Free Maryland Agency Practice Test — LicenseIQ

Question 1

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 2

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 3

A listing agent's first contact with a prospective buyer is a reply to the buyer's email inquiry. Under Maryland law, the agent must:

Accepted Answer

§17-530(a)(3) requires disclosure through the medium in which a non-face-to-face first contact occurs. The written form must still be provided by the first scheduled face-to-face meeting.

Question 4

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 5

At a Maryland open house, how may the licensee hosting it satisfy the agency disclosure requirement?

Accepted Answer

§17-530(b)(2) allows a conspicuous posted notice that the licensee represents the seller. MREC publishes an Open House Disclosure Sign for this purpose.

Question 6

A buyer refuses to sign the acknowledgment on the 'Understanding Whom Real Estate Agents Represent' form. What should the licensee do?

Accepted Answer

The form includes a certification for consumers unable or unwilling to acknowledge receipt. The licensee records it there. Signing for the buyer would be dishonest, and refusing to sign creates no agency.

Question 7

A Maryland seller has already signed a written listing agreement with Bay Realty. Does Bay Realty's agent also need to give the seller the 'whom agents represent' disclosure under §17-530?

Accepted Answer

§17-530(a)(2) excludes a party with whom the broker has a written brokerage agreement. That party is already a client and knows it.

Question 8

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 9

A buyer's agent submits an offer before the buyer has received the seller's property disclosure or disclaimer statement, and the contract becomes voidable as a result. Under COMAR, this:

Accepted Answer

COMAR 09.11.02.02I says failing to ensure the buyer has the disclosure or disclaimer before an offer is submitted may be a violation if it makes the contract void or voidable.

Question 10

In a Maryland residential sale with a subagent working with the buyer, who must give the buyer the written disclosure of whom the licensee represents?

Accepted Answer

§17-530(c) requires a subagent to disclose in writing to the buyer that the subagent represents the seller. The seller's agent makes the disclosure only when there is no subagent or buyer's agent.

Question 11

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 12

A seller client refuses to consent to dual agency when an in-house buyer client wants the home. Under Maryland law, the broker:

Accepted Answer

§17-530.1(e) lets a broker withdraw from representing a client who refuses consent and end that relationship, without prejudicing its representation of the other party.

Question 13

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 14

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 15

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 16

Which statement appears on Maryland's 'Understanding Whom Real Estate Agents Represent' form?

Accepted Answer

The form states 'THIS NOTICE IS NOT A CONTRACT.' It discloses representation; it does not create an agency relationship or waive anyone's rights.

Question 17

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 18

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 19

According to the Commission's disclosure form, if a buyer is viewing a property and has NOT signed a brokerage agreement, the agent showing it:

Accepted Answer

The form tells consumers that without a signed brokerage agreement, the agent represents the seller. Buyer representation requires a written agreement (§17-528).

Question 20

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 21

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 22

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 23

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 24

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 25

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Maryland real estate agency practice test

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

2. An agent authorized to perform a single specific act for a principal is a:

3. A listing agent's first contact with a prospective buyer is a reply to the buyer's email inquiry. Under Maryland law, the agent must:

4. A material defect that a seller/agent must disclose is one that:

5. At a Maryland open house, how may the licensee hosting it satisfy the agency disclosure requirement?

6. A buyer refuses to sign the acknowledgment on the 'Understanding Whom Real Estate Agents Represent' form. What should the licensee do?

7. A Maryland seller has already signed a written listing agreement with Bay Realty. Does Bay Realty's agent also need to give the seller the 'whom agents represent' disclosure under §17-530?

8. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

9. A buyer's agent submits an offer before the buyer has received the seller's property disclosure or disclaimer statement, and the contract becomes voidable as a result. Under COMAR, this:

10. In a Maryland residential sale with a subagent working with the buyer, who must give the buyer the written disclosure of whom the licensee represents?

11. 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:

12. A seller client refuses to consent to dual agency when an in-house buyer client wants the home. Under Maryland law, the broker:

13. A property manager owes fiduciary duties primarily to the:

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

15. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

16. Which statement appears on Maryland's 'Understanding Whom Real Estate Agents Represent' form?

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

18. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

19. According to the Commission's disclosure form, if a buyer is viewing a property and has NOT signed a brokerage agreement, the agent showing it:

20. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

21. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

22. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

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

24. Which statement about dual agency is correct?

25. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

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