A reference to a recorded plat (lot and block system) is a form of legal description , an essential element that precisely identifies the property being conveyed. Consideration is the value exchanged; the granting clause (words of conveyance) shows intent to transfer; the habendum clause defines the estate being granted (e.g., “to have and to hold…”).

The course states that an exclusive right-to-sell listing is a brokerage employment agreement between the seller and the listing brokerage (through the authorized broker), not with the buyer. The listing contract authorizes the brokerage to market the property and earn compensation upon a sale during the listing term, regardless of who procures the buyer. Therefore, the parties are the seller (Chuck) and the listing brokerage (Nevin’s brokerage) .

Area of a rectangle = length × width . Here, 40 ft × 20 ft = 800 square feet . Area is always expressed in square units .

In Maryland, when a new salesperson applicant identifies a supervising broker on the license application, the applicant receives an active license.

An inactive license is issued only if no broker is designated.

An active license authorizes the salesperson to conduct real estate activities under the supervision of the sponsoring broker, in compliance with MREC rules.

A sole proprietor in Maryland may operate under their personal legal name or under a trade name that has been properly registered with the Maryland Department of Assessments and Taxation (SDAT).

If a trade name is used, it must be clearly disclosed in all brokerage advertising and license registration records with the MREC.

This ensures public transparency and compliance with Maryland’s real estate advertising and licensing requirements.

In real estate, positive (affirmative) misrepresentation occurs when a licensee makes an affirmative statement of fact that is false . When the statement is knowingly false and causes reliance and harm, it rises to fraudulent misrepresentation —but it is still a positive (affirmative) misrepresentation because it is an overt, false assertion (as opposed to concealment/nondisclosure , sometimes called passive misrepresentation).

Option A describes an affirmative false statement that causes harm (i.e., a classic example of positive misrepresentation; intent makes it fraudulent).

Options B and C describe innocent/negligent errors but don’t clearly state an affirmative false statement of material fact.

Option D confuses “positive” with “beneficial outcome,” which is not what the term means.

References (Maryland Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Brokerage and the Law of Agency” (truthful dealing; material facts; affirmative vs. passive misrepresentation; fraudulent vs. negligent vs. innocent misrepresentation).

COMAR 09.11.02 (standards of practice: honesty, fair dealing, and prohibition against misrepresentation).

Under the Internal Revenue Code (IRC §168), depreciation is a method for recovering the cost of income-producing property over time.

Residential income-producing properties (such as apartment buildings) are depreciated over 27.5 years.

Commercial income-producing properties (such as office buildings) are depreciated over 39 years.These timelines are based on the Modified Accelerated Cost Recovery System (MACRS) used for tax purposes.This concept is included in the Maryland Pre-Licensing Course within the Appraisal and Valuation section, to ensure licensees understand property valuation and investment considerations.

Maryland’s Code of Ethics and Standards of Practice for real estate licensees is promulgated in COMAR (Code of Maryland Regulations) under the real estate subtitle, but enforcement rests with the Maryland Real Estate Commission (MREC) . The Commission investigates complaints and may impose sanctions (education, fines, suspension, revocation) for violations. REALTOR® associations enforce the NAR Code of Ethics , which is separate and contractual to membership, not the state’s legal code.

A license is a personal, revocable privilege to perform some act on another person’s land without any possessory right or ownership interest. Unlike an easement, a license does not transfer with the land and can be revoked at any time by the licensor. Examples include permission to hunt, park, or attend an event on private property.

In Maryland’s pre-licensing course, this concept is taught under “Interests in Real Estate” as a type of encumbrance that affects property use but not ownership.

Antitrust violations occur when individuals or companies engage in activities that restrict competition in the marketplace and limit consumer choice.

In real estate, this includes price-fixing, group boycotts, market allocation, and tie-in agreements, all of which are prohibited under the Sherman Antitrust Act and Federal Trade Commission Act.

Maryland’s real estate license law reinforces these prohibitions, and the Maryland 60-Hour Course covers antitrust compliance under “Fair Housing and Ethics” to ensure licensees act in the public’s best interest and avoid practices that restrain trade.