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Free The Broker/Designated Broker Course Final Exam Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the The Broker/Designated Broker Course Final Exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A Maine broker is organizing a new licensed agency. What physical-business condition must the agency satisfy?

    1. A. Maintain a fixed and definite place of business
    2. B. Maintain a separate office in every county served
    3. C. Own rather than lease its business premises
    4. D. Operate only from the designated broker's residence

    Answer: A

    Explanation: The current agency-licensing rule requires the applicant to "Have a fixed and definite place of business." It does not impose county offices, ownership of premises, or residential operation.

    Reference: Rule Ch 390 — Chapter 390, Section 2(1)

  2. 2A new Maine brokerage agency is choosing who will be responsible for its licensed brokerage operations. Whom must the agency appoint?

    1. A. A Maine-licensed real estate broker as designated broker
    2. B. A Maine-licensed associate broker as branch manager
    3. C. A Maine-licensed sales agent as compliance officer
    4. D. A Maine-licensed appraiser as valuation officer

    Answer: A

    Explanation: Chapter 390 states that every agency must "Appoint a Maine-licensed real estate broker to serve as the designated broker." The associate-broker, sales-agent, and appraiser roles do not satisfy that agency-licensing requirement.

    Reference: Rule Ch 390 — Chapter 390, Section 2(1)

  3. 3Which written-policy component directly tells affiliates what brokerage-relationship models their Maine agency permits?

    1. A. The types of brokerage relationships the agency may and may not engage in
    2. B. Procedures preventing formal and informal sharing of client information
    3. C. Systems for regularly meeting with and advising affiliated licensees
    4. D. Review and initialing procedures for newly affiliated sales agents

    Answer: A

    Explanation: Chapter 400 requires a policy that "identifies and describes the types of real estate brokerage relationships in which the real estate brokerage agency may and may not engage." The other options are real company controls addressing confidentiality, monitoring, and document review.

    Reference: Rule Ch 400 — Chapter 400, Section 2(2)

  4. 4When planning the banking structure for a new Maine brokerage agency, which account is an express licensing requirement?

    1. A. A federally insured trust account in a financial institution authorized in Maine
    2. B. A federally insured payroll account in any United States bank
    3. C. A state-chartered operating account restricted to commissions
    4. D. A municipal escrow account administered by the recording office

    Answer: A

    Explanation: Chapter 390 requires an agency to "Establish and maintain a federally insured trust account in a financial institution authorized to do business in Maine." The alternatives change the account's purpose or institution requirement.

    Reference: Rule Ch 390 — Chapter 390, Section 2(1)

  5. 5A designated broker creates a compliance-monitoring policy. Which recurring activity does Chapter 400 specifically include?

    1. A. Regularly meeting with and advising affiliated licensees
    2. B. Regularly negotiating clients' loan interest rates
    3. C. Regularly appraising every listed property
    4. D. Regularly recording every offer at the registry

    Answer: A

    Explanation: Monitoring systems must include "regularly meeting with and assisting and advising affiliated licensees." Loan negotiation, universal appraisal, and recording offers are not the specified monitoring activity.

    Reference: Rule Ch 400 — Chapter 400, Section 2

  6. 6After a brokerage team defines a transaction problem, what does the course's problem-solving model direct it to identify next?

    1. A. Stakeholders and their interests
    2. B. A final disciplinary sanction
    3. C. A new agency trade name
    4. D. A replacement trust account

    Answer: A

    Explanation: The model proceeds from defining the problem to "Identify the stakeholders and their interests." The other choices are unrelated outcomes rather than the next analytical step.

    Reference: The-Designated-Broker-Course-Outline — pages 4-5, Problem Identification and Resolution

  7. 7Which financing alternative in the official course is divided into Direct and Guaranteed forms?

    1. A. Rural Development
    2. B. FHA
    3. C. VA
    4. D. Conventional

    Answer: A

    Explanation: The financing outline lists "Rural Development" with the subcategories Direct and Guaranteed. FHA and VA appear as separate alternatives, while Conventional is divided into Insured and Uninsured.

    Reference: The-Designated-Broker-Course-Outline — page 5, Financing

  8. 8Which protected status does Maine's official Human Rights Act summary place in housing rather than only in another listed area of jurisdiction?

    1. A. Receipt of public assistance
    2. B. Genetic predisposition
    3. C. Marital status
    4. D. Age

    Answer: A

    Explanation: The Maine Human Rights Commission lists housing protection for "receipt of public assistance." Its same jurisdiction table places genetic predisposition and age in employment and marital status in extension of credit, making those genuine but nonhousing entries in that table.

    Reference: About | Maine Human Rights Commission — About the Maine Human Rights Act—Which protected classes are covered in which areas?

  9. 9A Maine agency lets affiliated licensees publish brokerage-service advertisements. Which subject must the designated broker's policies permit the broker to review and oversee?

