home as a principal residence may qualify for the:
- In Maryland, a deed restriction that violates public policy or the Fair Housing Act (such as a racially restrictive covenant) is:
- The 'bundle of rights' in Maryland real property includes the rights to:
- Maryland's Condominium Act requires sellers of new condominiums to provide buyers with a public offering statement that includes:
- In Maryland, a 'long-term ground lease' for land typically runs for:
- A Maryland property described as Parcel 3 in Block 7 of 'Smith's Addition to Annapolis' uses which type of legal description?
- In Maryland, the 'Torrens system' of property registration (used historically in some jurisdictions) differs from the standard recording system in that:
- In Maryland, a 'license in real property' (a personal license, not a real estate agent's license) refers to:
- Maryland property owners may gain an easement by necessity when:
- In Maryland, a judgment against a property owner becomes a lien against their real property when:
- Maryland's 'Maryland Affordable Housing Land Trust Act' enables:
- In Maryland, a 'pur autre vie' life estate is measured by:
- In Maryland, the 'Right of Survivorship' in joint tenancy means that upon one co-owner's death:
- In Maryland, a developer who installs sidewalks and roads in a new subdivision is creating which type of infrastructure?
- In Maryland, 'constructive eviction' as a concept in property law arises when:
- In Maryland, the 'Maryland Resident Agent' for an out-of-state LLC owning real property must be:
- A Maryland homeowner who deeds property to their adult child but continues to live there may have created a:
- The Maryland Condominium Act's resale disclosure requirements require a seller of a condo unit to provide the buyer with:
- In Maryland, a property owned by a corporation is held as a(n):
- In Maryland, a 'tenancy at will' can be terminated by either party with:
- Maryland's Ground Rent Act of 2007 required existing ground rent holders to:
- In Maryland, a 'time-share' ownership interest grants the buyer:
- Maryland's Cooperative Housing (co-op) structure means residents:
- In Maryland, ownership of a property with three co-owners as tenants in common each owning equal shares means each person owns:
- In Maryland, a lien that takes priority over all other liens, regardless of when it was recorded, is a:
- Maryland's 'Maryland Heritage Areas Authority' works to:
- In Maryland, a 'deed of gift' conveying property to a family member for no consideration:
- In Maryland, 'intestate succession' determines how property passes when an owner dies:
- A Maryland property owner who becomes mentally incapacitated cannot legally convey property unless:
- Under Maryland law, a tenancy by the entirety can only be created between:
- What distinguishes a Maryland ground rent from fee simple ownership?
- Maryland's Homestead Tax Credit limits annual increases in a property's taxable assessment to:
- A Maryland life estate grants the life tenant the right to use the property for:
- A Maryland condominium owner's monthly fee paid to the condominium association covers:
- Under Maryland law, a deed must be recorded in the:
- Maryland's Condominium Act requires that buyers of new condominiums receive a public offering statement:
- A Maryland property owner who grants an easement to a utility company for power lines is granting:
- A Maryland timeshare is classified under which law?
- In Maryland, a joint tenancy requires all of the following EXCEPT:
- Under Maryland law, adverse possession requires all of the following EXCEPT:
- A Maryland cooperative (co-op) owner technically owns:
- In Maryland, what type of property ownership interest does a leasehold represent?
- A Maryland property held in a revocable living trust at the owner's death:
- In Maryland, an encroachment occurs when:
- In Maryland, a fee simple absolute is best described as:
- A Maryland property owner who dies intestate (without a will) and has a surviving spouse and children—the estate passes under:
- A Maryland tenant in common who wants to sell their undivided interest may:
- An appurtenant easement in Maryland is transferred:
- In Maryland, a deed must contain all of the following to be valid EXCEPT:
- A Maryland property owner can create a restriction on future land use by including it in a:
- A Maryland license (as a property right) differs from an easement because a license is:
- Maryland's ground lease system is unique because the ground rent owner may:
- A Maryland homeowner's association (HOA) has the power to place a lien on a member's property for:
- In Maryland, a property held as tenancy by the entirety is protected from creditors of:
- In Maryland, when a property is inherited through a will (devise), the new owner receives title through:
- In Maryland, a prescriptive easement is acquired by:
- When a Maryland property owner grants a surface rights lease but retains mineral rights, the owner has created:
- A Maryland property owner's right to build to the street curb is limited by:
- The concept of 'bundle of rights' in Maryland real estate refers to:
- In Maryland, a deed conveying property 'to A, but if A ever uses the property for commercial purposes, then to B' creates a:
- In Maryland, a property owner who dedicates a portion of their property for a public road is making a:
Property Valuation (alternative)
66 questions- When comparing sales in the same Maryland neighborhood, an appraiser should give the most weight to comparables that are:
- Maryland appraisers are required by USPAP to disclose when:
- The direct capitalization method used by Maryland appraisers estimates value by:
- In Maryland, the term 'as-improved' value in an appraisal means:
- An appraiser in Maryland who finds that a comparable sale occurred between related parties (family members) should:
- A Maryland appraiser notes that the subject property has a 'superadequacy.' This means the property has:
- The Maryland appraisal principle of 'anticipation' holds that value is created by:
- For a Maryland property near the Washington DC suburbs with high demand, a 'market rent' analysis would use:
- An appraiser using the cost approach for a new Maryland home that is exactly like the subject just built next door would likely give:
- A Maryland appraiser who uses three comparable sales with adjusted values of $380,000, $385,000, and $390,000 should reconcile to a value:
- In Maryland, the difference between market value and investment value is that:
- When appraising a Maryland property, the highest and best use 'as if vacant' analysis asks:
- A Maryland appraiser who finds that the subject property's neighborhood has been declining due to nearby industrial development would note this as:
- In Maryland, the 'economic rent' of a property refers to:
- In Maryland, when appraisers use a 'gross living area' (GLA) comparison, they typically include:
- The 'price per square foot' metric in Maryland real estate analysis is a:
- A Maryland appraiser who completes a 'desktop' appraisal uses:
- In Maryland, the state's required minimum education for becoming a licensed residential appraiser includes (as established by federal requirements):
- In Maryland, the principle of 'balance' in appraisal theory states that:
- In Maryland appraisal, 'market conditions' adjustment to comparable sales reflects:
- When appraising Maryland waterfront property, the premium over a non-waterfront comparable is:
- A Maryland neighborhood with predominantly aging, poorly maintained properties and declining values is said to be in a phase of the property cycle known as:
- A Maryland appraiser includes a limiting condition in their report stating that the appraisal assumes no environmental hazards exist. This is called a(n):
- Under USPAP, a Maryland appraiser who is asked to provide a specific predetermined value by the lender must:
- When appraising a Maryland property, which factor makes a comparable sale the LEAST useful?
- In Maryland, a 'mass appraisal' conducted by SDAT differs from an individual property appraisal because:
- Maryland's Property Tax Assessment Appeals Board (PTAAB) hears appeals from:
- Maryland's assessment appeals process begins with a request for a hearing with:
- A Maryland investor uses a 'discounted cash flow' (DCF) analysis for a commercial property. The DCF analysis:
- In Maryland, an appraiser values a rental property's parking facility by analyzing comparable sales with and without parking. This is called:
- In Maryland, when an appraiser 'brackets' the subject property with comparables, this means they select:
- A Maryland appraiser preparing a residential appraisal for a federally regulated transaction must complete a report on a form approved by:
- The 'economic rent' of a property exceeds the 'contract rent' when:
- An appraiser in Maryland who is asked to use a specific comparable by the lender should:
- SDAT reassesses Maryland real property on what cycle?
- When appraising a single-family home in Maryland, the most commonly used approach is:
- Functional obsolescence in a Maryland home appraisal refers to:
- In the income approach to appraisal, 'effective gross income' is calculated as:
- Depreciation in a Maryland appraisal (cost approach) includes all of the following EXCEPT:
- An adjustment for a superior feature in a comparable sale when using the sales comparison approach means the appraiser will:
- In Maryland, the income capitalization approach values property by:
- When an appraiser uses the cost approach for a newly constructed Maryland home, the land value is:
- An appraiser determining the value of a Maryland bowling alley would MOST likely use which approach?
