Maryland Ce Shop Final Exam - Questions and Answers Blaire apparently hasn't learned her lesson. She paid a $5,000 penalty when MREC found her guilty of
... [Show More] misrepresentation, a $10,000 penalty when she was found guilty of placing a for sale sign in someone's yard without permission, and now she's committed three more violations by placing a series of discriminatory ads. What's the maximum penalty MREC can levy for these new violations? 75,000 Which of these parties WOULD need a real estate license in Maryland? Marsha, an attorney who is selling a client's home, as this is something she typically does as part of her practice New Maryland licensees pay a fee into the Guaranty Fund to help maintain it. What is the amount of the fee? $20 DeShawn has been licensed as a salesperson in Maryland for 18 months. Which of the following statements is true about his upcoming license renewal? The commission will send DeShawn a renewal reminder at least 60 days before his license's expiration date. Who presides over a Maryland Real Estate Commission hearing? An administrative law judge In order to qualify as one of the five real estate professional members of the Maryland Real Estate Commission board, how many years of real estate experience must you have? 10 Damon lives in Frederick but is affiliated with a broker in downtown Baltimore. He'd like to affiliate with a broker closer to home but doesn't want to sever his relationship with his current broker. What needs to happen in order for Damon to be able to work for both brokerages? Both brokers need to send a letter to the commission stating their approval of the arrangement and that there is no conflict of interest. Tiara's Maryland salesperson's license is going to expire next week if she doesn't complete all of the required continuing education hours. She's completed three hours of agency, three hours of legislative updates, 1.5 hours of fair housing, and three hours of electives. What other coursework does she need to complete in order to renew her license? Three hours of ethics (including professionalism) and 1.5 more hours of electives In addition to your name, what must be included in any advertising? Designated name of your brokerage firm Kent's seller client's home just went under contract on Tuesday. Just as he's hanging the "under contract" sign in the yard, he gets an email alert from a different buyer's agent with a new offer attached. What should Kent do with the offer? Present it to his client. Ben and Leslie received their finalized purchase contract on April 10, just moments after the sellers put their final signatures on it. Ben and Leslie decided that since the home they're buying was built in 1920, they'd like to have it inspected for lead-based paint. When is the latest that the couple can have the inspection performed if they want to be able to back out of the contract? April 20 Which of the following does NOT qualify as a ministerial act under Maryland law? Offering earnest money deposit advice Which of the following is NOT a penalty that the Maryland Real Estate Commission may impose upon a licensee who violated the Maryland Code of Ethics? Jail time For sale signs on ground rent properties that show the price of the property must also state which of the following? Annual ground rent plus the full cost of capitalization Shelby listed her seller client's condo on April 4. It went under contract May 16. That contract fell through on May 29. The listing agreement expired on July 4, with no other offers or contracts. On what date does the five-year record-retention clock start ticking? July 4 Jerry is a new licensee and he's excited to be creating some advertising. When he does this, what must he remember about including his brokerage's designated name in his advertising? The brokerage's designated business name must be meaningfully and conspicuously present. Fresh out of community college and newly licensed as a real estate salesperson, Ben just took on a short sale as his first listing. Ben told his broker, Janine, that he could handle the transaction and had just advised his seller client that he could do it with minimal damage to the client's credit rating. Janine immediately took Ben off the listing and assigned it to a more experienced licensee. Why? By predicting the seller's credit rating outcome, Ben crossed the line into giving advice that requires additional licensure. You're a real estate licensee in Maryland. You're walking through a property with a new seller client. The seller tells you that the property is serviced by the public sewer system, but when walking up the drive you noticed the access hatch for a septic system. What should you do? Inquire about the homeowner's claim to ensure the property really is on public sewer. Jason has completed 60 hours of Maryland pre-licensing real estate education, met the minimum requirements, and passed his licensing examination. What else does he need in order to receive an active license when applying for licensure? Affiliation with a supervising broker Which of these payment structures is illegal in Maryland? Dean, an unlicensed assistant, is paid an extra $50 each time he takes clients on a showing on a licensee's behalf. The Guaranty Fund paid a consumer's $15,000 claim because of licensee Ben's negligence. Ben is breaking the news to his broker. How's his broker likely to respond? "Well, since this means your license is suspended, we'll see you back at the office when you reimburse the fund." Which of the following statements about counter-offers is true? Once a counter-offer has been made, the prior offer is cancelled. Ned is a Maryland listing agent who has learned of a material