Maryland real estate licensees should be aware that, in addition to the federally protected classes, the state's fair housing laws also prohibit discrimination based on the protected classes of _______.
Correct Answer: B
Maryland's Fair Housing Law (State Government Article, Title 20, Subtitle 7) expands on the federal Fair Housing Act by adding additional protected categories: marital status, sexual orientation, gender identity, and source of income. This means licensees cannot discriminate in the sale, rental, or financing of housing based on these traits. The course emphasizes that local jurisdictions (e.g., Baltimore City, Montgomery County) may have even broader protections. Reference:Maryland 60-Hour Principles and Practices Course - "Maryland Fair Housing and Ethics Requirements" Module; Maryland State Government Article 20-701 - 20-705.
Maryland-Real-Estate-Salesperson Exam Question 92
James creates a trust to hold a piece of real estate he owns. He directs a corporate fiduciary to hold title to the real estate and provides instructions for the management, control, and disposition of the real estate upon his death. Given that the trust only holds real estate, James likely set up a(n) ________ trust.
Correct Answer: B
A land trust is a type of living trust in which real property is the only asset placed into the trust. Under a land trust, the trustee (fiduciary) holds legal title to the property, while the beneficiary retains the rights to control, manage, and receive income or proceeds from the property. The Maryland pre-licensing course explains that land trusts are commonly used for privacy, estate planning, and avoiding probate, since the property is owned and transferred through the trust rather than by individual deed. Reference: Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Forms of Real Estate Ownership" Module Maryland Trust Act (Estates and Trusts Article, Title 14.5 - Trusts).
Maryland-Real-Estate-Salesperson Exam Question 93
What type of agency exists because of the actions and behavior of the parties?
Correct Answer: D
Agency may be created expressly (by written or oral agreement) or by implication through the conduct of the parties. When a licensee and consumer act as though an agency relationship exists-advice, advocacy, and services consistent with representation-without a signed agreement, this is implied agency. Maryland emphasizes avoiding unintended implied agency by using timely written agreements and required disclosures. References: Maryland 60-Hour Principles and Practices of Real Estate - Maryland Agency Law: creation of agency (express vs. implied), duties arising from implied agency, risk management through written agreements and disclosures.
Maryland-Real-Estate-Salesperson Exam Question 94
Renae showed a property to Shannon, a buyer client, then to another client later that week. The second client made an offer and the seller accepted. The next day, Shannon called Renae to make an offer on the property and was angry that Renae showed it to another buyer. Did Shannon have a case?
Correct Answer: B
Maryland agency law requires fiduciary duties to each client-loyalty, confidentiality, disclosure, obedience, reasonable care-but it does not prohibit a licensee from showing the same property to multiple buyer clients. A licensee must avoid disclosing one client's confidential information (e.g., willingness to pay more) and provide fair, diligent service to each, but there is no exclusivity right entitling a buyer to first refusal unless contractually agreed. Therefore, no violation occurred when Renae showed the property to more than one client. References: Maryland 60-Hour Principles and Practices of Real Estate - Maryland Agency Law: fiduciary duties to buyer clients; permissibility of working with multiple buyers on the same property; confidentiality and fair dealing obligations.
Maryland-Real-Estate-Salesperson Exam Question 95
What does REO stand for?
Correct Answer: B
REO stands for Real Estate-Owned. This term refers to properties that have gone through the foreclosure process and are now owned by the lender-usually a bank or mortgage company-because the property did not sell at the foreclosure auction. These properties become part of the lender's real estate inventory and are often sold through REO departments or asset managers. The Maryland pre-licensing course includes REO properties under "Real Estate Brokerage Operations," explaining how real estate professionals handle and market foreclosed or bank- owned properties. Reference: Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Real Estate Brokerage Operations" Module Federal Housing Administration (FHA) and HUD Foreclosure Sales Guidelines.
