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Between commercial and residential properties, which type of property is depreciated for a longer time?
A. Residential income-producing properties are depreciated longer (39 years) than commercial income- producing properties (27.5 years) are.
B. You cannot depreciate income-producing properties.
C. Commercial income-producing properties are depreciated longer (39 years) than residential income- producing properties (27.5 years) are.
D. Both commercial and residential income-producing properties are depreciated according to the same schedule.
Answer: C
Explanation:
Under the Internal Revenue Code (IRC 168), depreciation is a method for recovering the cost of income- producing property over time.
Residential income-producing properties (such as apartment buildings) are depreciated over 27.5 years.
Commercial income-producing properties (such as office buildings) are depreciated over 39 years.These timelines are based on the Modified Accelerated Cost Recovery System (MACRS) used for tax purposes.This concept is included in the Maryland Pre-Licensing Course within the Appraisal and Valuation section, to ensure licensees understand property valuation and investment considerations.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Real Estate Appraisal and Valuation" Module Internal Revenue Code 168 - MACRS Depreciation Rules.
NEW QUESTION # 21
What type of license will you receive if you have a supervising broker at the time of application?
A. Active license
B. Broker's license
C. Firm license
D. Inactive license
Answer: A
Explanation:
Comprehensive and Detailed
In Maryland, when a new salesperson applicant identifies a supervising broker on the license application, the applicant receives an active license.
An inactive license is issued only if no broker is designated.
An active license authorizes the salesperson to conduct real estate activities under the supervision of the sponsoring broker, in compliance with MREC rules.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Maryland License Law and Regulations" Module Md. Business Occupations and Professions Article ¡ì17-301-¡ì17-303 - License Activation and Supervision.
NEW QUESTION # 22
Google and "If This, Then That" alerts can assist you with which of the following?
A. Removing your listings from a rental website
B. Monitoring your online listings for rental scams
C. Guaranteeing that the property owner receives all rental income
D. Posting your online listings for rent
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
The Property Management section of the Maryland pre-licensing course teaches that licensees must monitor their listings for fraudulent online activity, such as rental scams where criminals copy legitimate ads and re-post them with false contact details.
Setting up automated alerts through tools like Google Alerts or If This, Then That (IFTTT) can help licensees detect unauthorized use of their listings or identifying information.
These monitoring tools allow quick corrective action and protect both the brokerage and the public from scams.
Reference (Maryland Source):
- Maryland 60-Hour Principles and Practices Course, Property Management and Advertising Compliance section.
- Maryland Code of Ethics, COMAR 09.11.02.01-.02.
NEW QUESTION # 23
When a client understands what dual agency is and agrees in writing to allow a firm to act as a dual agent for them in a real estate transaction, this is known as ________.
A. Representation by proxy
B. Double dipping
C. Mutual agreement
D. Informed consent
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course:
Informed consent is a legal requirement under Maryland Agency Law when a brokerage represents both a buyer and a seller in the same real estate transaction (dual agency).
In this arrangement, the broker acts as the dual agent, while separate intra-company agents may represent each party.
The client must receive full disclosure of the potential conflicts of interest and consent in writing before dual agency can occur.
Without informed, written consent, dual agency is prohibited under Maryland Real Estate Commission (MREC) regulations.
Reference:
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course - "Maryland Agency Law" Module Md. Business Occupations and Professions Article ¡ì17-530-¡ì17-532 - Disclosure and Consent to Dual Agency.
NEW QUESTION # 24
What might you find in the legal description of a deed?
A. Name of developer
B. Metes and bounds property description
C. Title abstract
D. County clerk's name
Answer: B
Explanation:
A legal description precisely identifies a parcel of real estate so it can be uniquely located and distinguished from other property. In Maryland, deeds typically include one of several accepted types of legal descriptions:
metes and bounds, lot and block, or rectangular survey (where applicable).
Metes and bounds describe the property boundaries using directions, distances, and reference points (monuments).
This ensures that the property can be clearly identified for conveyance and recording purposes.
Items such as the county clerk's name, developer name, or title abstract are not part of the deed's legal description.
Reference:Maryland 60-Hour Principles and Practices Course - "Transfer of Title" Topic; Maryland Real Property Article 4-101 et seq. (Requirements for Valid Deeds).
NEW QUESTION # 25
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