Massachusetts Real Estate License Exam Practice - KGO

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A ____________ loan describes a loan in which taxes and insurance are included. A. Bridge loan B. Balloon loan C. Graduated payment loan D. Budget loan

A ________________________ is a sort of "middle man" (or woman) between the buyer and the lending institution. Instead of doing the work of creating the loan, the ___________________________ merely brings together the parties and lets them hash out the details. A. Real estate investor B. Mortgage banker C. Mortgage servicer D. Mortgage broker

A client has asked her agent for a 24-hour notice on showings. The agent knows this will have a negative impact on the number of showings. Which duty is in conflict with reasonable skill and care? A. Accounting B. Confidentiality C. Disclosure D. Obedience

Evan bought into a housing cooperative focused on cultural exchange. Each month the co-op residents have dinner meetings and share food and culture from their respective regions. When Evan made his purchase, he received a proprietary lease for his unit. What else did he receive? A. Contract of mortgage B. Deed C. Plat maps D. Shares in the cooperative corporation

Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would be, they found he would need an easement because his driveway would spill over onto his neighbor's lot by a few feet. Kurt owns the ________ estate or tenement. A. Dominant B. Gross C. Prescriptive D. Servient

Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law? A. Disclosing in writing to all parties in a transaction that the licensee isn't a licensed attorney, so there is no licensee liability B. Having a designated broker review and notarize all completed contracts C. Having a designated broker write all contracts from scratch to make them specific to each transaction D. Using approved fill-in-the-blank forms

The _____________________________, provided to borrowers within three days of loan application, is an estimate of the buyers' closing costs. A. Closing Disclosure B. Mortgage Disclosure C. Buyer Worksheet D. Loan Estimate

___________________________ allows one specific property to be rezoned within a different existing zone. A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning

A __________________________ allows specific rent increases at future dates. It's a type of variable lease that permits an increase /decrease in rent during the lease period. The increase can be based on a number of factors, such as changes to appraised value, index, or time. A. Graduated B. Gross C. Net D. Percentage

A requirement that all property owners in a subdivision have a six-foot privacy fence surrounding their entire property is an example of a ______. A. Restrictive covenant B. Deed restriction C. Doctrine of laches D. Deed

Home purchased for $299,000. Appraised value is $300,000 Which value will be used to determine the Loan to Value Ratio? A. $299,000 B. $300,000

Jules is new to property management. Which of the following tasks may be one of her duties? A. Creating a budget for next year's projected maintenance costs B. Investing profits from the business C. Purchasing the apartments to be managed D. Representing the owner in court

Morrison lives in a predominantly Latino neighborhood. He applied for a mortgage loan to purchase a house in this neighborhood, and later discovered that the lender charged him a higher interest rate than similarly qualified borrowers buying homes in non-Latino neighborhoods were charged. This might be the practice of ______. A. Reverse redlining B. Blockbusting C. Steering D. Fraud

What is done to a landfill that is put out of commission? A. It is capped. B. It is converted to a special purpose landfill. C. It is no longer tested. D. Ventilation pipes are removed.

Which of the following is a common chimney or fireplace problem? A. Creosote B. Damage around the fascia C. Holes in the soffit D. None of these

A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what's the housing ratio? A. 20% B. 23% C. 28% D. 31%

A couple of licensees you know from different firms are tired of competing with one another for the same listings. You overhear them saying, "You take the north side of town and I'll take the south, so we aren't stepping on each other's toes." You stop their conversation to tell them they're committing an antitrust violation. Which one is it? A. Group boycotting B. Market allocation C. Price fixing D. Tie-in arrangements

A family of four, with children ages six and nine, is denied the opportunity to view an available unit at a community that caters to seniors. Which of the following statements is true? A. The federal Fair Housing Act allows an exemption for communities that don't have playgrounds or play areas for children. B. The federal Fair Housing Act allows an exemption for communities that are designated for senior use. C. This is a violation of the federal Fair Housing Act because it discriminates on the basis of age. D. This is a violation of the federal Fair Housing Act because it discriminates on the basis of familial status.

As Brandon's listing agent, Lily must disclose all known material facts relative to Brandon's property. Which of the following is a zoning-related fact that Lily should disclose to prospective buyers? A. Brandon's subdivision was farmland back in the 1950s. B. The property is right in the middle of a historic preservation district. C. Two of the residents on Brandon's street have in-home occupations. D. The zoning board may require the developer to include parklands in the neighborhood expansion.

Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns a(n) _________. A. Estate for years B. Freehold estate C. Leasehold estate D. Ownership estate

Jerry and Lewis have entered into a sales contract. They're about three weeks into the transaction, with several terms of the agreement yet to be met. What type of contract do Jerry and Lewis have? A. Unilateral B. Executory C. Option D. Executed

Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint? A. Asbestos B. Lead C. Mold D. Radon

A _______________ is one in which the tenant pays some or all of the property's costs (repairs, taxes, insurance, etc) in addition to rent. A. Graduated B. Gross C. Net D. Percentage

A ______________________ loan does offer low monthly payments, initially, but they gradually increase over a specified time frame. A. Bridge loan B. Balloon loan C. Graduated payment loan D. Budget loan

A _______________________________ is a form of a secondary mortgage. A. Purchase money mortgage B. Adjustable rate mortgage C. Wrap-around mortgage D. A straight-term loan

A calculation that describes the amount being borrowed compared to the value of a property is called ______. A. Appraisal Ratio B. Housing Ratio C. Loan-to-value Ratio D. Total Debt Ratio

A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell? A. 150,000 B. 300,000 C. 315,789 D. 450,000

Can police power ever be used in a way that restricts citizens' freedom? A. No, that's beyond the scope of police power. B. Yes, but only when the citizen has committed a crime. C. Yes, if it's for the public good. D. Yes, that's the purpose of police power.