- External (economic) obsolescence in a Maryland property appraisal is:
- A Maryland appraiser uses three comparable sales to value a property. After adjustments, the indicated values are $310,000, $315,000, and $320,000. The appraiser's final estimate of value is likely:
- Reproduction cost in Maryland appraisal is the cost to build:
- The principle of substitution in Maryland appraisal theory states that:
- A 'before and after' appraisal in Maryland is used to determine:
- The principle of progression in Maryland real estate means:
- The highest and best use in Maryland appraisal is defined as the use that is:
- In Maryland, the cost approach is MOST useful when appraising:
- In Maryland, an appraiser's estimate of value is called a(n):
- In Maryland, which approach to value is NOT typically used for vacant land?
- Accrued depreciation in an appraisal refers to:
- In Maryland appraisal practice, the 'date of value' is significant because:
- In Maryland, a broker price opinion (BPO) or comparative market analysis (CMA):
- When using the income approach for a Maryland apartment building, the appraiser would collect all of the following data EXCEPT:
- A Maryland appraiser finds that a nearby commercial facility has reduced a residential property's value by $20,000. This is an example of:
- In Maryland, the principle of conformity holds that:
- An appraiser in Maryland determining the highest and best use of a property would consider:
- The correlation (reconciliation) step in a Maryland appraisal involves:
- Under Maryland law, a property owner who disagrees with SDAT's assessment has the right to appeal to:
- The principle of anticipation in Maryland real estate means that:
- When a Maryland appraiser makes a positive adjustment to a comparable sale, it means:
- In Maryland, an appraiser's adjustment for location differences between properties recognizes that:
- A Maryland appraiser who is asked to appraise a property in which the appraiser has a financial interest must:
Property Valuation
65 questions- In a competitive market analysis (CMA), a Maryland real estate agent compares the subject property to:
- The principle of 'conformity' in real estate valuation states that:
- Which professional is required to perform an appraisal for a federally regulated mortgage transaction in Maryland?
- When an appraiser uses the income approach to value a Maryland apartment building with a NOI of $90,000 and a cap rate of 7.5%, what is the estimated value?
- Which appraisal approach estimates value by comparing the subject property to recently sold similar properties?
- In an appraisal, when a comparable property sold is superior to the subject property in a specific feature, the appraiser will:
- The cost approach to value calculates:
- A property has a gross monthly rent of $2,400 and sold for $288,000. What is the gross rent multiplier (GRM)?
- Which type of depreciation is caused by poor floor plan design and is generally considered incurable?
- A property generates a net operating income (NOI) of $45,000. The market capitalization rate is 6%. What is the estimated value?
- Which principle of value states that the value of a property is affected by the values of surrounding properties?
- The principle of substitution states that a buyer will pay no more for a property than:
- An appraiser is estimating the value of a commercial property primarily using the income approach. Which data is MOST important?
- Effective age in an appraisal refers to:
- The Maryland SDAT assesses property at what percentage of its full cash value?
- Which approach to value is most commonly used by SDAT to assess residential property in Maryland?
- In Maryland, a property owner who disagrees with their SDAT assessment may appeal to:
- An appraiser performing a residential appraisal in Maryland uses three comparable sales that sold 6 months ago. To adjust for market changes since the sales, the appraiser would make a:
- A Maryland rental property generates $36,000 net operating income annually. Using a 6% capitalization rate, the indicated value is:
- The cost approach to value is MOST reliable for appraising:
- In the income approach, effective gross income (EGI) is calculated as:
- A Maryland property's gross rent multiplier (GRM) is 120, and the monthly rent is $2,500. The indicated value is:
- Functional obsolescence in a Maryland home would BEST be described as:
- External obsolescence affecting a Maryland property is caused by:
- In Maryland, a broker price opinion (BPO) is typically used by:
- In the sales comparison approach, an appraiser makes adjustments to comparables for differences. If a comparable has a feature the subject does NOT have, the adjustment to the comparable is:
- A Maryland appraiser uses paired sales analysis to:
- Reproduction cost and replacement cost differ in that:
- In the income approach, potential gross income (PGI) is best described as:
- In Maryland, the gross rent multiplier (GRM) is found by:
- Reconciliation in a Maryland appraisal means:
- In Maryland, a property's 'highest and best use' is the use that is:
- A Maryland appraiser preparing a restricted appraisal report versus a full appraisal report provides:
- An appraiser discovers that a Maryland comparable sale involved a motivated seller who accepted a deeply discounted price due to divorce. This sale should be:
- Economic life of a building in the cost approach refers to:
- The market value of a Maryland property is best defined as:
- Accrued depreciation in the cost approach is the sum of:
- The principle of progression states that a lower-value Maryland home located among higher-value homes will:
- The principle of regression in Maryland real estate means:
- An appraiser finds that comparable sales in a Maryland neighborhood show a consistent upward trend of 0.5% per month. A sale from 4 months ago should receive a time adjustment of approximately:
- The principle of substitution in Maryland real estate appraisal states:
- Capitalization rate in Maryland real estate moves inversely to property value. This means when cap rates increase:
- An appraiser's estimate of value for a Maryland property found under the income approach is $600,000 and under the sales comparison approach is $620,000. In reconciliation for a residential property, the appraiser would most likely:
- The effective age of a Maryland building refers to:
- An appraiser in Maryland who violates the Uniform Standards of Professional Appraisal Practice (USPAP) may face discipline from:
- USPAP requires a Maryland appraiser to maintain workfile records for at least:
- In Maryland, an appraisal review involves:
- Maryland market rent is defined as:
- The income multiplier approach to valuing Maryland residential rentals typically uses a:
- The sales comparison approach is most reliable when there are:
- In Maryland, the income capitalization approach is MOST useful for appraising:
- A Maryland appraiser's effective date of value is important because:
- Exposure time in a Maryland appraisal refers to:
- When a Maryland appraiser uses the cost approach for a 20-year-old residential property, they must estimate accrued depreciation. If the total depreciation is 30%, and the replacement cost new is $400,000, the depreciated value of improvements is:
- In Maryland, an automated valuation model (AVM) is:
- A Maryland residential property appraiser adjusts a comparable sale for a garage. The subject has a 2-car garage; the comparable has a 1-car garage. The adjustment to the comparable would be:
- The principle of conformity in Maryland real estate appraisal states that:
- When a Maryland appraiser notes that a property is on a busy arterial road and has noise issues, the appraiser may:
- In the income approach, a Maryland appraiser deducts which of the following to arrive at NOI?
- In Maryland, 'plottage' or 'assemblage value' refers to:
- When appraising a Maryland historic district home, the appraiser must consider that restrictions on alterations may:
- In Maryland, the principle of contribution states that the value of a component is measured by:
- A Maryland property's value that is 'over-improved' for its neighborhood means:
- Land valuation in the cost approach uses:
- In Maryland, a 'drive-by appraisal' (exterior-only inspection) is less reliable than a full interior appraisal because:
Real Estate Math (alternative)
65 questions- A Maryland couple refinances their $300,000 mortgage from 7% to 5.5%. The new payment factor is $5.68 per $1,000, versus the old factor of $6.65. Their monthly savings are approximately:
- A Maryland property has a capitalization rate of 8.5% and an NOI of $51,000. What is its estimated value?
- A Maryland property is assessed at $420,000. The tax rate is $1.15 per $100. Taxes are paid semiannually. Each semiannual payment is:
- A Maryland home appraiser finds the subject property is 200 sq ft larger than a comparable that sold for $350,000. If the value per square foot is $150, the adjusted comparable value is:
- A Maryland investor finances a $500,000 property with $125,000 down and earns $40,000 NOI per year. The cash-on-cash return (using NOI before debt service) is:
- A Maryland industrial property has a 6.2% cap rate and an asking price of $2,000,000. If the investor requires a minimum 7% cap rate, they would need to either renegotiate the price or require an NOI of:
- A Maryland buyer pays $395,000 for a home. 5 years later they sell for $450,000. The appreciation in dollar terms is:
- A Maryland property's PGI is $90,000. Vacancy and collection loss is 8%. Operating expenses are $28,000. What is the NOI?
- A Maryland home that sells for $325,000 is financed at 80% LTV. The buyer pays 1.5 discount points. How much are the discount points?
- In Maryland, a seller nets $312,000 from a sale after paying a 5.5% commission. What was the sale price?
- A Maryland property is taxed at $1.08 per $100 of assessed value. If the annual tax bill is $3,888, what is the assessed value?
