Educational Resources: Take Maryland Real Estate Sample Tests, Application Steps and Tips

Both the real estate brokers and real estate salespersons’ exams consist of two parts: the national and state portion. To earn your license, you must pass each portion with at least 70%.

If you pass both portions, you must apply for your license within a year, or else your score will expire.

Real Estate Test Highlights

The PSI Examination Services company provides examination services for the Maryland Real Estate Commission.

Examinations are given daily and cost $44. You have two hours to complete the exam.

National Portion

The National Portion of the exam covers the following real estate principles and practices:

• Property Ownership (10% of salesperson’s score, 10% of broker’s score)
  • Real and personal property; conveyances
  • Land characteristics and legal descriptions
    • Metes and bounds method of legal property description
    • Lot and block (recorded plat) method of legal property description
    • Government survey (rectangular survey) method of legal property description
    • Measuring structures (linear and square footage)
    • Land measurement
  • Encumbrances and effects on property ownership
    • Types of liens and their effect on the title and value of real property
    • Easements, rights of way, and licenses, including their effect on the title, value, and use of real property
    • Encroachments and their effect on the title, value, and use of real property
    • Potential encumbrances on title, such as probate, leases, or adverse possession
    • Property rights that may be conveyed separately from the use of the land surface, such as mineral and other subsurface rights, air rights, or water rights
  • Types of Ownership
    • Ownership in severalty/sole ownership¹
    • Implications of ownership as tenants in common
    • Implications of ownership in joint tenancy
    • Forms of common-interest ownership, such as Timeshares, Condominiums, and Co-ops
    • Property ownership held by an estate or in a trust
    • Ownership by business entities
    • Life Estate ownership
• Land Use Controls (5% of salesperson’s score, 5% of broker’s score)
  • Government rights in land
    • Government rights to impose property taxes and special assessments
    • Government rights to acquire land through eminent domain, condemnation, and escheat
  • Government controls on land use
  • Private controls
    • Deed conditions or restrictions on property use
    • Subdivision covenants, conditions, and restrictions (CC&Rs) on property use
    • Condominium and owners’ associations