Deirdre lost her job, and the bank foreclosed on her condo. Which of the following of her outstanding debts will the bank pay first? A. Credit card balance B. Medical bills C. Property taxes D. Student loan

Which of the following is not a federally protected class? A. national origin B. sex C. age D. disability E. familial status

Which of these statements most accurately represents existing federal antitrust legislation? A. The Federal Trade Commission Act prevents one large firm from acquiring another similar firm that would result in a restraint of trade. B. The Sherman Act was passed to supplement the Clayton Act in an effort to prevent mergers that create monopolies. C. The Clayton Act supports the Sherman Act's purpose of preventing monopolies by prohibiting mergers or acquisitions that would create a monopoly. D. The Federal Trade Commission Act established the Sherman and Clayton acts in order to prevent collusive activities that limit competition.

____________________ involves an agreement between competitors (brokers) to fix contract terms, services, or products at a specific price or level, such as suggesting there's a "standard" fee for broker compensation. A. Price fixing (collusion) B. Market allocation C. Group boycotting D. Per Se

__________________________ is the practice of charging borrowers in specific demographic areas higher interest rates or fees A. Reverse redlining B. Blockbusting C. Steering D. Fraud

_____________________________________ are seller or owner financed. A. Purchase money mortgage B. Adjustable rate mortgage C. Wrap-around mortgage D. A straight-term loan

New Day Corporation's application to build a new mixed-income housing development was denied, because the town of Springfield has halted all new development until after city elections. What did Springfield enact? A. Area variance B. Moratorium C. Special use permit D. Use variance

The __________________ bases the current property value on potential income that the property can generate for residential investment rental properties. This is the most reliable approach to value when the property being appraised is primarily used to generate rental income,which includes shopping centers, apartment buildings, and office buildings. A. Cost Approach B. Income Approach C. Sale Comparison Approach

Which of the following is a protected class in Massachusetts fair housing law, but isn't protected by federal fair housing law? A. Disability B. Gender identity C. Race D. Religion

Which of these circumstances does NOT require agent disclosure? A. As part of his corporation, Sean, a licensee, owns several investment properties. He's selling one. B. Marty is representing Dwayne in both the sale of Dwayne's current home and the purchase of his new home. C. Megan has listed her brother's townhome for sale. D. Gary represents the buyer. He's a shareholder in the title insurance company the buyer has selected.

A property management agreement is between a property manager and a ______. A. Broker B. Listing agent C. Property owner D. Tenant

As an agent, your duty of ____________means that you must disclose to your client any facts that are relevant to the transaction (aka material facts; e.g., any information, including agency-related information, that might have an impact on the transaction). A. Obedience B. Loyalty C. Disclosure D. Confidential E. Accounting F. Reasonable Skill and Care

Bernie is representing Oscar in the sale of Oscar's home. They have signed an exclusive right-to-sell listing agreement. If Oscar finds his own buyer, does he owe Bernie a commission? A. No, because he found his own buyer B. No, because Oscar retained his exclusive right to sell C. Yes, because exclusive right to sell means Bernie gets paid no matter who finds the buyer D. Yes, because Oscar is not a real estate licensee

Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a commission. What type of contract do Desmond and the Harpers have? A. Executed B. Mutual C. Bilateral D. Unilateral

How many parties does a deed of trust involve? A. Five: borrower, lender, trustee, trustor, and beneficiary B. Four: borrower, lender, trustee, and trustor C. Three: borrower, lender, and trustee D. Two: borrower and lender

In which of the following situations would the state be able to use its power of escheat? A. Hannah passed away with no children and no debt, other than $83,000 left on her mortgage. B. Maury died, and his three children are upset because his estate isn't large enough to settle all of his debts. C. Nadine died with no heirs and no debt. D. Sam died with no will, and his son lives overseas.

Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. What is the brokerage's commission rate? A. 0.023 B. 0.038 C. 0.065 D. 0.076

Jeung gave her agent an earnest money check. What will happen to it now? A. Her agent will hold the check in the firm's operating account until the contract is accepted. B. Jeung's agent will transfer the funds to the seller. C. An escrow agent will hold the funds in a trust account until the agreement's terms are satisfied. D. The seller's agent will deposit the funds in his operating account until closing.

The _____________________________________ provides general guidelines and policies for providing credit. A. Equal Credit Opportunity Act B. Community Reinvestment Act C. Consumer Credit Protection Act D. Home Mortgage Discrimination Act

Which of the following statements best describes a purchase and sale agreement in Massachusetts? A. A legally binding, oral contract between a property's potential buyer and a listing agent B. A legally binding, oral contract between a property's potential buyer and seller C. A legally binding, written contract between a property's potential buyer and seller D. A legally binding, written contract between a property's seller and a listing agent

Adams County implemented a 10 p.m. curfew for youths under age 18 because of the high number of fights occurring late at night in public places. Which of the following gives Adams County the right to restrict the movements of its minor citizens? A. Police power B. Doctrine of laches C. Power of escheat D. Municipal master plan

Generally, what's the common range for loan origination fees? A. 1% to 3% B. 1% to 5% C. 2% to 5% D. 3% to 5%

