Maryland-Real-Estate-Salesperson Maryland Real Estate Salesperson Examination Questions and Answers

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.

In a sub-agency relationship, the cooperating licensee (sub-agent) works with a buyer but represents the seller, not the buyer.

Kip, as a sub-agent, owes fiduciary duties of loyalty, obedience, confidentiality, and disclosure to the seller (May), the same client represented by Sheila, the listing agent.

The buyer, Charlie, is treated as a customer, not a client, meaning no fiduciary obligations exist beyond honesty and fair dealing.

This principle is covered in Maryland’s Law of Agency and Brokerage Operations modules.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Agency Relationships and Sub-Agency sections.

– Business Occupations and Professions Article §17-530 – §17-534.

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.

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.

A legal description uniquely identifies a parcel of real estate so it can be distinguished from every other property.

In Maryland, contracts and deeds must contain a valid legal description, such as:

Metes and bounds,

Lot and block, or

Rectangular survey (government survey).This ensures the transfer is legally enforceable and leaves no ambiguity about what property is being conveyed.Without a legal description, a real estate contract or deed may be deemed invalid or unenforceable in court.

Regardless of who pays the commission, the client is the person named in the agency agreement—in this case, Sadie, the property owner.

The Maryland Real Estate Brokers Act defines the client as the party with whom the broker or salesperson has an agency relationship, not necessarily the one providing compensation.

Third-party payments do not alter the contractual relationship or fiduciary duties.

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.

Lenders compute DTI ratios using the borrower’s gross (pre-tax) monthly income.

Housing DTI (front-end) = monthly housing costs ÷ gross monthly income.

The fair housing section explains that testing (often using paired testers) is designed to identify discriminatory housing practices that may not be visible to the public, such as unequal treatment in showings, terms, or availability disclosures. Testing compares how similarly qualified people from protected classes are treated relative to control testers, thereby uncovering hidden or subtle discrimination and supporting enforcement of fair housing laws.

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 the first-time homebuyer exception for IRAs, qualified individuals may withdraw up to $10,000 (lifetime limit) to pay qualified acquisition costs (e.g., down payment and closing costs) without the 10% early withdrawal penalty. Standard income tax may still apply to traditional IRA distributions (Roth rules differ for contributions vs. earnings and five-year holding). Therefore, penalty-free (not tax-free) withdrawals up to $10,000 are permitted for first-time home purchase needs.

A syndicate is an association of two or more investors who unite their capital to own or develop real estate projects.

When investment interests are offered to the public, the syndicate becomes subject to federal securities regulations administered by the Securities and Exchange Commission (SEC).

Maryland’s pre-licensing course explains that syndications may take the form of limited partnerships, corporations, or real-estate investment trusts (REITs), but the unifying element is pooled investor participation under securities law oversight.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Forms of Ownership and Syndication section.

– Securities Act of 1933 and 1934 (SEC Regulations).

A listing agreement is a legally binding contract between a seller and a licensed real estate broker that establishes the broker’s authority to market the property and represent the seller’s interests in finding a ready, willing, and able buyer.

It outlines the terms of representation, including price, commission, duration, and the duties of both parties.

The agreement does not guarantee a sale; rather, it ensures mutual understanding of responsibilities and compensation should a sale occur.

This principle is covered in the Listing Agreements and Buyer Representation module.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Listing Agreements and Brokerage Contracts section.

– Business Occupations and Professions Article §17-534.

An option contract gives the optionee (Monique) the exclusive right to purchase a property within a specified period and under specific terms, but not the obligation to do so.

When properly executed and supported by consideration (the option fee), the option is a binding contract on the property owner (Mark) and any subsequent owners who take title with constructive notice of the existing option.

Therefore, when Monique exercises her valid option within the option period, Shelly must honor it—the property must be sold to Monique under the agreed terms.

