1. Which provision must every Maryland listing (seller brokerage) agreement contain?
Answer & explanation
Answer: D. §17-534(b) requires a definite, automatic termination date and a cancellation provision. Accepting a listing without one is also a discipline ground under §17-322(b)(10). Commissions are negotiated, not set by boards.
2. A buyer hands a $15,000 deposit to a salesperson on Thursday, May 7, 2026. The seller accepts the contract on Monday, May 11, 2026. Assuming no holidays fall in that period, what is the latest date the broker may deposit the money?
Answer & explanation
Answer: C. Count 7 business days after acceptance on May 11: May 12 (1), 13 (2), 14 (3), 15 (4), 18 (5), 19 (6), 20 (7). May 7 does not start the clock because the contract wasn't yet accepted by both parties.
3. 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:
Answer & explanation
Answer: C. 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.
4. After the buyer and seller sign a sales contract but before closing, the contract is:
Answer & explanation
Answer: B. A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).
5. Which is NOT an essential element of a valid contract?
Answer & explanation
Answer: C. The essential elements are offer and acceptance (mutual consent), consideration, competent parties and legal purpose. Notarization is not required for a contract to be valid.
6. 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?
Answer & explanation
Answer: A. §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.
7. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?
Answer & explanation
Answer: A. At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.
8. A Maryland broker must deposit trust money from a sales contract no later than:
Answer & explanation
Answer: B. §17-502(b) requires deposit promptly but not more than 7 business days after both parties accept the contract. The clock runs from mutual acceptance, not from receipt of the check.
9. After a Maryland brokerage relationship ends, unless the agreement provides otherwise, the licensee continues to owe the former client which duty?
Answer & explanation
Answer: B. §17-534(d) limits post-termination duties to accounting for trust money and preserving confidentiality of personal, financial, and requested-confidential information.
10. A mortgage lender offers a salesperson $200 for every client referred. Under RESPA this is:
Answer & explanation
Answer: D. RESPA prohibits kickbacks and unearned referral fees between settlement service providers and real estate licensees, even if disclosed.
11. A licensee representing the seller who learns the buyer will pay more than the offer must:
Answer & explanation
Answer: C. Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.
12. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?
Answer & explanation
Answer: B. A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.
13. 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:
Answer & explanation
Answer: A. Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.
14. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:
Answer & explanation
Answer: C. In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.
15. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:
Answer & explanation
Answer: D. Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.
16. A buyer client signed Maryland's Consent for Dual Agency when signing a buyer agreement. The buyer now wants to offer on a home the same firm lists. What must happen before the offer is presented?
Answer & explanation
Answer: B. The Commission's consent form requires a buyer who previously consented to affirm consent for the specific property before an offer is presented. The seller affirms for the specific buyer before accepting.
17. After a Maryland HOA resale contract is signed, the buyer receives notice that mandatory HOA fees will rise by 15%. How long does the buyer have to cancel?
Answer & explanation
Answer: A. RP §11B-106 gives 3 calendar days to cancel after receiving notice of a fee increase over 10% or another adverse change.
18. A Maryland contract for the sale of a single-family home must include a bold statement that the buyer has the right to select the buyer's own:
Answer & explanation
Answer: C. §17-524 requires a bold notice of the buyer's right to select those five providers. It also requires a statement that a seller may not be prohibited from offering owner financing.
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:
Answer & explanation
Answer: C. The form tells consumers that without a signed brokerage agreement, the agent represents the seller. Buyer representation requires a written agreement (§17-528).
20. Adding a new financing contingency to an existing sales contract is done by a(n) ____, while changing the existing closing date is done by a(n) ____.
Answer & explanation
Answer: C. An addendum ADDs new terms; an amendment changes existing terms. Both require agreement of both parties.
21. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. 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.)
22. A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:
Answer & explanation
Answer: C. The option binds only the optionor. The optionee may exercise or let it lapse (forfeiting the option money).
23. Which is the most common and desirable way a real estate sales contract terminates?
Answer & explanation
Answer: C. Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.
24. In an option to purchase, the seller who grants the option is the ____ and the option holder is the ____.
Answer & explanation
Answer: B. The seller (optionor) gives the option; the buyer (optionee) holds it. Only the optionor is bound during the option period, making it unilateral.
25. A zero-down-payment government loan program aimed at low- and moderate-income buyers in eligible rural areas is offered through the:
Answer & explanation
Answer: D. USDA Rural Development loans serve eligible rural buyers who meet income limits, often with no down payment.
Sources
Source verification pending. Confirm current requirements with your state regulator.