Gregory and Dianne are American citizens of Cuban origin, and when they're denied a home loan, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin? A. Equal Credit Opportunity Act B. Community Reinvestment Act C. Consumer Credit Protection Act D. Home Mortgage Discrimination Act

Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the assessed value is now $201,500. Their tax rate is 0.63%. How much will their monthly taxes be? A. $105.79 B. $111.04 C. $191.37 D. $86.49

Tom and Martha live in a neighborhood where lawn ornaments are prohibited. They want to put up a nativity scene at Christmas and argue that the covenant doesn't apply to temporary decorations but only to permanent ones. Their homeowner's association disagrees. Which entity enforces subdivision covenants if an agreement can not be reached? A. The civil court system B. The homeowners association C. The municipal code enforcement agency D. The original developer of the neighborhood

Tristan's offer has been signed by all parties and delivered back to the seller. This means that ______ has occurred. A. Acceptance B. Binding acceptance C. Personal delivery D. Notarization

What's the most common indicator of illegal property flipping? A. Falsely inflated appraisal B. Underwriting hassles C. Unrepresented seller D. Violation of fair housing laws

Breanna signs a contract offering to purchase Kathy's home for $150,000. Kathy replies, "No way," but offers to sell it to her for $200,000. Breanna agrees to these terms and they add their signatures. Which of the following statements is correct? A. The contract is valid, but unenforceable. B. The contract is invalid. C. Breanna accepted the offer Kathy made. D. Kathy accepted the offer Breanna made.

A seller client received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. If the property was 400' deep, what was the price per front foot of the property? A. $1335.67 B. $2,000.00 C. $598.95 D. $363.64

After getting into a fender-bender, Parker had to purchase a new car. To make the down payment on the car, he had to skip a couple of his mortgage payments. He received a letter in the mail from his lender indicating the remaining amount of his loan is due immediately and in full. What clause in his mortgage stipulates this? A. Acceleration B. Alienation C. Defeasance D Due on Sale

Assuming that dual agency is legal where these scenarios occur, and the licensees' brokerages permit it, which of these situations demonstrates illegal dual agency? A. At an open house Tom is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer. B. Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about representing her in the purchase of Juan's house. Jarrod obtains Juan and Alaina's consent to dual agency. C. Kady's firm uses representation agreements that, when signed, provide consent to dual licensee dual agency. Kady's buyer makes an offer on one of Kady's colleague's listings. D. Levi's customer, Renee, wants to make an offer on Levi's seller client's home. Levi presents Renee's offer to his client.

At least three days before closing, lenders provide the ______________________________, which details borrowers' final, not estimated, closing costs. A. Closing Disclosure B. Mortgage Disclosure C. Buyer Worksheet D. Loan Estimate

Chrissy lives in Lake Ridge Estates, a neighborhood in which vinyl siding may not be used on homes. This HOA regulation is what kind of private land control? A. CC&R B. Deed restriction C. Law D. Regulation

During underwriting the borrower's credit history and scores A. Credit B. Collateral C. Capacity D. Credentials

Fewer buyers in a higher price range would create what kind of pressure on housing prices? A. Downward B. Steady C. Strong D. Upward

Florence lives in a planned community with an HOA regulation that prohibits flagpoles. As a veteran, she feels strongly about displaying the flag on Independence Day, Flag Day, and Veteran's Day, so she put up a pole for that purpose. How can the regulation be enforced? A. The HOA has the power to enforce the regulation through fines or by taking Florence to court. B. Any member of the HOA may take Florence to criminal court to enforce the regulation. C. Only the HOA board of directors may take Florence to court to enforce the regulation. D. Anyone may take Florence to court to enforce the regulation.

If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do? A. File a claim for inverse condemnation. B. Require a zoning change to their own property. C. Sell at a loss and file a claim. D. Sue their neighbors.

Jackie was sued in civil court by one of her creditors. As a result of the judgment against her, her house, car, and art collection are all subject to sale in order to pay the creditor. What type of lien is this? A. General B. Special assessment C. Vendor's D. Voluntary

Jeffersontown has a zoning ordinance that requires all properties in a designated historic district to have brick or wood plank facades. No aluminum, cement board, or vinyl siding is allowed. What type of zoning is this? A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning

Jenna was surprised that the charming Tudor she was touring was still on the market. "I don't see anything bad on the disclosure," she told her agent, "and the price seems fine. Why do you think it hasn't sold?" Her agent Louise responded, "Well, I heard that UPS was opening a new air hub two miles away early next year." Why might this affect Jenna's or other buyers' interest in the property? A. A UPS hub would mean many more flights overhead each day. B. More UPS jobs would mean more housing competition. C. The city might raise property taxes once UPS moves in. D. With a UPS hub nearby, packages would be delivered more quickly.

Jenson signed a seller's agency agreement with Susan. A few weeks after that, right before closing, a hurricane destroyed the property. What happens to Jenson and Susan's agreement? A. The agreement terminates by force of law. B. Jenson and Susan can mutually agree to terminate the agreement. C. The client can revoke the agreement but may be considered in breach of contract. D. The agreement terminated when the buyer's offer was accepted.

John and Amy purchased a builder's home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage? A. 10 years B. Five years C. One year D. Three years

Kiley Ann is thrilled to have her real estate license and to be hired on at New Beginnings Brokerage. She's not positive about Luis, her employing broker, though. He seems a little sketchy. For example, when she looks at her independent contractor agreement, it says that she's not entitled to unemployment insurance and has to pay her own income taxes. What should she do? A. Review the requirements for independent contractors and be prepared to pay her own income tax and unemployment insurance. B. Contact the state's labor department and report Luis for attempting to avoid his legal obligations as her employer. C. Consult with a more experienced licensee at New Beginnings Brokerage to find out if this is standard practice for independent contractors at the firm. D. Find a new broker to work for; Luis is trying to take advantage of her inexperience.

