Free Maryland Property Practice Test — LicenseIQ

Question 1

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 2

A licensee urges homeowners to 'sell now before property values drop' because people of a particular national origin are moving into the neighborhood. This is:

Accepted Answer

§17-322(b)(16) and State Gov't §20-705 prohibit inducing sales with representations about protected-class residents and claims that values will fall. Whether the facts are true is irrelevant.

Question 3

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 4

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 5

Which item would most likely be considered personal property rather than a fixture?

Accepted Answer

Items easily removed without damage, like a plug-in refrigerator, are usually personal property. Carpeting cut to fit, built-ins and HVAC are adapted or attached fixtures.

Question 6

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 7

Which Maryland transfer is exempt from the residential disclosure/disclaimer requirement?

Accepted Answer

§10-702(b) exempts sheriff's, tax, foreclosure, partition, and court-appointed trustee sales, along with several other transfers. Ordinary resales of 1–4 unit homes are covered.

Question 8

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 9

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 10

The Maryland salesperson prelicensing course must include a real estate ethics course of how many clock hours?

Accepted Answer

§17-303 requires a 3-clock-hour ethics course within the basic course. The 1.5-hour figure appears in Maryland CE (professionalism, financing, supervision), not in prelicensing.

Question 11

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 12

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 13

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 14

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 15

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 16

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 17

A listing agent receives a written offer on a property that is already under contract. Absent contrary terms in the listing agreement, the agent must:

Accepted Answer

§17-532(c) requires prompt presentation of all written offers and counteroffers, even when the property is under contract, unless the brokerage agreement provides otherwise.

Question 18

An owner of lakefront property holds:

Accepted Answer

Littoral rights apply to properties abutting standing bodies of water such as lakes and oceans. (Reclassified from section 16 to section 1 / CORE.)

Question 19

A deed that conveys only whatever interest the grantor has, with no warranties, is a:

Accepted Answer

A quitclaim deed conveys the grantor's interest, if any, with no warranties - often used to clear clouds on title.

Question 20

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 21

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 22

A Maryland sales contract contains a clause in which the buyer waives the right to rescind under §10-702. That clause is:

Accepted Answer

§10-702(k) states the rights may not be waived in the contract of sale and any attempted waiver is void.

Question 23

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 24

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 25

A buyer signs a contract on April 3. The seller delivers the disclosure statement on April 10. Until when may the buyer rescind, assuming no settlement, occupancy, or lender cut-off occurs first?

Accepted Answer

§10-702(h) gives an unconditional right to rescind before receipt or within 5 days after receipt when the form wasn't delivered by contract signing. April 10 + 5 days = April 15.

Maryland real estate property practice test

1. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

2. A licensee urges homeowners to 'sell now before property values drop' because people of a particular national origin are moving into the neighborhood. This is:

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

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

5. Which item would most likely be considered personal property rather than a fixture?

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

7. Which Maryland transfer is exempt from the residential disclosure/disclaimer requirement?

8. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

9. Under a land contract (contract for deed), during the payment period the buyer holds:

10. The Maryland salesperson prelicensing course must include a real estate ethics course of how many clock hours?

11. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

12. In a lease, the tenant holds a estate and the landlord holds a .

13. The four unities required to create a joint tenancy are:

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

15. In a deed, the party conveying title is the and the party receiving title is the .

16. Which document is recorded in the county records and makes the property collateral for a loan?

17. A listing agent receives a written offer on a property that is already under contract. Absent contrary terms in the listing agreement, the agent must:

18. An owner of lakefront property holds:

19. A deed that conveys only whatever interest the grantor has, with no warranties, is a:

20. 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:

21. An owner's title insurance policy protects against:

22. A Maryland sales contract contains a clause in which the buyer waives the right to rescind under §10-702. That clause is:

23. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

24. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

25. A buyer signs a contract on April 3. The seller delivers the disclosure statement on April 10. Until when may the buyer rescind, assuming no settlement, occupancy, or lender cut-off occurs first?

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