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Exam Review

Key Facts: MD RE Broker Exam

56 / 28

Passing Points (National / State)

PSI MD candidate bulletin

3 yrs

Salesperson Experience Required

MREC

135 hrs

Pre-License Education

MREC

115 Q

Exam Questions (120 points)

PSI

$44

Exam Fee

PSI

15 hrs

Renewal CE Every 2 Years

MREC

Maryland requires broker applicants to have been licensed salespersons actively providing brokerage services for at least 3 years and to complete 135 hours of pre-license education. The PSI broker exam has a 75-question national portion (80 points, 90 minutes) and a 40-question state portion (30 minutes), with passing scores of 56 of 80 points and 28 of 40 points. The state portion covers Commission duties and powers, licensing, brokerage relationships, supervision and trust money, business conduct, and ethics.

Sample MD RE Broker Practice Questions

Try these sample questions to review concepts for the MD RE Broker exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Maryland law, a real estate broker must deposit earnest money into the trust account within what time frame?
A.24 hours of receipt
B.3 business days of receipt
C.7 business days of receipt
D.10 business days of receipt
Explanation: Maryland requires real estate brokers to deposit earnest money and other trust funds into the trust account within 7 business days of receipt. This is longer than many states. The broker must maintain complete records of all trust fund transactions and be prepared for MREC audit at any time.
2What is the minimum experience requirement to apply for a Maryland real estate broker license?
A.1 year as an active salesperson
B.2 years as an active salesperson
C.3 years as an active salesperson
D.5 years as an active salesperson
Explanation: Maryland requires at least 3 years of active experience as a licensed real estate salesperson before qualifying for a broker license. The applicant must have been actively engaged in real estate during this period, not merely holding an inactive license. The candidate must also complete 135 hours of broker-specific education.
3What is the Maryland Real Estate Guarantee Fund?
A.A fund that guarantees all real estate transactions will close
B.A compensation fund for consumers who suffer losses from licensee misconduct
C.An insurance policy that covers property damage during transactions
D.A fund that pays broker commissions when a deal falls through
Explanation: The Maryland Real Estate Guarantee Fund compensates consumers who suffer actual monetary losses due to the misconduct, fraud, or negligence of a licensed real estate broker or salesperson. Claims are filed with MREC and are subject to per-transaction and per-licensee statutory limits. Licensees contribute to the fund through their licensing fees.
4Maryland is one of the few states that has ground rent. What is ground rent?
A.A property tax levied on undeveloped land
B.A leasehold arrangement where the homeowner owns the building but leases the land beneath it from a ground rent holder
C.A fee charged by the county for using public land access
D.The cost of grading and preparing land for construction
Explanation: Ground rent is a uniquely Maryland concept where a property owner owns the improvements (building) but leases the underlying land from a ground rent holder, paying periodic rent. This creates a leasehold estate rather than a fee simple estate. Ground rents can be redeemed (purchased) by the property owner. Brokers must disclose ground rent status to buyers and explain the implications for ownership and financing.
5How many hours of pre-license education does Maryland require for a broker license?
A.60 hours
B.90 hours
C.135 hours
D.180 hours
Explanation: Maryland requires 135 hours of pre-license education for a broker license. This education covers brokerage management, real estate law, finance, appraisal, and Maryland-specific topics. The courses must be completed through MREC-approved providers before the candidate can register for the broker exam.
6What is the Maryland transfer tax rate on residential real estate transactions?
A.0.25%
B.0.5%
C.1.0%
D.1.5%
Explanation: Maryland imposes a state transfer tax of 0.5% on the consideration paid for real property. This is typically split between the buyer and seller (0.25% each) unless otherwise negotiated. Note that local jurisdictions may impose additional transfer taxes and there are recordation taxes on top of the transfer tax. First-time Maryland homebuyers may qualify for a reduced rate.
7A Maryland broker discovers that a salesperson in the office failed to provide the required Understanding Whom Real Estate Agents Represent disclosure form. What should the broker do?
A.Ignore it since the transaction has already started
B.Investigate, ensure the disclosure is provided immediately, and implement corrective training
C.Report the salesperson to law enforcement
D.Cancel the transaction immediately
Explanation: The broker must investigate the failure, ensure the disclosure is provided as soon as possible, and implement corrective training. Maryland requires the 'Understanding Whom Real Estate Agents Represent' disclosure at the first scheduled face-to-face meeting with a prospective buyer or seller. The broker has supervisory responsibility and must implement systems to prevent recurrence.
8Under Maryland law, what is the difference between commingling and conversion of trust funds?
A.Both terms mean the same thing under Maryland law
B.Commingling is mixing client funds with personal funds; conversion is using client funds for personal benefit
C.Commingling applies to cash only; conversion applies to property
D.Conversion is less serious than commingling under MREC rules
Explanation: Commingling is the improper mixing of client trust funds with the broker's personal or business operating funds in the same account. Conversion is the unauthorized use of client funds for the broker's personal benefit, which is essentially theft. Both are serious MREC violations, but conversion is more severe and can result in criminal charges in addition to license revocation.
9A Maryland principal broker is opening a branch office. What must the broker do?
A.File a branch office application with MREC and obtain approval
B.Simply notify MREC within 30 days of opening
C.No notification is required for branch offices in the same county
D.Only notify MREC if the branch is in a different state
Explanation: Maryland requires brokers to file a branch office application with MREC and obtain approval before operating the branch. Each branch office must be properly registered, display the brokerage name, and be supervised by the broker or a designated branch manager. Operating an unapproved branch office is an MREC violation.
10Maryland requires lead paint disclosure for residential properties built before what year?
A.1950
B.1960
C.1978
D.1990
Explanation: Both federal and Maryland law require lead paint disclosures for residential properties built before 1978, when lead-based paint was banned for residential use. Maryland has additional state-specific lead paint requirements that go beyond federal law, including registration requirements for rental properties and specific disclosure forms. Brokers must ensure compliance with both federal and Maryland lead paint requirements.

