Maryland Real Estate License Overview
Maryland offers exceptional opportunities for real estate professionals, particularly in the high-value Washington DC metro market. The state features affluent suburbs in Montgomery and Howard counties, waterfront properties along the Chesapeake Bay, and diverse urban markets in Baltimore. The Maryland Real Estate Commission (MREC) oversees all licensing requirements through the Division of Occupational and Professional Licensing.
With a first-time pass rate of approximately 52%, the Maryland exam requires thorough preparation. However, the state's strong market and high-value properties make it worth the investment.
Maryland Real Estate Exam Quick Facts
| Feature | Details |
|---|---|
| Exam Administrator | PSI for MREC |
| Total Questions | 110 (80 national + 30 state) |
| Time Limit | 150 minutes (90 min national, 30 min state) |
| Passing Score | 70% on each portion |
| Exam Fee | $44 |
| Results | Immediate (pass/fail on screen) |
| Testing Format | In-person only (no online option) |
Requirements Before Taking the Exam
Basic Eligibility Requirements
| Requirement | Details |
|---|---|
| Age | 18 years or older |
| Pre-License Education | 60 hours of MREC-approved coursework |
| Final Exam | Must pass proctored school final exam |
| Testing Eligibility | Valid for 1 year after completing course |
Pre-License Education (60 Hours)
Maryland requires 60 hours of pre-licensing education covering:
| Topic Area | Coverage |
|---|---|
| Real Estate Law | Property rights, contracts, title |
| Types of Interest and Ownership | Fee simple, life estates, condos |
| Home Ownership | Financing, insurance, taxation |
| Legal Descriptions | Metes and bounds, plat, government survey |
| Appraisal | Valuation approaches, CMAs |
| Finance | Mortgages, loan types, calculations |
| Closings | Settlement procedures, prorations |
| Ethics | Professional standards, fair housing |
Important: Maryland requires the pre-license final exam to be supervised by a proctor. This is not the state licensing exam but a school-administered assessment.
Application Process
- Complete 60-hour pre-license course from approved school
- Pass proctored school final exam
- Register for exam with PSI
- Pass both portions of the state licensing exam
- Submit license application within 1 year of passing exam
- Find a sponsoring broker
- Pay license fee ($90 including Guaranty Fund)
- Receive active license
Maryland Exam Format
The Maryland real estate exam consists of two separately-timed portions, each requiring a 70% passing score.
Content Breakdown
| Section | Questions | Time | Passing Score |
|---|---|---|---|
| National Portion | 80 questions | 90 minutes | 56/80 (70%) |
| State Portion | 30 questions | 30 minutes | 21/30 (70%) |
| Total | 110 questions | 120 minutes | 70% each section |
National Portion Topics (80 Questions)
| Topic | Percentage | ~Questions |
|---|---|---|
| Property Ownership | 10% | 8 |
| Land Use Controls | 8% | 6 |
| Valuation and Market Analysis | 10% | 8 |
| Financing | 12% | 10 |
| Laws of Agency | 13% | 10 |
| Mandated Disclosures | 8% | 6 |
| Contracts | 15% | 12 |
| Transfer of Title | 8% | 6 |
| Practice of Real Estate | 10% | 8 |
| Real Estate Calculations | 6% | 5 |
State Portion Topics (30 Questions)
| Topic | Key Content |
|---|---|
| MREC Duties and Powers | Commission authority, disciplinary actions |
| Licensing Requirements | Education, application, fees, renewal |
| Agency | Brokerage relationships, disclosure requirements |
| Supervision | Broker responsibilities, team leaders |
| Business Conduct | Trust accounts, advertising, prohibited practices |
| Ethics | Maryland Code of Ethics, flipping, predatory lending |
Maryland-Specific Topics to Master
Brokerage Relationships and Disclosure
Maryland recently updated its agency laws (effective October 1, 2024). Key concepts:
| Relationship Type | Description |
|---|---|
| Seller's Agent | Exclusive representation of seller |
| Buyer's Agent | Exclusive representation of buyer |
| Dual Agent | Represents both with informed consent |
| Transaction Broker | Facilitates without representing either party |
Critical Disclosure Rule (§17-532.d):
"A licensee may not disclose confidential information obtained from a prospective client in anticipation of forming a brokerage relationship, unless the prospective client consents in writing to the disclosure."
