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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q22-Q27):

NEW QUESTION # 22
Which of the following is an instrument that's used to convey property ownership?

Answer: B

Explanation:
In the "Transfer of Title" module, a deed is defined as the written instrument used to convey legal title (ownership) to real property from grantor to grantee. Proper execution and delivery of a deed transfer ownership.
* A lien is an encumbrance-a charge against property to secure a debt-not a conveyance.
* A mortgage (or deed of trust) is a security instrument that creates a lien; it does not, by itself, convey fee ownership to the lender.
* Title is the legal concept of ownership and the bundle of rights; it is not the instrument that transfers ownership.
References (Course Outline/Study Topics):
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Transfer of Title" (Deeds: purpose, elements, execution and delivery; distinction among title, deed, liens, and mortgages).


NEW QUESTION # 23
Which of these is a colorless, odorless, radioactive gas that is released when uranium decays?

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Radon is a naturally occurring radioactive gas that results from the decay of uranium found in soil, rock, and groundwater. It is colorless, odorless, and tasteless and can accumulate in enclosed spaces, such as basements and homes.
The U.S. Environmental Protection Agency (EPA) identifies radon exposure as a leading cause of lung cancer among nonsmokers.
In Maryland, the pre-licensing course emphasizes that while radon testing is not mandatory, sellers and licensees have a duty to disclose known environmental hazards to buyers.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Environmental Issues and Disclosures" Module


NEW QUESTION # 24
Ralph leases 1,000 square feet in a large warehouse. The lease agreement requires him to pay portions of the landlord's taxes, insurance, and maintenance, in addition to the amount he pays to lease the space. What type of lease does Ralph have?

Answer: C

Explanation:
A triple-net (NNN) lease requires the tenant to pay a proportionate share of the landlord's property taxes, insurance, and maintenance costs, in addition to base rent.
This type of lease is common in commercial and industrial properties like warehouses.
The Maryland course covers lease types in property management, emphasizing the distinctions between gross, net, and percentage leases.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Leases and Property Management" Module Typical Commercial Lease Structures - NNN Lease Definitions.


NEW QUESTION # 25
Cameron had a listing agreement with a client named Ben. Ben got mad at Cameron and said he was terminating the agreement. Can Ben do this?

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
While a client (in this case, Ben) may terminate a listing agreement at any time, the termination does not necessarily release the client from contractual obligations that have already been incurred.
A listing agreement is a bilateral contract between the seller and the broker. If a client ends the agreement without cause, the broker may still be entitled to compensation for expenses or commissions if the property sells to a ready, willing, and able buyer who was introduced during the term.
The Maryland course explains that unilateral termination may constitute breach of contract, depending on the agreement's terms.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Listing Agreements and Buyer Representation" Module Md. Business Occupations and Professions Article §17-532 - Duties and Rights in Agency Relationships.


NEW QUESTION # 26
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?

Answer: C

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 # 27
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