    1. A. Advertising of licensed services by the agency or affiliates
    2. B. Every private message an affiliate sends to family
    3. C. Advertising by unrelated property owners selling their own homes
    4. D. A lender's advertisements issued without agency participation

    Answer: A

    Explanation: Chapter 400 includes supervision of "The advertising of any service for which a real estate license is required that is provided by the agency or affiliated licensees." The other communications are not agency-provided licensed services.

    Reference: Rule Ch 400 — Chapter 400, Section 1(1)(E)

  10. 10An affiliated licensee completes a brokerage document in a transaction on Monday. By when must the licensee provide the original or a true copy to the designated broker?

    1. A. Within 3 business days
    2. B. Within 5 calendar days
    3. C. Within 10 calendar days
    4. D. Within 30 days

    Answer: B

    Explanation: Chapter 410 requires delivery to the designated broker "within five (5) calendar days after execution of the document or record." The other periods are real compliance intervals from different contexts but not this document-submission deadline.

    Reference: Rule Ch 410 — Chapter 410, Section 13(2)

Topics in this practice bank

These topics describe the available practice for The Broker/Designated Broker Course Final Exam. Review the examination outline and its sources for scope and allocation details.

  • Introduction
    • Maine Real Estate Commission expectations, course overview, facility information, attendance, snow days, grading, etc.
  • Business Plan
    • Initial Organization of Company
    • Initial Organization of Company / Mission Statement
    • Initial Organization of Company / Written goals and philosophies
    • Initial Organization of Company / Scope of services (residential, commercial, land)
    • Initial Organization of Company / Company makeup:
    • Initial Organization of Company / Company makeup: / Ownership
    • Initial Organization of Company / Company makeup: / Ownership / Sole proprietorship
    • Initial Organization of Company / Company makeup: / Ownership / Partnership
    • Initial Organization of Company / Company makeup: / Ownership / Limited partnership
    • Initial Organization of Company / Company makeup: / Ownership / Limited Liability Company
    • Initial Organization of Company / Company makeup: / Ownership / Corporation (S or C)
    • Initial Organization of Company / Company makeup: / Trade Name
    • Initial Organization of Company / Company makeup: / Franchise or independent
    • Initial Organization of Company / Company makeup: / Franchise or independent / Local affiliation or large national corporation
    • Initial Organization of Company / Company makeup: / Franchise or independent / Trade association membership
    • Initial Organization of Company / Company Policy Manual
    • Initial Organization of Company / Policy on Real Estate Brokerage Relationships
    • Initial Organization of Company / Organizational chart for company, including staffing requirements and qualifications
    • Initial Organization of Company / Organizational chart for company, including staffing requirements and qualifications / Independent contractor agreements
    • Initial Organization of Company / Organizational chart for company, including staffing requirements and qualifications / Employer/employee status
    • Initial Organization of Company / Physical office requirements
    • Initial Organization of Company / Physical office requirements / Location
    • Initial Organization of Company / Physical office requirements / Visibility
    • Initial Organization of Company / Physical office requirements / Floor plan
    • Initial Organization of Company / Physical office requirements / Parking
    • Initial Organization of Company / Physical office requirements / Public accommodations (Americans with Disabilities Act - ADA)
    • Financial Planning
    • Financial Planning / Projected start-up costs
    • Financial Planning / Sales Projections
    • Financial Planning / Income and Cost Projections
    • Financial Planning / Cash Flow
    • Financial Planning / Accounting Software
    • Exercise: Create an organizational chart for your company
    • Exercise: Choose a form of ownership and why
    • Exercise: Layout floor plan sketch to ensure compliance with law and rules (confidentiality & ADA)
    • Exercise: Develop pro forma budget for start-up costs and monthly budget
    • Exercise: Importance of Independent Contractor Agreement; issues not addressed in agreement
  • Licensing the Office
    • Licensing Issues (32 MRSA § 13171, § 13172, § 13173, § 13174)
    • Licensing Issues (32 MRSA § 13171, § 13172, § 13173, § 13174) / Requirements for agency licensing (all practice occurs under the auspices of the agency license)
    • Licensing Issues (32 MRSA § 13171, § 13172, § 13173, § 13174) / Agency changes (32 MRSA §13175)
    • Licensing Issues (32 MRSA § 13171, § 13172, § 13173, § 13174) / Trade names (32 MRSA §13176)
    • Licensing Issues (32 MRSA § 13171, § 13172, § 13173, § 13174) / License contents and display (32 MRSA §13181)
    • Licensing Issues (32 MRSA § 13171, § 13172, § 13173, § 13174) / Agency license renewal (32 MRSA §13182)
    • Licensing Issues (32 MRSA § 13171, § 13172, § 13173, § 13174) / New license, transfer of license and renewal (32 MRSA §13194, §13195 & §13197)
    • Exercise: Research proposed trade name for sample company to determine that it is not misleading
    • Exercise: Download and complete license application for sample company
  • Designated Broker Job Description
    • License Law
    • License Law / Brokerage Agreements (32 M.R.S.A. §13177-A)
    • License Law / Termination of employment (32 M.R.S.A. §13180)
    • License Law / Acts authorized (32 M.R.S.A. §13183)
    • License Law / Acts authorized (32 M.R.S.A. §13183) / Delegation (Chapter 400 Section 2(1))
    • License Law / Real Estate Brokerage Relationship Disclosure (32 M.R.S.A. §13279)
    • Chapter 400
    • Chapter 400 / Supervision of employees/affiliated licensees (32 M.R.S.A. §13179 and Chapter 400 Section 1)
    • Chapter 400 / Records retention (32 M.R.S.A. §13184 & chapter (Chapter 400 Section 4)
    • Chapter 400 / Examination for compliance (Chapter 400 Section 5)
    • Responsibility to supervise licensed and unlicensed staff to comply with Chapter 410
    • Exercise: Outline what brokerage forms the company will use with consumers
    • Exercise: Outline policies and procedures that enable DB to review, manage and oversee activities required in Chapter 400 Section 1 (e.g. checklists)
    • Exercise: Describe a system for interviewing new licensees for your company
    • Exercise: List steps to introduce new licensees to the company
    • Exercise: Describe the DB’s tasks when a licensee leaves the company
    • Exercise: Supervision of licensed and unlicensed assistants to licensees
    • Exercise: Supervision of website advertising
  • Policy Manual
    • Required content of a company policy and procedure manual
    • Required content of a company policy and procedure manual / General company policies and procedures (32 MRSA § 13179, Chapter 400 Sections 1 and 2)
    • Required content of a company policy and procedure manual / Real estate brokerage relationships policy (32 MRSA § 13277, Chapter 400 Section 2 (2))
    • Required content of a company policy and procedure manual / Real estate brokerage relationships policy (32 MRSA § 13277, Chapter 400 Section 2 (2)) / Review types of real estate brokerage relationships policies
    • Required content of a company policy and procedure manual / Real estate brokerage relationships policy (32 MRSA § 13277, Chapter 400 Section 2 (2)) / Advantages and disadvantages of each
    • Required content of a company policy and procedure manual / Policies and procedures: state and federal law
    • Required content of a company policy and procedure manual / Complaint and adjudicatory process (32 MRSA § 13069(6))
    • Optional content
    • Exercise: List mandatory and optional topics to be addressed in your company policy manual
    • Exercise: Outline procedure to respond to a notice of complaint investigation from MREC staff
    • Exercise: Critique an unclear or incomprehensible policy
  • Trust Account
    • Real Estate trust accounts
    • Other trust accounts
    • Release of disputed/undisputed earnest money
    • Exercise: Outline the requirements of establishing and maintaining a legally compliant real estate trust account
    • Exercise: Describe the steps involved in making deposits and withdrawals compliant with law, rule and company policy
    • Exercise: Describe the steps involved if a seller refuses to release an earnest money deposit to a buyer
  • Monitoring Compliance/Training
    • Training of newly licensed licensees (including the Documented Field Experience Form)
    • Training licensees new to the company who have been previously licensed
    • Ongoing supervision and training for licensees and unlicensed staff
    • Optional training (interpersonal skills, sales, negotiation, etc.)
    • Exercise: Outline procedure to confirm your affiliated licensees are properly licensed
    • Exercise: Describe possible contents of a personnel file
    • Exercise: Identify sources of law, rule and practice changes
    • Exercise: Outline subject areas and timing of a training program for newly licensed licensees, experienced licensees and unlicensed staff.
  • Risk Management
    • Explore Risk Reduction and Risk Management
    • Explore Risk Reduction and Risk Management / Policy and Procedure Manual as a risk reduction tool
    • Explore Risk Reduction and Risk Management / Policy and Procedure Manual as a risk reduction tool / Review manual
    • Explore Risk Reduction and Risk Management / Policy and Procedure Manual as a risk reduction tool / Update manual
    • Explore Risk Reduction and Risk Management / Policy and Procedure Manual as a risk reduction tool / Notify employees and affiliates of changes
    • Explore Risk Reduction and Risk Management / Record keeping (maintenance and retrieval)
    • Explore Risk Reduction and Risk Management / Record keeping (maintenance and retrieval) / Checklists for procedures
    • Explore Risk Reduction and Risk Management / Record keeping (maintenance and retrieval) / Document sources of information
    • Explore Risk Reduction and Risk Management / Record keeping (maintenance and retrieval) / Telephone, email, electronic message and fax logs
