In the deed section of the pre-licensing course, learners are taught that the full covenant and warranty deed (often called a general warranty deed) provides the broadest protection for the grantee because the grantor warrants good title, free from encumbrances, and defends the title against all claims, whether they arose before or during the grantor's ownership. The deed typically carries the full set of common law covenants (seisin, right to convey, against encumbrances, quiet enjoyment, further assurances, and warranty). By contrast, a quitclaim deed offers no warranties, a bargain and sale deed implies ownership but gives limited or no warranties, and executor's or personal representative deeds convey title on behalf of an estate without full warranties.
References: Maryland 60-Hour Principles and Practices of Real Estate - Transfer of Title: types of deeds; scope of warranties; general (full covenant) warranty vs. special warranty vs. bargain and sale vs. quitclaim; estate and fiduciary deeds.

In Maryland, when a broker or brokerage firm represents both the buyer and the seller in the same transaction, dual agency may occur only with the informed written consent of both parties.
This consent must be initially obtained when the parties agree to representation and then reaffirmed in writing before either party signs the sales contract.
This ensures both understand the limitations on confidentiality and loyalty that dual agency imposes.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Maryland Agency Law section.
- Business Occupations and Professions Article 17-534.
- COMAR 09.11.07.07 - Consent to Dual Agency.

Under Section 1031 of the Internal Revenue Code, an investor may defer recognition of capital gains taxes by exchanging one investment or business property for another of like kind.
This is known as a 1031 tax-deferred exchange.
The Maryland pre-licensing course covers this as a financing and investment concept, explaining that it defers, not eliminates, the tax obligation and that investors must comply with strict timelines and rules set by the IRS.
Licensees should avoid offering tax advice but can inform clients of the potential to explore this option with a qualified tax professional or attorney.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Investment and Taxation Concepts section.
- Internal Revenue Code 1031 (Like-Kind Exchanges).

For any contract to be legally enforceable, the parties must possess legal capacity-they must understand the nature and consequences of the agreement.
Individuals suffering from advanced Alzheimer's disease lack contractual capacity, making the agreement void (invalid) from its inception.
The Contracts module stresses that an invalid or void contract has no legal effect because one or more essential elements-competent parties, lawful objective, consideration, mutual consent, and legal form-are missing.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Elements of a Valid Contract section.
- Maryland Contract Law Principles, General Common Law Doctrine on Capacity.

Licensees are permitted to explain the purpose and factual content of real estate contracts but may not interpret legal implications or draft custom clauses, which constitutes the unauthorized practice of law. The Maryland course teaches that to stay compliant, a salesperson should explain what a clause does in general terms and refer clients to a licensed attorney for legal interpretation.
Reference: Maryland 60-Hour Principles and Practices - "Real Estate Contracts"; Maryland Real Estate Brokers Act, 17-322 - Prohibited Acts (Unauthorized Practice of Law).