- A Maryland broker collects $24,000 in a month from a co-op commission and pays the agent 55%. The agent receives:
- A Maryland investment property has an LTV of 75% and a purchase price of $600,000. The loan amount is:
- A Maryland property was purchased for $185,000 and sold 8 years later for $265,000. The total percentage appreciation is approximately:
- A Maryland buyer's agent earns 2.75% co-op commission on a $390,000 sale. The agent's broker retains 25% and pays the agent 75%. The agent's net is:
- A Maryland investor purchases a $950,000 building and depreciates it over 39 years (commercial). Annual depreciation for tax purposes is approximately:
- A Maryland seller lists at $529,000 and accepts 98% of list price. The 6% commission on the actual sale price is:
- A Maryland buyer gets a 30-year loan for $280,000 at 6%. The monthly payment factor is $5.99 per $1,000. Monthly P&I is approximately:
- A Maryland commercial property has a stabilized NOI of $120,000 and a cap rate of 6%. The purchase price is:
- In Maryland, a building has a replacement cost of $600,000, land value of $100,000, and accrued depreciation of 20%. The total estimated value is:
- A Maryland property sells for $475,000. The Maryland state transfer tax is 0.5%, the county transfer tax is 0.5%, and the recordation tax is $3.33 per $500. All taxes together total approximately:
- A Maryland property's monthly gross rent is $2,800. Annual vacancy allowance is 6%. Annual operating expenses are $10,000. What is the annual NOI?
- A Maryland seller paid $240,000 and sells for $330,000 after paying $19,000 in total selling costs. Net profit is:
- A Maryland buyer purchases a home for $410,000 with 15% down. After 1 year the home appreciates to $430,000. The buyer's equity is now:
- In Maryland, a property's current assessment is $290,000. Applying the Homestead Tax Credit (10% annual cap), the maximum assessment next year is:
- A Maryland tenant's monthly rent is $1,850. Annual rent increases by 3% under a lease renewal. The new monthly rent is:
- A Maryland real estate agent sold 12 properties averaging $385,000. If the agent earns a 50% split on a 3% total commission, total annual earnings from these sales are:
- A Maryland property has a building-to-land ratio of 4:1. The total value is $450,000. The land value is:
- A Maryland property with $44,000 NOI sells at a 5.5% cap rate. The sale price is:
- A Maryland buyer pays $3,600 in prepaid interest at closing on a $400,000 loan at 7.2% annual interest. How many days of prepaid interest does this cover?
- A Maryland property manager collects $6,500 in monthly rent and charges a 9% management fee. Monthly management fee is:
- A Maryland triplex with monthly rents of $1,100, $1,200, and $1,350 has annual PGI of:
- A Maryland buyer needs a loan of $340,000. PMI premium is 0.75% annually. Monthly PMI is:
- A Maryland property with a $2,100 monthly rent has a GRM of 125. The indicated value is:
- In Maryland, a $500,000 property is purchased with a $100,000 down payment. Three years later it's worth $575,000. The owner's ROI based only on the original down payment is approximately:
- A Maryland property sells for $480,000. The state transfer tax at 0.5% is:
- Maryland recordation tax is $3.33 per $500 of consideration. A $300,000 sale generates recordation tax of:
- A Maryland investor buys a rental property for $250,000. Annual NOI is $20,000. The cap rate is:
- A Maryland property has annual gross rents of $24,000 and sells for $240,000. The gross rent multiplier (GRM) is:
- A Maryland rental property has monthly rent of $1,800 and a GRM of 120. The indicated value is:
- A Maryland property is assessed at $320,000. The tax rate is $1.10 per $100 of assessed value. Annual taxes are:
- A $350,000 Maryland mortgage at 6% interest. The first month's interest payment is:
- A Maryland property appreciates from $200,000 to $230,000. The percentage increase is:
- A Maryland buyer obtains a $240,000 mortgage. The origination fee is 1%. The fee is:
- A Maryland investor purchases a 4-unit building for $400,000. Each unit rents for $1,000/month. Annual GRM is:
- A Maryland property sells for $550,000. The buyer's agent's brokerage receives 2.5% of the sale price. The commission is:
- A Maryland property assessed at $400,000 with a Homestead Tax Credit cap of 10% was assessed at $360,000 last year. The maximum new taxable assessment is:
- A Maryland seller's asking price is $425,000. They agree to a 6% reduction for a quick sale. The new sale price is:
- A Maryland property's annual property tax bill is $4,800. Taxes are paid in arrears. At closing on July 1, the seller owes the buyer taxes for January 1 through June 30 (6 months). The proration is:
- A Maryland property generates monthly rents of $2,500. Annual operating expenses are $12,000. Annual NOI is:
- A Maryland property is listed at $375,000. The seller pays a 5.5% total commission. The listing broker and selling broker split it equally. Each broker receives:
- A Maryland property closing is set for September 15. Annual taxes of $3,650 are paid in arrears. The seller owns the property January 1 through September 14 (257 days). Daily tax rate is $3,650 ÷ 365 = $10/day. Seller's proration is:
- A Maryland property has a mortgage balance of $180,000 at 5% annual interest. Annual interest expense is:
- A Maryland investor pays $50,000 down on a $250,000 property. The loan-to-value ratio (LTV) is:
- A Maryland buyer's monthly PITI payment is $2,200. Their gross monthly income is $7,000. Their housing expense ratio (front-end DTI) is approximately:
- A Maryland buyer offers to pay $310,000 for a property appraised at $300,000. How much must the buyer pay above the appraised value if the lender will only lend 80% of appraised value?
- A Maryland broker receives a 6% commission on a $350,000 sale. The broker pays the listing agent 60% and the buyer's agent 40% of the broker's share. The buyer's agent earns:
- A Maryland commercial property earns $8,000/month in rent. Annual operating expenses are $28,000. The cap rate used is 8%. What is the property value?
- A Maryland buyer purchases a condo for $280,000. They put 10% down. The loan amount is:
- A Maryland seller owes $175,000 on their mortgage. The home sells for $310,000. Closing costs are $8,500 and commission is 6%. Net proceeds to the seller are:
- A Maryland duplex grosses $3,000/month in rent. The investor paid $360,000. Using monthly GRM, the GRM is:
- A Maryland property was purchased for $200,000 and sold five years later for $270,000. The total appreciation in dollar amount is:
- A Maryland listing agent earns 60% of a 6% commission on a $275,000 sale. The agent's earnings are:
- A Maryland buyer assumes a $220,000 mortgage at 5.5% annual interest. Monthly interest for the first month is:
- A Maryland buyer is required to pay 2 months' prepaid homeowners insurance at closing. Annual insurance premium is $1,800. The amount collected is:
Agency
64 questions- In Maryland, which disclosure form must a licensee provide to a buyer or seller at the first meeting involving a specific property?
- Under Maryland agency law, a 'disclosed dual agent' must:
- Maryland's 'intra-company agent' designation allows:
- A Maryland licensee representing a buyer has a duty to:
- The duty of 'loyalty' owed by a Maryland agent to a client means the agent must:
- In Maryland, a licensee acting as a seller's sub-agent owes fiduciary duties to:
- In Maryland, when must an agent provide the Understanding Whom Real Estate Agents Represent disclosure?
- Under Maryland law, which type of agency relationship allows one licensee to represent both buyer and seller in the same transaction with written consent?
- Designated agency in Maryland means:
- Which fiduciary duty requires an agent to place the client's interests above their own?
- A buyer's agent in Maryland owes which of the following duties to the seller?
- An agent who works with a buyer but has NOT entered a buyer-agency agreement is considered to be:
- In Maryland, an agent's duty to maintain confidentiality of the client's personal and financial information:
- What is the primary purpose of the Maryland agency disclosure form ('Understanding Whom Real Estate Agents Represent')?
- A Maryland listing agent learns the seller is willing to accept $20,000 less than the listed price. This information is:
- In Maryland, an agency agreement with a buyer must be in writing to be enforceable if it:
- In Maryland, the agency relationship between a licensee and client must be disclosed:
- In a Maryland dual agency arrangement, the agent must obtain written consent from:
- Which of the following best describes designated agency in Maryland?
