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NEW QUESTION # 122
What instruments are commonly used to secure the purchase of real property?
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
A promissory note is a borrower's written promise to repay a specified amount of money under agreed terms.
A mortgage is the security instrument that pledges real property as collateral for that note.
Together, they form the legal and financial foundation for most real estate loans.
If the borrower defaults, the lender may foreclose on the property under the rights granted by the mortgage.
The Maryland 60-Hour Course explains that while some states use deeds of trust instead of mortgages, Maryland primarily uses mortgages and promissory notes in conventional real estate financing.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Real Estate Financing" Module Md. Real Property Article §7-105 - Mortgage and Foreclosure Provisions.
NEW QUESTION # 123
How do you decide which party you represent in a transaction?
Answer: B
Explanation:
In Maryland, agency is established by an express, written brokerage agreement that identifies the client, defines the scope of services, and sets compensation terms and required disclosures. Who pays compensation does not determine agency; payment can come from any party or through the cooperative compensation system (e.g., MLS offers) without changing whom the licensee represents. Implied agency is not an acceptable substitute for the required written agreement in Maryland.
References:
Maryland Business Occupations & Professions Article, Title 17 - written brokerage agreement requirement and agency disclosures.
COMAR 09.11.02 (MREC regulations) - content and use of brokerage agreements; disclosure obligations.
Maryland 60-Hour Principles & Practices Course - Real Estate Brokerage & Agency Module (written agreements and representation).
NEW QUESTION # 124
In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as ______, where certain factors may be given more weight.
Answer: B
Explanation:
In the sales comparison approach, after making market-supported adjustments to comparable sales, the appraiser engages in reconciliation-a professional judgment process that weighs the quality and relevance of each comparable (e.g., similarity, extent and reliability of adjustments, data verification) and does not simply average the indicated values.
Bracketing is a selection technique (choosing comps slightly superior and inferior to the subject), and conformity is an appraisal principle (value is maximized when properties are similar). Neither is the final weighing process.
References: Maryland pre-licensing curriculum-Real Estate Appraisal and Valuation (sales comparison steps; adjustments; reconciliation and weighting of indications of value).
NEW QUESTION # 125
When preparing the sales contract, when is it acceptable for a licensee who is not an attorney to offer legal advice to the client?
Answer: A
Explanation:
Maryland licensees may fill in blanks on approved contract forms and explain business terms (e.g., common contingencies, offer strategies, earnest money customs). But giving legal advice-interpreting legal consequences, drafting custom legal clauses, or advising on rights/remedies-is considered the unauthorized practice of law unless the licensee is a Maryland attorney. Clients should be referred to legal counsel for legal questions.
References (Maryland Pre-Licensing Core Content):
* Maryland 60-Hour Course: "Real Estate Contracts" (use of approved forms; scope of practice; prohibition on legal advice).
* Maryland Real Estate Commission guidance (practice limits; unauthorized practice of law).
NEW QUESTION # 126
Local real estate developments, such as a new subdivision, will likely impact the ______ most.
Answer: B
Explanation:
In the Land Use Controls and Property Development content, the course explains that the primary impacts of a local development are local in scope, affecting nearby traffic patterns, school capacity, utilities, neighborhood character, and community aesthetics (e.g., subdivision layout, landscaping, design standards). Broader regional or federal effects are not the typical or most immediate consequences of a single local project.
References: Maryland 60-Hour Principles and Practices of Real Estate - Land Use Controls and Property Development: subdivision impacts, neighborhood character/aesthetics, public services, and local planning considerations.
NEW QUESTION # 127
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