    • Explore Risk Reduction and Risk Management / Obtain written declinations (i.e. declining service contracts, home inspections, radon tests)
    • Explore Risk Reduction and Risk Management / Insurance policies (coverage limitations)
    • Explore Risk Reduction and Risk Management / Insurance policies (coverage limitations) / Errors and Omissions
    • Explore Risk Reduction and Risk Management / Insurance policies (coverage limitations) / Property
    • Explore Risk Reduction and Risk Management / Insurance policies (coverage limitations) / Liability
    • Explore Risk Reduction and Risk Management / Resolving issues between real estate companies in the best interest of the clients
    • Explore Risk Reduction and Risk Management / Resolving issues between real estate companies in the best interest of the clients / Procuring cause
    • Explore Risk Reduction and Risk Management / Resolving issues between real estate companies in the best interest of the clients / Differences in company policies
    • Explore Risk Reduction and Risk Management / Resolving issues between real estate companies in the best interest of the clients / Offers of cooperation and compensation
    • Explore Risk Reduction and Risk Management / Personal safety
    • Exercise: Outline the major risks to a company and your ongoing procedures to limit the risks arising from transactions
    • Exercise: How will you limit procuring cause disputes with other companies?
    • Exercise: Identify what is covered by errors and omissions insurance; how is cost of claim resolved if issue not covered?
    • Exercise: Outline a personal safety policy
    • Exercise: How do you establish a record that client refused advice?
  • Problem Identification and Resolution
    • Optional Model for Effective Problem-Solving
    • Optional Model for Effective Problem-Solving / Define the problem and issues
    • Optional Model for Effective Problem-Solving / Define the problem and issues / Be clear about what the problem is
    • Optional Model for Effective Problem-Solving / Define the problem and issues / Is it legal, ethical, professional or moral?
    • Optional Model for Effective Problem-Solving / Define the problem and issues / Different stakeholders may have different views of what the issues are
    • Optional Model for Effective Problem-Solving / Define the problem and issues / Listen to each person with the intent to understand and not evaluate
    • Optional Model for Effective Problem-Solving / Identify the stakeholders and their interests
    • Optional Model for Effective Problem-Solving / Identify the stakeholders and their interests / Who is affected by the outcome of this problem?
    • Optional Model for Effective Problem-Solving / Identify the stakeholders and their interests / Interests are the needs that are satisfied by any given solution
    • Optional Model for Effective Problem-Solving / Identify the stakeholders and their interests / How are the stakeholders affected by the problem?
    • Optional Model for Effective Problem-Solving / Identify the stakeholders and their interests / This is the time for active listening to understand the complete problem
    • Optional Model for Effective Problem-Solving / List the possible options
    • Optional Model for Effective Problem-Solving / List the possible options / Brainstorm or Green Light the options creatively
    • Optional Model for Effective Problem-Solving / List the possible options / Do not become attached to any one option
    • Optional Model for Effective Problem-Solving / List the possible options / At this stage do not evaluate the options
    • Optional Model for Effective Problem-Solving / Evaluate the options
    • Optional Model for Effective Problem-Solving / Evaluate the options / What are the pluses and minuses of each option?
    • Optional Model for Effective Problem-Solving / Evaluate the options / How are the stakeholders affected by each option?
    • Optional Model for Effective Problem-Solving / Evaluate the options / Separate the evaluation of options from the selection of options
    • Optional Model for Effective Problem-Solving / Eliminate any options that are not feasible
    • Optional Model for Effective Problem-Solving / Eliminate any options that are not feasible / What's the best option, in the balance?
    • Optional Model for Effective Problem-Solving / Eliminate any options that are not feasible / The best solution is the one that satisfies everyone’s interests
    • Optional Model for Effective Problem-Solving / Eliminate any options that are not feasible / Is there a way to combine a number of options together for a more satisfactory solution?
    • Optional Model for Effective Problem-Solving / Make a commitment to the choice, put it in writing
    • Optional Model for Effective Problem-Solving / Make a commitment to the choice, put it in writing / Agree on the solution and put it in writing
    • Optional Model for Effective Problem-Solving / Make a commitment to the choice, put it in writing / The written solution will help the parties to review the details as agreed upon, and the implications of the decision
