Determine your answer, then click the arrow to see the correct response.
What Is the Primary Purpose of a Deed?
A) To transfer ownership of real property
B) To provide proof of property insurance
C) To record a lien against a property
D) To establish a property's market value
Correct Answer: A) To transfer ownership of real property
Explanation: A deed is a legal document that transfers ownership of real property from one party to another.
An Easement That Grants a Specific Individual the Right To Use a Portion of Another's Property for a Specific Purpose Is Called:
A) Easement appurtenant
B) Easement in gross
C) Prescriptive easement
D) Implied easement
Correct Answer: B) Easement in gross
Explanation: An easement in gross benefits an individual or entity rather than a piece of land.
The Economic Principle That Suggests the Value of a Property Is Influenced by the Value of Surrounding Properties Is Known As:
A) Progression
B) Regression
C) Contribution
D) Substitution
Correct Answer: A) Progression
Explanation: The principle of progression states that the value of a lesser property is increased by its proximity to more valuable properties.
A Tenant Who Remains In Possession of the Property After the Lease Has Expired Without the Landlord's Consent Is Known As:
A) A periodic tenant
B) A tenant at sufferance
C) A tenant at will
D) A joint tenant
Correct Answer: B) A tenant at sufferance
Explanation: A tenant at sufferance is someone who remains in the property after the expiration of the lease without the landlord’s permission.
In Maryland, Which of the Following Must Be Included in a Listing Agreement?
A) The property's assessed value
B) The commission rate
C) The appraised value of the property
D) The property's previous sale price
Correct Answer: B) The commission rate
Explanation: A listing agreement must include the agreed-upon commission rate to be paid to the broker.
A Contract That Is Valid and Enforceable but Could Be Voided by One of the Parties Due To Certain Circumstances Is Known As:
A) Void
B) Voidable
C) Unenforceable
D) Executory
Correct Answer: B) Voidable
Explanation: A voidable contract is valid and enforceable but may be legally voided at the option of one of the parties.
Which Type of Ownership Allows for the Interests of Deceased Owners To Pass to Their Heirs Rather Than the Other Co-Owners?
A) Joint tenancy
B) Tenancy in common
C) Tenancy by the entirety
D) Community property
Correct Answer: B) Tenancy in common
Explanation: In tenancy in common, the deceased owner’s interest passes to their heirs rather than the other co-owners.
The "Bundle of Rights" Associated With Property Ownership Includes All of the Following EXCEPT:
A) Right of possession B) Right to encumber
C) Right of exclusion
D) Right of profit
Correct Answer: D) Right of profit
Explanation: The bundle of rights typically includes possession, control, exclusion, enjoyment, and disposition, but not profit.
A Seller Accepts an Offer on Their Home, but Another Buyer Offers a Higher Price Before Closing. What Should the Seller Do According to Maryland Law?
A) Accept the higher offer
B) Cancel the first contract and accept the higher offer
C) Notify the first buyer and ask them to match the higher offer
D) Honor the first contract and accept the higher offer as a backup
Correct Answer: D) Honor the first contract and accept the higher offer as a backup
Explanation: The seller must honor the first contract but can accept the higher offer as a backup.
If a Maryland Real Estate Licensee Fails To Renew Their License by the Expiration Date, They:
A) Can continue to practice for 30 days
B) Must cease all real estate activities immediately
C) Have a 60-day grace period to renew
D) Can renew their license without penalty within one year
Correct Answer: B) Must cease all real estate activities immediately
Explanation: A licensee must stop all real estate activities immediately if their license expires.