2025 MD Law Exam Prep (30 questions) (C) Website

Front

The Executive Director of the Real Estate Commission is appointed by: the General Assembly, the Maryland REALTORS, the Governor, the Secretary of Department of Labor

Back

the Secretary of Department of Labor

Answer explanation

The Executive Director of the Real Estate Commission is appointed by the Secretary of the Department of Labor, who oversees various regulatory bodies, including the Real Estate Commission.

Front

The use of an automatic extension in a listing agreement

Back

is grounds for suspension of a license

Answer explanation

The use of an automatic extension in a listing agreement is grounds for suspension of a license, as it can lead to unethical practices and lack of clarity in the agreement.

Front

You, a licensed salesperson, receive a lead from a friend. You want to split your commission with your unlicensed friend.

Back

This is a violation of license law

Answer explanation

Splitting commission with an unlicensed person is illegal under license law. Only licensed individuals can receive commissions for real estate transactions, from their broker. only a BROKER can pay out commission or compensation

Front

The primary purpose of the Brokers Act is to

Back

Protect the public interest

Answer explanation

The primary purpose of the Brokers Act is to protect the public interest by ensuring that real estate transactions are conducted fairly and ethically, thereby safeguarding consumers from potential fraud and malpractice.

Front

Which of the following may an unlicensed person working in a brokerage firm NOT do? Create advertising brochures with appropriate supervision, Conduct an open house to gauge public interest, Submit listings and changes onto the multiple listing service, Schedule appointments for a licensee to show properties

Back

Conduct an open house to gauge public interest

Answer explanation

An unlicensed person cannot conduct an open house to gauge public interest, as this activity requires a licensed individual to represent the brokerage and interact with potential buyers.
Check out the list of what an UNLICENSED individual can and cannot do - https://labor.maryland.gov/license/mrec/mrecdodonts.shtml

Front

If the disclosure/disclaimer form is given to the purchasers after the date of contract ratification but before settlement, the purchaser has the right to cancel the contract within

Back

5 days after receipt of the form

Answer explanation

If the disclosure/disclaimer form is provided after contract ratification but before settlement, the purchaser can cancel the contract within 5 days after receipt of the form, making this the correct choice.
Check out the video review of what you need to know about this document - https://www.youtube.com/watch?v=vVvb8kUr8Lg

Front

All of the following statements are true EXCEPT: The listing agent owes the fiduciary obligation of care to the seller fully represents the interests of his client, Performing ministerial acts creates an agency relationship, When the listing agent and an agent representing a buyer are affiliated with the same broker, the broker is a dual agent, An intracompany agent

Back

Performing ministerial acts creates an agency relationship

Answer explanation

Performing ministerial acts does not create an agency relationship; it involves tasks that do not require fiduciary duties, unlike the other statements which accurately describe agency relationships.

Front

The Real Estate Commission is primarily responsible for

Back

Protecting the public by enforcing the real estate licensing law

Answer explanation

The Real Estate Commission's primary role is to protect the public by enforcing the real estate licensing law, ensuring that real estate professionals adhere to legal standards and practices.

Front

Claims against the Guaranty Fund of Maryland should be filed within three years of discovery.

Back

should be filed within three years of discovery

Answer explanation

Claims against the Guaranty Fund of Maryland should be filed within three years of discovery to ensure eligibility for compensation. This time limit is crucial for aggrieved parties seeking to recover losses.

Front

Without instructions to the contrary, from the owner and beneficial owner, the Brokers Act states that earnest money deposits

Back

Must be deposited in a non interest bearing trust account in a financial institution insured and approved in Maryland

Answer explanation

According to the Brokers Act, earnest money deposits must be deposited in a non-interest bearing trust account in a financial institution insured and approved in Maryland, ensuring proper handling of client funds. However IF the client wants the deposit funds to gain interest, they need to request it.