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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q97-Q102):

NEW QUESTION # 97
What do you call the person or entity that oversees trust or escrow money?

A. Escrow master
B. Escrow agent
C. Mortgage agent
D. Special agent

Answer: B

Explanation:
Comprehensive and Detailed
The escrow agent (often the broker, title company, or attorney) is the fiduciary who receives and holds trust money in a regulated escrow account until contract terms are fulfilled. In Maryland, the broker is responsible for maintaining escrow records and depositing all trust money promptly in accordance with COMAR 09.11.02.19. "Escrow master" and "mortgage agent" are not legal titles under Maryland law, and "special agent" refers to the agency relationship, not handling of funds.

NEW QUESTION # 98
How should all compensation related to real estate transactions be handled according to real estate law?

A. Compensation must be channeled through the salesperson's broker.
B. Salespeople can receive compensation directly from mortgage brokers or title representatives.
C. All compensation must go directly to the salesperson from the seller or buyer.
D. Compensation can be handled privately between agents without broker involvement.

Answer: A

Explanation:
Comprehensive and Detailed
In Maryland, all compensation earned by a licensed salesperson or associate broker must be paid through their supervising broker.
Salespersons are not permitted to receive direct payments from clients, customers, mortgage brokers, or other settlement service providers.
Violations can result in disciplinary action or license suspension.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Maryland License Law and Regulations" Module Md. Business Occupations and Professions Article §17-322(b)(17) - Receiving Compensation Through Proper Channel.

NEW QUESTION # 99
What does REO stand for?

A. Rental equality ownership
B. Real estate-owned
C. Rental equal opportunity
D. Real estate office

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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.

NEW QUESTION # 100
In order for an owner-occupant of a building with rental units to reject applicants based on sex, marital status, gender identity, and/or sexual orientation, they must not own more than how many rental units in a building?

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

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Under Maryland's Fair Housing laws (Title 20, State Government Article), limited exemptions exist for owner-occupied buildings with four or fewer rental units.
In these cases, the owner may exercise limited discretion in selecting tenants; however, race discrimination is never permitted.
The pre-licensing course explains that while federal law (the Fair Housing Act) allows some exemptions, Maryland law still prohibits discriminatory advertising and extends protections to include sexual orientation, gender identity, marital status, and source of income.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Maryland Fair Housing Law section.
- State Government Article, Title 20, §20-704.

NEW QUESTION # 101
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 universal agent
C. A designated agent
D. A general agent

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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 # 102
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