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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q100-Q105):

NEW QUESTION # 100
Which type of deed offers the strongest and broadest form of guarantee and protection of title to the grantee?

Answer: D

Explanation:
In the deed section of the pre-licensing course, learners are taught that the full covenant and warranty deed (often called a general warranty deed) provides the broadest protection for the grantee because the grantor warrants good title, free from encumbrances, and defends the title against all claims, whether they arose before or during the grantor's ownership. The deed typically carries the full set of common law covenants (seisin, right to convey, against encumbrances, quiet enjoyment, further assurances, and warranty). By contrast, a quitclaim deed offers no warranties, a bargain and sale deed implies ownership but gives limited or no warranties, and executor's or personal representative deeds convey title on behalf of an estate without full warranties.
References: Maryland 60-Hour Principles and Practices of Real Estate - Transfer of Title: types of deeds; scope of warranties; general (full covenant) warranty vs. special warranty vs. bargain and sale vs. quitclaim; estate and fiduciary deeds.


NEW QUESTION # 101
What does PITI stand for?

Answer: C

Explanation:
PITI is the standard mortgage-payment acronym: Principal (loan balance reduction), Interest (finance charge), Taxes (property taxes, typically escrowed), and Insurance (homeowner's and, when applicable, mortgage insurance). Lenders use PITI to calculate housing ratios and total debt-to-income requirements during underwriting-core content in the financing section of Maryland's pre-licensing course.
References: Maryland 60-Hour Principles & Practices Course - Real Estate Financing and Math for Real Estate modules; Conventional/FHA/VA underwriting concepts included in curriculum standards.


NEW QUESTION # 102
Which act gives companies the right to sue a competitor for making deceptive ad claims?

Answer: B

Explanation:
Within Brokerage Operations and Advertising Compliance, the course explains that while state license laws prohibit false, misleading, or deceptive advertising, at the federal level the Lanham Act allows businesses to bring civil actions against competitors for false or misleading advertising that misrepresents the nature, characteristics, or qualities of goods or services. This is distinct from consumer protection frameworks (e.g., FTC Act) and privacy/financial statutes (e.g., Gramm-Leach-Bliley Act and the Privacy Act), which do not create the same competitor-to-competitor false advertising claim.
References: Maryland 60-Hour Principles and Practices of Real Estate - Brokerage Operations: Advertising rules and liability; Overview of federal advertising enforcement and the Lanham Act (false advertising and unfair competition).


NEW QUESTION # 103
What's used to calculate the housing debt-to-income ratio and total debt-to-income ratio?

Answer: D

Explanation:
Lenders compute DTI ratios using the borrower's gross (pre-tax) monthly income.
* Housing DTI (front-end) = monthly housing costs ÷ gross monthly income.
References: Maryland 60-Hour Course: "Real Estate Financing" and "Math for Real Estate and Practical Applications" (front-end/back-end DTI; gross income basis).


NEW QUESTION # 104
Which of the following could be considered illegal behavior in real estate when a third party interferes with an existing contract?

Answer: A

Explanation:
Comprehensive and Detailed
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.


NEW QUESTION # 105
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