Krening Realty has been found guilty of running deceptive ads. Which of these statements about the potential penalty is NOT true? A. Krening's broker may face jail time. B. Krening may be required to run corrective advertising. C. The firm may face civil penalties ranging from thousands to millions of dollars, depending on the infraction. D. If Krening violates the cease and desist order the firm may face penalties in excess of $15,000 for each day a deceptive ad runs.

Marcus, who primarily represents sellers, hired multiple groups of actors to portray large, poor families who attend an open house in a neighborhood of mostly retired, wealthy families. He then mailed postcards to residents, offering to purchase their properties quickly for a discounted price before the neighborhood make-up changes. What is this an example of? A. Blockbusting B. Redlining C. Steering D. Collusion

Marlon and Leah are interested in buying a home in a new homeowner opportunity area. The 100-year-old row house was renovated and is like new on the inside. The property taxes decreased more than $5,000 last year. What's the likely reason for this? A. Tax abatement B. Tax reassessment C. Seller error D. Introductory rates

Requirements for renewal of a salesperson and a broker license in Massachusetts are similar, but what must a broker do that's not required of a salesperson at renewal? A. Have a $5,000 surety bond in place B. Pass a renewal licensing exam C. Pass the board's review of all transactions under the broker's name D. Pay a fee

Sam's kids talked him into putting up the basketball hoop that their grandparents got them for Christmas. On a quiet Saturday afternoon, Sam is busy nailing the backboard to the front of their garage facing the street when one of the officers of the homeowners association walks by. "I'm so sorry," she says. "But you'll have to take that down. Basketball hoops in direct view of the street are prohibited." What is in place in Sam's subdivision that would prohibit this? A. CC&R B. Deed warranty C. Law D. Regulation

Sandra retired from a career in the Navy and is ready to buy her first home—a small bungalow in a quiet neighborhood—for $169,900. Her military service qualifies her for a VA-guaranteed loan. What's her required down payment? A. 0% B. 3.5% C. 15% D. 20%

Shemar owns a starter home a few miles outside the city center, and he wants to deed it to his grandson, Tyler. According to the paperwork Shemar had drawn up, Tyler will own the property as long as he continues to pay the property taxes on time. After the second late property tax payment, ownership reverts to Shemar. What did Shemar place on the deed? A. Deed restriction B. Deed covenant C. Deed limitation D. CC&Rs

Simon is looking for a facility for a large grocery distribution operation. He found two options, one of which is offering him a triple net lease and the other an absolute net lease. Why is his attorney arguing against the latter? A. An absolute net lease has no legal defenses if Simon fails to pay. B. An absolute net lease will cost more in the long run. C. Simon will still be responsible for insurance in an absolute net lease. D. Simon will still be responsible for taxes with an absolute net lease.

Sondra, a buyer, signs all the required mortgage documentation, and promises to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank indicates that it is going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the title to the land. What kind of state does Sondra live in? A. A lien theory state B. A deed of trust theory state C. A title theory state D. An intermediary theory state

The owner "holds" the title during the repayment period and the lender 'holds' a lien. A. A lien theory state B. A deed of trust theory state C. A title theory state D. An intermediary theory state

Under the ___________________________________________, it's unlawful for any creditor to discriminate against an applicant on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. A. Equal Credit Opportunity Act B. Community Reinvestment Act C. Consumer Credit Protection Act D. Home Mortgage Discrimination Act

What must sellers provide prospective buyers of homes built prior to 1978, in addition to the appropriate disclosure form? A. EPA lead safety pamphlet B. List of reputable home improvement contractors C. Verbal assurance that the home is lead-free before offering it for sale D. Written proof that the home is lead-free

What property feature could lead to soil contamination? A. Underground storage tank B. Irrigation system C. Multi-car garage D. Brick pavers

What type of loan is neither guaranteed nor insured by government agencies? A. Conventional B. Federal Housing Administration (FHA) C. U.S. Department of Agriculture (USDA) D. U.S. Department of Veterans Affairs (VA)

What's the maximum amount of compensation an unlicensed individual in Massachusetts may legally receive for assisting someone in the sale of a home? A. 0 B. No maximum C. Not more than $200 in cash or items of value D. Not more than $500 in cash or items of value

When a property is found to contain an environmental hazard, what can generally be expected to happen to the property's value? A. The presence of an environmental hazard would decrease the property's utility and restrict its use until the hazard is cleaned up, decreasing value. B. The presence of an environmental hazard would have no effect on property value. C. The presence of an environmental hazard would interfere with title transferability, decreasing property value. D. The presence of an environmental hazard would limit the inhabitable space on the property, increasing scarcity and therefore value.

Which of the following is NOT one of the five tests of a fixture? A. Method of accountability B. Agreement of the parties C. Relationship of the parties D. Adaptability of the item

Which of the following is a duty of a property manager? A. Maintaining the property B. Picking up after tenants' pets C. Referring all interested tenants directly to the owner D. Showing the property to potential buyers

Which of the following is a true statement about FHA financing? A. An FHA loan is usually more attractive to borrowers who have lower credit scores and down payments. B. FHA loans are available to all borrowers, regardless of credit history. C. FHA loans are best for borrowers who have large down payments. D. FHA loans have more stringent requirements than conventional loans do.

