Lenders that make federally related loans must require flood insurance if the property is located in a Special Flood Hazard Area (SFHA), as designated by the Federal Emergency Management Agency (FEMA).
Flood insurance protects the lender's collateral and the borrower's investment.
The Maryland pre-licensing course covers flood hazards in the "Environmental Issues and Disclosures" unit.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Environmental Issues and Disclosures" Module National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) - FEMA Floodplain Management.

The Fair Housing Act of 1968 (Title VIII of the Civil Rights Act) prohibits discrimination in housing- related transactions and targets discriminatory practices including blockbusting (inducing sales by suggesting the entry of protected classes), steering (directing clients to or from areas based on protected characteristics), and redlining (denying or varying terms for loans or insurance based on neighborhood demographics).
* Marital status, sexual orientation, and source of income are not federal protected classes in the 1968 Act's original text; however, Maryland law provides broader protections at the state level.
References (Maryland Pre-Licensing Core Content):
* Maryland 60-Hour Course: "Fair Housing and Ethics" (federal protected classes; prohibited practices- blockbusting, steering, redlining).
* Federal Fair Housing Act (Title VIII) concepts as taught in the Maryland curriculum; Maryland Human Relations Law adds state protections.

For pre-1978 residential properties, federal law (Title X) requires disclosure of any known lead-based paint or hazards, provision of the EPA pamphlet, and a 10-day inspection opportunity (unless waived).
Licensees must ensure required disclosure forms are completed and disclose known material facts, but they must not state lead exists if they do not actually know. Licensees are not responsible for abatement and must never assist in concealing hazards.
References: Maryland 60-Hour Course: "Environmental Issues and Disclosures" (lead-based paint disclosures, pamphlet, inspection period; duty to disclose known material facts).

Licensees owe duties of honesty, good faith, and disclosure of material facts. A planned freeway immediately behind the property is a material fact affecting value and desirability and must be disclosed to prospective buyers. If a seller instructs the agent to conceal material facts, the agent must refuse to withhold such information; if the seller insists, the appropriate course is to decline or terminate the listing rather than participate in misrepresentation.
Option C shows conflicting promises to the client; the correct ethical and legal approach is to require disclosure as a condition of representation (Option D).
References: Maryland pre-licensing curriculum-Fair Housing and Ethics and Maryland Agency Law (duties to clients and customers; disclosure of material facts; prohibition on misrepresentation and concealment).

Only licensed or certified appraisers may perform an appraisal for a fee in a federally related transaction.
A real estate licensee, however, may prepare a Comparative Market Analysis (CMA) or Broker Price Opinion (BPO) to help a seller decide on a listing price or a buyer to make an offer.
A CMA compares recent sales, active listings, and expired listings of similar properties to estimate a realistic price range.
This procedure is emphasized in the "Appraisal and Valuation" module as a permitted pricing tool for real estate professionals.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Valuation and CMA section.
- Business Occupations and Professions Article 17-511 (b).