• Valuation (8% of salesperson’s score, 8% of broker’s score)
  • Appraisals
    • Appraisals for valuation of real property
    • Situations that require appraisal by a licensed or certified appraiser and brokerage-related actions that constitute unauthorized appraisal practice
    • General steps in the appraisal process
  • Estimating Value
    • Economic principles and property characteristics that affect the value of real property
    • Sales or market comparison approach to property valuation and appropriate uses
    • Cost approach to property valuation and appropriate uses
    • Income analysis approach to property valuation and appropriate uses
  • Comparative Market Analysis (CMA)
    • Comparative Market Analysis (CMA)
    • Automated Valuation Method (AVM) and appraisal valuation
• Financing (10% of salesperson’s score, 9% of broker’s score)
  • Basic Terminology and Concepts
    • Loan financing (including points, interest, LTV, and PITI)
    • General underwriting process (e.g., debt ratios, credit scoring, and history)
    • Standard mortgage/deed of trust clauses and conditions
    • Essential elements of a promissory note
  • Types of Loans
    • Conventional loans
    • Interest-only loans amortized and partially amortized (balloon) loans
    • Adjustable-rate mortgage (ARM) loans
    • Government Loans
      • FHA insured loans
      • VA guaranteed loans
      • USDA/Rural Development loan programs
    • Owner financing (for example, installment or land contract/contract for deed)
    • Reverse-mortgage loans
    • Home equity loans and lines of credit
    • Construction loans
    • Rehab loans
    • Bridge loans
  • Financing and Lending
    • Real Estate Settlement Procedures Act (RESPA), ²including kickbacks
    • Truth-in-Lending Act (Regulation Z),³ including advertising
    • Requirements and time frames of TRID (TILA-RESPA Integrated Disclosures)⁴
    • Equal Credit Opportunity Act⁵
    • Lending Process (application through loan closing)
    • Risky loan features, such as prepayment penalties and balloon payments
• Contracts (19% of salesperson’s score, 19% of broker’s score)
  • General Contract Law
    • General principles of contract law
    • Elements necessary for a contract to be valid
    • Effect of the Statute of Frauds
    • Offer and a contract
    • Enforceability of contracts
    • Void, voidable, and unenforceable contracts
    • Bilateral and unilateral contracts
    • Nature and use of option agreements
    • Notice, delivery, acceptance, and execution of contracts
    • Appropriate use, risks, and advantages of electronic signatures and paperless transactions
    • Rights and obligations of the parties to a contract
    • Possible remedies for breach or non-performance of contract
    • Termination, rescission, and cancellation of contracts
  • Purchase and Lease Contracts
    • Addenda and amendments to contracts
    • Purchase agreements
    • Contract contingencies and methods for satisfying them
    • Leases and rental agreements
    • Lease-purchase agreements
    • Types of leases
  • Proper handling of multiple offers and counteroffers
• Agency (13% of salesperson’s score, 13% of broker’s score)
  • Agency and non-agency relationships
    • Agency relationships and how they are established
    • Types of listing contracts
    • Buyer brokerage and tenant representation contracts
    • Relationships with other brokers, including transaction brokers and facilitators
    • Power of attorney and other authority assignments
    • Conditions for termination of agency or brokerage service agreements
  • Agent Duties
    • Fiduciary duties of agents
    • Agent’s duties to customers/non-clients, including honesty and good faith
  • Agency Disclosures
    • Disclosure of agency/representation
    • Disclosure of possible conflict of interest or self-interest
• Property Disclosures (7% of salesperson’s score, 7% of broker’s score)
  • Property Condition
    • Seller’s property condition disclosure requirements
    • Property conditions that may warrant inspections or a survey
    • Red flags that warrant investigation of public or private land use controls
  • Environmental and Government Disclosures
    • Environmental issues requiring disclosure
    • Federal, state, or local disclosure requirements regarding the property
  • Disclosure of material facts and material defects
• Property Management (3% of salesperson’s score, 5% of broker’s score)
  • Duties and Responsibilities
    • Procurement and qualification of prospective tenants
    • Fair Housing and ADA compliance specific to property management
    • How to complete a market analysis to identify factors in setting rents or lease rates
    • Property manager’s responsibility for maintenance, improvements, reporting, and risk management (Brokers only)
    • Managing landlord or tenant funds (Brokers only)
    • Provisions of property management contracts (Brokers only)
  • Landlord and tenant rights and obligations
• Transfer of Title (6% of salespersons’ score, 6% of broker’s score)
  • Types of deeds
  • Title Insurance and Searches
    • Title insurance policies and title searches⁶
    • Potential title problems and resolutions
    • Marketable and insurable title
  • Closing Process
    • When the transfer of ownership becomes effective
    • Process and importance of recordation
    • Settlement procedures (closing) and parties involved
    • Home and new construction warranties
  • Special Processes
    • Special issues in transferring foreclosed properties
    • Special issues in short sale transactions
    • Special issues in probate transactions
• Practice of Real Estate (12% of salesperson’s score, 12% of broker’s score)
  • Antidiscrimination
    • Federal Fair Housing Act general principles and exemptions
    • Protected classes under the Federal Fair Housing Act
    • Protections against discrimination based on gender identity and sexual orientation
    • Prohibited conduct under Federal Fair Housing Act (including redlining, blockbusting, steering, and disparate treatment)
    • Fair housing advertising rules
    • Americans with Disabilities Act obligations
  • Legislation and Regulations
    • Licensees’ status as employees or independent contractors
    • Antitrust laws and types of violations, fines, and penalties
    • Do-Not-Call List rule compliance
    • Proper use of Social Media and Internet communication and advertising
  • Duties and Responsibilities
    • Protection of confidential personal information (written, verbal or electronic)
    • Duties when handling funds of others in transactions
    • Licensee’s responsibility for due diligence
  • Supervisory Responsibilities (Brokers only)
    • Supervisory Responsibilities (including licensees, teams and unlicensed assistants, and employees) (Brokers only)
    • Relationship with licensees (employees or independent contractors and governing rules) (Brokers only)
• Real Estate Calculations (7% of salesperson’s score, 6% of broker’s score)
  • Calculations for Transactions
    • Seller’s net proceeds
    • Buyer funds needed at closing
    • Real property tax and other prorations
    • Real property transfer fees
    • PITI (Principal, Interest, Taxes, and Insurance) payments estimate given loan rate and term
  • General Concepts
    • Equity
    • Rate of return/Capitalization rate
    • Loan-to-Value ratio
    • Discount points and loan origination fees