Which of the following is an action borrowers take to temporarily lower the interest rate on their mortgage loan? A. Buydown B. Down payment C. Gap financing D. Usury

Which of the following is an example of commingling? A. Cynthia deposited her client's earnest money check into the firm's operating account. B. Jenson deposited his client's earnest money check into the firm's trust account. C. Jessica deposited her commission check into her brokerage firm's operating account. D. Sean withdrew funds from the firm's trust account to pay the rent.

Which of the following is most likely to establish workmanship standards when someone is building an addition to their property? A. Building code B. Planning commission C. State regulations D. Zoning ordinance

Which of the following statements is true about conventional loans? A. Originators usually package and sell the loans on the secondary market. B. They're guaranteed by the U.S. Department of Veterans Affairs. C. They're insured by the Federal Housing Administration. D. They're provided by the U.S. Department of Agriculture.

Which of the following statements is true about zoning classifications? A. A home business would be considered an accessory use. B. A residential property may only have one use. C. Condos are always commercial property. D. Multi-family housing is zoned commercial.

Which of these is an example of commingling? A. Mixing earnest money with personal funds B. Mixing two earnest money deposits C. Paying licensee bonuses from forfeited escrow deposits D. Using escrow funds to pay business expenses

Which of these statements about a conventional mortgage loan is true? A. Borrowers with larger down payments and higher credit scores are most likely to select a conventional mortgage. B. Conventional mortgages are non-conforming. C. FHA imposes loan limits (maximum loan amounts) on conventional mortgages. D. The government insures up to 25% of conventional mortgages for qualifying buyers.

Which of these statements best describes a listing that terminates by performance? A. Successful Closing B. Several offers that fall through C. No offers received on property D. Offers under asking price and accepted offers

Your client, Eric, is interested in purchasing an industrial property to start a new business. You've recommended that soil, air, and water testing be done, but Eric is on a tight budget and doesn't feel these tests are necessary. What should you do? A. Keep records of your recommendations and a written response from Eric. B. Perform the tests yourself. C. Refuse to be a part of the transaction. D. Support Eric in his decision and do nothing further.

Your client, a builder, is considering buying three adjacent lots. They each have the same depth, 275 feet. Lot A is 35,750 s.f., Lot B 53,900 s.f., and Lot C is 33,000 s.f. If your client buys all three lots, what total street frontage will he have? A. 446 feet B. 462 feet C. 464 feet D. 466 feet

Your clients, Bill and Stacey, are interested in purchasing a piece of land that has several acres of wetlands. Which of the following is a true statement? A. The presence of wetlands affects use of the property and should always be noted on appraisal reports. B. The presence of wetlands doesn't affect use or value. C. The presence of wetlands means the site has significantly less overall value. D. The presence of wetlands means the site will have a higher appraisal value.

___________________ is applied when a community wants all of the structures in a given area to have a similar visual look. A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning

___________________ is when both parties sign the contract. A. Acceptance B. Binding acceptance C. Personal delivery D. Notarization

___________________ is when trust funds are deposited into anything besides a trust account set up specifically to hold funds belonging to others. A. Commingling B. Conversion C. Theft

A landlord has an available unit, but refuses to show it to several applicants. These applicants are all single women with children; the applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law? A. He is advertising the unit in a restrictive way that discriminates against those with children. B. He is discriminating against people based on sex and familial status by refusing to show available housing. C. He is discriminating by offering special terms for rental based on a protected class status. D. He is sexually harassing potential tenants.

An agent, Alice, has listed a three-bedroom home for her client. Before she finds a buyer, the home burns to the ground. What happens to the agency agreement that Alice has with her client? A. The agency agreement continues as created unless Alice and her client can mutually agree to terminate it. B. The agency agreement is terminated upon destruction of the property. C. The agency agreement must be extended until the home is rebuilt, or for six months, whichever is longer. D. The agreement must continue, but it can be modified due to the changed value of the property.

Because of the topography of their yards, Elsie had to install her fence at the top of a hill, which is actually two feet over Lawrence's property line. What is Elsie's fence? A. Easement in gross B. Encroachment C. Servient estate D. Visible easement

Bonnie is calculating the square footage of a listing. The upper level of the home is 450 square feet. The main floor is 1,200 square feet, including an unfinished laundry area that's 225 square feet. The 1,200-square-foot basement is finished. Bonnie's MLS system disregards below-grade square footage. What square footage will Bonnie mention in her MLS listing and marketing materials? A. 2,400 B. 1,425 C. 2,850 D. 1,200

Burt owns a development company that specializes in constructing new, highly energy efficient houses. The best approach for an appraiser to use in the appraisal of Burt's newly built homes is the ______. A. Appraisal process B. Cost approach C. Income approach D. Sales comparison approach

Buyer Daphne and seller Kurt signed a sales contract with a definite closing date of May 15. Daphne now finds that she needs to move the closing date to June 15. She'll accomplish this with an ________ to the sales contract. A. Addendum B. Amendment C. Annotation D. Appendix

Cambridge Apartments provides an open parking lot for their residents. There is adequate parking and all spaces are available on a "first-come, first-served" basis. Alton has MS and uses a motorized wheelchair. Must Cambridge reserve a parking place specifically for Alton if he requests? A. Provided they have at least two parking spaces per living unit, they needn't reserve one for Alton. B. Cambridge must allow an exception to the first-come, first-served policy for Alton. C. As long as the current parking policy was already in place before Alton made application, Cambridge need not make an exception .D. Cambridge must provide a space for Alton that is no farther than 50' from an accessible building entrance.