- A Maryland licensee acting as a seller's agent discovers that the buyer is being transferred and must close quickly. The licensee may:
- In Maryland, an agent may represent a buyer as a customer (non-client) relationship if:
- The Maryland Brokerage Relationship Disclosure form must be provided to customers and clients:
- An agent who enters into a buyer-broker agreement in Maryland is acting as a:
- Which duty does a Maryland licensee NOT owe to a customer (non-client)?
- In Maryland, when does an agency relationship with a seller typically end?
- A Maryland licensee represents the seller. The buyer asks the agent if the seller will accept less than the listing price. The agent should:
- A Maryland buyer's agent who learns the buyer has been pre-approved for $500,000 but is offering $400,000 should:
- Under Maryland's agency law, the duties of a seller's agent to the seller include all of the following EXCEPT:
- In Maryland, if a licensee acts as a dual agent without obtaining written consent from both parties, they have:
- A Maryland listing agent has an undisclosed personal financial interest in purchasing the seller's property. This is:
- When a Maryland licensee represents the seller, the duty of obedience requires the agent to:
- In Maryland, the duty of accounting requires a licensee to:
- A Maryland seller's agent discovers a structural defect during a showing that the seller has not disclosed. The agent must:
- A Maryland listing agent who knows the property has a history of flooding but fails to inform a buyer is guilty of:
- In Maryland, which type of agency relationship requires NO formal written agreement?
- In Maryland, a buyer's agent is showing properties outside the buyer's specified price range without permission. This is a violation of the duty of:
- A Maryland buyer's agent discovers that the property the buyer wants to purchase is next to a proposed highway interchange. The agent must:
- A Maryland listing agent's duty of care to the seller includes:
- A Maryland real estate team consists of a team leader and two salespersons, all under the same broker. In a transaction where the team leader represents the seller and another team member represents the buyer:
- The duty of disclosure owed by a Maryland licensee to a customer (non-client) includes:
- A Maryland seller's agent learns the seller will accept $10,000 below the list price. The agent is asked by the buyer's agent if the seller will negotiate. The listing agent should:
- In Maryland, an implied agency may be created when:
- Under Maryland law, which party ultimately controls the listing price of a property?
- The fiduciary duty of 'loyalty' in a Maryland agency relationship means the agent must:
- A Maryland buyer's agent who also represents the seller in the same transaction without written consent from both parties has created an:
- When a Maryland listing expires and is relisted with a new broker, the seller's confidential information shared with the first broker:
- In Maryland, the agency disclosure pamphlet given to consumers informs them of:
- A Maryland agent who knows that a seller is in financial distress and MUST sell quickly should:
- In Maryland, a seller's agent who receives two offers simultaneously must:
- A Maryland buyer's agent who is also the seller's next-door neighbor has a potential conflict of interest. They should:
- In Maryland, an agent's duty to promptly present offers to the seller means:
- In Maryland, a buyer who signs a buyer-broker agreement for a 90-day period and then tries to terminate the agreement early:
- The Maryland brokerage relationship disclosure form must be signed by the:
- A Maryland seller's agent who knows the seller is going through a divorce must:
- A Maryland broker assigns different agents to represent the buyer and seller in the same in-house transaction. This is called:
- A Maryland real estate agent who provides real estate services without expecting compensation is typically:
- In Maryland, a cooperating broker (buyer's agent) who is not the listing broker is typically paid:
- When a Maryland buyer's agent shows a client a property listed by their own brokerage, the situation may be:
- In Maryland, if a seller wants to sell their property 'as-is' and the agent knows of a material defect, the agent must:
- A Maryland seller instructs their agent to not disclose that the neighbor has an ongoing dispute about the fence line. The agent should:
- Under Maryland law, a real estate agent is considered an agent of the:
- A Maryland buyer's agent who is offered a referral fee from a home inspector should:
- In Maryland, a seller's agent who learns that the subject property was previously the site of a murder (a stigmatized property) must:
- The most significant difference between a buyer's agent and a transaction broker in a state that allows transaction brokerage is:
Land Use & Zoning (alternative)
64 questions- A Maryland town exercises 'police power' when it:
- Maryland's 'subdivision regulations' govern:
- In Maryland, 'density bonuses' may be granted to developers who:
- In Maryland, mixed-use zoning allows:
- A Maryland county planning board reviews a proposed subdivision's traffic impact study to ensure:
- In Maryland, a property in an 'overlay zone' is subject to:
- Maryland's growth management legislation (Smart Growth Act) gives state agencies the authority to:
- A 'regulatory taking' occurs in Maryland when:
- In Maryland, an accessory dwelling unit (ADU) is typically:
- Maryland's 'Chesapeake Bay Tributary Strategy' requires local governments to develop plans to:
- A Maryland developer seeking to build in a FEMA-designated floodplain must obtain:
- In Maryland, a 'subdivision plat' must be approved and recorded before individual lots can be:
- Maryland's 'Smart Codes' (form-based zoning) differ from traditional use-based zoning in that they:
- In Maryland, a 'development rights and responsibilities agreement' (DRRA) provides a developer with:
- In Maryland, the 'Board of Zoning Appeals' (BZA) has jurisdiction to hear:
- Maryland's Forest Conservation Act requires that forest clearing for development be offset by:
- A Maryland mixed-use development in a 'transit-oriented development' (TOD) zone is likely located:
- In Maryland, an 'agricultural preservation easement' permanently prevents a farm from being:
- In Maryland, a 'grading permit' from the local jurisdiction is typically required when a property owner intends to:
- Maryland's 'Adequate Public Facilities Ordinances' may require a developer to delay development until:
- In Maryland, a 'design review' process for proposed development in a historic district evaluates:
- In Maryland, 'planned unit development' (PUD) approval typically goes through which process?
- Maryland's 'Right to Farm Act' protects farmers from nuisance lawsuits when:
- A Maryland property subject to a 'Planned Service Area' (PSA) designation means that:
- Maryland's 'Live Near Your Work' program offered grants to:
- In Maryland, a 'scenic road' or 'scenic byway' designation may:
- In Maryland, 'master plan conformance' means that a proposed development:
- Maryland's county water and sewer master plans determine:
- In Maryland, a 'use variance' is generally more difficult to obtain than an 'area variance' because:
- In Maryland, 'conditional zoning' allows a jurisdiction to approve a rezoning only if:
- Maryland's 'Resource Conservation' (RC) zone in the Critical Area is characterized by:
- In Maryland, a 'transfer station' for waste would most likely be permitted in which zoning category?
- Maryland's 'Transit-Oriented Development' (TOD) Policy seeks to encourage which type of development nearest to transit stations?
- In Maryland, 'Community Input Meetings' for large development projects are held to:
- A Maryland property owner who wants to use land in a way not permitted by current zoning must apply for a:
- A nonconforming use in Maryland is best described as:
- Agricultural land preservation in Maryland is primarily achieved through:
- An easement appurtenant in Maryland is:
- Maryland's Forest Conservation Act requires developers to:
- A Maryland municipality uses eminent domain to acquire private property for a public park. The property owner is entitled to:
- A Maryland deed restriction prohibiting commercial use of a residential property is enforceable as a:
- In Maryland, planned unit developments (PUDs) allow developers to:
- In Maryland, building codes are primarily administered by:
- In Maryland, a covenant running with the land must:
- A Maryland property owner who develops their land in stages under a recorded subdivision plat is bound by:
- Maryland's Smart Growth Act of 1997 was primarily designed to:
- In Maryland, a 'buffer yard' requirement in a zoning ordinance typically requires:
- Maryland's Critical Area law restricts impervious surfaces in the 100-foot buffer zone to:
- A Maryland municipality may impose an impact fee on new development to:
- Maryland's Rural Legacy Program protects rural lands from development through:
- Under Maryland law, a conditional use (special exception) is granted when:
- Maryland's Transferable Development Rights (TDR) programs allow:
- In Maryland, which body typically hears appeals of zoning decisions made by local zoning boards?
- In Maryland, which county is known for having one of the most complex and comprehensive zoning codes in the nation?
- Maryland's Chesapeake Bay Critical Area Commission regulates development in the Critical Area by:
- Maryland's Chesapeake and Atlantic Coastal Bays Critical Area law regulates development near tidal waters. Properties within the 1,000-foot buffer that predated the law:
- A Maryland landowner whose property is adjacent to a newly designated Critical Area buffer loses development rights. This is an example of:
- In Maryland, a property's assessed value for tax purposes under SDAT is supposed to represent:
- Maryland's Subdivision Regulations govern the process by which:
- A Maryland property that is in an 'intensely developed area' (IDA) of the Chesapeake Bay Critical Area may:
- A Maryland property owner who wants to build a fence 6 inches taller than the zoning ordinance permits should apply for:
- Maryland's state-wide model building code, the Maryland Building Performance Standards (MBPS), is based primarily on:
- Maryland's Community Benefit Agreements (CBAs) in development projects are:
- An overlay zone in Maryland creates:
Escrow & Title
58 questions- In Maryland, where are deeds and other real property documents recorded?
- Maryland imposes a recordation tax when a deed is recorded. Who typically pays this tax?
- A special warranty deed in Maryland provides which level of title guarantee?
- Actual (actual notice) in real estate means:
- Maryland is considered an 'attorney state' for real estate closings, meaning:
- What does title insurance protect against?
- An owner's title insurance policy in Maryland protects:
- In Maryland, transfer taxes on a real estate sale are paid by:
- Maryland's state transfer tax rate on the sale of real property is:
- Recordation tax in Maryland is charged:
- What is the purpose of a HUD-1 Settlement Statement (now replaced by the Closing Disclosure)?
- In a Maryland residential transaction, a buyer's earnest money deposit must be held in:
- A chain of title in Maryland refers to:
- A lis pendens recorded in the Maryland land records provides notice that:
- Maryland is considered what type of state with respect to real estate closings?
- In Maryland, the title to real property is transferred by delivering a:
- A general warranty deed in Maryland provides the grantee with:
- A special warranty deed in Maryland differs from a general warranty deed in that:
- Title insurance in Maryland protects against:
- In Maryland, the recording of a deed in the county land records provides:
- A Maryland broker who disburses escrow funds without authorization may face:
- The ALTA/ACSM land title survey provides:
- In Maryland, if a seller has an existing mortgage at settlement, the proceeds are used to:
- A Maryland buyer's lender requires a lender's title insurance policy. Who typically pays for this?
- In Maryland, a buyer's lender will require title insurance primarily to:
- A Maryland chain of title is a:
- A Maryland title abstract is:
- A quiet title action in Maryland is used to:
- In Maryland, the settlor (seller) at a real estate closing typically receives:
- A Maryland title company discovers a judgment lien against the seller from a prior civil case. At settlement, this lien must be:
- In Maryland, a buyer who discovers a title defect after purchase should first:
- A Maryland property is sold to Buyer A on January 1. On February 1, before Buyer A records their deed, the seller fraudulently conveys the same property to Buyer B, who records immediately. Under Maryland's recording act:
- In Maryland, a deed of trust is used instead of a traditional mortgage in some transactions. The primary difference is that:
- In Maryland, the buyer at settlement receives a:
- A 'gap' in the title in Maryland refers to:
- Maryland's Race-Notice Recording Act means that a subsequent buyer is protected if they:
- A Maryland real estate settlement sheet (HUD-1 or Closing Disclosure) shows a 'debit' to the buyer for:
- In Maryland, a buyer who wants to check if any liens exist against the property should search:
- A Maryland title search typically goes back how far in the chain of title?
- In Maryland, a seller's failure to transfer title that is free of material encumbrances at settlement may allow the buyer to:
- Maryland's Indemnity Deed of Trust is used primarily for:
- A survey ordered by a Maryland buyer reveals an encroachment by the neighbor's fence 2 feet onto the property. The buyer should:
- A Maryland title company that performs a settlement must:
- When a Maryland buyer purchases a new home from a builder, the builder customarily provides a:
- In Maryland, escrow instructions control how the escrow holder must:
- A Maryland purchaser who takes title as 'tenants in common' with another buyer can:
- In Maryland, a 'deed of release' is commonly used to:
- A Maryland property has an IRS tax lien recorded against the seller. This lien must be:
- In Maryland, a 'covenant against encumbrances' in a deed warrants that:
- In Maryland, an owner's title insurance policy is typically issued for a premium paid:
- A Maryland buyer's title insurance commitment discloses an easement for a utility company across the backyard. The buyer should:
- In Maryland, when the seller at settlement signs the deed, the deed must be:
- In Maryland, a 'satisfaction of mortgage' is recorded when:
- In Maryland, 'constructive notice' means that a person is legally presumed to know about information that:
- A Maryland property buyer purchases property at a foreclosure sale and takes title by a:
- In Maryland, a mechanic's lien must be filed within how many days after the work is completed or materials delivered?
- In Maryland, ALTA stands for:
- In Maryland, 'prorations' at settlement ensure that:
Fair Housing
57 questions- Maryland's fair housing law adds which protected classes beyond the seven federal protected classes?
- Under Maryland fair housing law, a landlord who refuses to accept Section 8 (Housing Choice Voucher) tenants may be violating the protected class of:
- Which of the following is an example of disparate impact discrimination in fair housing?
- A tenant with a disability requests permission to install grab bars in the bathroom of their rented unit. Under the Fair Housing Act, the landlord must:
- The federal Fair Housing Act of 1968 prohibits discrimination based on which protected classes?
- The Maryland Fair Housing Act adds which protected class NOT covered by the federal Fair Housing Act?
- Blockbusting in real estate is best described as:
- Steering in real estate means:
- Under the Fair Housing Act, which of the following is an allowable exemption?
- A landlord who refuses to allow a tenant with a disability to install grab bars in the bathroom is likely violating:
- The maximum civil penalty for a FIRST violation of the Fair Housing Act, as enforced by HUD, is:
- A 'no children' rental policy at an apartment complex that does not qualify as housing for older persons is:
- The 'Mrs. Murphy' exemption under the federal Fair Housing Act allows:
- In Maryland, a complaint alleging a fair housing violation must be filed with HUD within how many days of the alleged discriminatory act?
- The Maryland Fair Housing Act adds which protected classes beyond federal law?
- Blockbusting is BEST defined as:
- Redlining refers to:
- Montgomery County and Prince George's County in Maryland are known for:
- A Maryland landlord refuses to rent to a family because they have three children. This is most likely a violation of:
- Under the Fair Housing Act, a landlord must allow a tenant with a disability to make reasonable modifications to their unit at:
- A Maryland real estate advertisement that states 'Perfect for young professionals — no families' is:
- Fair Housing complaints in Maryland may be filed with:
- A Maryland real estate agent who consistently shows minority buyers only homes in certain neighborhoods while showing white buyers homes throughout the area is engaging in:
- Under the Fair Housing Act, 'familial status' protects:
- A Maryland senior housing community that advertises 'no children under 18' may be exempt from familial status provisions if:
- Which Maryland agency enforces the state's Fair Housing Act?
- A Maryland landlord who adds new parking requirements for tenants with disabilities only is engaging in:
- A Maryland real estate agent's website shows only photos of white families in their marketing images. This may constitute:
- A Maryland landlord who requires a larger security deposit from tenants of one national origin is engaging in:
- The principle of reasonable accommodation under the Fair Housing Act requires a landlord to:
- The Maryland Accessible Housing Referral Program requires new multifamily housing with 4+ units built after 1991 to include:
- A Maryland housing development advertises 'English speakers only preferred.' This is most likely a violation of:
- In Maryland, a landlord who refuses to rent to a tenant because they use Section 8 (Housing Choice Vouchers) may be violating:
- Under the Fair Housing Act, which statement about 'service animals' is accurate?
- A Maryland real estate agent tells a prospective buyer: 'You probably wouldn't like that neighborhood — it's mostly [ethnic group].' This statement is an example of:
- The maximum civil penalty for a first fair housing violation by the Department of Housing and Urban Development (HUD) is:
- In Maryland, a landlord may legally inquire about an applicant's:
- A Maryland property manager requires all applicants to provide a Social Security Number. This policy may be:
- In Maryland, a landlord who advertises '2-person maximum' for a 3-bedroom unit may be violating:
- The Fair Housing Act's prohibition on 'disability' discrimination protects:
- A Maryland HOA that prohibits religious displays on the exterior of homes may be violating:
- A Maryland apartment community that has a 'no overnight guests' policy that it enforces only against same-sex couples is violating the Fair Housing Act based on:
- A Maryland real estate agent who consistently uses code words like 'good schools,' 'changing neighborhood,' or 'you'll fit right in' when steering buyers is using language that:
- Under the Fair Housing Act, a real estate agent must respond to all housing inquiries:
- In Maryland, the concept of 'disparate impact' under fair housing law means:
- Maryland's fair housing law covers which types of transactions?
