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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q195-Q200):

NEW QUESTION # 195
What is one drawback of sub-agency from a listing broker's standpoint?

A. There aren't any drawbacks.
B. Both parties must agree to dual agency.
C. The listing broker will have to pay two agents' commissions.
D. The listing broker and listing agent can be liable for the sub-agent's actions.

Answer: D

Explanation:
Under sub-agency, a cooperating broker or licensee assists the listing broker in selling the property and represents the seller as a sub-agent of the listing broker.
A key drawback is that the listing broker is legally responsible for the sub-agent's actions because the sub- agent owes fiduciary duties to the same principal (the seller).
Any misrepresentation, negligence, or violation by the sub-agent can expose the listing broker to disciplinary action or civil liability.
This is why many Maryland brokers now prefer buyer agency over sub-agency.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Agency Relationships and Sub-Agency section.
- Business Occupations and Professions Article 17-534.

NEW QUESTION # 196
In what type of agency does a licensee have limited authority to act on behalf of a client buying or selling a property?

A. A special agent
B. A general agent
C. A designated agent
D. A universal agent

Answer: A

Explanation:
A special agent (also called a limited agent) is authorized to perform a single, specific act or transaction- such as assisting in the purchase or sale of a property.
Real estate brokers and salespersons generally act as special agents, with limited authority defined in the brokerage agreement.
They may not bind their clients to contracts without express permission.
This principle appears in the Law of Agency module and is contrasted with general agents (brokers' affiliated licensees) and universal agents (power-of-attorney representatives).
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Law of Agency section.
- Business Occupations and Professions Article 17-530 - 17-534.

NEW QUESTION # 197
Which of the following is one of your duties as a listing agent?

A. Hold confidential all facts from the buyer, even material facts.
B. Disclose material facts to the seller only.
C. Promote your client's interests throughout the entire transaction.
D. Secure a profit for your client.

Answer: C

Explanation:
Under Maryland Agency Law (Business Occupations and Professions Article, Title 17, Subtitle 5), a listing agent represents the seller and owes the seller the fiduciary duties of loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting.
A primary fiduciary obligation is to promote the interests of the client at all times during the transaction, as outlined in the Maryland Real Estate Commission's Agency Disclosure materials.
While the listing agent must disclose all material facts to all parties (facts that affect value or desirability), the agent's duty of loyalty and advocacy is owed to the seller client.
Therefore, the correct answer is that a listing agent must promote the client's interests throughout the entire transaction.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Real Estate Brokerage and the Law of Agency" Module Md. Business Occupations and Professions Article, Title 17, 17-532 - Duties of a Licensee Representing a Seller or Landlord.

NEW QUESTION # 198
Members of the Maryland Real Estate Commission serve _______ -year terms.

A. Five
B. Four
C. Six
D. Two

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
According to the Maryland Real Estate Brokers Act, which governs the Maryland Real Estate Commission (MREC), the Commission consists of nine members appointed by the Governor of Maryland with the advice and consent of the Senate. Each member serves a four-year term and may remain in office until a successor is appointed and qualified. Members may be reappointed for additional terms.
The composition of the Commission is as follows:
Five licensed real estate professionals, each representing one of Maryland's five geographic regions.
Four consumer members, who are not licensed real estate professionals and have no substantial financial interest in the real estate industry.
This organizational and term structure ensures both professional and public representation within the Commission's regulatory activities. The information is directly derived from Title 17 of the Business Occupations and Professions Article, §17-202 of the Annotated Code of Maryland - the same statute summarized in the Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course under the "Maryland License Law and Regulations" section.
Reference (Maryland Source):
Maryland Business Occupations and Professions Article, Title 17, §17-202 - Maryland Real Estate Commission; Membership; Terms.

NEW QUESTION # 199
Property ownership for an indeterminable length of time is an example of what form of estate?

A. Periodic
B. Homestead
C. Freehold
D. Leasehold

Answer: C

Explanation:
The estates module distinguishes freehold estates (ownership for an indefinite/indeterminable duration, such as fee simple or life estates) from leasehold estates (possession for a definite, limited term under a lease, such as estate for years or periodic tenancy). "Homestead" is a protective legal concept, not a duration type. Therefore, ownership for an indeterminable length of time is a freehold estate.
References: Maryland 60-Hour Principles and Practices of Real Estate - Interests in Real

NEW QUESTION # 200
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Brian Foster Brian Foster

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