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

Informed consent is a legal requirement under Maryland Agency Law when a brokerage represents both a buyer and a seller in the same real estate transaction (dual agency).

In this arrangement, the broker acts as the dual agent, while separate intra-company agents may represent each party.

The client must receive full disclosure of the potential conflicts of interest and consent in writing before dual agency can occur.

Without informed, written consent, dual agency is prohibited under Maryland Real Estate Commission (MREC) regulations.

Encouraging a client under an existing agency agreement to terminate that agreement and switch representation constitutes contractual interference and a violation of the Maryland Real Estate Brokers Act.

Licensees must respect the exclusive representation agreements of others and may only solicit business after the prior contract expires.

This is treated as unethical conduct and may result in disciplinary action, including fines or suspension by the MREC.

The course teaches that the title insurance policy itself specifies coverage and exclusions. Coverage basics appear on Schedule A, while Schedule B—Exceptions clearly lists matters excluded from coverage (e.g., specific recorded easements or restrictions, taxes, and other encumbrances identified in the title search). Therefore, to determine what is not covered, parties must review the policy’s schedule of exceptions.

A condominium is a form of ownership, not a type of structure.

It typically consists of multiple units (multi-family or multi-unit buildings) in which each owner holds title to their individual unit and shares ownership of common areas (e.g., hallways, pools, grounds) through the condominium association.

This differs from a cooperative (co-op), where residents hold shares and a proprietary lease.