Free Maryland Real Estate Commission Laws, Rules, and Regulations (State Portion) Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Maryland Real Estate Commission Laws, Rules, and Regulations (State Portion) practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1The Maryland Real Estate Commission is considering rules for license applications and hearings. Which action is within its statutory authority?

   1. A. Adopt reasonable regulations governing license applications
   2. B. Issue temporary salesperson licenses while applications are pending
   3. C. Waive the statutory affiliation requirement for all new salespersons
   4. D. Delegate final licensing authority to a local real estate board

   Answer: A

   Explanation: Section 17-208(a) states that the Commission may adopt "reasonable regulations to govern applications for licenses." The other actions are not authorized alternatives.

   Reference: Laws - Statute Text — §17-208(a)

2. 2For consideration, an individual regularly helps others locate homes to lease. Which Title 17 category applies?

   1. A. Brokerage services subject to licensing
   2. B. An owner's sale of personal property
   3. C. A lawyer's incidental legal service
   4. D. A trustee's court-directed transfer

   Answer: A

   Explanation: Section 17-101(l)(2) includes, within providing real estate brokerage services, "for consideration, assisting another person to locate or obtain for purchase or lease any residential real estate."

   Reference: Laws - Statute Text — §17-101(l)(2)

3. 3Before a Maryland broker may advertise a listed residential property, what must occur?

   1. A. The seller must orally approve the asking price
   2. B. The listing contract must be written and signed and a copy given to the owner
   3. C. The Commission must approve the listing
   4. D. The listing must first be entered in every local multiple-listing service

   Answer: B

   Explanation: COMAR 09.11.01.10 requires a written, signed contract and an owner copy before the licensee "advertises, shows, or offers the property."

   Reference: Comar 09 11 Full — COMAR 09.11.01.10

4. 4Absent another lawful disposition, when may earnest money leave trust?

   1. A. When the written offer is delivered
   2. B. When the transaction ends or closes
   3. C. When the monthly account is reconciled
   4. D. When either party makes an oral demand

   Answer: B

   Explanation: Section 17-505(a)(1) maintains it until "the real estate transaction for which the trust money was entrusted is consummated or terminated."

   Reference: Laws - Statute Text — §17-505(a)(1)

5. 5When may the Maryland Commission summarily revoke a license because the licensee was convicted of violating Title 17?

   1. A. As soon as a charge is filed
   2. B. After conviction, even while an appeal is pending
   3. C. Only after the conviction is final and the appeal period has expired
   4. D. Only after the license expires naturally

   Answer: C

   Explanation: Section 17-327(a)(1) requires that "the conviction is final" and "the period for appeal has expired" before summary revocation on this ground.

   Reference: Laws - Statute Text — §17-327(a)(1)

6. 6A developer offers each purchaser a separate free lot to influence the sale. Which inducement rule applies?

   1. A. The future-profit guarantee rule
   2. B. The prize-or-free-lot rule
   3. C. The lottery-or-contest rule
   4. D. The free-appraisal advertising rule

   Answer: B

   Explanation: Section 17-322(b)(9)(i) identifies "offering a prize or a free lot" to influence a prospective party as misconduct.

   Reference: Laws - Statute Text — §17-322(b)(9)(i)

7. 7Which license type may the Maryland Commission authorize by regulation?

   1. A. A temporary license pending examination
   2. B. A conditional license pending affiliation
   3. C. Neither a conditional nor temporary license
   4. D. A provisional license pending renewal

   Answer: C

   Explanation: Section 17-208(c) provides: "The Commission may not adopt a regulation that would allow the issuance of a conditional or temporary license."

   Reference: Laws - Statute Text — §17-208(c)

8. 8Which Maryland lawyer fits the Title 17 licensing exception?

   1. A. One regularly brokering property for the public
   2. B. One advertising a separate brokerage service
   3. C. One acting incidentally in regular legal practice
   4. D. One paid only for referring buyers to brokers

   Answer: C

   Explanation: Section 17-301(b)(2) applies when the lawyer is not regularly in brokerage, does not represent being in that business, and acts "in the course of the lawyer's regular practice of law."

   Reference: Laws - Statute Text — §17-301(b)(2)

9. 9Which termination term must a Maryland listing contract contain?

   1. A. A definite termination date that is effective automatically
   2. B. A renewal unless the owner objects after expiration
   3. C. A termination date chosen later by the broker
   4. D. An indefinite term until the property sells

   Answer: A

   Explanation: Section 17-322(b)(10) addresses a listing contract that lacks "a definite termination date that is effective automatically."

   Reference: Laws - Statute Text — §17-322(b)(10)

10. 10Without interpleader, which private direction permits trust-money disposition?

    1. A. An oral direction from the salesperson
    2. B. Joint written directions from both owners
    3. C. An unsigned request from the listing client
    4. D. A written demand from either owner alone

    Answer: B

    Explanation: Section 17-505(a)(2) permits disposition when the broker receives "proper written instructions from the owner and beneficial owner."

    Reference: Laws - Statute Text — §17-505(a)(2)