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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q179-Q184):

NEW QUESTION # 179
How does the building department ensure that a builder who has obtained a permit builds according to code?

A. The builder signs an affidavit to that effect.
B. The builder submits a monthly progress report.
C. The builder is required to submit to weekly inspections performed by peers in the industry.
D. The building department sends inspectors to inspect the work.

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Once a building permit is issued, the local building department monitors the construction process through inspections at key stages (foundation, framing, electrical, plumbing, final).
The purpose of these inspections is to ensure that work complies with state and local building codes and safety standards.
Maryland's pre-licensing course explains that certified building inspectors-not peers or the builder-conduct these inspections.
Only after passing all required inspections will the department issue a certificate of occupancy (CO) confirming code compliance and permitting lawful use of the structure.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Land Use Controls and Property Development" Module Maryland Building Performance Standards (COMAR Title 09, Subtitle 12, Chapter 51).

NEW QUESTION # 180
What term refers to the profit from the sale of property that is subject to taxation?

A. Taxable gains
B. Depreciation
C. Deferment
D. Equity

Answer: A

Explanation:
Comprehensive and Detailed
A real property exchange, often called a 1031 exchange, allows investors to defer paying capital gains taxes when swapping one investment property for another of like kind. However, if the transaction does not meet IRS requirements or if "boot" (cash or non-like-kind property) is received, the gain becomes taxable. The Maryland course identifies taxable gains as the main drawback when the exchange fails to fully qualify for deferral.

NEW QUESTION # 181
When must informed consent for dual agency be obtained?

A. As the situation arises
B. At the time when the licensee and customer have entered into an agent/client relationship
C. Prior to entering into a contract for a specific transaction.
D. In the first face-to-face meeting with a potential client

Answer: C

Explanation:
Maryland permits dual agency only under strict disclosure and consent rules (typically implemented as intra- company agency, where a broker designates separate intra-company agents for each party). Written, informed consent from both parties must be obtained before the licensee(s) act in a dual/intra-company capacity for a specific transaction and, in any event, prior to the parties entering into a contract.
Maryland uses a MREC-prescribed Consent for Dual Agency disclosure form for this purpose. Early disclosure is encouraged at the formation of the brokerage relationship, but transaction-specific informed consent must be secured before contract.
References (Maryland Sources / Pre-Licensing Core Content):
* Maryland Business Occupations and Professions Article, Title 17 (Real Estate Brokers Act) - agency disclosures; dual/intra-company agency framework; written informed consent requirements.
* MREC forms/guidance: Consent for Dual Agency (transaction-specific written consent).
* Maryland 60-Hour Pre-Licensing Course: "Maryland Agency Law" (dual agency; intra-company agency; timing and form of consent).

NEW QUESTION # 182
Dan is buying Chuck's property, which is listed with Nevin's brokerage. Who are the parties to the exclusive right-to-sell listing agreement?

A. Chuck and Nevin's brokerage
B. Dan and Nevin
C. Dan and Chuck
D. Dan, Chuck, and Nevin

Answer: A

Explanation:
The course states that an exclusive right-to-sell listing is a brokerage employment agreement between the seller and the listing brokerage (through the authorized broker), not with the buyer. The listing contract authorizes the brokerage to market the property and earn compensation upon a sale during the listing term, regardless of who procures the buyer. Therefore, the parties are the seller (Chuck) and the listing brokerage (Nevin's brokerage).
References: Maryland 60-Hour Principles and Practices of Real Estate - Listing Agreements: parties to the agreement, broker's authority, and compensation provisions in exclusive right-to-sell listings.

NEW QUESTION # 183
What's the purpose of a home inspection?

A. To get a true picture of a property's condition
B. To determine a listing price for the property
C. To help licensees uncover red flags
D. To determine whether the purchase price reflects the property's value

Answer: A

Explanation:
A home inspection is a professional, non-invasive evaluation of the property's physical condition (systems and components) to inform buyers about defects and needed repairs. It is not an appraisal (value) and doesn' t set list price; while it can reveal "red flags," its primary purpose is to provide the buyer an accurate picture of condition to inform negotiations and contingency decisions.
References: Maryland 60-Hour Course: "Real Estate Contracts" (inspection contingencies; inspection vs.
appraisal); "Environmental Issues and Disclosures" (property condition considerations).

NEW QUESTION # 184
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