An encumbrance is any claim, charge, or liability attached to real property that burdens the title or limits use, including monetary interests (e.g., liens, such as mortgages, tax liens, mechanic’s liens) and non-monetary/physical interests (e.g., easements, encroachments, deed restrictions). Encumbrances do not necessarily prevent transfer, but they run with the land and affect marketability.

The brokerage operations/MLS compliance section explains that sensitive showing instructions—such as gate codes, lockbox combinations, alarm details, and security instructions—must not appear in public-facing remarks. With the seller’s written permission, these details, when necessary, may be placed only in “Private” (Agent) Remarks, which are visible to MLS participants/subscribers (licensees) but not to the public. This protects seller security and complies with MLS rules and professional standards on advertising and confidentiality.

References (Course Outline/Study Topics):

Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course — “Real Estate Brokerage Operations” (MLS usage and compliance: public vs. private/agent remarks, confidentiality, seller permissions for showing/access instructions).

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.

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.

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).

Maryland’s Real Estate Agency Law (§17-530, Business Occupations and Professions Article) mandates that written agency disclosure be provided to all parties in any residential lease transaction exceeding 90 days.

This ensures transparency in representation and prevents misunderstandings regarding whom the licensee represents in the transaction.

The disclosure must occur no later than the first scheduled face-to-face meeting with the prospective tenant or landlord.

The Closing Disclosure (CD) is a federally required document under the TILA-RESPA Integrated Disclosure Rule (TRID).

It must be provided to the borrower at least three business days prior to closing and itemizes loan terms, fees, and total closing costs.

The Loan Estimate (LE) is given earlier in the process—within three business days of loan application—while the Closing Disclosure confirms final figures.

Maryland licensees must understand both forms as part of the Closing and Settlement Procedures portion of their coursework.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Closing Procedures and Federal Disclosure Requirements section.

– TILA-RESPA Integrated Disclosure Rule (TRID), 12 C.F.R. §1026.19(f).

In development analysis, costs include impacts that require public or private expenditure—for example, the increased demand on infrastructure (roads, utilities, schools, water/sewer), which necessitates capacity expansions, impact fees, or mitigation measures.

Crime rates and lower unemployment are socio-economic conditions/impacts, not direct development costs.

Local density zoning rules are regulatory constraints (land-use controls), not a cost in themselves (although they can influence costs).

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Land Use Controls and Property Development” (infrastructure capacity, impact fees, concurrency, mitigation of development impacts).

Planning and subdivision concepts taught in Maryland curriculum (infrastructure and service demands as development costs).

Misrepresentation occurs when a licensee omits or falsifies a material fact or makes false, deceptive, or misleading statements in advertising or communications. In Maryland, misrepresentation is a violation under §17-322(a)(1) and COMAR 09.11.02.01 (Advertising). A material fact is any information that could influence a consumer’s decision in a real-estate transaction. Intentional misrepresentation may also lead to civil liability for fraud.

Agreeing—or even coordinating—on a minimum commission or listing fee among competing brokerages is price fixing, a per se violation of antitrust law. Maryland pre-licensing emphasizes that competitors must not discuss or set commission rates, fees, or pricing policies; each brokerage must independently determine its fees.

Group boycotting = competitors conspiring to refuse to deal with a party.

Market allocation = dividing territories/customers.

Tie-in arrangement = conditioning sale of one product/service on purchase of another.

References (Maryland Sources / Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Brokerage Operations” (antitrust compliance: price fixing, market allocation, group boycotts, tie-ins).

Sherman Antitrust Act principles as incorporated in Maryland real estate education.

COMAR 09.11.02 (ethical conduct; avoiding anticompetitive practices); MREC guidance on commissions being negotiable and set independently by each brokerage.

HUD and fair housing organizations use paired testing to identify covert or subtle discriminatory practices that may not be openly admitted—i.e., hidden discrimination—such as disparate treatment in availability, terms, steering, or information provided. Testing is an investigative tool to enforce the Fair Housing Act, not a revenue or punitive scheme in itself.