State Portion

The State portion of the exam covers the following topics:

• Duties and Powers of the Real Estate Commission (4% of salesperson’s score, 5% of broker’s)
  • General Powers
  • Investigations, Hearings, and Appeals
  • Suspensions, Revocations, and Penalties
  • Guaranty Fund
  • Examination of Records (Broker Only)
• Licensing Requirements (4% of salesperson’s score, 8% of broker’s score)
  • Activities Requiring a License
  • Change in License Status
  • License Renewals
  • Continuing Education Requirements
  • Partnerships and Corporations
  • Place of Business
  • Percentage of Ownership for Businesses
• Brokerage Relationships (7% of salesperson’s score, 7% of broker’s score)
  • Listing Agreements
  • Disclosure of Brokerage Relationship
  • Disclosure of Interest in Property/Conflict of Interest
  • Disclosures
• Supervision (5% of salesperson’s score, 6% of broker’s score)
  • Handling Monies, including Trust Monies
  • Recordkeeping Requirements (electronic recordkeeping)
  • Supervision Requirements
  • Knowledge of Other Maryland State Laws (short sale, home improvements, PIFHA)
• Business Conduct (6% of salesperson’s score, 9% of broker’s score)
  • Offers Commissions (including rebates)
  • Advertising and Signs
  • Fair Housing Laws and Regulations⁷
  • Summary Suspensions/Convictions
• Ethics (4% of salesperson’s score, 5% of broker’s score)
  • Unfair Inducements
  • Dealings with Other Licensees
  • General Ethics

Sample Questions

Here are a few examples of questions you might come across when taking the real estate salesperson’s exam:

• Which of the following statements BEST identifies the meaning of the term, “rescission of a contract”?

1. A return of all parties to their condition before the contract was executed.
2. A ratification of a contract by all parties.
3. A contract review by the legal counsel of either party, which may result in a cancellation without penalty or any further obligation.
4. A transfer or assignment of a particular responsibility from one of the parties to another.

• How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 property?

1. $7,450
2. $5,500
3. $6,975
4. None of the above

• Which of these mortgage clauses enables a lender to demand loan repayment in the event that a borrower sells the property?

1. Prepayment
2. Defeasance
3. Alienation
4. Acceleration

5-Step Guide To Filing Your Maryland Department of Assessments and Taxation License Application

When you’ve finished your pre-licensing course and completed (and passed) the licensing examination, it’s time to file your application.

Here are the five essential steps to completing this process:

1. Apply for Your License as Soon as Possible: After you’ve passed the exam, you have one year from the exam date to apply.
2. Request a Certificate of Licensure Online: You’ll need to provide some basic personal information, social security number, and date of birth.
3. Submit Payment for a Salesperson License: Submit payment via check or money order.
4. Look for a Brokerage: As a new real estate salesperson, you’ll need to work under a licensed real estate broker. You have three years from the date your license is issued to affiliate with a broker.
5. Keep Your License Active: Real estate agents in Maryland must complete at least 15 hours of continuing education before their license expires.

Elective National Association of Realtors® (NAR) Membership Application

If you want to refer to yourself as a realtor®, rather than a real estate agent, you must become a member of the National Association of Realtors®. Consult the table below to find your local association, then reach out to them to find out about the specific application process (each group has its own):

Name of Association	Contact Number
Anne Arundel County Association of Realtors® Inc	(410) 544-4554 (410) 647-5102
Bay Area Association of Realtors® Inc	(443) 249-3442
Carroll County Association of Realtors® Inc	(410) 876-3530 (410) 876-5938
Cecil County Board of Realtors®	(410) 398-4844 (410) 398-6990
Coastal Association of Realtors®	(410) 641-4409 (410) 641-2995
Frederick County Association of Realtors®	(301) 663-0757
Garrett County Board of Realtors® Inc	(301) 334-8405
Greater Baltimore Board of Realtors® Inc	(410) 337-7200

How Long Does the Real Estate Application Process Take?

Most people take about 3-4 months to complete the real estate application process and obtain their license. This process includes completing the 60 hours of required coursework, studying for and passing the national and state exams, and finding a broker to work under.