Mandatory Continuing Education Classes
Maryland requires specific CE topics that reflect exam content:
| Topic Code | Required Course | Description |
|---|---|---|
| A | Legislative Update | Current laws and regulations |
| D | Ethics | MD Code of Ethics, flipping, predatory lending |
| H | Brokerage Relationships | Principles of disclosure (replaced agency class) |
Note: These Maryland-specific courses cannot be substituted with courses from other states. NAR ethics is NOT a substitute for Maryland required ethics.
MREC Structure and Authority
| Feature | Details |
|---|---|
| Regulatory Body | Division of Occupational and Professional Licensing |
| Disciplinary Authority | License suspension, revocation, fines |
| Guaranty Fund | $20 included in license fee |
| Complaint Process | Formal complaint filing with MREC |
Supervision Requirements
Effective October 1, 2024, new supervision regulations require:
| Role | Requirement |
|---|---|
| Broker | Complete MREC Required Supervision Course |
| Branch Office Manager | 1.5 hours within 90 days of assuming role |
| Team Leader | Same as above if not already completed |
Maryland Trust Account Requirements
| Requirement | Maryland Rule |
|---|---|
| Deposit Timeline | Promptly upon receipt |
| Account Location | Maryland financial institution |
| Interest | As specified in contract |
| Record Keeping | Detailed records, minimum 5 years |
Maryland Ground Rent
A unique Maryland concept frequently tested:
| Feature | Details |
|---|---|
| Definition | Leasehold interest where owner pays annual rent to land owner |
| Common Areas | Baltimore and surrounding areas |
| Redemption | Tenant can purchase fee simple interest |
| Disclosure | Must be disclosed to buyers |
Maryland First-Time Homebuyer Programs
Agents should be familiar with:
- Maryland Mortgage Program
- Down Payment Assistance
- Partner Match programs
- Income and purchase price limits
Maryland Real Estate Exam Pass Rate
The Maryland real estate exam has an approximate 52% first-time pass rate, making it one of the more challenging state exams.
| Factor | Impact |
|---|---|
| Two-part exam | Must pass both sections separately |
| Tight time limit | Only 30 minutes for 30 state questions |
| State-specific content | Unique Maryland concepts (ground rent, etc.) |
| In-person only | No online testing option available |
Pass Rate by Portion
| Portion | First-Time Pass Rate |
|---|---|
| National | ~60% |
| State | ~55% |
| Overall | ~52% |
Study Strategy
Recommended Study Timeline
| Approach | Study Hours | Timeline |
|---|---|---|
| Intensive | 40-50 hours | 2-3 weeks |
| Standard | 50-70 hours | 3-4 weeks |
| Part-time | 70-90 hours | 5-6 weeks |
Study time is in addition to the 60-hour pre-license education.
Study Priority by Weight
-
National Content (73% of exam)
- Contracts and agency (28% combined)
- Financing and valuation (22% combined)
- Property ownership and transfer
- Real estate calculations
-
Maryland State Content (27% of exam)
- Brokerage relationships and disclosure
- MREC rules and licensing requirements
- Trust accounts and supervision
- Maryland-specific concepts (ground rent)
Key Math Formulas to Master
Commission Calculations:
Prorations:
Transfer Tax (Maryland):
Loan-to-Value:
Capitalization Rate:
Common Mistakes to Avoid
1. Running Out of Time on State Section
With only 30 minutes for 30 questions, you have exactly 1 minute per question. Practice time management.
2. Confusing Old and New Agency Laws
Maryland updated agency/disclosure laws effective October 2024. Make sure your study materials reflect current law.
