Maryland Real Estate Salesperson Exam — All Questions
13 questions
Which body issues and regulates real estate salesperson licenses in Maryland?
- a.The Maryland Real Estate Commission✓
- b.The Maryland Association of Realtors
- c.The Maryland Department of Assessments and Taxation
- d.The county circuit court
The Maryland Real Estate Commission, which operates within the Maryland Department of Labor, licenses and disciplines real estate brokers, associate brokers, and salespersons under the Maryland Real Estate Brokers Act (Business Occupations and Professions Article, Title 17). Trade associations and taxing agencies do not license real estate practitioners.
A Maryland salesperson may lawfully receive compensation for brokerage services from:
- a.The title company handling settlement
- b.The Maryland Real Estate Commission
- c.The broker with whom the salesperson is affiliated✓
- d.Any party to the transaction directly
A Maryland salesperson must be affiliated with a licensed broker and may accept commissions or fees only through that broker, not directly from a buyer or seller. The broker is responsible for supervising the salesperson and for the handling of client funds. Accepting payment directly from a party is a violation of the Brokers Act.
The Maryland Real Estate Guaranty Fund is designed to:
- a.Pay commissions owed between brokers
- b.Guarantee mortgage loans made to buyers
- c.Cover the Commission's administrative expenses
- d.Reimburse consumers for an actual monetary loss caused by certain wrongful acts of a licensee✓
The Guaranty Fund compensates members of the public who obtain a final judgment against a licensee for an actual loss arising from fraud, misrepresentation, or a violation of the Brokers Act and cannot otherwise collect. Payments are subject to statutory limits, and the licensee must repay the fund before the license is restored. It is not a mortgage guaranty or commission-collection fund.
What is the ceiling on recovery from the Maryland Real Estate Guaranty Fund?
- a.$25,000 for each claim
- b.$100,000 for each claim
- c.$50,000 for all claims against one licensee
- d.$50,000 for each claim✓
The cap is per claim, and a broker must put a written notice of that same protection into each sales contract the broker provides to a buyer. Cite: Md. Bus. Occ. & Prof. 17-404(b), 17-405.
Within what period must a claim be submitted to the Maryland Real Estate Guaranty Fund?
- a.One year after the date of settlement
- b.Three years after the date the contract of sale was signed
- c.Three years after the loss is or should be discovered✓
- d.Five years after the act or omission occurred
The clock runs from discovery, actual or by the exercise of ordinary diligence, not from the transaction date. The claim must be in writing, made under oath, state the amount and the facts, and carry supporting documentation. Cite: Md. Bus. Occ. & Prof. 17-404(d), 17-406.
Which amount may a Maryland Guaranty Fund award include?
- a.The claimant's actual loss from the originating transaction✓
- b.Attorney's fees the claimant incurs in perfecting the claim
- c.A commission owed to a licensee acting as agent or principal
- d.Losses from a later transaction with the same licensee
Compensation is restricted to actual monetary loss from the originating transaction and may not include monetary losses from any other transaction, commissions owed to a Commission licensee, or the claimant's attorney's fees. Cite: COMAR 09.11.01.15.
What happens to a licensee's Maryland license when the Commission orders the Guaranty Fund to pay a claim arising from that licensee's conduct?
- a.Nothing happens until a separate disciplinary hearing is held
- b.It is revoked and may not be reissued
- c.It is placed on inactive status for one year
- d.It is suspended immediately, without further proceedings✓
Suspension follows the payment order by operation of law. Reinstatement is barred until the licensee repays the Fund in full with interest and applies to the Commission. Cite: Md. Bus. Occ. & Prof. 17-412; COMAR 09.11.01.20.
A Maryland licensee suspended after a Guaranty Fund payout must repay the amount paid plus interest at what rate before the Commission will consider reinstatement?
- a.6 percent
- b.12 percent✓
- c.10 percent
- d.18 percent
The statute sets a floor of at least 10 percent annually as set by the Commission; the Commission's regulation fixes the figure at 12 percent from the time payment is made. Cite: COMAR 09.11.01.20; Md. Bus. Occ. & Prof. 17-411(a)(2).
Who is barred from making a claim against the Maryland Real Estate Guaranty Fund?
- a.A buyer who was not represented by any agent
- b.A claimant who lives outside Maryland
- c.The spouse of the licensee alleged to be responsible✓
- d.A seller who has already sued the licensee
The bar covers the spouse of the licensee or unlicensed employee alleged to be responsible and that spouse's personal representative. Losses tied to real estate limited partnerships, promoted joint ventures, and commercial paper secured by real estate are excluded as well. Cite: Md. Bus. Occ. & Prof. 17-404(c).
Instead of or in addition to a reprimand, suspension, or revocation, what penalty may the Maryland Real Estate Commission impose?
- a.Up to $1,000 for each violation
- b.Up to $10,000 for each violation
- c.Up to $25,000 for all violations by one licensee
- d.Up to $5,000 for each violation✓
In setting the amount the Commission weighs the seriousness of the violation, the harm caused, the licensee's good faith, and any history of previous violations, and pays the money collected into the General Fund of the State. Cite: Md. Bus. Occ. & Prof. 17-322(c).
A Maryland listing contract promises the seller a fixed net return and leaves the licensee free to keep anything above that price. What is the licensee's position?
- a.It is grounds for discipline by the Commission✓
- b.It is permitted if the seller consents in writing
- c.It is permitted only in commercial transactions
- d.It is permitted if the excess is disclosed at settlement
Accepting a net listing is listed among the grounds on which the Commission may deny, reprimand, suspend or revoke, alongside accepting a listing with no definite termination date that is effective automatically without notice. Cite: Md. Bus. Occ. & Prof. 17-322(b)(10), (11).
Maryland's advertising statute requires that an advertisement carry the licensee's name or designated name plus what?
- a.The logo of the business with which the licensee is affiliated
- b.The full name of the affiliated business✓
- c.The licensee's Commission license number
- d.The telephone number of the Real Estate Commission
Both the licensee's name as it appears on the license certificate and the business name must be meaningfully and conspicuously included, and the business name must be the full name rather than a logo. Advertisement is defined broadly enough to reach business cards, sign riders, automobile signage and internet voice-overs. Cite: Md. Bus. Occ. & Prof. 17-527.2.
The Commission may summarily dismiss a complaint against a Maryland licensee brought more than how long after the conduct complained of?
- a.One year
- b.Two years
- c.Three years✓
- d.Five years
The period runs from the date of the written listing contract, contract of sale, lease agreement, option, or the actions the complaint is based on, and the Commission may still hear a late complaint if it finds the delay justified and not an undue burden on the licensee. Cite: COMAR 09.11.01.19.