In leasing, a covenant is a binding promise or agreement contained within the lease. It can require or restrict certain actions by either the lessor (landlord) or lessee (tenant)—for example, a covenant of quiet enjoyment, a covenant to pay rent, or a covenant to maintain the property. These promises are enforceable under contract and property law.

According to the Maryland Real Estate Brokers Act, which governs the Maryland Real Estate Commission (MREC), the Commission consists of nine members appointed by the Governor of Maryland with the advice and consent of the Senate. Each member serves a four-year term and may remain in office until a successor is appointed and qualified. Members may be reappointed for additional terms.

The composition of the Commission is as follows:

Five licensed real estate professionals, each representing one of Maryland’s five geographic regions.

Four consumer members, who are not licensed real estate professionals and have no substantial financial interest in the real estate industry.

This organizational and term structure ensures both professional and public representation within the Commission’s regulatory activities. The information is directly derived from Title 17 of the Business Occupations and Professions Article, §17-202 of the Annotated Code of Maryland — the same statute summarized in the Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course under the “Maryland License Law and Regulations” section.

Reference (Maryland Source):

Maryland Business Occupations and Professions Article, Title 17, §17-202 – Maryland Real Estate Commission; Membership; Terms.

Interest is the cost of borrowing money, expressed as a rate applied to the outstanding principal. Principal is the loan amount itself. Discount points are prepaid finance charges used to adjust the loan’s yield/interest rate. Usury refers to charging an illegally high interest rate, not the ordinary charge itself.

The loan-to-value (LTV) ratio compares the loan amount to the property’s appraised value or purchase price, whichever is less. An LTV of 90/100 (or 90%) means the borrower’s loan equals 90% of the property’s value, and the borrower provides a 10% down payment.

Lenders use the LTV ratio to assess risk and determine if mortgage insurance is required. Maryland’s pre-licensing course explains this formula in the “Real Estate Financing” section under “Loan Underwriting and Ratios.”

An amendment is a written change or modification to an existing contract that is made after the original agreement has been executed.

All parties must agree to and sign the amendment for it to be legally binding.

This differs from an addendum, which is added before or at the same time as the contract and becomes part of the original agreement.

The Maryland course highlights amendments as critical tools in real estate practice for making mutually accepted changes—such as closing dates, purchase prices, or contingencies—without voiding the original contract.

Lenders that make federally related loans must require flood insurance if the property is located in a Special Flood Hazard Area (SFHA), as designated by the Federal Emergency Management Agency (FEMA).

Flood insurance protects the lender’s collateral and the borrower’s investment.

The Maryland pre-licensing course covers flood hazards in the “Environmental Issues and Disclosures” unit.

The Statute of Frauds requires that certain contracts—including those for the sale or transfer of real property—be in writing and include:

The names of the parties,

Identification of the property, and

The essential terms and conditions (such as price and contingencies).This ensures the agreement is legally enforceable in court.

Under the federal Fair Housing Act, “handicap” (disability) is a protected class. HIV/AIDS is considered a disability, and making statements or disclosures that identify or single out someone based on a protected characteristic is prohibited. Disclosing that an owner (or occupant) has HIV is treated as discriminatory, violates fair housing standards, and also breaches confidentiality. Maryland fair housing law mirrors and expands federal protections, and the pre-licensing course emphasizes that licensees must never disclose information tied to protected classes because it can facilitate or signal discriminatory treatment (e.g., steering, discouraging, or differential terms).

Maryland’s Property Condition Disclosure Law requires residential sellers to deliver the Maryland Residential Property Disclosure and Disclaimer Statement to a prospective purchaser on or before the time the buyer enters into a contract of sale. This timing ensures the buyer receives statutory condition information before becoming contractually bound, and failure to provide it timely can trigger buyer rights to rescind.