3. Ignoring Ground Rent Concepts
Ground rent is unique to Maryland and frequently tested. Understand redemption rights and disclosure requirements.
4. Underestimating Ethics Content
Maryland ethics includes specific topics like flipping and predatory lending. Know the MD Code of Ethics.
5. Expecting Online Testing
Unlike some states, Maryland requires in-person testing only at PSI centers. Plan your travel accordingly.
Exam Day Tips
Before the Exam
- Get adequate rest the night before
- Eat a balanced meal
- Arrive 30 minutes early at PSI center
- Bring two forms of ID (one government-issued with photo)
PSI Testing Locations
| City | Location Type |
|---|---|
| Baltimore | PSI Test Center |
| College Park | PSI Test Center |
| Crofton | PSI Test Center |
| Hagerstown | PSI Test Center |
| Lanham | PSI Test Center |
What to Bring
- Two forms of ID (one with photo and signature)
- Confirmation from PSI
- Nothing else (personal items stored securely)
During the Exam
- Read every question completely
- Watch for negative phrasing ("EXCEPT," "NOT," "LEAST")
- Manage time carefully, especially on state portion
- Flag difficult questions and return if time permits
- Review answers before submitting
After Passing the Exam
Timeline Requirements
| Milestone | Deadline |
|---|---|
| Testing Eligibility | 1 year after completing pre-license course |
| License Application | 1 year after passing exam |
| CE Completion | 30 days before license renewal |
Immediate Steps
- Receive results on screen at testing center
- Submit license application to MREC
- Pay license fee ($90 including $20 Guaranty Fund)
- Find a sponsoring broker
- Receive active license
License Types
| Type | Description |
|---|---|
| Active | Currently practicing under a broker |
| Inactive | Not practicing, still requires CE |
Continuing Education Requirements
| Requirement | Details |
|---|---|
| Renewal Period | Every 2 years |
| Total Hours | 15 hours |
| Required Topics | Legislative (A), Ethics (D), Brokerage Relationships (H) |
| CE Deadline | 30 days before renewal (effective Oct 2024) |
| Late Submission | $168 reinstatement fee |
Important Change (October 2024): CE courses must be completed 30 days prior to renewal. CE providers have up to 14 days to upload credits, so plan accordingly.
First Renewal Requirements
For your first license renewal, additional requirements may apply based on:
- Type of services provided (residential or commercial)
- Your role (Salesperson, Associate Broker, Broker)
- Whether you're a Team Leader
Maryland Real Estate Career Outlook
Salary Expectations
| Experience Level | Annual Income |
|---|---|
| First Year | $35,000-$55,000 |
| 2-5 Years | $55,000-$90,000 |
| 5+ Years | $90,000-$150,000+ |
| Top Producers | $200,000+ |
Top Maryland Markets (2026)
| Market | Characteristics |
|---|---|
| Montgomery County | Affluent DC suburbs, high-value properties, Bethesda |
| Howard County | Excellent schools, Columbia, corporate relocations |
| Baltimore City | Urban core, gentrification, diverse neighborhoods |
| Baltimore County | Suburban variety, Towson, Owings Mills |
| Anne Arundel County | Annapolis, Naval Academy, waterfront |
| Prince George's County | DC suburbs, diverse communities, National Harbor |
| Frederick County | Growing suburbs, historic downtown |
| Harford County | Northeast corridor, Aberdeen Proving Ground |
Unique Maryland Market Opportunities
- DC Metro Commuters: High-income professionals seeking suburban living
- Waterfront Properties: Chesapeake Bay, rivers, and lakes
- Historic Properties: Annapolis, Frederick, Baltimore row homes
- Luxury Market: Potomac, Bethesda, Severna Park
- Military/Government: Fort Meade, NSA, numerous federal agencies
- Biotech Corridor: Montgomery County research facilities
Resources
- Maryland Real Estate Commission (MREC) - Official licensing information
- PSI Exams - Exam scheduling and information
- Maryland REALTORS - Industry resources and forms
- OpenExamPrep - Free practice questions and study materials