Key details for this exam, checked against the published exam outline
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James creates a trust to hold a piece of real estate he owns. He directs a corporate fiduciary to hold title to the real estate and provides instructions for the management, control, and disposition of the real estate upon his death. Given that the trust only holds real estate, James likely set up a(n) ________ trust.
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
A land trust is a type of living trust in which real property is the only asset placed into the trust.
Under a land trust, the trustee (fiduciary) holds legal title to the property, while the beneficiary retains the rights to control, manage, and receive income or proceeds from the property.
The Maryland pre-licensing course explains that land trusts are commonly used for privacy, estate planning, and avoiding probate, since the property is owned and transferred through the trust rather than by individual deed.
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Forms of Real Estate Ownership'' Module
Maryland Trust Act (Estates and Trusts Article, Title 14.5 -- Trusts).
Which photograph of a home for sale should not be published for public viewing?
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
The course stresses that licensees must protect a seller's privacy and personal security when marketing property. Photos that display personal possessions such as firearms, medications, financial documents, or valuables should never be published. Revealing these items can create a safety and liability risk for the seller and may violate professional ethical standards regarding confidentiality.
Therefore, the image showing the owner's collection of antique guns should not be made public.
Reference (Maryland Source):
-- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Listing and Marketing Property section.
-- Maryland Code of Ethics for Real Estate Licensees, COMAR 09.11.02.01 et seq.
Which of the following is a method a real estate licensee uses to determine an appropriate listing price range?
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Only licensed or certified appraisers may perform an appraisal for a fee in a federally related transaction.
A real estate licensee, however, may prepare a Comparative Market Analysis (CMA) or Broker Price Opinion (BPO) to help a seller decide on a listing price or a buyer to make an offer.
A CMA compares recent sales, active listings, and expired listings of similar properties to estimate a realistic price range.
This procedure is emphasized in the ''Appraisal and Valuation'' module as a permitted pricing tool for real estate professionals.
Reference (Maryland Source):
-- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Valuation and CMA section.
-- Business Occupations and Professions Article 17-511 (b).
What regulation or regulatory authority identifies sites that have hazardous substances, and requires the responsible parties to clean them up?
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), enacted in 1980 and commonly known as ''Superfund,'' authorizes the Environmental Protection Agency (EPA) to identify and clean up sites contaminated with hazardous substances.
CERCLA also establishes liability for potentially responsible parties (PRPs)---including current and past owners, operators, and those who arranged for disposal of hazardous substances.
Maryland's pre-licensing course covers CERCLA as a federal regulation that affects real estate transactions involving contaminated properties, as buyers and sellers must be aware of any cleanup responsibilities before transfer.
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Environmental Issues and Disclosures'' Module
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.).
Why is it important for a buyer to know if an underground storage tank is present on a property?
Comprehensive and Detailed Explanation:
Underground storage tanks (USTs), particularly older ones made of steel, may corrode and leak, releasing hazardous substances such as oil or fuel into the soil and groundwater.
Maryland environmental law and the 60-Hour Course emphasize that sellers must disclose known environmental hazards, and buyers should be aware of potential remediation costs.
The Maryland Department of the Environment (MDE) regulates USTs, requiring proper registration, maintenance, and closure procedures to prevent contamination.
110 questions covering all exam domains, starting from $20
16 domains from the Real Estate Licensing Maryland-Real-Estate-Salesperson exam outline, with approximate weightings. Every sample question above is tagged with the domain it comes from
Covers real and personal property, land characteristics and legal descriptions using various methods (metes and bounds, lot and block, government survey). Learn about encumbrances like liens, easements, and encroachments that affect property title and value. Understand different ownership types including tenancy, joint tenancy, common-interest ownership, trusts, and business entity ownership.
Examines government rights including taxation, eminent domain, and escheat. Covers government controls on land use and private controls such as deed restrictions, CC&Rs, and homeowner association regulations. Focus on how these controls affect property use and value.
Covers appraisals and when a licensed appraiser is required versus when a salesperson can prepare a comparative market analysis. Study the three approaches to valuation: sales comparison, cost approach, and income analysis. Understand economic principles and property characteristics that affect real property value.
Learn loan basics including points, LTV, PMI, and PITI. Study conventional, FHA, VA, and USDA loans plus owner financing, reverse mortgages, home equity lines, construction and rehab loans. Understand RESPA, Truth-in-Lending Act, TRID disclosures, and the lending process from application to closing.
Master general contract law principles, elements of valid contracts, and the Statute of Frauds. Study purchase agreements, contingencies, leases, and lease-purchase agreements. Learn about offer and acceptance, electronic signatures, breach remedies, and proper handling of multiple offers and counteroffers.
Understand agency relationships and how they are established through listing contracts, buyer brokerage agreements, and transaction broker relationships. Study fiduciary duties, agent duties to clients versus non-clients, and disclosure requirements for agency representation and conflicts of interest.
Sample question from this domain above: Q1
Learn seller property condition disclosure requirements and when inspections or surveys are warranted. Understand environmental issues and federal, state, and local disclosure requirements. Study the duty to disclose material facts and material defects that could affect property value or desirability.
Covers tenant procurement and qualification, fair housing and ADA compliance in property management contexts, and market analysis for setting rental rates. Study property manager duties regarding maintenance, improvements, reporting, and risk management.
Learn types of deeds, title insurance policies, title searches, and identifying potential title problems. Understand marketable and insurable title, the closing process, recordation requirements, and special considerations for foreclosed properties, short sales, and probate transactions.
Sample question from this domain above: Q4
Study Federal Fair Housing Act principles, protected classes, and prohibited conduct including redlining, blockbusting, and steering. Understand ADA obligations, antitrust laws, Do-Not-Call compliance, social media use, handling confidential information, and trust account procedures. Broker topics include supervisory responsibilities.
Master calculations for seller net proceeds, buyer funds needed at closing, property tax prorations, transfer fees, and PITI payments. Understand equity, capitalization rates, loan-to-value ratios, and discount points.
Maryland state-specific content covering MREC investigations, hearings, and appeals. Study suspensions, revocations, penalties, guaranty fund procedures, and broker record examination requirements.
Maryland state-specific content on activities requiring a license, changes in license status, renewal processes, and continuing education requirements. Covers partnerships, corporations, place of business location, and ownership percentages.
Maryland state-specific content covering listing agreements, disclosure of brokerage relationships, and disclosure of conflicts of interest in property transactions.
Sample question from this domain above: Q3
Maryland state-specific content on handling monies including trust accounts, recordkeeping requirements, supervision requirements, and knowledge of other Maryland state laws including short sale, home improvement, and PIFHA regulations.
Maryland state-specific content covering offers, commissions and rebates, advertising and signs, fair housing laws, summary suspensions and convictions, ethics standards, unfair inducements, dealings with other licensees, and general business ethics principles.
Common questions about the exam itself
