Maryland Real Estate Broker Exam — All Questions
3 questions
Maryland is notable for a form of property interest, common in Baltimore, in which the homeowner owns the building but pays periodic rent for the land. This is called a:
- a.Ground rent✓
- b.Homestead lien
- c.Mechanic's estate
- d.Reverse easement
A Maryland ground rent is a long-standing arrangement, especially in Baltimore, in which the buyer owns the improvements but owes periodic ground rent to the owner of the underlying land (the ground rent holder). Ground rents must be disclosed and registered under Maryland law, and unpaid ground rent can create a lien. Brokers should identify ground-rent properties early so buyers understand the recurring obligation.
When selling most existing single-family residential property in Maryland, the seller must give the buyer:
- a.A certified appraisal
- b.A county tax clearance only
- c.A home warranty policy
- d.A Residential Property Disclosure and Disclaimer Statement✓
Maryland requires most residential sellers to deliver a Residential Property Disclosure and Disclaimer Statement, on which the seller either discloses the property's known condition (disclosure) or sells it as-is while stating latent defects known to the seller (disclaimer). Either way, the seller must reveal known latent defects that a buyer could not readily discover. The licensee should ensure the form is delivered as required and never help conceal defects.
Even when a Maryland seller chooses the 'disclaimer' (as-is) option, the seller must still disclose:
- a.The exact purchase price the seller originally paid
- b.Latent defects known to the seller that a buyer could not reasonably discover✓
- c.The seller's reason for moving
- d.The names of neighboring owners
The disclaimer option lets a Maryland seller sell as-is without warranting the property's condition, but it does not excuse concealment: the seller must still disclose latent (hidden) defects actually known to the seller that a buyer could not reasonably discover by inspection. A licensee must not assist in hiding such known defects. Purchase history, motive, and neighbors are not required disclosures.