Why would a buyer want to know whether any additions or alterations were made to a property?
Answer : B
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
In Maryland, buyers have the right to receive full disclosure of any additions, alterations, or improvements made to a property. This is crucial because such modifications may have required building permits and inspections under state and local building codes.
A buyer wants to know whether permits were obtained to ensure that:
The work was done legally and safely,
It meets local code requirements, and
There are no future liability or resale issues.
Unpermitted work can lead to enforcement actions or costly repairs. The Maryland Property Disclosure and Disclaimer Statement (per Real Property 10-702) requires sellers to disclose known material defects or improvements.
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Environmental Issues and Disclosures'' Module
Maryland Real Property Article 10-702 -- Residential Property Disclosure and Disclaimer Requirements.
Loans insured through USDA have which of the following characteristics?
Answer : A
Comprehensive and Detailed Explanation:
The U.S. Department of Agriculture (USDA) Rural Development Loan Program provides financing for low- to moderate-income borrowers in rural areas.
The Maryland course teaches that Section 502 Direct Loans may offer repayment terms of up to 38 years, depending on borrower income and property location.
These loans are designed to promote homeownership in eligible rural communities and may include payment assistance or subsidies to reduce monthly payments.
Ellen and Sadie signed an agreement to list Sadie's condo for sale. After the contract was signed, Sadie's father, Grant, offered to pay Ellen's commission as a housewarming present. Sadie's mom and stepdad, Linda and Rick, also chipped in. Who is Ellen's client?
Answer : D
Comprehensive and Detailed Explanation:
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.
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Law of Agency'' Module
Md. Business Occupations and Professions Article 17-530 -- Agency Relationship and Duties.
An unrepresented buyer is purchasing a home. The seller is represented by a real estate licensee. Who is the client in this transaction?
Answer : D
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
In Maryland, agency exists when a licensee represents a client under a brokerage agreement. If the seller has a written listing agreement with a broker, the seller is the client.
An unrepresented buyer is considered a customer, not a client. The licensee owes customers limited duties---honesty, fair dealing, and disclosure of material facts---but does not owe fiduciary duties such as loyalty, confidentiality, or obedience.
Therefore, in this case, the seller is the only client.
How does the income from property taxes benefit the community?
Answer : D
Comprehensive and Detailed Explanation:
Property taxes collected by local jurisdictions in Maryland support essential public services such as schools, police and fire departments, infrastructure maintenance, libraries, and sanitation. The revenue forms the primary funding source for county and municipal budgets. These taxes do not automatically determine future tax rates; rather, they sustain ongoing community operations and improvements.
Maryland 60-Hour Course -- ''Land Use Controls and Property Development'' topic; Maryland Tax-Property Article 6-201 and Local Government Finance Overview.
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