Camille, a buyer, wants to change the price already agreed to in a sales contract. She should use a(n) ______. A. New contract B. Amendment C. Addendum D. Bill of sale

Chad, a landlord, made a pass at one of his tenants. She refused his advances, and her rent increased the following month. The other tenants didn't receive a rent increase. How did Chad violate fair housing law? A. He created special terms for a tenant based on familial status. B. He created special terms for a tenant based on sex. C. He refused to make reasonable accommodations for a tenant who is disabled. D. He refused to rent to an applicant based on sex.

Claire rents 1,100 square feet of office space in a new professional building. Her rent payment includes all utilities and property taxes, but she pays separately for custodial services. What kind of lease does Claire have? A. Full-service lease B. Modified gross lease C. Percentage lease D. Triple-net lease

Clarissa is allowed to phone Gerry in Hingham, who's on the National Do Not Call Registry, even for solicitation purposes, because ______. A. Gerry is listed in the phone book B. She has an established business relationship with Gerry C. She's calling on behalf of her broker D. She's calling on behalf of one of her clients to see if Gerry is interested in selling his property in Hingham

Diana is selling her home in a caveat emptor state. She isn't required to complete seller disclosures, but which of the following IS she required to do? A. Disclose whether it's in any way a stigmatized property. B. Answer questions about the property honestly. C. Remind the buyers to do their own due diligence. D. Get her agent to fill out disclosure forms.

Donald and Martina have decided to purchase a newly built home. Their agent Ed recommended that they have a home inspection. They had thought that inspections were only for older homes. How should Ed respond to that? A. Ed doesn't trust the builder. B. Every dwelling, no matter the age or size, should have a home inspection. C. Lenders for new construction loans require inspections. D. They're most important for newer properties.

Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable? A. Drew didn't have the financial resources to make the offer. B. Real estate contracts must be in writing. C. There was no offer and acceptance. D. This wasn't a legal purpose.

If Acme Bank, a primary lender, wants to sell its loans on the secondary market, it would be easier for it to do so if its loans met ______. A. FDIC guidelines B. Fannie Mae and Freddie Mac guidelines C. FHA guidelines D. VA guidelines

In eight years, Margot will inherit a sizable chunk of money from her grandmother. Margot wishes to purchase a home now and qualifies for a 10-year loan with regular, affordable monthly payments. At the end of the loan's term, she'll owe the entire principal balance at once, which she's prepared to pay with some of Grandma's money. What kind of loan will Margot be using? A. Bridge loan B. Balloon loan C. Graduated payment loan D. Budget loan

Jacob's family has operated a neighborhood grocery store in the community since before the land was zoned residential. Jacob continues to operate the store legally. What would you call this? A. Mixed use B. Non-conforming use C. Residential retail use D. Special use

Janice is extremely excited to have purchased her first home. She was able to lock in her monthly payment at a very low rate for the first five years. In year six, Janice's payments will become significantly higher based on the going market rates. What type of loan does Janice have? A. Purchase money mortgage B. Adjustable rate mortgage C. Wrap-around mortgage D. A straight-term loan

Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC? A. She must take a required number of continuing education hours. B. She must take three training classes through the firm. C. She must belong to the local REALTORS® association. D. She receives no benefits from the firm.

Jeanetta leases an apartment from Quad City Leasing. Jeanetta has filed a complaint with the state real estate licensing division stating that Marissa, Quad City's property manager, breached her fiduciary duty of loyalty to Jeanetta. Which of these statements about this situation is true? A. As a property manager, Marissa doesn't owe fiduciary duties to clients or residents. B. As a property manager, Marissa owes fiduciary duties to her client and the apartment community. C. If Marissa did breach a fiduciary duty to Jeanetta, Jeanetta has a legitimate complaint. D. Marissa owes fiduciary duties only to the landlord.

Jeffrey has accepted an offer of $299,000 for his house. The buyer is making a $50,000 down payment and the buyer's appraisal came in at $300,000. On what number will the buyer's lender base the loan-to-value ratio? A. $300,000 B. $299,000 C. $310,000 D. There's no way to tell given the data provided.

Johannes must obtain a permit for a construction project that he is doing right next to wetlands. Which federal law or regulation requires him to get the permit? A. Army Corps Construction Regulations B. Clean Water Act C. Coastal Zone Management Act D. Rivers and Harbors Act

Juan has decided to invest his small inheritance in real estate. He is drawn to the fact that he can add a building where there wasn't one previously and immediately increase the value of his investment. Which economic characteristic of real property is this? A. Area preference B. Improvements C. Permanence D. Scarcity

LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was the place for family holiday gatherings, and LaTonya's sister was even married there. That's why her family is so upset to learn that she plans to sell the bungalow as soon as she gets it cleaned out. Which real property right allows her to sell the property? A. Control B. Disposition C. Exclusion D. Possession

Landlords must abide by all fair housing, civil rights, and ADA regulations, as well as comply with all state and federal landlord-tenant legislation. What responsibility does the property manager have related to this? A. The landlord is solely responsible for upholding all these laws and regulations. B. The property manager, as the landlord's general agent, is responsible for upholding all the laws and regulations required of the landlord. C. The property manager, as the day-to-day manager for a property, is the only one liable for upholding these laws and regulations. D. ADA regulations don't impact residential housing units, so neither the landlord nor the property manager is responsible for these regulations.

