Free Maryland Real Estate Practice Test (2026) — LicenseIQ

Question 1

A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

Accepted Answer

A variance grants relief from a specific zoning requirement; a setback deviation is an area variance. A building permit only authorizes construction that complies with the rules.

Question 2

What is the Maryland State transfer tax rate on a standard residential sale?

Accepted Answer

Tax-Property §13-203(a) sets the State transfer tax at 0.5% of consideration. 0.25% is the reduced first-time-buyer rate.

Question 3

Under Maryland law, which is a 'latent defect'?

Accepted Answer

A latent defect under §10-702(a) is a material defect a careful visual inspection would not reasonably reveal that poses a direct threat to health or safety. A visible crack isn't latent, and an aging roof with no known defect isn't a known latent defect.

Question 4

A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

Accepted Answer

The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.

Question 5

A loan whose payments are not large enough to pay it off by the end of the term, leaving a large final payment, is a:

Accepted Answer

Partially amortized loans require a balloon payment at maturity. Negative amortization means the balance actually increases because payments don't cover interest.

Question 6

Where must required licensee and brokerage disclosures appear on a Maryland licensee's website?

Accepted Answer

COMAR 09.11.02.01G(4) requires disclosures on the first 25% of the main page. For media limited to 280 characters or fewer, they may appear on the first 25% of a page one click away.

Question 7

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 8

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 9

A licensee uses a home she personally owns as a comparable in a CMA for a seller client. Under the Maryland Code of Ethics, she must:

Accepted Answer

COMAR 09.11.02.02F(2) requires disclosure to the client, prospective client, or customer when the licensee's own property is used as a comparable.

Question 10

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

Accepted Answer

§17-502(a) requires associate brokers and salespersons to promptly submit trust money to their broker. Only the broker maintains trust accounts.

Question 11

An applicant has a felony conviction from 9 years ago. In deciding whether to deny the license, the Commission must consider all of the following EXCEPT:

Accepted Answer

§17-322(d) requires considering the nature of the crime, its relation to licensed activity, its relevance to fitness (for felonies), time elapsed, and behavior before and after. No bond is involved.

Question 12

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 13

A Maryland licensee whose license expires on September 30 must complete continuing education no later than:

Accepted Answer

§17-314(c) requires CE completion at least 30 days before the license expires. Thirty days before September 30 is August 31. A licensee who misses the deadline faces a reinstatement fee.

Question 14

The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

Accepted Answer

The income statement (P&L) summarizes income and expenses for the accounting period, typically monthly.

Question 15

In a commercial building, the area that includes the tenant's usable space plus a share of common areas such as lobbies and hallways is the:

Accepted Answer

Rentable area = usable area plus a pro rata share of common areas, so it is always larger than usable area.

Question 16

Which listing arrangement is prohibited in Maryland?

Accepted Answer

§17-322(b)(11) makes accepting a net listing a discipline ground. Exclusive, open, and flat-fee listings are lawful if they meet §17-534.

Question 17

Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

Accepted Answer

When taxes are paid in arrears, the buyer will pay the full bill later, so the seller is charged (debit) and the buyer credited for the seller's portion.

Question 18

Recording a deed in the county records primarily serves to:

Accepted Answer

Recording provides public (constructive) notice, protecting the owner's interest against later claims.

Question 19

A Maryland seller uses the disclaimer statement. The seller must still disclose:

Accepted Answer

§10-702(d) requires a disclaiming seller to disclose known latent defects. Those are material defects a careful visual inspection would not reveal that pose a direct threat to health or safety.

Question 20

Which action by a Maryland buyer's agent is NOT a breach of duty to the buyer client?

Accepted Answer

§17-532 says representing other clients seeking similar properties is not a breach. Disclosing confidential negotiating information or failing to present a counteroffer breaches the statutory duties.

Question 21

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 22

A CMA prepared by a salesperson to suggest a listing price is:

Accepted Answer

A CMA is an informal estimate of a likely price range based on comparables - not an appraisal, which only a licensed appraiser can perform.

Question 23

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

Question 24

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 25

The 'Mrs. Murphy' exemption under the federal Fair Housing Act applies to an owner who:

Accepted Answer

The exemption covers owner-occupied 1-4 unit buildings rented without a broker and never permits discriminatory advertising.

Maryland real estate practice test

1. A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

2. What is the Maryland State transfer tax rate on a standard residential sale?

3. Under Maryland law, which is a 'latent defect'?

4. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

5. A loan whose payments are not large enough to pay it off by the end of the term, leaving a large final payment, is a:

6. Where must required licensee and brokerage disclosures appear on a Maryland licensee's website?

7. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

8. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

9. A licensee uses a home she personally owns as a comparable in a CMA for a seller client. Under the Maryland Code of Ethics, she must:

10. A Maryland salesperson receives an earnest money check from a buyer. The salesperson must:

11. An applicant has a felony conviction from 9 years ago. In deciding whether to deny the license, the Commission must consider all of the following EXCEPT:

12. Under an open listing, the seller owes a commission to:

13. A Maryland licensee whose license expires on September 30 must complete continuing education no later than:

14. The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

15. In a commercial building, the area that includes the tenant's usable space plus a share of common areas such as lobbies and hallways is the:

16. Which listing arrangement is prohibited in Maryland?

17. Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

18. Recording a deed in the county records primarily serves to:

19. A Maryland seller uses the disclaimer statement. The seller must still disclose:

20. Which action by a Maryland buyer's agent is NOT a breach of duty to the buyer client?

21. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

22. A CMA prepared by a salesperson to suggest a listing price is:

23. The government's power to take private property for public use with just compensation is:

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

25. The 'Mrs. Murphy' exemption under the federal Fair Housing Act applies to an owner who:

Sources