Maine Real Estate Salesperson Exam Study Guide

Maine Real Estate Salesperson Exam Study Guide

People who want to sell real estate in Maine must first pass the Maine Real Estate Salesperson exam and apply for the proper licensure in the state. The exam consists of 2 different sections, the General Exam and the Maine Real Estate Law Exam. Candidates will need to know foundational real estate concepts for the General Exam and more specific real estate laws and processes for Maine in the second portion. The entire exam (both portions) must be completed in 4 hours. Learn more about each section of the exam using this Maine Real Estate Salesperson Exam study guide.

Maine Real Estate Salesperson Exam Study Guide: General Exam

Content Areas	% of Questions
Real Property Characteristics, Legal Descriptions, and Property Use	11% (≈ 9 questions)
Forms of Ownership, Transfer, and Recording of Title	10% (≈ 8 questions)
Property Value and Appraisal	14% (≈ 11 questions)
Real Estate Contracts and Agency	20% (≈ 16 questions)
Real Estate Practice	17% (≈ 14 questions)
Property Disclosures and Environmental Issues	10% (≈ 8 questions)
Financing and Settlement	9% (≈ 7 questions)
Real Estate Math Calculations	9% (≈ 7 questions)

The General Exam portion of the Maine Real Estate Salesperson test is designed to evaluate candidates' foundational knowledge in the real estate field. They will have to answer 80 questions in 2.5 hours. There will also be 5 pretest questions that do not count toward the score. The questions are divided into 8 content areas that test concepts such as real estate contracts, property disclosures, and real estate math calculations. Candidates are allowed to use calculators that meet the testing center's qualifications.

Real Property Characteristics, Legal Descriptions, and Property Use

The General Exam portion of the Maine Real Estate Salesperson Exam will test candidates' knowledge of the features and legal descriptions of real property. They need to know how this property differs from personal property and how the bill of sale works for each. In addition, examinees should be able to describe the physical features of real property and know how to survey real property.

Questions in this content area will also examine topics in encumbrances and land use. Candidates must be familiar with the government's regulations and controls for both private and public lands, and they must know about zoning ordinances, easements, and the concept of eminent domain.

Forms of Ownership, Transfer, and Recording of Title

The Maine Real Estate Salesperson Exam will also cover the different types of ownership in real estate and the differences between leasehold and freehold estates. For example, they should understand the concepts of condition subsequent and life estate for freehold estates. They also need to know about percentage leases and estate at sufferance for leasehold estates. Other topics that will be covered include liens and surface rights.

Examinees must be aware of the procedures used to manage deeds and titless, including the differences between various deeds and titles and the qualifications that make these forms valid. They need to know how titles can be transferred and how they are recorded, including title insurance and constructive notice.

Property Value and Appraisal

Candidates need to know what value is and the various methods for determining value. For instance, they should understand how market price varies from market value and know how an appraisal works. They also need to know how appraisals are regulated.

For the specific techniques for calculating value, candidates must know how to determine value using income, market data, and cost. They should understand how variables such as deterioration and improvements to a property need to be considered when calculating value. And how to perform a Comparative Market Analysis (CMA) and determine the taxes after an appraisal.

Real Estate Contracts and Agency

Examinees must demonstrate their understanding of the various kinds of contracts used in real estate, including unilateral vs. bilateral contracts. They should be able to explain what a contract needs to be considered valid. They need to know the different contract performance terms, such as rescission and executory. They must also understand the different aspects of a sales contract, including counteroffers, disputes, and contingencies.

Questions in this content area will also ask examinees about the role of a licensee and agency. They should know how licensees relate to their clients and be familiar with the different kinds of agencies within real estate. The Maine Real Estate Salesperson Exam also covers how agencies are created and the duties of a licensee in a transaction.

Real Estate Practice

The Real Estate Practice content area will test candidates' knowledge of the role of a broker and the agreements that are made with a broker. They need to understand listing agreements for sellers, such as how to perform a multiple listing service (MLS). They should be able to describe buyer representation and know how agreements are terminated. Other questions may ask about leasing properties, management agreements for collecting rent, and service fees.

Candidates also need to be aware of issues with fair housing and risk management. This includes knowing the laws concerning fair housing and what is not allowed in advertising. They should understand antitrust laws and the different types of insurance that are available.

