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Real Estate Maryland Real Estate Salesperson Examination Sample Questions (Q147-Q152):

NEW QUESTION # 147
Real property ownership may offer significant tax advantages. Which one of the following is a potential advantage?

Answer: B

Explanation:
A key tax advantage of owning income-producing real property is depreciation, which allows investors to deduct a portion of the property's cost basis (excluding land) over its useful life for tax purposes. This non- cash expense can shelter rental income and reduce taxable income. By contrast, insurance expenses and transfer taxes are ordinary expenses/costs (not advantages), and taxable gains are a potential liability upon disposition, not a benefit.
References: Maryland 60-Hour Course: "Real Estate Financing" and "Math for Real Estate and Practical Applications" (investment property tax concepts-depreciation vs. expenses; taxable gain on sale).


NEW QUESTION # 148
What is it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate?

Answer: A

Explanation:
A life tenant holds possession for the duration of a measured life but must maintain the property and preserve its value for the remainderman or reversionary owner.
When the life tenant damages, neglects, or depletes the property, that conduct is termed an act of waste.
The future interest holder may take legal action to stop such waste.
The concept appears under "Interests in Real Estate" when describing life estates and their limitations.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course, Estates in Land chapter.
- Maryland Real Property Article 14-101 et seq.


NEW QUESTION # 149
In terms of encumbrances, what's a license?

Answer: C

Explanation:
Comprehensive and Detailed
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.


NEW QUESTION # 150
Which of the following is an example of a metes and bounds description?

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
The metes and bounds system is the oldest method of land description used in the United States and is based on physical landmarks, measurements, and compass directions.
It begins at a defined point of beginning (POB) and traces the boundaries using distances (metes) and directions or angles (bounds), returning to the starting point.
In contrast:
Lot and block (option C) refers to recorded plats.
Rectangular survey (option D) uses township and range.
Street addresses (option A) are not legal descriptions.Maryland still recognizes metes and bounds for rural or irregular parcels.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Real Property and the Law" Module Maryland Real Property Article §3-101 - Legal Descriptions and Conveyance Requirements.


NEW QUESTION # 151
What is real estate, plus all of the interests, benefits, and rights included in ownership, also known as?

Answer: A

Explanation:
Real property is real estate (land and improvements) plus the bundle of rights (interests, benefits, and rights inherent in ownership), such as possession, control, enjoyment, exclusion, and disposition.
* Land refers to the earth's surface, subsurface, and airspace (naturally occurring).
* An estate is a degree, quantity, nature, or extent of interest in real property (e.g., fee simple, life estate).
* Personal property (chattel) is movable and not affixed to real estate.
References (Pre-Licensing Core Content):
* Maryland 60-Hour Pre-Licensing Course: "Real Property and the Law" (definitions of land, real estate, real property, personal property; bundle of rights).
* Common-law property definitions widely adopted in real estate education.


NEW QUESTION # 152
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