Maine Real Estate License Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Maine Real Estate Exam with comprehensive study materials. Utilize flashcards and multiple-choice questions, each with hints and explanations, to boost your confidence and ace your exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

A licensed auctioneer must have a real estate license to perform which activity?

Cry the bid
Advertise an upcoming real estate auction
Take custody of the earnest money from the winning bidder
None of the above

The correct answer is: Take custody of the earnest money from the winning bidder

The requirement for a licensed auctioneer to have a real estate license when taking custody of earnest money from the winning bidder stems from the legal and fiduciary responsibilities associated with handling funds in real estate transactions. Earnest money is a deposit made to demonstrate a buyer's serious intent to purchase a property. By taking custody of this money, the auctioneer is essentially acting as an intermediary in a real estate transaction. This activity falls under the regulations governing real estate transactions, which require individuals handling such funds to possess a valid real estate license. In contrast, while crying the bid or advertising an auction may be integral to the auction process, these activities do not necessitate a real estate license as they do not involve direct management of real estate transactions or handling of funds. Therefore, the necessity of a real estate license is specifically tied to custody of earnest money, which is a critical factor in ensuring that funds are handled in accordance with legal and ethical standards in real estate practices.