Property Disclosures and Environmental Issues

Examinees must understand what is required in a disclosure and the different liabilities that fall in this category. They should be able to explain the role of the Environmental Protection Agency (EPA) in regulating environmental issues related to real estate, such as issues of protecting wetlands and assessing sites. Finally, examinees need to know about hazards that may be present in real estate, including radon, water contamination, and lead paint, and be familiar with the Clean Air Act.

Financing and Settlement

Candidates have to understand the different options that clients have for financing and be able to explain the responsibilities of lenders. They should know about the different kinds of loan programs and be able to describe title and lien theory. They must understand the different aspects of a mortgage and know about private mortgage insurance (PMI) and Loan to Value (LTV).

The Financing and Settlement content area will also explore topics in the settlement process and the regulatory bodies involved in real estate. Candidates must answer questions about predatory lending, the Real Estate Settlement Procedures Act (RESPA) and the TILA-RESPA Integrated Disclosures (TRID).

Real Estate Math Calculations

In the last section of the General Exam, examinees will have to demonstrate their ability to make real estate math calculations. They must be familiar with methods for determining the acreage and square footage of properties, a listing price for properties, and property taxes. They should be able to explain how their commission works for a transaction and calculate rent and budgets for property managers.

This content area will test examinees' knowledge of investment and costs associated with closing and financing. They need to understand what a return on investment means and know how to calculate debits and credits. Finally, test takers should be able to determine the cost to a buyer and the fees and interest of a loan.

Maine Real Estate Salesperson Exam Study Guide: Maine Real Estate Law

Content Areas	% of Questions
Maine Real Estate Commission	5% (≈ 2 questions)
Maine Laws and Rules Governing Activities of Licensees	38% (≈ 15 questions)
Law of Agency / Brokerage	25% (≈ 10 questions)
Maine-Specific Principles and Practices	20% (≈ 8 questions)
Maine Land-Use Law	12% (≈ 5 questions)

The Maine Real Estate Law portion of the exam will test examinees' knowledge of real estate procedures and laws specific to the state. They will have to answer 40 questions that will be scored and 5 to 15 pretest questions that will not count toward the score. They will have 1.5 hours to complete this section of the test. Calculators are permitted. Questions are distributed across 5 different content areas that cover topics such as Maine laws, Maine practices, and Maine land-use law.

Maine Real Estate Commission

Examinees will have to understand the role and power of the Maine Real Estate Commission. They need to know the different powers and responsibilities the commission has and how they apply sanctions as needed. They also need to understand how the committee conducts investigations and how the appeals process and hearings work.

Maine Laws and Rules Governing Activities of Licensees

Candidates need to understand why a real estate license is needed in Maine and what the license qualifies licensees to do. They need to understand the terms brokerage and licensee and know how commission is obtained in the field. Questions may also explore topics in the relationship between sales agents and their brokers.

This content area will also test candidates' knowledge of the different activities a licensee must perform. They should know how to conduct market analysis, create listings, and advertise. They must be able to handle sales and brokerage contracts, as well as purchasing offers and material disclosures. They need to know what Maine requires to be disclosed and how to handle money used in real estate, such as earnest money.

Law of Agency / Brokerage

Examinees will have to be familiar with the different kinds of relationships that are found within an agency, such as sub-agencies and buyers. They will have to know what responsibilities they have towards their clients and how agency contracts work. Questions may ask about disclosures and the process of brokerage for transactions.

Maine-Specific Principles and Practices

The Maine Real Estate Law exam will test candidates' understanding of the kinds of ownership recognized by the state and how specific taxes are applied, including transfer tax and nonresident withholding tax. They should know how to transfer properties and understand the concept of adverse possession. They must also know how to use the recording system for the state.

Other topics that will be evaluated in this section of the exam include major pieces of legislation and available resources in the state. Candidates must know how to find information pertaining to real estate in Maine and understand condominium law. They should be aware of what is in the Maine Landlord-Tenant Act and be able to explain the state-specific steps involved in the closing process.

Maine Land-Use Law

For land use in the state, examinees need to know about Title 30-A and Title 38. These titles include topics in how subdivisions are regulated, how tanks for oil storage can be placed underground, and how development locations are identified. They also need to know what Mandatory Shoring Zoning is.

Questions in this content category may also explore topics in other titles or different parts of the aforementioned titles. For instance, examinees need to be familiar with how shoreland properties can be transferred, how the minimum size of a lot is determined, and how natural resources are protected. Examinees need to understand the role of different agencies, such as the Land Use Planning Commission, and specific tax laws, such as the Open Space Tax Law.