Free Real Estate Maryland-Real-Estate-Salesperson Practice Exam with Questions & Answers | Set: 7

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.

An 80/20 loan structure means the borrower finances 80% of the purchase price through a first mortgage and 20% through a second mortgage, leaving no down payment.

For a $600,000 property:

80% × $600,000 = $480,000 (first loan)

20% × $600,000 = $120,000 (second loan)Total financing = $480,000 + $120,000 = $600,000.Therefore, Carson is financing $480,000 through the first loan, corresponding to the “80%” part referenced in the question’s options.