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NEW QUESTION # 198
Which type of events are generally on a title insurance policy's schedule of exceptions?
Answer: B
Explanation:
In the closing/title section of the pre-licensing course, learners are taught that a title policy contains Schedules
-most notably Schedule A (coverage basics) and Schedule B (exceptions). Schedule B-Exceptions lists specific matters found of record prior to the policy's effective date (e.g., recorded easements, covenants, restrictions, prior-of-record liens, and taxes/assessments) that are excluded from coverage unless affirmatively insured over or removed.
While policies also include standard exceptions (which can address certain unrecorded matters), the items
"generally" shown on the schedule of exceptions are the recorded encumbrances discovered in the title search that predate the policy.
References: Maryland 60-Hour Principles and Practices of Real Estate - Closing and Title Insurance: policy structure (Schedule A and Schedule B), title searches, recorded encumbrances, and exceptions to coverage.
NEW QUESTION # 199
A statement such as "This is a dream home with the best views in town" made by a licensee is an example of what?
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
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).
NEW QUESTION # 200
Which loan type is a fixed-rate mortgage where the monthly principal payments increase over time, according to a set schedule?
Answer: C
Explanation:
The financing module defines a Growing Equity Mortgage (GEM) as a fixed-rate loan with scheduled payment increases applied directly to principal, accelerating amortization and reducing total interest over the life of the loan. This differs from negative amortization (where payments don't cover interest and the balance grows), blanket mortgages (cover multiple parcels with a release clause), and pledged account mortgages (use a pledged savings account to subsidize payments).
References: Maryland 60-Hour Principles and Practices of Real Estate - Financing: mortgage types and characteristics; GEM structure, payment increases, and accelerated amortization.
NEW QUESTION # 201
Which type of deed offers the strongest and broadest form of guarantee and protection of title to the grantee?
Answer: B
Explanation:
In the deed section of the pre-licensing course, learners are taught that the full covenant and warranty deed (often called a general warranty deed) provides the broadest protection for the grantee because the grantor warrants good title, free from encumbrances, and defends the title against all claims, whether they arose before or during the grantor's ownership. The deed typically carries the full set of common law covenants (seisin, right to convey, against encumbrances, quiet enjoyment, further assurances, and warranty). By contrast, a quitclaim deed offers no warranties, a bargain and sale deed implies ownership but gives limited or no warranties, and executor's or personal representative deeds convey title on behalf of an estate without full warranties.
References: Maryland 60-Hour Principles and Practices of Real Estate - Transfer of Title: types of deeds; scope of warranties; general (full covenant) warranty vs. special warranty vs. bargain and sale vs. quitclaim; estate and fiduciary deeds.
NEW QUESTION # 202
Once signed, the listing agreement is a legally binding contract between
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
A listing agreement is a legally binding contract that establishes an agency relationship between the seller (client) and the listing broker (agent).
The agreement authorizes the broker to market the property and represent the seller's interests in finding a ready, willing, and able buyer.
While the salesperson may work directly with the seller, the contractual relationship exists between the broker and the seller-not the individual licensee.
This principle is emphasized in the Maryland course under "Listing Agreements and Buyer Representation." Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Listing Agreements and Buyer Representation" Module Md. Business Occupations and Professions Article §17-532 - Agency Relationship Between Broker and Client.
NEW QUESTION # 203
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