Real Estate Maryland-Real-Estate-Salesperson - Maryland Real Estate Salesperson Examination

Under the Protection of Homeowners in Foreclosure Act (PHIFA), Maryland provides enhanced civil remedies to consumers harmed by foreclosure consultants’ unlawful practices. For intentional (willful) violations, a consumer who brings a private action may recover treble (three times) the actual damages, along with reasonable attorney’s fees and costs. This heightened remedy is designed to deter predatory conduct in distressed-homeowner contexts and is taught in the Maryland pre-licensing course under the state-specific consumer protection and license law sections.

A group boycott occurs when two or more competitors conspire to refuse to deal with another firm or individual, thereby attempting to eliminate competition.

This is a violation of the Sherman Antitrust Act and the Clayton Act, both covered in the “Ethics and Antitrust” section of the Maryland pre-licensing course.

Examples include two brokerages agreeing not to cooperate with a third brokerage or to exclude another licensee from access to listings.

Maryland law and the National Association of REALTORS® Code of Ethics prohibit any conduct that restricts trade or limits consumer choice.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Fair Housing and Ethics / Antitrust section.

– Sherman Antitrust Act (15 U.S.C. §1).

– Clayton Antitrust Act (15 U.S.C. §12–27).

In a gross lease, the landlord/lessor pays the property’s operating expenses—commonly including real estate taxes, property insurance, and maintenance—while the tenant pays a fixed rent. By contrast, in net and especially triple-net (NNN) leases, the tenant bears some or all of these operating costs (with NNN typically meaning taxes, insurance, and maintenance are all tenant-paid). A percentage lease bases rent (in whole or part) on the tenant’s gross sales and does not inherently shift taxes/insurance/maintenance to the landlord.

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.

Under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X) and the Maryland Lead Poisoning Prevention Program, sellers and landlords of housing built before 1978 must:

Provide the EPA-approved pamphlet on lead hazards.

Disclose known lead-based paint or hazards and supply any available records.

Allow buyers a 10-day inspection period (unless waived).

A licensee’s duty is to ensure that the sellers comply with these disclosure requirements and to remind them to deliver the proper forms and pamphlet.

The licensee is not responsible for testing or remediation but must ensure all disclosures are completed prior to ratification of the contract.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Environmental Issues and Disclosures section.

– 42 U.S.C. §4852d (Residential Lead-Based Paint Hazard Reduction Act).

– COMAR 26.16.02 (Maryland Lead Poisoning Prevention Program).

Appreciation refers to the increase in a property's value over time due to factors such as market demand, improvements, inflation, or location desirability.

It is the opposite of depreciation, which is a decline in value. Appreciation may result from physical improvements (e.g., renovations) or external factors (e.g., neighborhood development).

This concept is emphasized in the Maryland 60-Hour Course within the “Real Estate Appraisal and Valuation” module as a key element of market analysis and investment potential.

A deed is the legal document that transfers ownership (title) of real property from one party (the grantor) to another (the grantee). It serves as evidence of title and must meet specific legal requirements to be valid. These requirements include identification of the grantor and grantee, a legal description of the property, the granting clause, and the grantor’s signature.

In Maryland, a valid deed must be in writing, signed by the grantor, and delivered and accepted by the grantee. While recording a deed with the county land records is not required to make it valid between the parties, it is necessary to give public notice of ownership and protect against later claims.

By contrast:

An abstract of title is a summary of recorded documents relating to the property’s history.

A promissory note is a borrower’s written promise to repay a debt.

A recording fee is a charge for entering the deed into public records.

The deed itself is the ownership document, providing the legal means by which real property title is conveyed.

Reference (Maryland Source):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course – “Transfer of Title” Module

Annotated Code of Maryland, Real Property Article § 3-101 – Formal Requisites of Deeds.

Encouraging a client under an existing agency agreement to terminate that agreement and switch representation constitutes contractual interference and a violation of the Maryland Real Estate Brokers Act.

Licensees must respect the exclusive representation agreements of others and may only solicit business after the prior contract expires.

This is treated as unethical conduct and may result in disciplinary action, including fines or suspension by the MREC.

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.

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.