Section 1 (1-70)

A business entity seeking an insurance license must provide the Commissioner with the name of their

• Attorney

• Accountant

• Point of contact that is a licensed as a title producer

• Business reference

Answer explanation

A business entity seeking an insurance license must provide the Commissioner with the name of their point of contact that is licensed as a title producer.

The homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes on property used as the owner's principal residence to what percentage?

• A. 5%

• B. 10%

• C. 15%

• D. 20%

Answer explanation

The homestead credit limits the assessment increase on a homeowner's principal residence to 20% for property taxes.

First Focus Title offers customers a 10% reduction on their title policy for their business. This unfair trade package is known as

• Twisting

• Rebating

• Misrepresentation

• Coercion

Answer explanation

First Focus Title offering customers a 10% reduction on their title policy for their business is an example of rebating, which is an unfair trade practice.

In Maryland, first-time home buyers are exempt from paying transfer taxes; therefore

• No taxes are collected on the transfer

• The seller pays .25%

• The seller pays 1%

• The seller pays .5%

Answer explanation

In Maryland, first-time home buyers are exempt from paying transfer taxes, so the seller pays .25%.

Which of the following is true regarding real estate transactions in MD by non-resident sellers?

• A. Non-resident individuals pay SDAT 8.0% of the total payment for the transaction

• B. Non-resident corporations pay SDAT 8.25% of the total payment for the transaction

• C. Both of the above

• D. Neither of the above

Answer explanation

The correct choice is D because non-resident sellers in MD do not pay 8.0% or 8.25% of the total payment to SDAT for real estate transactions.

Exceptions to the anti-rebating statute allows for which of the following marketing activities:

• Offering or giving away educational materials

• Offering or giving away promotional materials

• Offering or giving away articles of merchandise that cost no more than $50

• All of the above are exceptions to the anti-rebating statute regardless of whether a policy is purchased

Answer explanation

All of the above are exceptions to the anti-rebating statute regardless of whether a policy is purchased

Who may exercise control over escrow funds maintained in a title agency escrow account?

• Licensed real estate agent

• Licensed loan officer

• Licensed attorney

• Licensed title producer

Answer explanation

Only a licensed title producer may exercise control over escrow funds maintained in a title agency escrow account.

A title insurance producer can be

• A licensed individual who provides closing and settlement services

• Title insurance insurer

• A person who solicits title

• All of the above

Answer explanation

A title insurance producer can be a licensed individual who provides closing and settlement services, a title insurance insurer, and a person who solicits title, making the correct answer 'All of the above'.

Types of illegal rebating and acts prohibited by RESPA include

• A title company offering you something of value for business

• A title company offering something of value for steering business to their company

• A rebate on the title premium

• All of the above

Answer explanation

All of the above options are types of illegal rebating and acts prohibited by RESPA, including a title company offering something of value for business, steering business to their company, and rebating on the title premium.

If a lender fails to disburse funds at time of settlement

• the lender may not charge interest to the borrower for the first 30 days after closing

• the lender may not charge interest to the borrower for the first 60 days after closing

• the lender may not charge interest to the borrower for the first 90 days after closing

• There is no consequence

Answer explanation

If a lender fails to disburse funds at time of settlement, the lender may not charge interest to the borrower for the first 30 days after closing.