Lowell used to own 17 acres of property on the bay. After last year's hurricanes, Lowell now owns 15.5 acres of bayfront property. Which natural process was responsible for Lowell's loss of acreage? A. Accretion B. Avulsion C. Erasure D. Reliction

Marcus and Lucinda decided to play a round of golf on a beautiful new course in their neighborhood. As they're making the rounds, they notice vent pipes extending from the ground in various places. What might this signify? A. The golf course is built on a brownfield site. B. The course is built on a capped landfill. C. The vents are dispersing natural gas from an oil well site. D. There are multiple underground storage tanks under the course.

Marge's broker, Geoffrey, told her that the lease on the property she wants to buy runs with the land. What does that mean? A. A new property owner can require tenants to relocate to a similar piece of land. B. If property ownership changes, the new owner must abide by the lease terms. C. The land area leased is fully described in the lease agreement. D. The lease terminates as soon as the land (property) changes hands.

Marta and Kim are excited because Marta received a prestigious fellowship, and she'll be studying in Spain for a year! Kim is taking a leave of absence from her job to accompany Marta. They don't want their home in a gated community to sit empty, so they'd like to rent it out for the year. What might prohibit them from doing so? A. County ordinance B. Homeowner regulations C. Neighborhood watch group D. State law

Mick focuses on originating mortgage loans. He works at a company that has in-house loan processors and underwriters. The options he offers consumers are limited to the products offered by his company. What's Mick's position? A. Real estate investor B. Mortgage banker C. Mortgage servicer D. Mortgage broker

Millie is a buyer who has given her agent an earnest money check for $10,000 with an offer to purchase. When will the check be deposited? A. After Millie receives loan approval for the purchase B. After the seller accepts the purchase offer C. At least 10 days prior to closing on the sale D. Immediately upon receipt by her agent

Monica received a promotion at work that requires her to relocate. Because of the timing of her promotion, she'll need to buy a new house in her new city before her current one is sold. So, she won't have any equity from her current home to make a down payment on the new house. What loan option would allow her to make the purchase before selling the old house? A. Fixed rate loan B. Bridge loan C. Amortized loan D. Wrap-around mortgage

Oscar bought an older home and hired a contractor to replace the old knob and tube wiring throughout the house. He was invoiced for the work, but 60 days have passed, and Oscar has yet to pay the bill. The electrician filed a lien against Oscar's house. What type of lien is this? A. HOA-related B. Mechanic's C. Mortgage D. Special assessment

Regina purchases a farm with 80 acres and owns her property in severalty. What does this mean for the company that purchased the mineral rights from the previous owner? A. Regina and the company that purchased the mineral rights are automatically tenants in common, since they share ownership of the property. B. Regina didn't purchase the mineral rights, which have been severed from the property by the previous owner. C. Regina included the mineral rights in her purchase agreement, since she could not otherwise own the property in severalty. D. Regina is the sole owner, and the company must accept a fractional portion of the sales price in return for forfeiting the mineral rights.

Residents of Tinytown have been complaining to town officials that the village-like character of their town is being affected by the medium-rise condos that developers are building on the edge of town. In response, local government officials rezoned the areas on the edges of town as parklands. What type of zoning is this? A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning

Sam's not very good with planning for his expenses. He has a mortgage payment that includes his property taxes and property insurance (PITI), so he can knock those all out with his mortgage payment every month. Sam's also happy to know that his monthly payment will remain the same for the life of his loan. What type of mortgage does Sam have? A. Straight B. Budget C. Amortized D. Adjustable

Seller Gina feels awful that Martha, who was going to buy Gina's property, lost her job. Gina decides to ____________ Martha from her obligation to pay earnest money, so that money is returned to Martha. A. Rescind B. Release C. Reform D. Assign

Sophie received title to her grandmother's farm last spring. For almost 100 years, Sophie's family has kept cows and goats on the 120-acre property. The deed came with a caveat: Sophie is never to raise pigs on the farm. If she does, then the property is transferred to her brother. What did Sophie's grandmother create? A. Abatement B. Condition C. Covenant D. Restriction

Stacey, a buyer, is working with Rebecca, a licensee. Rebecca doesn't represent Stacey, however. Which of these statements about this situation is correct? A. Stacey is Rebecca's client. B. Stacey is Rebecca's customer. C. Rebecca is acting in an agency capacity for Stacey. D. Rebecca can't work with Stacey without an agency agreement.

State usury laws are typically not applicable to what type of lending? A. Consumer loans B. Credit cards C. Loans from private lenders D. Personal loans

Subdivision regulations imposed by developers in an effort to maintain control of the development of the subdivision are an example of ______. A. Eminent domain B. Private land use control C. Profit limitations D. Taxation

Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing they did when they surveyed the new neighborhood was to reference what type of description first? A. Plat book B. Metes and bounds description C. Monument D. Map

Terri just bought her first home! She's so excited to be living the American Dream. She owns her home's interior, including the walls, but not the land on which it sits. What type of home does Terri own? A. Apartment B. Condominium C. Cooperative D. Townhouse

The _____________________________ encourages lenders to give back to their communities. A. Equal Credit Opportunity Act B. Community Reinvestment Act C. Consumer Credit Protection Act D. Home Mortgage Discrimination Act

The doctrine of laches refers to the ______ of restrictive covenants/deed restrictions. A. Creation B. Enforcement C. History D. Types

The purpose of the Truth in Lending Act (TILA) is to ______. A. Require lenders to treat all applicants fairly, regardless of their religion, race, color, national origin, age, disability, or familial status B. Require lenders to make disclosures that allow consumers to compare the costs of making a purchase using credit from different lenders, and to compare those with the cost of using cash C. Require lenders to publicly disclose all data regarding credit applicants and the disposition of mortgage loan applications D. Require lenders to treat others as they would treat themselves

Tom and Rosanne are interested in a property, but before making an offer, they want to make sure there aren't any registered sex offenders living in the neighborhood. Which statement is most accurate? A. The seller must disclose the location of any nearby sex offenders. B. It's up to the buyer to perform due diligence and research whether sex offenders live in the area. Licensees can direct clients to the state's registry. C. The licensee must research the neighborhood to determine if there are any registered sex offenders. D. Sex offender information is not public, and a seller is not required to disclose it.