About the MD RE Broker Exam

The Maryland real estate broker exam is a PSI-administered exam with national and state portions for licensed salespersons upgrading to a broker license. It covers brokerage management, trust account handling, Maryland Real Estate Brokers Act, MREC regulations, and Maryland-specific property law at the broker supervision level.

Exam sponsor: MREC / PSI. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

115 questions

Time Limit

120 minutes total (90 national + 30 state)

Passing Score

56/80 national, 28/40 state (points)

Exam / Certification Fees

$44

Exam sponsor website

Reported exam pass rate: Not published. official statewide broker pass rate is not publicly posted by MREC/PSI Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

10%

Property Ownership

National portion: real and personal property, legal descriptions, encumbrances, and types of ownership

5%

Land Use Controls

National portion: government rights in land, government land-use controls, and private controls

8%

Valuation

National portion: appraisals, estimating value, and comparative market analysis

9%

Financing

National portion: loan terms, types of loans, and lending laws such as RESPA, TILA, TRID and ECOA

19%

Contracts

National portion: general contract law, purchase and lease contracts, and multiple offers and counteroffers

13%

Agency

National portion: agency and non-agency relationships, agent duties, and agency disclosures

7%

Property Disclosures

National portion: property condition, environmental and government disclosures, and material facts

5%

Property Management

National portion: management duties, landlord and tenant funds and trust accounts, and landlord-tenant rights

6%

Transfer of Title

National portion: types of deeds, title insurance and searches, closing, and special processes

12%

Practice of Real Estate

National portion: fair housing, legislation and regulations, licensee duties, and broker supervisory responsibilities

6%

Real Estate Calculations

National portion: closing calculations, prorations, PITI, equity, capitalization rate, and loan-to-value

5 questions

Duties and Powers of the Commission

State portion: general powers, investigations and hearings, penalties, the Guaranty Fund, and examination of records

8 questions

Licensing Requirements

State portion: activities requiring a license, license status changes, renewals, continuing education, and places of business

7 questions

Brokerage Relationships

State portion: listing agreements and disclosure of brokerage relationships and conflicts of interest

6 questions

Supervision

State portion: handling trust money, recordkeeping, supervision requirements, and other Maryland laws (short sale, home improvements, PIFHA)

9 questions

Business Conduct

State portion: offers, commissions and rebates, advertising and signs, fair housing, and summary suspensions

5 questions

Ethics

State portion: unfair inducements, dealings with other licensees, and general ethics

Preparing for the MD RE Broker Exam

What You Need to Know

  • Passing score: 56/80 national, 28/40 state (points)
  • Exam length: 115 questions
  • Time limit: 120 minutes total (90 national + 30 state)
  • Exam / certification fees: $44 Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

MD RE Broker: Suggested Study Strategy

1Master Maryland trust account rules: deposit within 7 business days, reconciliation requirements, and MREC audit preparation
2Give the most time to Business Conduct, the largest broker state-portion section at 9 of 40 questions: offers, commissions and rebates, advertising and signs, and fair housing
3Study Maryland transfer tax (0.5%) and recordation tax rates, including first-time buyer exemptions
4Know MREC composition, disciplinary process, and the Maryland Real Estate Brokers Act provisions
5Practice broker supervision scenarios: advertising approval, transaction oversight, and independent contractor compliance

Frequently Asked Questions

What are the requirements to take the Maryland broker exam?

You must hold an active Maryland real estate salesperson license for at least 3 years, complete 135 hours of pre-license education from an MREC-approved provider, and pass a background check. Education covers brokerage management, trust accounts, Maryland real estate law, and broker-level operations.

What score do I need to pass the MD broker exam?

The Maryland broker exam requires 56 of 80 points on the national portion and 28 of 40 points on the state portion (PSI MD candidate bulletin). The exam is administered by PSI and includes separate national and state sections that must each be passed independently.

What is the Maryland Real Estate Guaranty Fund?

The Real Estate Guaranty Fund compensates people for actual losses from a licensee's act or omission involving theft, embezzlement, false pretenses, forgery, fraud or misrepresentation in a Maryland real estate transaction. The Commission must keep it at no less than $250,000, a claim may not exceed $50,000, and each new licensee pays a one-time $20 fee into it (Business Occupations §§ 17-402 to 17-404).

What are Maryland-specific topics I need to study for the broker exam?

The PSI state portion for brokers has 40 questions: Duties and Powers of the Commission (5), Licensing Requirements (8), Brokerage Relationships (7), Supervision (6), Business Conduct (9) and Ethics (5). Supervision covers trust money, recordkeeping and other Maryland laws such as short sales, home improvements and PIFHA, and Business Conduct covers offers, commissions and rebates, and advertising.