- Under the Fair Housing Act, a seller in Maryland has the right to choose their own buyer. However, they CANNOT select based on:
- A Maryland landlord collects a $500 pet deposit but waives the pet deposit for the assistance animal of a person with a disability. This is because:
- In Maryland, a landlord who retaliates against a tenant for filing a fair housing complaint by evicting them is:
- A Maryland newspaper refuses to run a housing advertisement that contains racially discriminatory language. The newspaper is:
- A Maryland buyer wants an agent to show them only homes in their chosen neighborhood. The agent should:
- Maryland's Prince George's County and Montgomery County extend source of income protection to cover:
- A Maryland real estate brokerage that has a policy of only marketing in certain publications known to reach a predominantly white audience may be engaging in:
- In Maryland, a person who believes they were denied a mortgage because of their race should file a complaint with:
- Under Maryland's Fair Housing Act, which of the following is NOT a protected class?
- A Maryland real estate agent receives an offer from a buyer of Asian descent on a home owned by a seller of European descent. The seller says 'I don't want to sell to them.' The agent must:
- A Maryland building owner claims their 4-unit building is owner-occupied (living in one unit). Under the Fair Housing Act, the owner may be able to:
Real Estate Math
57 questions- A Maryland home is appraised at $480,000. The buyer makes a 15% down payment. What is the loan amount?
- A Maryland property has an assessed value of $320,000 and a tax rate of $1.10 per $100 of assessed value. What are the annual property taxes?
- A broker earns a 5.5% commission on a Maryland property that sold for $525,000. The listing agent receives 45% of the broker's total commission. How much does the listing agent earn?
- A seller wants to net $275,000 after paying a 6% commission. What must the property sell for?
- A Maryland seller lists their home at $525,000 and agrees to pay a 5% commission. If the listing broker and buyer's broker split the commission equally, how much does each broker receive?
- A Maryland home sold for $410,000. The seller's net after paying a 5.5% commission and $3,200 in other closing costs was:
- A Maryland property's annual property tax is $6,000 and the annual rate is 1.5%. What is the assessed value?
- A Maryland buyer makes a 10% down payment on a $380,000 home. The loan amount is:
- A Maryland investment property is purchased for $500,000. The investor expects a 5% annual return. What is the required annual income?
- A Maryland property was purchased for $250,000 five years ago and now sells for $320,000. The percentage increase in value is:
- A Maryland commercial building has an annual NOI of $85,000 and sells for $1,062,500. What is the capitalization rate?
- A Maryland property has monthly gross rents of $3,200. The GRM is 150. What is the indicated value?
- At Maryland settlement, a seller owes $1,800 in annual property taxes for the year. Settlement occurs on September 1 (day 244 of the year). How much does the seller owe the buyer in a 365-day proration?
- A Maryland agent earns a 3% co-op commission on a $455,000 sale. The agent's broker takes a 30% split. How much does the agent net?
- A Maryland property has an assessed value of $350,000 and the county tax rate is $0.98 per $100 of assessed value. The annual property tax is:
- A Maryland buyer purchases a home for $465,000 with a 20% down payment. The loan amount is:
- Maryland recordation tax is $3.33 per $500 of consideration. On a $600,000 sale, the recordation tax is:
- A Maryland agent lists a home at $450,000. The seller wants to net at least $420,000 after a 5% commission. Will the seller achieve their goal?
- A Maryland property's NOI is $72,000 per year. The investor purchases it at a 7.5% cap rate. The purchase price is:
- A Maryland broker charges a 6% commission on a sale and splits 50% with the buyer's broker. The buyer's broker retains 40% and pays their agent 60% of the co-op share. The listing broker receives $X, the buyer's agent receives $Y, the buyer's broker retains $Z. On a $350,000 sale, what does the buyer's agent receive?
- A Maryland home is assessed at $280,000. The county tax rate is $1.10 per $100. Annual taxes are:
- A Maryland investment property costs $750,000 and generates an annual return of 6.5%. The annual income needed is:
- A rectangular Maryland lot measures 125 feet by 200 feet. How many square feet is the lot?
- A Maryland lot is 25,000 square feet. How many acres is this? (1 acre = 43,560 sq ft)
- A Maryland seller pays 6% commission, $2,500 in attorney fees, and $1,800 in title insurance on a $480,000 sale. What are total closing costs?
- A Maryland buyer gets a $320,000 mortgage at 6.5% annual interest. The first month's interest payment is:
- A Maryland property has a purchase price of $525,000. The state transfer tax is 0.5% and the county transfer tax is 1%. Total transfer taxes are:
- A Maryland seller accepts an offer of $390,000 and pays a 5.5% commission. The seller also owes the buyer a $1,500 credit for repairs. Net to seller before other costs is:
- A Maryland property's assessed value increases by 10% (the Homestead Tax Credit cap). The previous assessed value was $300,000. The new taxable value is:
- A Maryland rectangular commercial lot is 150 feet wide by 300 feet deep. The area in acres (1 acre = 43,560 sq ft) is approximately:
- A Maryland investment property produces $4,200 per month gross rent. Annual operating expenses are $18,000. The NOI is:
- A Maryland buyer purchases a $425,000 home with 5% down. Annual PMI is 0.85% of the loan amount. Annual PMI cost is:
- A Maryland seller agrees to pay a 6% commission. After all closing costs totaling $18,500, the seller nets $347,500. What was the sale price?
- A Maryland rental property has vacancy of 5% and annual PGI of $60,000. EGI is:
- A Maryland buyer makes a $40,000 down payment on a $200,000 home. The LTV ratio is:
- A Maryland property's annual gross rent is $36,000 and it sells for $450,000. The gross rent multiplier (annual GRM) is:
- A Maryland agent receives a 2.5% co-op commission on a $480,000 sale and keeps 65% after the broker split. The agent's net commission is:
- A Maryland property investor purchases a fourplex for $600,000. Monthly rents are $1,200 per unit. Annual vacancy is 5%. What is the annual EGI?
- A Maryland seller paid $310,000 for a home and sold it for $375,000 two years later. The percentage appreciation is approximately:
- A Maryland property sells for $340,000. Maryland state transfer tax is 0.5% and the recordation tax is $3.33 per $500 of consideration. Recordation tax is:
- A Maryland investor needs a 9% return on a $450,000 commercial property. The required annual income is:
- A Maryland property has a monthly NOI of $3,500. Annualized, its value at a 7% cap rate is:
- A Maryland salesperson earns a salary of $2,000 per month plus 1.5% of personal sales volume. In a month they sold $620,000 in properties. Total earnings for the month are:
- A Maryland property is listed for $489,000. After negotiation, it sells for 97% of list price. The sale price is:
- A Maryland residential building was constructed for $180,000 (excluding land) and has depreciated 25% since it was built. The current depreciated value of the building is:
- A Maryland property's land is valued at $80,000 and the building (depreciated) is valued at $220,000. The total estimated value via the cost approach is:
- An investor receives $2,400 per month in rent on a Maryland property worth $360,000. The annual gross yield (return on investment) is:
- A Maryland investor buys a 6-unit apartment building for $720,000. Monthly rent per unit is $1,000. What is the annual gross rent multiplier (GRM)?
- A Maryland property has an annual operating expense ratio of 45% and EGI of $80,000. Annual operating expenses are:
- A Maryland buyer receives a $5,000 seller credit at closing. On a $350,000 purchase price with 10% down and a $315,000 loan, the credit reduces the buyer's out-of-pocket costs at closing by:
- A Maryland home is purchased for $280,000 with a 20% down payment. The buyer pays 1 origination point. How much is the origination fee?
- A Maryland property tax rate is $1.25 per $100 of assessed value. A property assessed at $320,000 pays annual taxes of:
- A Maryland property with a $450,000 assessed value is taxed at $1.40 per $100. The Homestead Tax Credit limits the increase to 10% from the previous year's $380,000 taxable assessment. What is the current year's taxable assessment?
