Question 1
Which clause would violate the Protection of Homeowners in Foreclosure Act?
Correct Answer:
A clause paying 7% of the sale price.
Explanation:
The Protection of Homeowners in Foreclosure Act targets how professionals can be compensated when helping homeowners in foreclosure. A clause that pays a broker a percentage of the sale price creates a direct link between the broker’s compensation and the outcome of the foreclosure sale, which can overly influence the broker’s actions and potentially exploit a homeowner under stress. The act is designed to prevent such predatory fee practices, so a provision based on the sale price is the type of arrangement it aims to prohibit. In contrast, a flat retainer fee is a fixed amount, which is a more straightforward, non-contingent charge; requiring that terms be in a written contract signed by both parties is standard and safe practice; and a licensed broker providing their license information to clients before signing contracts is a normal compliance step to verify credentials.
Question 2
Which statement is NOT true about the Maryland Commission on Civil Rights (MCCR)?
Correct Answer:
Members serve four-year terms.
Explanation:
The statement about term lengths is not true. The Maryland Commission on Civil Rights has terms that are longer than four years and are typically staggered to maintain continuity, rather than all members turning over every four years. The other parts—that the governor appoints the members, that there are nine members, and that the commission is managed by an executive director—are accurate. Knowing that term lengths differ from four years helps you recognize why this particular option is the false one.
Question 3
Which action could trigger immediate suspension of a license by the Maryland Real Estate Commission?
Correct Answer:
Being convicted of a felony.
Explanation:
Immediate suspension is used when a licensee’s conduct creates an urgent risk to the public. A felony conviction is treated as a serious disqualifying factor because it signals substantial dishonesty or criminal behavior that could impair a licensee’s ability to practice safely. The Maryland Real Estate Commission can act quickly to suspend a license while it reviews the case, preventing potential harm to clients and the public. Missing a renewal payment, by contrast, typically results in the license lapsing rather than triggering an emergency suspension. Forgetting to update a phone number is a minor administrative matter, not a safety concern. Selling a property without a license is illegal and would lead to disciplinary action, but it describes unlicensed activity rather than an action that would automatically prompt an immediate suspension of a currently licensed individual.
Question 4
When should a prospective buyer receive a copy of the Maryland Residential Property Disclosure and Disclaimer Statement?
Correct Answer:
Before or at the time the buyer executes a purchase agreement
Explanation:
The timing of the disclosure is about when the seller must provide important information about the property. In Maryland, the seller is required to give the buyer the Residential Property Disclosure and Disclaimer Statement before or at the moment the purchase agreement is signed. This ensures the buyer has knowledge of known defects or issues before becoming bound by the contract, which supports informed decision-making and negotiation (such as requesting repairs or credits) upfront. Delivering the statement later—whether just before an inspection, after signing the contract, or close to closing—undermines that informed decision-making and bargaining power.
Question 5
When a license is suspended, which entities are notified by MREC?
Correct Answer:
All of the above
Explanation:
When a license is suspended, the action is communicated to all parties connected to that license so everyone relevant understands the change in status and must adjust accordingly. The licensee themselves receive notice so they know they cannot engage in real estate activities while the suspension is in effect. The licensee’s broker is informed because brokers supervise licensees and need to halt any activities under that license, protect clients, and maintain proper office operations during the suspension. The Maryland Association of REALTORS® is notified to update membership records and reflect the licensee’s current status within the REALTOR community. Because the suspension affects both the individual and the brokerage, and since the professional association maintains member information, all of these parties are notified.
Question 1
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Prepare with the Maryland CE Shop Practice Exam practice quiz. This question bank includes 10 questions covering maryland, commission, real, estate, and describes. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Maryland CE Shop Practice Exam

This practice set contains 10 questions from the matching question bank and focuses on maryland, commission, real, estate, and describes. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

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