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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q53-Q58):
NEW QUESTION # 53
Activities that restrain trade and reduce competition and choices for consumers are considered to be what kind of violations?
- A. Fair housing
- B. License law
- C. Antitrust
- D. Agency law
Answer: C
Explanation:
Antitrust violations occur when individuals or companies engage in activities that restrict competition in the marketplace and limit consumer choice.
In real estate, this includes price-fixing, group boycotts, market allocation, and tie-in agreements, all of which are prohibited under the Sherman Antitrust Act and Federal Trade Commission Act.
Maryland's real estate license law reinforces these prohibitions, and the Maryland 60-Hour Course covers antitrust compliance under "Fair Housing and Ethics" to ensure licensees act in the public's best interest and avoid practices that restrain trade.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Fair Housing and Ethics" Module Sherman Antitrust Act (15 U.S.C. 1-7) Federal Trade Commission Act (15 U.S.C. 41-58).
NEW QUESTION # 54
What might you find in the legal description of a deed?
- A. County clerk's name
- B. Title abstract
- C. Name of developer
- D. Metes and bounds property description
Answer: D
Explanation:
A legal description precisely identifies a parcel of real estate so it can be uniquely located and distinguished from other property. In Maryland, deeds typically include one of several accepted types of legal descriptions:
metes and bounds, lot and block, or rectangular survey (where applicable).
Metes and bounds describe the property boundaries using directions, distances, and reference points (monuments).
This ensures that the property can be clearly identified for conveyance and recording purposes.
Items such as the county clerk's name, developer name, or title abstract are not part of the deed's legal description.
Reference:Maryland 60-Hour Principles and Practices Course - "Transfer of Title" Topic; Maryland Real Property Article 4-101 et seq. (Requirements for Valid Deeds).
NEW QUESTION # 55
Manny has a client who wants to purchase a commercial building. Manny doesn't have any experience negotiating commercial purchases. Which action should Manny take to demonstrate his good faith and most ethical behavior toward his client?
- A. Tell the client about his inexperience, but say that he'd like to continue the relationship and will consult with a professional commercial broker throughout the transaction.
- B. Continue to work with the client, but not tell the client about his lack of experience.
- C. Decide to no longer represent the client.
- D. Continue to work with the client, but secretly consult with a commercial broker when he has questions.
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Under Maryland's Code of Ethics and Professional Conduct, licensees must act with honesty, integrity, and reasonable skill and care.
If a licensee lacks experience in a specialized area, they must disclose that fact to the client and either refer the client or seek assistance from a qualified professional-with the client's informed consent.
By being transparent and collaborating with an experienced commercial broker, Manny fulfills his ethical obligation of competence and disclosure while protecting his client's interests.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Ethics and Professional Conduct section.
- COMAR 09.11.02.01 - Code of Ethics for Real Estate Licensees.
- Business Occupations and Professions Article §17-322.
NEW QUESTION # 56
Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he'll be subject to. What should you tell him?
- A. "Investors don't pay taxes."
- B. "Capital gains do not apply to investment properties."
- C. "Taxes are required, no matter what you do."
- D. "You might consider a 1031 tax-deferred exchange."
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Under Section 1031 of the Internal Revenue Code, an investor may defer recognition of capital gains taxes by exchanging one investment or business property for another of like kind.
This is known as a 1031 tax-deferred exchange.
The Maryland pre-licensing course covers this as a financing and investment concept, explaining that it defers, not eliminates, the tax obligation and that investors must comply with strict timelines and rules set by the IRS.
Licensees should avoid offering tax advice but can inform clients of the potential to explore this option with a qualified tax professional or attorney.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Investment and Taxation Concepts section.
- Internal Revenue Code §1031 (Like-Kind Exchanges).
NEW QUESTION # 57
What does PITI stand for?
- A. Property, interest, title, and insurance
- B. Property, insurance, taxes, and interest
- C. Principal, interest, taxes, and insurance
- D. Principal, insurance, title, and interest
Answer: C
Explanation:
PITI is the standard mortgage-payment acronym: Principal (loan balance reduction), Interest (finance charge), Taxes (property taxes, typically escrowed), and Insurance (homeowner's and, when applicable, mortgage insurance). Lenders use PITI to calculate housing ratios and total debt-to-income requirements during underwriting-core content in the financing section of Maryland's pre-licensing course.
References: Maryland 60-Hour Principles & Practices Course - Real Estate Financing and Math for Real Estate modules; Conventional/FHA/VA underwriting concepts included in curriculum standards.
NEW QUESTION # 58
......
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