Maryland Real Estate Salesperson Online Practice Questions

Explanation:
Comprehensive and Detailed Explanation 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):
C Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Environmental Issues and Disclosures section.
C 42 U.S.C. §4852d (Residential Lead-Based Paint Hazard Reduction Act).
C COMAR 26.16.02 (Maryland Lead Poisoning Prevention Program).

Explanation:
Comprehensive and Detailed Explanation
A sole proprietor in Maryland may operate under their personal legal name or under a trade name that has been properly registered with the Maryland Department of Assessments and Taxation (SDAT).
If a trade name is used, it must be clearly disclosed in all brokerage advertising and license registration records with the MREC.
This ensures public transparency and compliance with Maryland’s real estate advertising and
licensing requirements.
Reference: Maryland 60-Hour Principles and Practices C “Brokerage Operations and Business Entities”; Maryland Business Occupations and Professions Article §17-316 C Trade Name Registration.

Explanation:
Comprehensive and Detailed Explanation
Under the Statute of Frauds, all conveyances of real property must be in writing to be enforceable. A valid Maryland deed therefore includes: a competent grantor and identifiable grantee, a granting clause, an adequate legal description, consideration, signature of the grantor, delivery, and acceptance ― and it must be in writing. Oral (nuncupative) or judge-approved deeds are not recognized.
Reference: Maryland 60-Hour Principles and Practices of Real Estate C “Transfer of Title” module; Maryland Real Property Article § 4-101 through § 4-107 (Recording and Execution of Deeds).

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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):
C Maryland 60-Hour Principles and Practices Course, Ethics and Professional Conduct section.
C COMAR 09.11.02.01 C Code of Ethics for Real Estate Licensees.
C Business Occupations and Professions Article §17-322.

Explanation:
Comprehensive and Detailed Explanation
A tax-deferred exchange, also known as a 1031 exchange, allows investors to exchange one qualifying investment or business property for another “like-kind” property and defer payment of
capital gains taxes until the new property is sold.
This provision falls under Internal Revenue Code §1031.
In the Maryland pre-licensing curriculum, this is explained under the “Real Estate Financing and Investment” section to show how investors legally postpone capital gains recognition by following IRS guidelines.
Reference: Maryland 60-Hour Principles and Practices C “Real Estate Financing and Investment”; Internal Revenue Code §1031.