fact related to the transaction. To whom and when must he disclose this information? To all parties as soon as possible Salesperson Katie represents seller Suzie in a transaction. Bob and Janine are buying Suzie's home, and they're not represented. To whom does Katie need to disclose her agency relationship using the Understanding Whom Real Estate Agents Represent form? Bob and Janine only In Maryland, you could be fined up to $1,000 per solicitation if you use this method to advertise and a prior business relationship does not exist. Fax machine Jim's had one heck of a time getting his latest listing sold. His seller client nitpicked every single item that the buyers asked her to repair after the home inspection. She was about to let the deal fall through over it until Jim offered to rebate 0.5% of his commission back to the seller. Does Maryland license law permit Jim to do this? Yes, as long as he documents the commission reduction in writing and discloses it to all parties. Which of the following statements about latent defects is true? Any party to a real estate sales transaction who has knowledge of latent defects must disclose them. LaTonya represents the seller of a property that's got an interested buyer. She's emailing the buyer, who's unrepresented, some documentation based on some questions he had and has included the Understanding Whom Real Estate Agents Represent form so she can disclose her agency relationship with the seller. Is this permissible? Yes, LaTonya may disclose her agency relationship through whatever medium is used when first contacting the unrepresented party. New licensee Joey is reconciling his bank statement and identifies a $20 deficit that he can't account for. Which initial licensing fee has he likely forgotten about? The $20 Guaranty Fund fee Unless the real estate licensee who posts the ad is otherwise properly licensed, which of these ads violates PHIFA rules in Maryland? An ad that targets homeowners in danger of foreclosure and indicates the licensee can offer guidance When should a prospective buyer receive a copy of the Maryland Residential Property Disclosure and Disclaimer Statement? Before or at the time the buyer makes a written offer to the seller After 15 years of building her business as a salesperson, Estrella has gotten her broker's license and is striking out on her own. She's creating new business cards, and it's been so long since she had to do them on her own, she's double-checking that they comply with Maryland real estate advertising law. What does she need to be sure to include? The cards must include her name as it appears on her license Beverly's broker, Marquis, has assigned her to represent the seller in an in-house transaction. Beverly's colleague, Tyrone, will be representing the buyer. What's Beverly's role in this transaction? Intra-company agent Antonio feels that his agent did not act in his best interests when she waited nearly a week to present an offer to him. His agent argues that she held onto the offer because it was $15,000 less than list price and she wanted to see if a better offer came in before the weekend. Which section of the Maryland Code of Ethics did Antonio's agent possibly violate? Relations to the client Sam is an independent contractor Maryland licensee working for B & L Realty. Since Sam is an independent contractor, what supervisory responsibility does Sam's broker have? Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes. Beverly was so proud of the comparative market analysis (CMA) she'd put together for her seller client, Jonathon. The first page was simple: a large photo of his property with the address printed underneath. The rest of the CMA was spotless: She'd found four excellent comparable properties, included plenty of information about them, and was confident that Jonathon would love the suggested list price she arrived at. What did Beverly do wrong? She didn't include a written statement on the CMA's first page that clarified that it wasn't an appraisal. Carmelita is a licensee selling a condo. She has the owner's permission to place a for sale sign in front of the unit. As she pounds the sign into the ground, a condo board representative approaches her and informs her that condo regulations forbid signage. Can Carmelita come back later and place the sign anyway? No, she must conform to condo regulations. Whose responsibility is it to ensure that a prospective buyer receives a copy of the Maryland Residential Property Disclosure and Disclaimer Statement prior to the buyer making a written offer to the seller? The buyer's broker and the seller's broker Paul is hoping to purchase a townhouse in Locust Point in Baltimore, and Shelly, a salesperson, is helping him fill in the blanks on the contract form before he makes his offer. Though Shelly doesn't have an agency agreement with Paul, she knows she'll still get paid since the seller has agreed to compensate sub-agents. What else does Shelly need to do? Use the agency disclosure form to inform Paul that she's a sub-agent and technically represents the seller. Which of these is NOT a circumstance that would result in a Maryland broker releasing trust money she was holding? The buyer needed his earnest money back in order to pay the down payment. In Maryland, how often must real estate salespersons renew their license? Every two years Licensed property managers in Maryland must maintain related records for at least five years, beginning on the date ______. The property management agreement terminates In Maryland, the Protection of Homeowners in Foreclosure Act describes the role of and sets guidelines for the actions of ______. Foreclosure consultants [Show Less]