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Real Estate Maryland Real Estate Salesperson Examination Sample Questions:

1. What might the financial implications be if a buyer needed to use individual retirement account funds toward a down payment?

A) The funds are taxable, and an early withdrawal penalty fee will apply.
B) Funds can be used if they go toward the borrower's first-time homeownership in the last five years.
C) First-time homebuyers can use up to $10,000 of their IRA funds penalty free for down payment and closing costs.
D) Income taxes are waived on IRA distributions for homeownership.

2. Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable?

A) Up to $100 million for corporations and $1 million for individuals
B) Up to $10 million for corporations and $1 million for individuals
C) Up to $1 million for corporations and $100,000 for individuals
D) Up to $100,000 for corporations and $1,000 for individuals

3. What happens when a married couple who owns a property as tenants by the entirety divorce?

A) They become joint tenants with right of survivorship.
B) The one who records title first gets the property.
C) Their ownership changes to tenants in common.
D) Their ownership rights terminate.

4. Which type of deed offers the strongest and broadest form of guarantee and protection of title to the grantee?

A) Full covenant and warranty deed
B) Bargain and sale deed
C) Quitclaim deed
D) Executor's deed

5. When a client understands what dual agency is and agrees in writing to allow a firm to act as a dual agent for them in a real estate transaction, this is known as ________.

A) Double dipping
B) Mutual agreement
C) Informed consent
D) Representation by proxy

Solutions: