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

In practice and per course guidance, the buyer is responsible for initiating and completing the loan application, arranging the appraisal through the lender, ordering the home inspection, and securing homeowners insurance prior to closing. Although lenders order the appraisal to comply with appraisal independence rules, the buyer is the party who applies for financing and is responsible for ensuring the appraisal, inspection, and insurance are in place to meet loan and contract conditions by closing.

The buyer determines the amount of the earnest money deposit, since it is the buyer’s good-faith indication of intent to perform under the contract.

The licensee can explain customary local practices and typical deposit amounts but may not set or require a specific figure.

The offer, including the deposit amount, becomes binding only when accepted by the seller.

This is emphasized in the Contracts and Offer Preparation module, which explains that the buyer controls all offer terms, including price, contingencies, and deposit.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Real Estate Contracts section.

– Business Occupations and Professions Article §17-322 (Improper Brokerage Practices).

The standard net-to-seller calculation is:

Net to seller = Sales price × (100% − commission rate) − closing costs.

Thus, the missing element is Sales price. (Commission is calculated on the sales price, then other seller-paid closing costs are subtracted to arrive at net.)

In Maryland, licensees must disclose material facts that are adverse, that they actually know, and that are physical to the property or the transaction—even to customers (non-clients). The MAAP framework (Material, Adverse, Actually known, Physical) is taught in pre-licensing to help practitioners decide what must be disclosed and to distinguish disclosable facts from confidential information or client motivations that must be protected. Examples include known structural defects, roof leaks, or latent physical conditions. This aligns with Maryland’s duties of honesty, disclosure of material facts, and prohibition against misrepresentation.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Brokerage and the Law of Agency” (brokerage duties to clients and customers; disclosure vs. confidentiality; MAAP decision tool).

COMAR 09.11.02 (standards of practice: honesty; disclosure of material facts; avoidance of misrepresentation).

Business Occupations & Professions, Title 17 (grounds for discipline related to disclosure and misrepresentation).