MD Real Estate study guide
MD Real Estate · Work through your exam, one topic at a time.
The Maryland real estate salesperson license is the entry-level credential that allows you to work under a licensed Maryland broker to list, market, and sell or lease real property for others in exchange for compensation. It is designed for new entrants to the business - career changers, part-time agents, and people joining an established brokerage team - and it is issued by the Maryland Real Estate Commission, the state regulator that also sets the education and examination requirements. The MD Real Estate study guide has 10 sections and about 3,258 words.
01Licensing and Regulation: MREC and Maryland License Law
The Maryland Real Estate Commission (MREC), within the Maryland Department of Labor, licenses and disciplines brokers, associate brokers, and salespersons under the Business Occupations and Professions Article, Title 17. MREC does not set commission rates (that would violate antitrust law) and does not resolve commission or contract disputes - those are civil matters.
340 words, about 2 min02Agency and Brokerage Relationships in Maryland
Maryland requires the 'Understanding Whom Real Estate Agents Represent' disclosure at the first scheduled meeting to discuss a specific property, or before any written agreement, whichever comes first. Brokerage relationships must be defined in writing: a listing agreement for sellers, a buyer-broker agreement for buyers.
314 words, about 2 min03Contracts and Transaction Documents
Listing agreements, buyer-broker agreements, and purchase contracts are all contracts and must satisfy the Statute of Frauds: writing, signature of the party to be charged, and essential terms. Maryland requires written brokerage agreements identifying the term, compensation, and the parties' obligations.
315 words, about 2 min04Real Property Ownership, Transfer, and Title
Fee simple absolute is the most complete estate; lesser estates include life estates and leaseholds, including Maryland's ground-rent leasehold. Co-ownership: tenancy in common (no survivorship, unequal shares permitted), joint tenancy (requires the unities and express survivorship language), and tenancy by the entirety (married couples only; neither spouse may convey alone).
317 words, about 2 min05Financing and Settlement
Maryland typically secures a loan with a deed of trust naming a trustee, though 'mortgage' is used interchangeably in practice. The promissory note is the debt; the deed of trust is the lien.
334 words, about 2 min06Leasing, Property Management, and Landlord-Tenant Law
Maryland leases may be oral or written, but terms over one year require a writing under the Statute of Frauds. A written lease should identify the parties, premises, term, rent, and required disclosures (security deposit account information, lead paint for pre-1978 units, landlord or agent contact information).
338 words, about 2 min07Fair Housing and Consumer Protection
Federal Fair Housing Act: race, color, religion, sex (HUD treats sexual orientation and gender identity as covered under sex), national origin, familial status, and disability. Maryland adds marital status, sexual orientation, gender identity, and source of income - source of income is the most frequently tested state addition.
293 words, about 1 min08Valuation and Market Analysis
Sales comparison (best for existing residential), cost (replacement cost less depreciation plus land - best for new or unusual properties), and income (capitalization and gross rent multipliers - best for investment property). Reconciliation weights the approach most reliable for that property type and data quality.
336 words, about 2 min09Property Condition, Disclosures, and Environmental Issues
For most residential transfers, Maryland requires the seller to deliver either a Residential Property Disclosure Statement (known conditions of water/sewer systems, hazardous or toxic materials, structural and land-use matters, and similar items) or a Residential Property Disclaimer Statement. The disclaimer is not available in every transaction, and it never relieves the seller of the duty to disclose latent defects the seller actually knows about.
298 words, about 1 min10Real Estate Calculations and Practice
Commission = sale price × rate. The listing broker receives the total, pays the cooperating broker per the offer of compensation, then pays the salesperson per the employment agreement.
373 words, about 2 min