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

In the valuation module, the course explains bracketing as an appraisal technique where the appraiser selects comparables that are both superior and inferior to the subject on key characteristics (e.g., gross living area, condition, lot size, age, quality, transaction price) to “bracket” the likely value range. Proper bracketing strengthens the sales comparison approach and supports a credible reconciliation by demonstrating the subject’s position within a range indicated by the market.

A package loan (package mortgage) finances both real property and personal property (chattels) together in a single loan—common with new homes that include appliances or furnishings. A blanket loan covers multiple parcels; a wrap-around is junior financing that “wraps” an existing loan; “security” is not a loan type but a general concept.

In Maryland, a real estate licensee may only perform brokerage services and be entitled to compensation when a written brokerage agreement exists between the client and the broker.

This agreement must clearly state the broker’s duties, compensation terms, and representation type (buyer, seller, or dual).

Verbal agreements are insufficient to establish an enforceable right to a commission.

Maryland licensees may fill in blanks on approved contract forms and explain business terms (e.g., common contingencies, offer strategies, earnest money customs). But giving legal advice—interpreting legal consequences, drafting custom legal clauses, or advising on rights/remedies—is considered the unauthorized practice of law unless the licensee is a Maryland attorney. Clients should be referred to legal counsel for legal questions.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Contracts” (use of approved forms; scope of practice; prohibition on legal advice).

Maryland Real Estate Commission guidance (practice limits; unauthorized practice of law).

When an agency relationship ends (expiration, completion, mutual agreement, or termination), certain duties survive: chiefly confidentiality (protecting client confidences and motivations) and accounting (proper handling and return of money, keys, and documents; final accounting for trust funds). Duties such as loyalty and reasonable skill and care do not continue after termination.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Maryland Agency Law” (scope of fiduciary duties; duties that survive agency termination).

COMAR 09.11.02 (confidentiality and accounting obligations).

Under COMAR 09.11.02.33A(5) and the Maryland Code of Ethics, a licensee must promptly present all written offers to the property owner until an offer has been accepted. After acceptance, new offers need not be presented unless the seller specifically requests. This rule ensures fair treatment and full disclosure to clients while maintaining professional standards of practice.

The buyer determines the amount of the earnest money deposit, since it is the buyer’s good-faith indication of intent to perform under the contract.

The licensee can explain customary local practices and typical deposit amounts but may not set or require a specific figure.

The offer, including the deposit amount, becomes binding only when accepted by the seller.

This is emphasized in the Contracts and Offer Preparation module, which explains that the buyer controls all offer terms, including price, contingencies, and deposit.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Real Estate Contracts section.

– Business Occupations and Professions Article §17-322 (Improper Brokerage Practices).

The course states that an exclusive right-to-sell listing is a brokerage employment agreement between the seller and the listing brokerage (through the authorized broker), not with the buyer. The listing contract authorizes the brokerage to market the property and earn compensation upon a sale during the listing term, regardless of who procures the buyer. Therefore, the parties are the seller (Chuck) and the listing brokerage (Nevin’s brokerage).

Under the Maryland Real Estate Brokers Act (Business Occupations and Professions Article, §17-613), it is unlawful for any person to engage in real estate brokerage activities without a valid Maryland license.

The Maryland Real Estate Commission (MREC) may impose civil fines for unlicensed activity as follows:

Up to $5,000 for a first offense

Up to $15,000 for two offenses

Up to $25,000 for three or more offenses, but no more than $10,000 per violation

Therefore, for multiple offenses, the maximum fine per violation is $10,000.

Wetlands provide critical ecosystem services—they serve as wildlife habitat, enhance aesthetics, control erosion, store floodwaters, and filter pollutants. Because of these public benefits, wetlands are protected under federal and state law, and Maryland licensees are trained to recognize that development near wetlands often triggers permitting, setbacks, and disclosure obligations.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Environmental Issues and Disclosures” (wetlands functions; permitting; protected resources).

Overview of federal/state wetland protections as discussed in course materials.