Maryland license law allows the earnest-money deposit (good-faith deposit) to be paid in cash, certified funds, or personal check, provided the terms are disclosed in the sales contract. A post-dated check or promissory note is not considered “good funds” unless all parties agree in writing. Verbal assurances never satisfy the deposit requirement. The broker must promptly deposit the funds in a designated trust (escrow) account.

Once a contract is ratified, buyers who need a loan must promptly submit a written loan application and provide required documentation so the lender can process, underwrite, and issue a loan commitment within the time frames stated in the contract and financing addenda. This step triggers required disclosures, appraisal ordering (when applicable), and rate/lock options; delays can jeopardize financing contingencies and settlement timelines.

A home inspection is a professional, non-invasive evaluation of the property’s physical condition (systems and components) to inform buyers about defects and needed repairs. It is not an appraisal (value) and doesn’t set list price; while it can reveal “red flags,” its primary purpose is to provide the buyer an accurate picture of condition to inform negotiations and contingency decisions.

Within Brokerage Operations and Advertising Compliance, the course explains that while state license laws prohibit false, misleading, or deceptive advertising, at the federal level the Lanham Act allows businesses to bring civil actions against competitors for false or misleading advertising that misrepresents the nature, characteristics, or qualities of goods or services. This is distinct from consumer protection frameworks (e.g., FTC Act) and privacy/financial statutes (e.g., Gramm–Leach–Bliley Act and the Privacy Act), which do not create the same competitor-to-competitor false advertising claim.

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.

Under Maryland Agency Law (Business Occupations and Professions Article, Title 17, Subtitle 5), a listing agent represents the seller and owes the seller the fiduciary duties of loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting.

A primary fiduciary obligation is to promote the interests of the client at all times during the transaction, as outlined in the Maryland Real Estate Commission’s Agency Disclosure materials.

While the listing agent must disclose all material facts to all parties (facts that affect value or desirability), the agent’s duty of loyalty and advocacy is owed to the seller client.

Therefore, the correct answer is that a listing agent must promote the client’s interests throughout the entire transaction.

In the Environmental Issues and Disclosures section, the course teaches that radon is a naturally occurring, colorless, odorless, radioactive gas that results from the decay of uranium in soil, rock, and water. Radon can migrate into buildings through foundation cracks and openings and accumulate to levels that pose health risks. Licensees must understand radon basics, testing options, mitigation methods, and disclosure responsibilities in transactions.

The course’s antitrust section explains that Sherman Act criminal penalties can reach up to $100 million for corporations and up to $1 million for individuals, plus possible imprisonment for individuals. Real estate examples include price-fixing, market allocation, group boycotts, and tying arrangements—all prohibited.

A license is a personal, revocable privilege to perform some act on another person’s land without any possessory right or ownership interest. Unlike an easement, a license does not transfer with the land and can be revoked at any time by the licensor. Examples include permission to hunt, park, or attend an event on private property.

In Maryland’s pre-licensing course, this concept is taught under “Interests in Real Estate” as a type of encumbrance that affects property use but not ownership.

Property taxes are levied by local governments to generate revenue that funds essential community services such as public education, police and fire protection, road maintenance, sanitation, and other municipal infrastructure projects. The Maryland course stresses that these taxes are a key component of a stable community and ensure that property owners contribute proportionally to maintaining public amenities.

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.

The Better Business Bureau (BBB) accepts complaints related to false, misleading, or deceptive advertising practices and can investigate, mediate, or forward concerns to regulatory agencies.

The Maryland pre-licensing course advises licensees that maintaining truthful and transparent advertising is an ethical and legal requirement under both Maryland Real Estate Commission regulations and the Federal Trade Commission (FTC) rules.

Consumers may also contact the Maryland Real Estate Commission (MREC) for license law violations, but general deceptive ad complaints typically begin with the BBB.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Ethical Advertising and Consumer Protection section.

– COMAR 09.11.02.01 – Ethical Standards of Advertising.

– Federal Trade Commission Act, 15 U.S.C. §45.

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).