    • Optional Model for Effective Problem-Solving / Implement, monitor and evaluate the decision
    • Optional Model for Effective Problem-Solving / Implement, monitor and evaluate the decision / Identify who will you monitor compliance and follow-through
    • Optional Model for Effective Problem-Solving / Implement, monitor and evaluate the decision / Identify any problems that were experienced with the decision
    • Optional Model for Effective Problem-Solving / Implement, monitor and evaluate the decision / Incorporate the decision into the Policy Manual if appropriate
    • Optional Model for Effective Problem-Solving / Implement, monitor and evaluate the decision / Use this experience as a case study for the office if appropriate
    • Exercise: Apply problem-solving model to seller and buyer issues
    • Exercise: Use model to address an ethical dilemma
  • Financing
    • Awareness of finance alternatives based on buyer and property
    • Awareness of finance alternatives based on buyer and property / FHA
    • Awareness of finance alternatives based on buyer and property / VA
    • Awareness of finance alternatives based on buyer and property / MSH
    • Awareness of finance alternatives based on buyer and property / Rural Development
    • Awareness of finance alternatives based on buyer and property / Rural Development / Direct
    • Awareness of finance alternatives based on buyer and property / Rural Development / Guaranteed
    • Awareness of finance alternatives based on buyer and property / Conventional
    • Awareness of finance alternatives based on buyer and property / Conventional / Insured
    • Awareness of finance alternatives based on buyer and property / Conventional / Uninsured
    • Awareness of finance alternatives based on buyer and property / Portfolio/Local banks
    • Awareness of finance alternatives based on buyer and property / Cash
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions)
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of seller agent
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of seller agent / Does agent understand how type of financing may affect seller and convey this to seller?
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of seller agent / Is financing a viable option for property?
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of seller agent / Does seller understand that buyer could be denied financing any time prior to closing (job loss, change in credit score, low appraisal)
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of buyer agent
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of buyer agent / Prequalification/Pre-approval prior to writing offer
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of buyer agent / Does agent understand financing requirements and showing properties suitable for financing?
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of buyer agent / Does buyer understand how their actions may affect credit score and financing?
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of buyer agent / Buyer agent duty to seller §13274(2)(A)
    • Impact of financing (i.e. loan to value, appraisal, property condition, seller concessions) / Role of transaction broker
    • Compliance with financing cause (i.e. dates, loan type)
    • Compliance with financing cause (i.e. dates, loan type) / Role of seller agent
    • Compliance with financing cause (i.e. dates, loan type) / Role of buyer agent
    • Compliance with financing cause (i.e. dates, loan type) / Role of buyer agent / Communicate regularly with loan officer
    • Compliance with financing cause (i.e. dates, loan type) / Role of buyer agent / Update loan officer with price changes and other conditions
    • Compliance with financing cause (i.e. dates, loan type) / Role of transaction broker
    • Compliance with financing cause (i.e. dates, loan type) / Role of transaction broker / Supervise dates
    • Compliance with financing cause (i.e. dates, loan type) / Role of transaction broker / Communicate progress
    • Mortgage fraud
    • Mortgage fraud / Using two contracts
    • Mortgage fraud / Misrepresentation of assets
    • Mortgage fraud / Money outside of closing
    • Mortgage fraud / Real Estate Settlement Procedures Act (RESPA)
    • Mortgage fraud / Truth in Lending/Advertising (Regulation Z)
    • Exercise: Identify the issues of an offer written as cash when buyer intends to get home equity loan
    • Exercise: Loan officer qualifies buyer for loan that is not best alternative for buyer; what are licensees’ responsibilities to customer/client
    • Exercise: Outline potential issues of money paid outside of closing
  • Other Laws
    • Municipal/State/Federal Laws
    • Municipal/State/Federal Laws / Anti-trust
    • Municipal/State/Federal Laws / Anti-trust / Commission policy
    • Municipal/State/Federal Laws / Anti-trust / Boycotting
    • Municipal/State/Federal Laws / Anti-trust / Tying
    • Municipal/State/Federal Laws / Anti-trust / Allocation
    • Municipal/State/Federal Laws / Civil Rights & Fair Housing
    • Municipal/State/Federal Laws / Civil Rights & Fair Housing / Protected Classes - State of Maine
    • Municipal/State/Federal Laws / Civil Rights & Fair Housing / Protected Classes – Federal
