MD RE Broker flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Maryland Real Estate Commission

State agency within the Maryland Department of Labor that licenses brokers, associate brokers, salespersons, and teams, adopts regulations, and imposes discipline for violations of license law.

Continuing education requirement

Maryland licensees must complete 15 hours of approved continuing education every two-year renewal term, including required fair housing and ethics instruction, to maintain an active license.

Broker license qualifications

Applicants need at least three years of active salesperson or associate broker experience, a 135-hour broker prelicense course, three hours of supervision education, and a passing exam.

Dual agency consent

Maryland requires the informed written consent of all parties before a licensee may act as a dual agent representing both buyer and seller in the same transaction.

Material fact disclosure

Licensees must disclose known material facts about the property's physical condition to all parties, even when confidentiality duties would otherwise restrict communication.

Single agency in Maryland

Maryland presumes a licensee represents the client with whom a written agency agreement exists; cooperating licensees represent their own clients rather than the seller by default.

Exclusive right to sell

Listing agreement in which the broker earns a commission regardless of who procures the buyer, provided the sale occurs during the listing term.

Brokerage name in advertising

All advertising, including team advertising and social media business pages, must display the registered brokerage name as it appears with the Maryland Real Estate Commission.

Record retention period

Brokers must retain transaction files, agency agreements, disclosures, and advertising records for at least three years after the transaction or agreement terminates.

Trust account deposit timing

Earnest money and client funds must be deposited into a separate trust or escrow account no later than the next banking day after receipt unless the contract states otherwise.

Commingling prohibition

Brokers may not mix personal or operating funds with client trust funds; trust accounts must be separate and reconciled monthly with supporting ledgers.

Settlement statement balance

Buyer's and seller's debits and credits must reconcile so that each party's cash to close matches the disbursement figures shown on the closing statement.

Tenancy by the entirety

Form of co-ownership available only to married couples in Maryland, featuring right of survivorship and protection from individual creditors of one spouse.

General warranty deed

Deed in which the grantor warrants title against all defects, including those created by the grantor and prior owners, and promises quiet enjoyment and further assurance.

Recording statute effect

Maryland's race-notice statute protects a subsequent bona fide purchaser for value who records first without notice of a prior unrecorded interest.

Deed of trust

Maryland security instrument conveying title to a trustee who may sell the property at foreclosure upon default, avoiding the need for court proceedings.

Closing Disclosure timing

Under TRID rules, the Closing Disclosure must be delivered to the borrower at least three business days before loan consummation, allowing time to review final terms.

Lead-based paint disclosure

Federal requirement that sellers of pre-1978 housing disclose known lead hazards, provide the EPA pamphlet, and allow buyers a ten-day inspection opportunity.

Maryland property disclosure

Seller's written Residential Property Disclosure and Disclaimer Statement covering known defects and conditions, delivered before contract formation with rescission rights for late delivery.

Conditional use approval

Zoning approval allowing a use that is permitted in a district only after review of compatibility, site conditions, and conditions imposed by the local zoning authority.

Sales comparison approach

Valuation method that estimates value by adjusting prices of recently sold comparable properties for differences in features, location, condition, and date of sale.

Capitalization rate formula

Value equals net operating income divided by the capitalization rate; the rate reflects the investor's required return and risk for the property.

Highest and best use

The legally permissible, physically possible, financially feasible use that produces the highest present value for a property over a reasonable period.

Broker supervision duty

The broker must supervise affiliated licensees, maintain written policies on agency, advertising, trust accounts, and fair housing, and document training and oversight.

Source of income protection

Maryland fair housing law prohibits discrimination based on lawful source of income, including housing vouchers and rental assistance, in the sale or rental of housing.

Reasonable accommodation

Housing providers must permit reasonable modifications and policy exceptions needed by persons with disabilities, such as assistance animals or assigned parking, absent undue burden.

Commission calculation

Commission equals sale price multiplied by the agreed rate; net proceeds subtract commission, loan payoff, closing costs, and prorated expenses from the sale price.

Loan-to-value ratio

Loan amount divided by the lesser of purchase price or appraised value, expressed as a percentage; higher ratios generally require mortgage insurance.

Proration calculation

Expenses and income are divided between buyer and seller based on days of ownership in the period, using a 365-day year unless the contract specifies otherwise.

Gross rent multiplier

Sale price divided by gross monthly rent; used to estimate value by multiplying the subject property's gross rent by the market-derived multiplier.

Discount points

One point equals one percent of the loan amount; paying discount points upfront lowers the interest rate and increases the lender's effective yield.

Acre conversion

One acre equals 43,560 square feet, and one section equals 640 acres or one square mile, used to convert land measurements in valuation problems.