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Real Estate Maryland Real Estate Salesperson Examination Sample Questions:

1. What is the primary purpose of a property tax levy?

A) It's used to build new shopping malls.
B) It's used to build high-end housing.
C) It's used to determine property tax increases.
D) It's used to fund essential services and public works.

2. Why are legal descriptions required in real estate contracts?

A) To establish the legal boundaries for future construction on the property
B) To guarantee the buyer is receiving the exact property they believe they are purchasing
C) To calculate the exact property taxes owed by the new owner
D) To ensure the piece of property can be clearly identified from all other properties

3. Which of the following is used to protect the buyer from title defects after closing?

A) Chain of title
B) Buyer title insurance policy
C) Abstract of title
D) Attorney's opinion of title

4. In relation to appraisals, what is a "federally related transaction"?

A) A transaction in which financing is obtained from foreign investors
B) A transaction involving the sale of government secrets
C) An appraisal that a federally licensed appraiser conducts
D) A real estate transaction in which a federal financial agency or regulatory authority is involved

5. With what loan program or programs can a borrower obtain 100% financing?

A) FHA, VA, and USDA
B) FHA and VA
C) USDA and VA
D) USDA and FHA

Solutions: