Real Estate Updated Maryland-Real-Estate-Salesperson Exam Questions and Answers by timothy

Regardless of who pays the commission, the client is the person named in the agency agreement—in this case, Sadie, the property owner.

The Maryland Real Estate Brokers Act defines the client as the party with whom the broker or salesperson has an agency relationship, not necessarily the one providing compensation.

Third-party payments do not alter the contractual relationship or fiduciary duties.

Once a building permit is issued, the local building department monitors the construction process through inspections at key stages (foundation, framing, electrical, plumbing, final).

The purpose of these inspections is to ensure that work complies with state and local building codes and safety standards.

Maryland’s pre-licensing course explains that certified building inspectors—not peers or the builder—conduct these inspections.

Only after passing all required inspections will the department issue a certificate of occupancy (CO) confirming code compliance and permitting lawful use of the structure.

A legal description uniquely identifies a parcel of real estate so it can be distinguished from every other property.

In Maryland, contracts and deeds must contain a valid legal description, such as:

Metes and bounds,

Lot and block, or

Rectangular survey (government survey).This ensures the transfer is legally enforceable and leaves no ambiguity about what property is being conveyed.Without a legal description, a real estate contract or deed may be deemed invalid or unenforceable in court.

Under Maryland Code of Ethics (COMAR 09.11.02.33A) and Maryland Business Occupations and Professions §17-322(a)(23), a licensee must disclose any compensation, commission, fee, or bonus received from a party other than their client in the transaction.

If a seller offers an undisclosed bonus to the buyer’s agent, that bonus must be fully disclosed in writing to the buyer (the agent’s client) before acceptance. Failure to do so constitutes an ethical and legal violation. The payment, once disclosed, must be processed through the agent’s broker, who is responsible for all compensation distribution.