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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q165-Q170):

NEW QUESTION # 165
What's used to calculate the housing debt-to-income ratio and total debt-to-income ratio?

  • A. Gross income
  • B. Operating income
  • C. After-tax income
  • D. Net income

Answer: A

Explanation:
Lenders compute DTI ratios using the borrower's gross (pre-tax) monthly income.
* Housing DTI (front-end) = monthly housing costs ÷ gross monthly income.
References: Maryland 60-Hour Course: "Real Estate Financing" and "Math for Real Estate and Practical Applications" (front-end/back-end DTI; gross income basis).


NEW QUESTION # 166
To effect a transfer of title by deed, ______ must occur.

  • A. Judicial validation
  • B. Exchange of money
  • C. Deed review
  • D. Delivery and acceptance

Answer: D

Explanation:
For a valid conveyance by deed, in addition to other deed validity requirements (competent grantor, identifiable grantee, granting clause, adequate description, consideration recited, execution, etc.), there must be "delivery and acceptance". Delivery by the grantor and acceptance by the grantee are the operative acts that pass title. An exchange of money is not required to effect the legal transfer (consideration may be nominal and need not be physically exchanged at that moment). Judicial validation is not a standard requirement for voluntary conveyances.
References: Maryland pre-licensing curriculum topic "Transfer of Title" (essential elements of a valid deed; effect of delivery and acceptance).


NEW QUESTION # 167
Which photograph of a home for sale should not be published for public viewing?

  • A. A photo of the master bathroom that also shows the photographer's arm reflected in the mirror
  • B. A wide-angle photo of the renovated kitchen that makes the area look larger than it really is
  • C. A photo of the billiards room that reveals the owner's collection of antique guns
  • D. An exterior photo showcasing the pool and outdoor kitchen/bar area

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
The course stresses that licensees must protect a seller's privacy and personal security when marketing property. Photos that display personal possessions such as firearms, medications, financial documents, or valuables should never be published. Revealing these items can create a safety and liability risk for the seller and may violate professional ethical standards regarding confidentiality.
Therefore, the image showing the owner's collection of antique guns should not be made public.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Listing and Marketing Property section.
- Maryland Code of Ethics for Real Estate Licensees, COMAR 09.11.02.01 et seq.


NEW QUESTION # 168
Which of the following financing types involves the sale of personal property with the real property?

  • A. Blanket
  • B. Wrap-around
  • C. Package
  • D. Security

Answer: C

Explanation:
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.
References: Maryland pre-licensing topic Real Estate Financing (types of mortgages: package, blanket, purchase-money, wrap-around; treatment of personal property in financing).


NEW QUESTION # 169
Janice's life tenant, Jacob, is currently living on her property. Once Jacob dies, Janice has arranged for the property to be given to the School for the Gifted. What interest does the School for the Gifted currently have?

  • A. Possession
  • B. Ownership
  • C. Reversionary
  • D. Remainder

Answer: D

Explanation:
When a life estate is measured by the life of a life tenant (Jacob) and the grantor (Janice) specifies that, upon the life tenant's death, the property passes to a third party, that third party holds a remainder interest (a present, non-possessory future interest). If the property were set to return to the grantor instead, the grantor would hold a reversionary interest.
References: Maryland 60-Hour Course - Interests in Real Estate module (freehold estates, life estates, remainder vs. reversion; present vs. future interests).


NEW QUESTION # 170
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