- A Maryland property is being depreciated over 27.5 years (residential). The original building cost was $275,000. Annual depreciation is:
- A Maryland investor sells a property for $575,000 after owning it for 5 years and receiving a total of $150,000 in rental income. The original purchase price was $400,000. Total gross profit is:
- A Maryland home's annual taxes are $5,400. Settlement occurs on March 1 (day 60 of the year). In a 365-day proration, how much does the seller owe in property taxes (for the days they owned the property)?
- A Maryland agent lists a home at $479,000. After selling for 96% of list price, the agent earns 5.5% commission on the sale price. The agent's commission is:
Environmental
46 questions- What is the Maryland Bay Restoration Fund fee associated with?
- Radon is a concern in Maryland real estate primarily because:
- Under Maryland law, sellers of pre-1978 homes must provide buyers with:
- Which federal law governs the cleanup of hazardous waste sites and may hold current property owners liable for contamination even if they did not cause it?
- Underground storage tanks (USTs) are an environmental concern in real estate primarily because:
- Asbestos is most hazardous when it is:
- A property located within a FEMA-designated Special Flood Hazard Area (SFHA) requires the buyer to:
- The presence of mold in a home is primarily a concern because:
- What does the term 'environmental due diligence' typically involve in a commercial real estate transaction?
- Carbon monoxide (CO) detectors are required in Maryland residential properties:
- The Maryland Critical Area Act establishes a buffer around the Chesapeake Bay and tributaries of:
- MDE stands for:
- Maryland requires disclosure of lead paint for pre-1950 rental properties. For pre-1978 properties being sold, sellers must:
- Maryland's lead paint rental regulations are stricter than federal law, requiring full risk-reduction measures in rental properties built before:
- Radon gas in Maryland homes is a concern because:
- Under Maryland's Chesapeake Bay Critical Area regulations, development in the Buffer zone (within 100 feet of tidal waters) is:
- CERCLA (Superfund) requires that parties who:
- A Maryland home inspector discovers what appears to be asbestos-containing floor tiles. The agent should:
- A property near a Maryland wetland may be subject to restrictions under:
- Maryland requires sellers to disclose the presence of underground storage tanks (USTs) on a property because:
- The Chesapeake Bay Critical Area is divided into three zones. The most restrictive zone, the 'Buffer,' extends:
- Maryland's Brownfields program is designed to:
- Under federal law, which environmental hazard requires disclosure by sellers of homes built before 1978?
- A Maryland property with a septic system that fails a percolation test cannot:
- Maryland's National Flood Insurance Program (NFIP) participation means that properties in designated Special Flood Hazard Areas (SFHAs) may be required to:
- The EPA's Action Level for radon in a Maryland home is:
- A Maryland property located in the Resource Conservation (RC) zone within the Critical Area is subject to:
- In Maryland, a Phase I Environmental Site Assessment (ESA) is designed to:
- Maryland's Water Resources Element requirement in county master plans requires local governments to:
- A Maryland commercial property formerly used as a dry cleaner may have soil contamination from:
- In Maryland, mold disclosure is required when:
- A Maryland residential property near a former gas station should be evaluated for soil contamination from:
- Wetlands in Maryland are protected under both federal (Clean Water Act Section 404) and state law administered by:
- In Maryland, a seller who fails to provide the lead-based paint disclosure for a pre-1978 home may face:
- Maryland's Nutrient Management Law requires farmers:
- In Maryland, the term 'recognized environmental condition' (REC) in a Phase I ESA refers to:
- The Maryland Petroleum Underground Storage Tank (UST) Program requires:
- Polychlorinated biphenyls (PCBs) found in older Maryland commercial buildings are a concern because they:
- Maryland's Stormwater Management Act requires developers to:
- A Maryland property contains vermiculite insulation in the attic. This should concern the buyer because:
- The Chesapeake Bay Program, which includes Maryland, is focused on:
- A Maryland home that has well water is more susceptible to which environmental issue?
- Maryland's lead paint rental law requires landlords of pre-1950 rental housing to offer tenants:
- In Maryland, the presence of Chinese drywall in a home is a concern because it may:
- Maryland properties in FEMA 100-year flood zones (Zone AE) require flood insurance as a condition of:
- Maryland's Septic System User Incentive Program provides incentives for homeowners to:
Land Use & Zoning
44 questions- A nonconforming use in Maryland is a use that:
- A property owner wants to use their residentially zoned property as a daycare center. They would most likely apply for a:
- The primary purpose of a buffer zone in Maryland zoning is to:
- Eminent domain in Maryland allows the government to:
- What is a restrictive covenant in a Maryland residential subdivision?
- The Maryland Critical Area law protects:
- A setback requirement in zoning regulations refers to:
- Maryland's Smart Growth policies were designed to:
- In Maryland, the primary authority for land use planning and zoning rests with:
- A Maryland property owner wants to use their residentially zoned property as a day care center. They would most likely need:
- A nonconforming use in Maryland is best defined as:
- A Maryland property owner wants to build a fence 2 feet from the property line, but the setback requirement is 5 feet. They would need:
- Maryland's Priority Funding Areas (PFAs) are designated to:
- Agricultural land preservation in Maryland is administered by the:
- Eminent domain allows a Maryland government entity to take private property for public use provided:
- A Maryland municipality annexes a rural property into city limits. The property's zoning may:
- An inclusionary zoning ordinance in a Maryland county requires:
- A Maryland developer wants to create a large residential subdivision. They must first obtain approval of a:
- Maryland's Forest Conservation Act requires that developers:
- A Maryland Historic District designation may restrict property owners from:
- In Maryland, a Transfer of Development Rights (TDR) program allows:
- A Maryland development subject to a forest conservation plan must submit the plan to:
- In Maryland, R-1 zoning typically refers to:
- A Maryland property receives a Certificate of Occupancy (CO) after construction. This document confirms:
- Maryland's Smart Growth Act of 1997 aimed to:
- A 'special exception' (conditional use) in Maryland zoning differs from a variance in that:
- Spot zoning in Maryland is considered:
- In Maryland, a developer who builds more dwelling units than the zoning allows without approval has:
- In Maryland, a home occupation permit allows:
- A Maryland county's comprehensive (master) plan:
- Bulk zoning regulations in Maryland control:
- In Maryland, when a property is condemned by eminent domain, the owner is entitled to:
- Maryland's Adequate Public Facilities (APF) ordinances allow local governments to:
- In Maryland, a planned unit development (PUD) allows:
- In Maryland, impact fees charged by counties to new development are used to:
- Maryland's 1992 Economic Growth, Resource Protection, and Planning Act established:
- Maryland's Rural Legacy Program aims to:
- In Maryland, a property owner can challenge a zoning denial by filing an appeal with the:
- Maryland's Building Energy Performance Standards (BEPS) require large commercial buildings in certain jurisdictions to:
- A Maryland property owner whose land is taken by eminent domain for a road widening may pursue 'inverse condemnation' if:
- Maryland's 'buffer yard' requirements in some zones require:
- In Maryland, 'infill development' refers to:
- Maryland's Brownfields Voluntary Cleanup Program provides liability protection to:
- In Maryland, a 'down-zoning' occurs when:
Fair Housing (alternative)
41 questions- A Maryland real estate company that conducts regular 'testing' (using testers of different backgrounds to apply for properties) is engaged in:
- In Maryland, 'discriminatory advertising' under the Fair Housing Act includes:
- Under Maryland's Fair Housing Act, who has standing to file a fair housing complaint?
- A Maryland apartment landlord's 'no overnight guest' policy, if applied only to single women with guests, would likely constitute discrimination based on:
- Under the Fair Housing Act, a real estate professional who has a 'steering' pattern may be identified by:
- A Maryland property manager who denies occupancy to a prospective tenant's service dog, claiming it violates the building's 'no pets' policy, is:
- In Maryland, a developer who builds accessible housing units beyond what is required by law may qualify for:
- A Maryland real estate agent who refuses to show properties to qualified buyers because of their religion is subject to:
- The 'Affirmatively Furthering Fair Housing' (AFFH) rule requires Maryland jurisdictions receiving HUD funds to:
- Maryland's Fair Housing Act prohibits discrimination based on all of the following EXCEPT:
- A Maryland landlord who refuses to rent to a family because they have children may be liable under:
- A Maryland real estate agent who only shows African-American clients homes in predominantly African-American neighborhoods is engaged in:
- A Maryland property manager who charges a higher security deposit to tenants with disabilities than to non-disabled tenants is violating:
- Blockbusting in Maryland violates federal and state fair housing laws. It is defined as:
- Under the federal Fair Housing Act, which religious organization may lawfully restrict sales or rentals of property?
