Before you read
Test yourself first: 5 questions
Question 1 of 5
The Maryland 'Understanding Whom Real Estate Agents Represent' disclosure is most properly provided to a consumer:
Answer: B. Licensees must present the agency-representation disclosure at the first scheduled face-to-face contact so the consumer understands the agent's role before discussing specifics.
Question 2 of 5
Which statement most accurately describes how an agency relationship is created in Maryland?
Answer: B. In Maryland, an agency (brokerage) relationship is established through a brokerage agreement between the broker and the client, supported by the required agency disclosure. Casual contact with a consumer does not by itself create a client relationship; representation flows from the agreement and the licensee's conduct, not from a closing or a court order.
Question 3 of 5
What is the primary purpose of the Maryland Real Estate Guaranty Fund?
Answer: B. The Guaranty Fund compensates members of the public who obtain a judgment for actual losses caused by a licensee's fraud, misrepresentation, or other misconduct.
Question 4 of 5
A consumer is harmed by an act of fraud or misrepresentation by a Maryland licensee and obtains an unsatisfied court judgment against that licensee. Recovery for the actual monetary loss may be sought from:
Answer: A. Maryland maintains a Real Estate Guaranty Fund that can reimburse consumers for actual monetary losses caused by a licensee's fraud, misrepresentation, or similar conduct, generally after the claimant obtains and cannot collect on a court judgment. It does not pay punitive damages and is subject to per-claim and per-licensee caps.
Question 5 of 5
Which of the following best describes the purpose of Maryland's Real Estate Guaranty Fund?
Answer: B. Maryland's Real Estate Guaranty Fund exists to reimburse consumers who obtain an unsatisfied judgment against a licensee for fraud, misrepresentation, deceit, or conversion of trust money arising from a real estate transaction. It protects the public, not licensees, and is not a general operating account or a commission-collection mechanism.
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What you need to know
A licensee may act as a dual agent only with the informed written consent of both parties, and intra-company agency is handled through designated agents within the same brokerage. Whatever role is chosen, the licensee owes fiduciary-style duties such as loyalty, confidentiality, and accounting to the client they represent.
Maryland's Agency and Representation Model: FAQs
Is Maryland's Agency and Representation Model on the real estate exam?
Yes. State License Law is a scored domain on the Maryland real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Maryland test this differently?
Maryland applies its own license law on top of the national portion. This page covers the Maryland rules specifically, which is what the state section of your exam tests.
