Free Maine State Law Practice Test — LicenseIQ

Question 1

An unlicensed finder helps sell a neighbor's home and the neighbor refuses to pay the promised fee. Can the finder sue for it?

Accepted Answer

Section 13004 bars any action to collect brokerage compensation without proof of licensure. A written agreement does not overcome the bar.

Question 2

A seller says, "Sell it and keep anything over $250,000 as your commission." In Maine this arrangement is:

Accepted Answer

Rule 410 §4 prohibits net listings, defined as keeping all money above a seller's minimum price. Putting it in writing does not cure it.

Question 3

The seller does not know the date of the last water test. What must the licensee do?

Accepted Answer

The Rule 410 disclosure sections require that unavailable information be disclosed in writing as unavailable. A blank does not satisfy the rule.

Question 4

Which item is a required part of the heating disclosure in the seller's statement?

Accepted Answer

Section 173(2-A) lists type, age, servicer, last service call, annual consumption, malfunctions in the past 2 years, and the most recent chimney and vent inspection. The insulation item was repealed.

Question 5

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 6

A licensee expects a referral fee from a moving company for referring a seller client. The licensee may accept it if the licensee:

Accepted Answer

Rule 410 §19(2) allows referral compensation for services other than title, lending, closing and brokerage, with written disclosure to the payer and the client.

Question 7

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 8

The Commission finds a licensee committed three separate violations. What is the maximum total civil penalty the Commission could impose?

Accepted Answer

The cap is $1,500 per violation, so three violations allow 3 × $1,500 = $4,500. $1,500 would treat the three violations as one.

Question 9

How many members sit on the Maine Real Estate Commission?

Accepted Answer

Section 13062 creates a six-member Commission: four industry members and two public members. Five is a tempting guess if you remember only the industry seats plus one public member.

Question 10

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 11

Within what time must earnest money be deposited into a Maine real estate trust account?

Accepted Answer

Rule 400 §2 requires deposit within 5 business days after acceptance. Other trust funds are deposited within 5 business days of receipt.

Question 12

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 13

How long is a Maine sales agent license issued for, and can it be renewed?

Accepted Answer

Section 13200 issues the sales agent license for two years and states it may not be renewed. The CE option describes associate broker and broker renewals, not sales agents.

Question 14

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 15

Which person may perform real estate transactions in Maine without a license?

Accepted Answer

Attorneys acting as attorneys are one of the four exceptions in §13002. A property manager working for unrelated owners is acting for others for compensation and needs a license.

Question 16

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 17

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 18

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 19

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 20

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 21

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 22

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 23

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 24

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 25

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Maine real estate state law practice test

1. An unlicensed finder helps sell a neighbor's home and the neighbor refuses to pay the promised fee. Can the finder sue for it?

2. A seller says, "Sell it and keep anything over $250,000 as your commission." In Maine this arrangement is:

3. The seller does not know the date of the last water test. What must the licensee do?

4. Which item is a required part of the heating disclosure in the seller's statement?

5. A salesperson receives an earnest money check from a buyer. The salesperson should:

6. A licensee expects a referral fee from a moving company for referring a seller client. The licensee may accept it if the licensee:

7. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

8. The Commission finds a licensee committed three separate violations. What is the maximum total civil penalty the Commission could impose?

9. How many members sit on the Maine Real Estate Commission?

10. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

11. Within what time must earnest money be deposited into a Maine real estate trust account?

12. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

13. How long is a Maine sales agent license issued for, and can it be renewed?

14. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

15. Which person may perform real estate transactions in Maine without a license?

16. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

17. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

18. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

19. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

20. Which statement about FHA-insured loans is correct?

21. A salesperson wants to buy a FSBO home for his own investment. He must:

22. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

23. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

24. Which is the most common and desirable way a real estate sales contract terminates?

25. Which action may a life tenant take WITHOUT the remainderman's consent?

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