Real Estate Licensing Maryland-Real-Estate-Salesperson Practice Exam Questions & Answers

Lenders that make federally related loans must require flood insurance if the property is located in a Special Flood Hazard Area (SFHA), as designated by the Federal Emergency Management Agency (FEMA).

Flood insurance protects the lender's collateral and the borrower's investment.

The Maryland pre-licensing course covers flood hazards in the ''Environmental Issues and Disclosures'' unit.

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Environmental Issues and Disclosures'' Module

National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) -- FEMA Floodplain Management.

From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

When all parties fulfill the promises, duties, and obligations in a legally binding agreement, it is called performance of contract.

At this point, the contract has been executed (completed), and neither party owes further obligations.

This differs from specific performance, which is a legal remedy compelling a party to perform, and partial performance, where only some obligations are met.

The Maryland pre-licensing course teaches this concept in the ''Real Estate Contracts'' module as part of understanding contract law and remedies.

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Real Estate Contracts'' Module

Maryland Contract Law -- Performance and Discharge of Contracts.

From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and the Maryland Lead Poisoning Prevention Program, sellers and landlords of housing built before 1978 must:

Provide the EPA-approved pamphlet on lead hazards.

Disclose known lead-based paint or hazards and supply any available records.

Allow buyers a 10-day inspection period (unless waived).

A licensee's duty is to ensure that the sellers comply with these disclosure requirements and to remind them to deliver the proper forms and pamphlet.

The licensee is not responsible for testing or remediation but must ensure all disclosures are completed prior to ratification of the contract.

Reference (Maryland Source):

-- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Environmental Issues and Disclosures section.

-- 42 U.S.C. 4852d (Residential Lead-Based Paint Hazard Reduction Act).

-- COMAR 26.16.02 (Maryland Lead Poisoning Prevention Program).

From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Under the Real Estate Settlement Procedures Act (RESPA), Section 8, it is illegal for any person involved in a federally related real estate transaction to receive or pay kickbacks, referral fees, or unearned fees in exchange for referrals of settlement service business (e.g., to mortgage brokers, title companies, or inspectors).

Such actions are considered RESPA violations, which may result in fines, imprisonment, and disciplinary action from the Maryland Real Estate Commission.

Licensees may only receive compensation through their broker and for services actually rendered.

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Fair Housing and Ethics'' Module

Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2607 -- Prohibition Against Kickbacks and Unearned Fees.

From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Personal property (also known as chattel) refers to movable items that are not permanently attached to the land or the improvements on it.

Examples include furniture, vehicles, and trade equipment. In contrast, real property includes land, improvements, and the legal rights associated with ownership.

The distinction between real and personal property is a core principle of real estate law covered early in the Maryland 60-Hour Course under ''Real Property and the Law.''

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Real Property and the Law'' Module

Common Law Property Definitions recognized by the Maryland Real Estate Commission.

From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

Under Maryland's Fair Housing laws (Title 20, State Government Article), limited exemptions exist for owner-occupied buildings with four or fewer rental units.

In these cases, the owner may exercise limited discretion in selecting tenants; however, race discrimination is never permitted.

The pre-licensing course explains that while federal law (the Fair Housing Act) allows some exemptions, Maryland law still prohibits discriminatory advertising and extends protections to include sexual orientation, gender identity, marital status, and source of income.

Reference (Maryland Source):

-- Maryland 60-Hour Principles and Practices Course, Maryland Fair Housing Law section.

-- State Government Article, Title 20, 20-704.

From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:

The Property Management section of the Maryland pre-licensing course teaches that licensees must monitor their listings for fraudulent online activity, such as rental scams where criminals copy legitimate ads and re-post them with false contact details.

Setting up automated alerts through tools like Google Alerts or If This, Then That (IFTTT) can help licensees detect unauthorized use of their listings or identifying information.

These monitoring tools allow quick corrective action and protect both the brokerage and the public from scams.

Reference (Maryland Source):

-- Maryland 60-Hour Principles and Practices Course, Property Management and Advertising Compliance section.

-- Maryland Code of Ethics, COMAR 09.11.02.01--.02.