    • Municipal/State/Federal Laws / Civil Rights & Fair Housing / Prohibited Acts
    • Municipal/State/Federal Laws / Americans with Disabilities Act (ADA)
    • Municipal/State/Federal Laws / Land Use
    • Municipal/State/Federal Laws / Land Use / Zoning (shoreland, historical district, etc.)
    • Municipal/State/Federal Laws / Land Use / Subdivision
    • Municipal/State/Federal Laws / Land Use / Buildable lot
    • Municipal/State/Federal Laws / Land Use / Easements (conservation, driveway, etc.)
    • Municipal/State/Federal Laws / Land Use / ROWs
    • Municipal/State/Federal Laws / Land Use / Deed Restrictions
    • Municipal/State/Federal Laws / Land Use / Restrictive Covenants
    • Municipal/State/Federal Laws / Land Use / Curb cuts
    • Municipal/State/Federal Laws / Land Use / Other
    • Municipal/State/Federal Laws / Environmental
    • Municipal/State/Federal Laws / Environmental / National Resource Protection Act
    • Municipal/State/Federal Laws / Environmental / Vernal Pools
    • Municipal/State/Federal Laws / Environmental / Significant Wildlife Habitat
    • Municipal/State/Federal Laws / Environmental / Other
    • Municipal/State/Federal Laws / Code Conformance
    • Municipal/State/Federal Laws / Code Conformance / Minimum lot size
    • Municipal/State/Federal Laws / Code Conformance / Setbacks
    • Municipal/State/Federal Laws / Code Conformance / Building and driveway permits
    • Municipal/State/Federal Laws / Code Conformance / Other
    • Municipal/State/Federal Laws / Taxation/exemptions
    • Municipal/State/Federal Laws / Taxation/exemptions / Capital Gains
    • Municipal/State/Federal Laws / Taxation/exemptions / Capital Gains / Principal residence
    • Municipal/State/Federal Laws / Taxation/exemptions / Capital Gains / Non-principal residence
    • Municipal/State/Federal Laws / Taxation/exemptions / Foreign Investment in Real Estate Property Tax (FIRPTA)
    • Municipal/State/Federal Laws / Taxation/exemptions / 1031 Tax Deferred Exchanges
    • Municipal/State/Federal Laws / Truth in Lending/Advertising (Regulation Z)
    • Municipal/State/Federal Laws / Truth in Lending/Advertising (Regulation Z) / Advertising
    • Municipal/State/Federal Laws / Truth in Lending/Advertising (Regulation Z) / Credit Terms
    • Exercise: Seller wants to sell a lot cut from a larger lot, what issues/steps are involved
    • Exercise: Shoreland property converted to year-round use, what issues/steps are involved
  • Ethics
    • Evaluate Ethical Practices
    • Evaluate Ethical Practices / Ethical, Legal and Company Policy
    • Evaluate Ethical Practices / Ethical dilemmas
    • Evaluate Ethical Practices / Models for ethical decision making
    • Evaluate Ethical Practices / Code of Ethics
    • Evaluate Ethical Practices / Code of Ethics / Personal
    • Evaluate Ethical Practices / Code of Ethics / Office
    • Evaluate Ethical Practices / Code of Ethics / Professional industry code
    • Exercise: Identify ethical dilemmas for clients and customers
  • Initial Contact to Under Contract
    • The Real Estate Brokerage Relationships Form 32 MRSA §13279 & Chapter 410 Section 9
    • Real Estate Brokerage Forms
    • Real Estate Brokerage Forms / Listing Agreement
    • Real Estate Brokerage Forms / Buyer Agent Agreement
    • Real Estate Brokerage Forms / Appointed Agent Agreement
    • Real Estate Brokerage Forms / Appointed Agent Agreement / Additional appointments
    • Real Estate Brokerage Forms / Appointed Agent Agreement / Termination
    • Real Estate Brokerage Forms / Appointed Agent Agreement / DB must be appointed to provide client-level services
    • Real Estate Brokerage Forms / Disclosed Dual Agency Agreement
    • Real Estate Brokerage Forms / Disclosed Dual Agency Agreement / Disclosed Dual Agent is not a Transaction Broker
    • Real Estate Brokerage Forms / Disclosed Dual Agency Agreement / What Disclosed Dual Agent can and cannot do (32 MRSA § 13275)
    • Real Estate Brokerage Forms / Addenda and amendments
    • Real Estate Brokerage Forms / Addenda and amendments / Definition
    • Real Estate Brokerage Forms / Addenda and amendments / Poorly drafted/incomplete
    • Real Estate Brokerage Forms / Unfamiliar forms
    • Real Estate Brokerage Forms / Unfamiliar forms / Review document (do not assume knowledge of document)
    • Real Estate Brokerage Forms / Agreement with company, not licensee
    • Real Estate Brokerage Forms / No verbal terms
    • Real Estate Brokerage Forms / Obtain signatures of all parties
    • Real Estate Brokerage Forms / Copies provided at time of signature (Chapter 410 Section 5)
    • Market Value §14004 & Chapter 410 Section 3
    • Market Value §14004 & Chapter 410 Section 3 / Opinions of Value without compensation
    • Market Value §14004 & Chapter 410 Section 3 / Broker’s Price Opinion (Chapter 410 Section 3, 32 MRSA §§13251-A & 14004)
    • Market Value §14004 & Chapter 410 Section 3 / Broker’s Price Opinion (Chapter 410 Section 3, 32 MRSA §§13251-A & 14004) / Real Estate Brokerage Relationship Form required
    • Market Value §14004 & Chapter 410 Section 3 / Broker’s Price Opinion (Chapter 410 Section 3, 32 MRSA §§13251-A & 14004) / Must have brokerage agreement
