Maryland-Real-Estate-Salesperson Practice Guide | Exam Maryland-Real-Estate-Salesperson Introduction

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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q203-Q208):

NEW QUESTION # 203
Manny has a client who wants to purchase a commercial building. Manny doesn't have any experience negotiating commercial purchases. Which action should Manny take to demonstrate his good faith and most ethical behavior toward his client?

Answer: C

Explanation:
Under Maryland's Code of Ethics and Professional Conduct, licensees must act with honesty, integrity, and reasonable skill and care.
If a licensee lacks experience in a specialized area, they must disclose that fact to the client and either refer the client or seek assistance from a qualified professional-with the client's informed consent.
By being transparent and collaborating with an experienced commercial broker, Manny fulfills his ethical obligation of competence and disclosure while protecting his client's interests.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Ethics and Professional Conduct section.
- COMAR 09.11.02.01 - Code of Ethics for Real Estate Licensees.
- Business Occupations and Professions Article 17-322.


NEW QUESTION # 204
_____ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age and transaction price.

Answer: B

Explanation:
In the valuation module, the course explains bracketing as an appraisal technique where the appraiser selects comparables that are both superior and inferior to the subject on key characteristics (e.g., gross living area, condition, lot size, age, quality, transaction price) to "bracket" the likely value range. Proper bracketing strengthens the sales comparison approach and supports a credible reconciliation by demonstrating the subject's position within a range indicated by the market.
References: Maryland 60-Hour Principles and Practices of Real Estate - Appraisal and Valuation: sales comparison approach, selection of comparables, units of comparison, and bracketing methodology.


NEW QUESTION # 205
Which document is provided to borrowers at least three days prior to closing and provides disclosures about the costs of the transaction?

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
The Closing Disclosure (CD) is a federally required document under the TILA-RESPA Integrated Disclosure Rule (TRID).
It must be provided to the borrower at least three business days prior to closing and itemizes loan terms, fees, and total closing costs.
The Loan Estimate (LE) is given earlier in the process-within three business days of loan application-while the Closing Disclosure confirms final figures.
Maryland licensees must understand both forms as part of the Closing and Settlement Procedures portion of their coursework.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Closing Procedures and Federal Disclosure Requirements section.
- TILA-RESPA Integrated Disclosure Rule (TRID), 12 C.F.R. §1026.19(f).


NEW QUESTION # 206
Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he'll be subject to. What should you tell him?

Answer: A

Explanation:
Under Section 1031 of the Internal Revenue Code, an investor may defer recognition of capital gains taxes by exchanging one investment or business property for another of like kind.
This is known as a 1031 tax-deferred exchange.
The Maryland pre-licensing course covers this as a financing and investment concept, explaining that it defers, not eliminates, the tax obligation and that investors must comply with strict timelines and rules set by the IRS.
Licensees should avoid offering tax advice but can inform clients of the potential to explore this option with a qualified tax professional or attorney.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Investment and Taxation Concepts section.
- Internal Revenue Code 1031 (Like-Kind Exchanges).


NEW QUESTION # 207
Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand?

Answer: D

Explanation:
In Maryland pre-licensing, licensees are taught to help buyers-especially first-time purchasers or those with recent credit challenges-understand appropriate, suitable financing options (fixed vs. adjustable rates, government-backed loans, down payment assistance, points, APR, mortgage insurance, qualifying ratios), and to avoid steering to high-risk or predatory products. This aligns with consumer-protection principles, agency duties, and federal disclosure frameworks (TILA/RESPA) covered in the financing module.
References: Maryland 60-Hour Course - Real Estate Financing (loan types, suitability, disclosures); Fair Housing and Ethics (avoiding harmful steering); Closing the Transaction (financing contingencies and approvals).


NEW QUESTION # 208
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