In the “Math for Real Estate and Practical Applications” portion, area and measurement conversions are foundational. An acre is defined as 43,560 square feet. Option B (“43,560 feet”) is incorrect because it omits the necessary square unit. The course emphasizes accurate units and conversions for calculations involving land area, price-per-square-foot/acre, and legal descriptions.

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Math for Real Estate” (Area/acre conversions; unit accuracy).

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.

Maryland law requires licensees to present and explain the statutory agency disclosure—commonly titled “Understanding Whom Real Estate Agents Represent”—at the first scheduled face-to-face meeting with a prospective party. This disclosure explains the types of agency relationships available in Maryland (seller/landlord representation, buyer/tenant representation, and dual agency with possible intra-company agents) and clarifies whom the licensee represents. This requirement is part of Maryland’s agency framework and consumer-protection emphasis in the pre-licensing curriculum.

In Maryland, agency exists when a licensee represents a client under a brokerage agreement. If the seller has a written listing agreement with a broker, the seller is the client.

An unrepresented buyer is considered a customer, not a client. The licensee owes customers limited duties—honesty, fair dealing, and disclosure of material facts—but does not owe fiduciary duties such as loyalty, confidentiality, or obedience.

Therefore, in this case, the seller is the only client.

A short sale occurs when the lender agrees to accept less than the total amount owed on the mortgage to release its lien so that the property can be sold.

The lender must approve the sale before closing.

This typically happens when the market value of the property is less than the outstanding loan balance, but foreclosure is avoided.

In the pre-licensing course, short sales are discussed under Financing and Foreclosure Alternatives, highlighting licensees’ duties to disclose the short-sale status to buyers and comply with lender requirements.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Financing and Foreclosure Alternatives section.

– Maryland Real Property Article §7-105.1 (Mortgage Default Remedies).

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.

In real property conveyance, certain interests and transfers occur by operation of law and therefore supersede contrary provisions in a will. Common examples include joint tenancy with right of survivorship, tenancy by the entirety, life estates with a named remainderman, and properly created transfer-on-death/beneficiary designations. These interests vest automatically at death and are not controlled by the decedent’s will.

“Intestate” refers to dying without a valid will and does not itself take precedence over a will. The heirs’ wishes have no legal effect against properly vested interests. Therefore, where applicable, operation of law controls over will terms regarding those interests.

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.

The Multiple Listing Service (MLS) is a cooperative online database used by licensed real estate professionals to share information about properties for sale or lease. It includes active, pending/under-contract, sold, expired, and withdrawn listings. The MLS enhances market transparency and cooperation among brokers, ensuring accurate data and broad property exposure.

Licensees owe duties of honesty, good faith, and disclosure of material facts. A planned freeway immediately behind the property is a material fact affecting value and desirability and must be disclosed to prospective buyers. If a seller instructs the agent to conceal material facts, the agent must refuse to withhold such information; if the seller insists, the appropriate course is to decline or terminate the listing rather than participate in misrepresentation.

Option C shows conflicting promises to the client; the correct ethical and legal approach is to require disclosure as a condition of representation (Option D).

Under the Uniform Commercial Code (UCC) Article 3 principles taught in real estate financing, a negotiable instrument (e.g., a promissory note) must be an unconditional promise or order to pay a fixed amount of money. Thus, if it does not contain an order to pay, it must contain a promise to pay. The amount must be fixed (not “flexible”), and while signatures are required for enforceability, notarization is not a UCC requirement for negotiability.

Under Maryland Code of Ethics (COMAR 09.11.02.33A) and Maryland Business Occupations and Professions §17-322(a)(23), a licensee must disclose any compensation, commission, fee, or bonus received from a party other than their client in the transaction.

If a seller offers an undisclosed bonus to the buyer’s agent, that bonus must be fully disclosed in writing to the buyer (the agent’s client) before acceptance. Failure to do so constitutes an ethical and legal violation. The payment, once disclosed, must be processed through the agent’s broker, who is responsible for all compensation distribution.