    • Market Value §14004 & Chapter 410 Section 3 / Broker’s Price Opinion (Chapter 410 Section 3, 32 MRSA §§13251-A & 14004) / Payment made to company, not the licensee
    • Property Disclosures (not a “Seller Disclosure”)
    • Property Disclosures (not a “Seller Disclosure”) / Mandatory and optional disclosures
    • Property Disclosures (not a “Seller Disclosure”) / Responsibility of listing and selling licensees
    • Property Disclosures (not a “Seller Disclosure”) / Responsibility of listing and selling licensees / Required for all residential properties or commercial with “residential component”
    • Property Disclosures (not a “Seller Disclosure”) / Responsibility of listing and selling licensees / Who fills out the form
    • Property Disclosures (not a “Seller Disclosure”) / Responsibility of listing and selling licensees / Sources of information (seller only once source)
    • Property Disclosures (not a “Seller Disclosure”) / Responsibility of listing and selling licensees / Blanks on form
    • Property Disclosures (not a “Seller Disclosure”) / Responsibility of listing and selling licensees / Inaccurate information
    • Property Disclosures (not a “Seller Disclosure”) / Responsibility of listing and selling licensees / Written updates
    • Property Disclosures (not a “Seller Disclosure”) / Unfamiliar forms
    • Property Disclosures (not a “Seller Disclosure”) / Unfamiliar forms / Review document (do not assume knowledge of document)
    • Advertising Chapter 400 Section 1 (E, H), Chapter 410 Section 1 and Section 13 (3)
    • Advertising Chapter 400 Section 1 (E, H), Chapter 410 Section 1 and Section 13 (3) / DB must review, manage, oversee and consent to all advertising
    • Advertising Chapter 400 Section 1 (E, H), Chapter 410 Section 1 and Section 13 (3) / DB must review, manage, oversee and consent to all advertising / Advertising another company’s listings
    • Advertising Chapter 400 Section 1 (E, H), Chapter 410 Section 1 and Section 13 (3) / DB must review, manage, oversee and consent to all advertising / Print vs. electronic advertising
    • Advertising Chapter 400 Section 1 (E, H), Chapter 410 Section 1 and Section 13 (3) / DB must review, manage, oversee and consent to all advertising / Internet sites and domain names affiliated licensees are using
    • Inducements Chapter 410 Section 11
    • Inducements Chapter 410 Section 11 / Legal vs. Illegal
    • Purchase and Sale Agreements
    • Purchase and Sale Agreements / Confidentiality (Chapter 410 Section 12)
    • Purchase and Sale Agreements / Contract clauses, addenda and amendments
    • Purchase and Sale Agreements / When an offer becomes a contract
    • Purchase and Sale Agreements / Imputed knowledge
    • Purchase and Sale Agreements / MREC Real Estate Transactions Offers/Counter Offers – Agent-Client Guidelines
    • Purchase and Sale Agreements / Resolution of issues surrounding clauses (including timelines)
    • Purchase and Sale Agreements / Copy provided at time of signature (Chapter 410 Section 5)
    • Purchase and Sale Agreements / Unfamiliar forms
    • Purchase and Sale Agreements / No verbal amendments
    • Exercise: Verbal terms were not made part of written listing agreement, i.e. “will tear up the agreement if you are “unhappy”. A change to any term of buyer/seller listing agreement must be in writing and signed by buyer/seller.
    • Exercise: Suspension vs. termination – do client and agent understand the status of the agreement?
    • Exercise: Appointed agent is no longer acting as the appointed agent for a client but the affiliated licensee remains with the company. Should a written termination of appointed agent role should be prepared and signed by client?
    • Exercise: The designated broker is the appointed agent and another affiliated licensee is not designated to fulfill the duties imposed by Chapter 410 Section 8 (1) (B). Identify potential issues.
    • Exercise: Can a Disclosed Dual Agent do a Comparable Market Analysis (CMA) for buyer? If so, is a copy provided to Seller?
    • Exercise: Appointed Agency office – confidentiality issues during office meetings and caravans
    • Exercise: Complete a sample addendum and amendment to a contract (financing, extension of contract, etc.)
    • Exercise: Selling licensee receives property disclosure on bank owned property – all items marked “unknown”
    • Exercise: Designated Broker must have a policy to review, manage and oversee the advertising/promotion or real estate. Write a sample policy.
  • Under Contract to Closing
    • Under contract to closing
    • Under contract to closing / Under contract checklist
    • Under contract to closing / File review (continuous)
    • Under contract to closing / File review (continuous) / Who is reviewing file and how often (DB can designate but still responsible)
    • Under contract to closing / File review (continuous) / Licensees’ duty to keep DB informed (Chapter 410 Section 13 (1))
    • Under contract to closing / File review (continuous) / File location
    • Under contract to closing / File review (continuous) / Contents of file
    • Under contract to closing / File review (continuous) / Submission of documents within 5 days
    • Under contract to closing / Potential Issues
