In Maryland pre-licensing, licensees are taught to help buyers—especially first-time purchasers or those with recent credit challenges —understand appropriate, suitable financing options (fixed vs. adjustable rates, government-backed loans, down payment assistance, points, APR, mortgage insurance, qualifying ratios), and to avoid steering to high-risk or predatory products . This aligns with consumer-protection principles, agency duties, and federal disclosure frameworks (TILA/RESPA) covered in the financing module.

Under Maryland license law and the Maryland Code of Ethics (COMAR 09.11.02.33), licensees are expected to cooperate with other licensees when doing so serves their client’s best interest. Cooperation often involves sharing information or coordinating showings, but does not require compensation unless there is a written agreement specifying how commissions will be shared. The client’s interest always takes priority over cooperative obligations.

Agreeing— or even coordinating —on a minimum commission or listing fee among competing brokerages is price fixing , a per se violation of antitrust law . Maryland pre-licensing emphasizes that competitors must not discuss or set commission rates, fees, or pricing policies; each brokerage must independently determine its fees.

Group boycotting = competitors conspiring to refuse to deal with a party.

Market allocation = dividing territories/customers.

Tie-in arrangement = conditioning sale of one product/service on purchase of another.

References (Maryland Sources / Pre-Licensing Core Content):

Maryland 60-Hour Course: “Real Estate Brokerage Operations” (antitrust compliance: price fixing, market allocation, group boycotts, tie-ins).

Sherman Antitrust Act principles as incorporated in Maryland real estate education.

COMAR 09.11.02 (ethical conduct; avoiding anticompetitive practices); MREC guidance on commissions being negotiable and set independently by each brokerage.

Maryland’s Fair Housing Law (State Government Article, Title 20, Subtitle 7) expands on the federal Fair Housing Act by adding additional protected categories: marital status, sexual orientation, gender identity, and source of income. This means licensees cannot discriminate in the sale, rental, or financing of housing based on these traits. The course emphasizes that local jurisdictions (e.g., Baltimore City, Montgomery County) may have even broader protections.

Under Maryland Real Estate Brokers Act §17-530 and COMAR 09.11.02.08, dual agency is permitted only when informed, written consent is obtained from both buyer and seller. When licensees operate as part of a team, the broker (or office manager acting as the broker’s designee) may appoint intra-company agents (ICAs) from within that team to represent each party.

The broker or manager then acts as the dual agent, overseeing both sides without providing direct representation to either. This structure preserves confidentiality and compliance with Maryland’s agency disclosure requirements.

Maryland licensees may use pre-approved or attorney-drafted forms in the course of their duties.

However, they may not draft legal documents or interpret legal implications, as doing so constitutes unauthorized practice of law.

The Maryland Real Estate Commission (MREC) allows licensees to fill in the blanks of standard forms approved by the Maryland Association of REALTORS® (MAR) or by legal counsel, but all legal interpretations must be referred to an attorney.

Puffery refers to subjective statements of opinion or sales talk that a reasonable person would not take as a factual representation.

Phrases like “best views,” “dream home,” or “finest neighborhood” are considered puffing, not misrepresentation.

Maryland’s pre-licensing course distinguishes puffery (legally permissible) from misrepresentation, which involves false statements of material fact that can lead to disciplinary action or liability.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices Course, Ethical Conduct and Misrepresentation section.

– Maryland Business Occupations and Professions Article §17-322 (Grounds for Disciplinary Action).

In the “Math for Real Estate and Practical Applications” portion, area and measurement conversions are foundational. An acre is defined as 43,560 square feet . Option B (“43,560 feet”) is incorrect because it omits the necessary square unit. The course emphasizes accurate units and conversions for calculations involving land area , price-per-square-foot/acre , and legal descriptions .

References (Course Outline/Study Topics): Maryland 60-Hour Principles and Practices of Real Estate — “Math for Real Estate” (Area/acre conversions; unit accuracy).

Only licensed or certified appraisers may perform an appraisal for a fee in a federally related transaction.

A real estate licensee, however, may prepare a Comparative Market Analysis (CMA) or Broker Price Opinion (BPO) to help a seller decide on a listing price or a buyer to make an offer.

A CMA compares recent sales, active listings, and expired listings of similar properties to estimate a realistic price range.

This procedure is emphasized in the “Appraisal and Valuation” module as a permitted pricing tool for real estate professionals.

Reference (Maryland Source):

– Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Valuation and CMA section.

– Business Occupations and Professions Article §17-511 (b).

Property taxes collected by local jurisdictions in Maryland support essential public services such as schools, police and fire departments, infrastructure maintenance, libraries, and sanitation. The revenue forms the primary funding source for county and municipal budgets. These taxes do not automatically determine future tax rates; rather, they sustain ongoing community operations and improvements.