A Maryland real estate broker, acting as a dual agent in a transaction, receives an offer on a property listed by their firm. The seller accepts the offer but later discovers a material defect that was not disclosed prior to acceptance. Under Maryland law, what is the broker's primary fiduciary duty in this situation?

To inform the seller of the defect and advise them on their legal obligations regarding disclosure, while still representing their interests.. In Maryland, a dual agent owes fiduciary duties to both buyer and seller. Upon discovering a material defect, the broker must inform the seller of their legal obligation to disclose it to the buyer, while continuing to represent the seller's best interests within legal and ethical boundaries.

A property owner in Baltimore City wishes to sell their single-family home. They are considering offering a seller-financing option. What is the maximum interest rate a seller can charge on a seller-financed mortgage for a residential property in Maryland, assuming it is not a loan made by a licensed lender?

18% per annum. Maryland law (Commercial Law § 12-103) generally limits the interest rate on loans, including seller financing for residential property not made by a licensed lender, to 18% per annum. Rates above this are considered usurious.

A Maryland real estate broker is representing a buyer who is purchasing a commercial property. The buyer plans to renovate the property for use as a restaurant. During the inspection, a significant issue is found with the building's HVAC system, requiring an estimated $50,000 in repairs. The contract has a standard inspection contingency. What is the buyer's most appropriate course of action under Maryland contract law?

Negotiate with the seller to reduce the purchase price by the cost of repairs or have the seller make the repairs.. The inspection contingency allows the buyer to renegotiate terms or terminate the contract if significant issues are found. The most common and practical approach is to negotiate with the seller for a price reduction or for the seller to complete the necessary repairs before closing.

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Free Maryland Real Estate Broker Exam practice test with 50 realistic multiple-choice questions, instant grading, and explanations. Study with drill mode, category score reports, and a personalized review plan.

Exam format

50 multiple-choice practice questions
Drill mode with instant feedback and explanations after each answer

Study tips

Review the official exam content outline before your first practice run.
Take the full practice exam once to establish a baseline score by category.
Focus review on categories where you score below the passing threshold.
Re-take missed questions in drill mode until you can explain each correct answer.
Schedule the real exam only after consistent passing scores on practice tests.

Sample Maryland Broker practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

Question 1Agency and Fiduciary Duties
A Maryland real estate broker, acting as a dual agent in a transaction, receives an offer on a property listed by their firm. The seller accepts the offer but later discovers a material defect that was not disclosed prior to acceptance. Under Maryland law, what is the broker's primary fiduciary duty in this situation?
- A.To inform the seller of the defect and advise them on their legal obligations regarding disclosure, while still representing their interests.(Correct)
- B.To disclose the defect to the buyer directly, prioritizing the buyer's right to know over the seller's confidentiality.
- C.To maintain confidentiality regarding the defect to protect the seller's position, as the contract is already accepted.
- D.To immediately inform the buyer's agent of the defect and advise the buyer to withdraw their offer.
Explanation
In Maryland, a dual agent owes fiduciary duties to both buyer and seller. Upon discovering a material defect, the broker must inform the seller of their legal obligation to disclose it to the buyer, while continuing to represent the seller's best interests within legal and ethical boundaries.
Question 2Financing and Usury Laws
A property owner in Baltimore City wishes to sell their single-family home. They are considering offering a seller-financing option. What is the maximum interest rate a seller can charge on a seller-financed mortgage for a residential property in Maryland, assuming it is not a loan made by a licensed lender?
- A.18% per annum(Correct)
- B.16% per annum
- C.12% per annum
- D.The prevailing rate set by the Federal Reserve
Explanation
Maryland law (Commercial Law § 12-103) generally limits the interest rate on loans, including seller financing for residential property not made by a licensed lender, to 18% per annum. Rates above this are considered usurious.
Question 3Contract Contingencies and Negotiations
A Maryland real estate broker is representing a buyer who is purchasing a commercial property. The buyer plans to renovate the property for use as a restaurant. During the inspection, a significant issue is found with the building's HVAC system, requiring an estimated $50,000 in repairs. The contract has a standard inspection contingency. What is the buyer's most appropriate course of action under Maryland contract law?
- A.Negotiate with the seller to reduce the purchase price by the cost of repairs or have the seller make the repairs.(Correct)
- B.Immediately terminate the contract and demand a full refund of the earnest money deposit.
- C.Inform the seller that the HVAC issue is a deal-breaker and unilaterally withdraw from the transaction.
- D.Accept the property as-is and pursue legal action against the seller for failure to disclose latent defects.
Explanation
The inspection contingency allows the buyer to renegotiate terms or terminate the contract if significant issues are found. The most common and practical approach is to negotiate with the seller for a price reduction or for the seller to complete the necessary repairs before closing.

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Frequently asked questions

How many questions are on this Maryland Broker practice test?

This practice test includes 50 multiple-choice questions designed to mirror the format and difficulty of the real Maryland Real Estate Broker Exam.

Is this Maryland Broker practice test free?

Yes. You can start practicing for free. Create an account to save progress, track weak categories, and retake the exam.

Do I get explanations after each question?

Yes. In drill mode you see why the correct answer is right, why distractors are wrong, and practical examples where relevant.

How should I use this practice test to prepare?

Take the full exam under timed conditions, review missed questions by category, then focus study on your weakest sections before scheduling the real exam.

Does this replace official exam materials?

No. Use this as a supplement alongside official candidate information bulletins, textbooks, and hands-on experience required for your license or certification.

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