    • Under contract to closing / Potential Issues / Do buyer and seller understand issues may affect closing date?
    • Under contract to closing / Potential Issues / Title
    • Under contract to closing / Potential Issues / Title / Fraud
    • Under contract to closing / Potential Issues / Title / Liens
    • Under contract to closing / Potential Issues / Title / Exclusions
    • Under contract to closing / Potential Issues / Title / Missing heirs
    • Under contract to closing / Potential Issues / Title / Other
    • Under contract to closing / Potential Issues / Inspections
    • Under contract to closing / Potential Issues / Inspections / Issues discovered in inspection noted on disclosure
    • Under contract to closing / Potential Issues / Inspections / Seller will not allow test (radon testing in warm weather)
    • Under contract to closing / Potential Issues / Inspections / Other
    • Under contract to closing / Potential Issues / Appraisal
    • Under contract to closing / Potential Issues / Appraisal / Low appraisal
    • Under contract to closing / Potential Issues / Appraisal / Unique property – lack of comps
    • Under contract to closing / Potential Issues / Appraisal / Mandated repairs
    • Under contract to closing / Potential Issues / Appraisal / Other
    • Under contract to closing / Potential Issues / Financing
    • Under contract to closing / Potential Issues / Financing / Change in loan type
    • Under contract to closing / Potential Issues / Financing / Seller concessions
    • Under contract to closing / Potential Issues / Financing / Other
    • Under contract to closing / Potential Issues / Mortgage Loan Inspection (MLI)
    • Under contract to closing / Potential Issues / Mortgage Loan Inspection (MLI) / MLI is not a survey
    • Under contract to closing / Potential Issues / Mortgage Loan Inspection (MLI) / Boundary/encroachment issues
    • Under contract to closing / Potential Issues / Mortgage Loan Inspection (MLI) / Other
    • Under contract to closing / Potential Issues / Title Insurance
    • Under contract to closing / Potential Issues / Title Insurance / Marketable
    • Under contract to closing / Potential Issues / Title Insurance / Insurable
    • Under contract to closing / Potential Issues / Title Insurance / Exceptions
    • Under contract to closing / Potential Issues / Title Insurance / Other
    • Under contract to closing / Potential Issues / Homeowner Insurance
    • Under contract to closing / Potential Issues / Homeowner Insurance / Electrical issues (knob and tube, fuses)
    • Under contract to closing / Potential Issues / Homeowner Insurance / Wood stoves (rentals, multiple fuel sources in flue)
    • Under contract to closing / Potential Issues / Homeowner Insurance / Previous claims discovered in CLUE search
    • Under contract to closing / Potential Issues / Homeowner Insurance / Withdrawal of insurance
    • Under contract to closing / Potential Issues / Homeowner Insurance / Other
    • Under contract to closing / Potential Issues / Walk-through issues
    • Under contract to closing / Potential Issues / Walk-through issues / House not broom clean
    • Under contract to closing / Potential Issues / Walk-through issues / Items not left in property or work completed as agreed
    • Under contract to closing / Potential Issues / Walk-through issues / New issues identified (leak, furnace does not work)
    • Under contract to closing / Potential Issues / Settlement Statements – costs involved (buyer/seller proceeds)
    • Under contract to closing / Potential Issues / Review thoroughly for errors
    • Under contract to closing / Potential Issues / Compare Loan Estimate with Closing Disclosure
    • Under contract to closing / Potential Issues / Review of deed to be conveyed
    • Occupancy
    • Post-closing
    • Post-closing / Closed checklist
    • Post-closing / Escrow agreements
    • Post-closing / Escrow agreements / What can be escrowed
    • Post-closing / Escrow agreements / Who prepares agreement
    • Post-closing / Escrow agreements / Who holds/disperses money
    • Post-closing / Escrow agreements / What is required before money dispersed
    • Pros and cons of licensees acting as power of attorney at closings
    • FIRPTA (Foreign Investment in Real Estate Property Tax Act)
    • State of Maine non-resident withholding
    • Coastal/Shoreland Zoning 30-A MRSA §4216
    • Coastal/Shoreland Zoning 30-A MRSA §4216 / Disclosure
    • Coastal/Shoreland Zoning 30-A MRSA §4216 / Inspection
    • Exercise: Buyer wants a price reduction after inspections. Seller does not respond, now what?
    • Exercise: Title problem arises – contract allows 30 days to fix
    • Exercise: Walk-through issue noticed a short time prior to closing
    • Exercise: Deed to be conveyed is incorrect
    • Exercise: Outline potential issues of buyer taking occupancy prior to closing
    • Exercise: Outline potential issues with escrow agreements (government financing)

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These are independent study questions, not actual examination items. For examination requirements and official information, view The Broker/Designated Broker Course Final Exam details.