Free Maryland Math Practice Test — LicenseIQ

Question 1

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 2

Who appoints members of the Maryland Real Estate Commission?

Accepted Answer

Under §17-202, the Governor appoints members with the Secretary's advice and Senate consent. The Secretary advises but does not appoint, and private associations have no appointment role.

Question 3

A Maryland broker wants to pay a $500 referral fee to an unlicensed friend who sent her a buyer. This is:

Accepted Answer

§17-604 prohibits paying compensation 'in any form' for brokerage services to unlicensed persons, except for listed licensed or entity recipients. Disclosure doesn't cure it, and a gift card is still compensation.

Question 4

A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

Accepted Answer

Area = 330 x 660 = 217,800 sq ft; 217,800 / 43,560 = 5 acres.

Question 5

Instead of or in addition to reprimand, suspension, or revocation, the Maryland Real Estate Commission may impose a civil penalty of up to:

Accepted Answer

§17-322(c) allows a penalty not exceeding $5,000 for each violation. $50,000 is the Guaranty Fund cap per claim.

Question 6

What is the length of a term for a member of the Maryland Real Estate Commission?

Accepted Answer

Members serve staggered 4-year terms beginning June 1 (§17-202). Five-year terms appear in some other states, which makes that a common wrong pick.

Question 7

A seller files a complaint with the Maryland Real Estate Commission solely because the commission rate she agreed to in her written listing seems too high. What is the Commission's likely response?

Accepted Answer

Maryland law does not set commission rates; brokerage agreements simply must state the compensation (§17-534). The Guaranty Fund covers losses from theft, fraud, or misrepresentation, not a fee the seller agreed to.

Question 8

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 9

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 10

A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?

Accepted Answer

Purchase price = loan / LTV = $276,000 / 0.80 = $345,000. ($220,800 wrongly multiplies by 0.80.)

Question 11

One discount point equals what percentage of the loan amount?

Accepted Answer

One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.

Question 12

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 13

At settlement, a title insurance producer may pay a salesperson's share of a commission on the broker's behalf if:

Accepted Answer

§17-604(c) allows a licensed title insurance producer to pay compensation on a broker's behalf under the broker's written disbursement authorization.

Question 14

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 15

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 16

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 17

How many members serve on the Maryland Real Estate Commission?

Accepted Answer

BOP §17-202 sets nine members: five professional (licensee) members and four consumer members. Eleven is a tempting guess borrowed from other states' commissions, but Maryland's board has nine seats.

Question 18

If the Maryland Guaranty Fund balance falls below what amount must the Commission assess all licensees a fee to restore it?

Accepted Answer

§17-403(c) mandates an assessment if the fund falls below $250,000. The $300,000 threshold permits (but doesn't require) a transfer of up to $500,000 from the Commission Fund.

Question 19

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 20

Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

Accepted Answer

Daily = $5,400 / 360 = $15. Seller owned Jan 1-Jun 15 = 5 months + 15 days = 165 days. 165 x $15 = $2,475. Because the buyer will pay the whole bill later, the seller is debited and the buyer credited.

Question 21

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 22

A house with only one bathroom and very small closets in a market expecting more suffers from:

Accepted Answer

Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.

Question 23

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 24

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 25

A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

Accepted Answer

Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).

Maryland real estate math practice test

1. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

2. Who appoints members of the Maryland Real Estate Commission?

3. A Maryland broker wants to pay a $500 referral fee to an unlicensed friend who sent her a buyer. This is:

4. A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

5. Instead of or in addition to reprimand, suspension, or revocation, the Maryland Real Estate Commission may impose a civil penalty of up to:

6. What is the length of a term for a member of the Maryland Real Estate Commission?

7. A seller files a complaint with the Maryland Real Estate Commission solely because the commission rate she agreed to in her written listing seems too high. What is the Commission's likely response?

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

9. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

10. A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?

11. One discount point equals what percentage of the loan amount?

12. A home sells for $400,000 with a 5% total commission. What is the total commission?

13. At settlement, a title insurance producer may pay a salesperson's share of a commission on the broker's behalf if:

14. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

15. 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:

16. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

17. How many members serve on the Maryland Real Estate Commission?

18. If the Maryland Guaranty Fund balance falls below what amount must the Commission assess all licensees a fee to restore it?

19. Which listing arrangement is prohibited in Maryland?

20. Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

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

22. A house with only one bathroom and very small closets in a market expecting more suffers from:

23. 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?

24. 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?

25. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

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