- The federal Americans with Disabilities Act (ADA) primarily applies to real estate in the context of:
- A Maryland landlord who refuses to make reasonable accommodations for a tenant with a disability is violating:
- Under the federal Fair Housing Act, a 'testers' program is used by fair housing organizations to:
- Redlining in Maryland means:
- Under Maryland fair housing law, the protected class of 'source of income' means:
- Under the Maryland Fair Housing Act, disability includes:
- A Maryland property manager who advertises an apartment only in publications serving one racial community is violating:
- Under the federal Fair Housing Act, the complaint filing deadline for an alleged discriminatory act is:
- A Maryland developer who builds 50 or more residential units must comply with the Fair Housing Act's design and construction requirements, which include:
- Under Maryland law, a homeowners association (HOA) that enforces a racially restrictive covenant is:
- Which of the following is an example of a reasonable modification under the federal Fair Housing Act?
- A Maryland residential landlord with 3 units or fewer who lives in one of the units is exempt from the federal Fair Housing Act's prohibitions EXCEPT for:
- A Maryland real estate agent whose client asks them to only show them homes in neighborhoods with fewer minority residents must:
- Under the Maryland Fair Housing Act, a complaint about housing discrimination must be filed with the Maryland Commission on Civil Rights within:
- Maryland's protected class of 'marital status' under the state Fair Housing Act protects:
- Under the Maryland Fair Housing Act, which of the following is a protected class that is NOT in the federal Fair Housing Act?
- Under Maryland law, a condo association that bars children from using the swimming pool between 3 and 6 PM violates:
- A Maryland news article reports that a developer's new subdivision has no minority buyers. This alone is:
- Under Maryland law, a 55+ age-restricted community that qualifies as housing for older persons may:
- A Maryland developer who advertises new homes exclusively using photos showing only white families is:
- Under Maryland law, a housing provider who says 'I prefer not to rent to people from that country' is:
- A Maryland real estate agent who delays returning calls from prospective buyers of one racial group but promptly returns calls from other groups is engaging in:
- A Maryland housing provider who claims they rejected a rental application due to poor credit but the applicant's credit was actually good may be liable for:
- Which of the following is NOT a defense to a Maryland or federal Fair Housing Act claim?
- Under HUD guidelines applicable in Maryland, which statement in a real estate advertisement is MOST likely to violate the Fair Housing Act?
- Under Maryland's Fair Housing Act, occupancy standards that limit the number of people per bedroom may be lawful if they are:
Escrow & Title (alternative)
41 questions- A Maryland deed must include an adequate property description to be valid. Which of the following is an adequate legal description?
- In Maryland, which type of deed would a trustee use to convey property after a foreclosure sale?
- Title insurance in Maryland does NOT protect against:
- In Maryland, a 'deed in lieu of foreclosure' allows a borrower to:
- In Maryland, when a buyer purchases a condominium, they receive fee simple title to:
- A Maryland title company that detects a 'cloud on title' before settlement should:
- In Maryland, a 'subordination agreement' in real estate means:
- 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:
- In Maryland, a 'standard coverage' title insurance policy is typically:
- In Maryland, the typical closing cost that is split between buyer and seller is the:
- Maryland is considered an 'attorney closing state,' which means:
- A title search in Maryland examines public records to determine:
- Title insurance in Maryland protects against all of the following EXCEPT:
- A Maryland general warranty deed includes covenants guaranteeing the grantor will defend against claims arising:
- A Maryland quitclaim deed conveys:
- Maryland title companies typically issue which two types of title insurance policies?
- Maryland's ground rent system allows homeowners to redeem (extinguish) the ground rent by paying:
- A Maryland special warranty deed warrants title only against claims arising:
- In Maryland, the HUD-1/Closing Disclosure must be provided to the buyer and seller at or before:
- A Maryland mechanics' lien arises when:
- In Maryland, a lis pendens is filed to:
- A Maryland property owner who grants a deed of trust to secure a mortgage gives legal title to:
- In Maryland, 'constructive notice' of an instrument affecting real estate is achieved by:
- Maryland's Race-Notice recording statute means a later buyer prevails over an earlier unrecorded deed if:
- Maryland's seller's disclosure law exempts which type of transaction from the disclosure requirement?
- In Maryland, a release deed (reconveyance) is recorded when:
- In Maryland, an abstract of title is a:
- Actual notice in Maryland real estate means:
- In Maryland, a deed is considered 'delivered' when:
- A Maryland title examiner finds a gap in the chain of title (missing deed). This means the title is:
- A Maryland property tax lien takes priority over other liens because:
- A Maryland court order for partition of real property owned as tenants in common means:
- A Maryland judgment lien is created when:
- In Maryland, a notice of lis pendens recorded in the land records warns potential buyers that:
- At a Maryland settlement, the buyer typically receives a credit for:
- In Maryland, a 'cloud on title' refers to:
- In Maryland, when a property is sold at a tax sale for unpaid property taxes, the former owner typically has a right to:
- A Maryland property's title insurance policy issued at closing typically insures against which pre-existing condition?
- A Maryland deed of trust differs from a traditional mortgage because:
- When a Maryland property is sold through foreclosure and the proceeds exceed the mortgage debt, the surplus goes to:
- Under Maryland's Home Affordable Modification Program (HAMP)-related procedures, a borrower in default seeking loan modification should first contact:
Property Management
33 questions- In Maryland, a property manager who collects rent and manages property for others is required to:
- Under Maryland landlord-tenant law, a landlord must return a security deposit within how many days after the tenant vacates?
- In Maryland, a property manager holding tenant security deposits must keep them in:
- Under Maryland's residential landlord-tenant law, a landlord's failure to return a security deposit within 45 days may result in:
- Montgomery County, Maryland's rent stabilization ordinance limits annual rent increases to:
- A Maryland property manager discovers a tenant has abandoned the property. The manager should:
- A Maryland lease agreement must include which of the following to be enforceable?
- Under Maryland law, a landlord who accepts rent after a lease expires typically creates:
- In Maryland, a property manager who manages property without a real estate license when one is required is subject to:
- The implied warranty of habitability in Maryland requires landlords to:
- In Maryland, a tenant who withholds rent due to habitability problems must:
- A property manager in Maryland is offered a referral fee by a maintenance contractor for steering repair work to them. Accepting this undisclosed fee is:
- In Maryland, Prince George's County's rent stabilization program limits annual increases to:
- Under Maryland law, before a landlord may evict a tenant for non-payment of rent, the landlord must:
- A Maryland tenant gives proper notice to vacate but leaves personal belongings behind. The landlord may:
- In Maryland, a residential lease for more than one year must be:
- A Maryland property manager who receives a housing inspection citation from the county must:
- Under Maryland landlord-tenant law, a tenant who is a victim of domestic violence may be entitled to:
- A Maryland commercial lease that is 'triple net' (NNN) requires the tenant to pay:
- A Maryland property manager who receives funds on behalf of an owner must:
- In Maryland, a commercial property's operating expense ratio is calculated as:
- Maryland's law on constructive eviction holds that a landlord who makes a rental uninhabitable may:
- A Maryland commercial property manager preparing an annual operating budget should include:
- In Maryland, a property management agreement must specify:
- Under Maryland law, a landlord who enters a tenant's unit without proper notice (except in emergency) may be liable for:
- The capitalization rate used by a Maryland property manager to estimate property value should reflect:
- In Maryland, which of the following is a legitimate reason a landlord may refuse to renew a lease?
- In Maryland, a property manager's management fee is typically calculated as a percentage of:
- In Maryland, a condo association that fails to maintain common elements exposing residents to safety hazards may be liable for:
- Under Maryland's Real Property Article, a landlord who wishes to evict a month-to-month tenant without cause must provide:
- A Maryland property manager who allows a tenant to pay less than the contracted rent without a written amendment to the lease may create:
- Maryland's Residential Property Management Act requires that property managers:
- In Maryland, a tenant in a unit with a carbon monoxide detector that is not working should:
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