Virginia is finally living her dream—she bought a coffeehouse in a charming college town. After she closed on it, her attorney sat down with her to discuss various business licensing and legal requirements she'll have to meet. Virginia was surprised to learn that her five-table establishment is affected by the Americans with Disabilities Act. What must be true about the coffeehouse? A. It includes at least 400 square feet of public space. B. It's a commercial enterprise that's open to the public. C. It sits in a city center. D. It was built after 1978.

What are trust funds? A. Commission money the licensee has earned B. Money belonging to others held for a specific purpose in the course of a real estate transaction C. Money given as a gift to the broker D. Rent received from a broker-owned property

What can brokerages do to ensure licensees use technology properly? A. Forbid new technology from being used for marketing and communication. B. Have a solid policies and procedures manual in place. C. Review all communications sent between licensees and consumers. D. Track Internet and phone usage.

What factors does the underwriter consider in reviewing a mortgage loan application? A. Capacity, collateral, and criminal record B. Credit, capacity, and collateral C. Credit, capacity, and collections D. Credit, credentials, and collateral

What happens to an initial offer from the buyer after a seller counters? A. It becomes the back-up offer. B. It's no longer in play. C. It's accepted by the seller until the buyer accepts the counter. D. Sellers cannot counter a buyer's initial offer.

What's TRID? A. Terminating and Reducing Inappropriate Disclosures B. TILA-RESPA Integrated Disclosures C. Timely and Rapid Integrity through Disclosures D. Truth in Disclosing

What's the purpose of a buyer representation agreement? A. To disclose brokerage relationship options to consumers B. To establish an exclusive agent/buyer relationship C. To limit the duties a licensee may perform for a consumer D. To register an agency as a real estate brokerage firm

When it comes to landlord-tenant relations, a property manager needs to know ______. A. Architectural trends B. Fair housing laws C. How much money all tenants have in their bank accounts D. The names of the tenants' children

Which of the following is an example of market allocation? A. Acme Realty maps out a plan to dominate the eastern part of the city. B. Acme Realty and Hawthorne Realty Group agree to divide the city in half, each working its own half. C. Acme Realty and Hawthorne Realty Group each discuss with their licensees where the most lucrative deals can be found. D. Acme Realty and Hawthorne Realty Group each try to win the million-dollar listings.

Which of the following is an example of single agency? A. A broker acts as a dual agent to one party only B. An agent from one firm acts as the agent for the buyer C. Two agents from different firms, where one acts as a sub-agent for the other D. Two agents from one firm, where one acts as an agent for the buyer and the other is the agent for the seller

Which of the following properties requires a lead disclosure? A. Commercial building built in 1960 B. Duplex built in 1959 C. Duplex built in 1979 D. Single-family home built in 1999

Which of the following situations may result in inverse condemnation? A. Property taxes rise because of an increase in property value. B. Property values decrease because adjacent property was rezoned. C. Property values decrease because the property was rezoned. D. The government takes private property for public use.

Which of the following statements about Massachusetts purchase offers is true? A. Licensees aren't required to present verbal offers to the seller. B. Licensees must present all purchase offers to the seller. C. Licensees should only present realistic offers to the seller. D. Licensees should use their own discretion to determine which offers to present to the seller.

Which of the following statements related to the power of taxation is true? A. If the property is foreclosed upon, property taxes are paid after all other creditors. B. Property tax liens take priority over any and all other liens on the property in most states. C. Property tax liens take the lowest priority after all other liens on the property. D. Taxation is an unstable source of income.

Which of these is a TRUE statement regarding truth in advertising violation penalties? A. A cease-and-desist order from the Federal Trade Commission related to deceptive advertising becomes effective 30 days after issuance. B. The Federal Trade Commission determines the severity of the penalty based on the severity of the violation. C. The Federal Trade Commission typically imposes jail time for truth in advertising violations. D. The severity of the civil penalty for violating truth in advertising laws is based on the number of consumers affected by the deceptive ad.

Which of these is an example of a non-agency relationship? A. Kendra represents Steven in the sale of his home. She helps him complete the necessary paperwork to make his offer. B. Dutton was previously a licensee. He's selling his home, and he wants Wanda to just assist him with the paperwork. C. Alexa, a licensee, works closely with her buyer clients' lender to be sure the lender has all information needed to approve the loan. D. Ingrid, a licensee, helps her neighbor, Jeremy, spruce up his house before Jeremy's agent holds an open house.

Which of these is an example of bulk zoning? A. Greenville developers must adhere to specific design parameters for construction within the city's downtown area. B. Misty Falls restricts building any structure within 15 feet of a roadway. C. Oak City developers must include subdivision open space proportionate to the overall development acreage. D. Rushton city council members approved the location of a light industrial building within a currently-zoned agricultural area.

Which of these situations does the Americans with Disabilities Act address? A. Marcus, a property manager, routinely dismisses rental applications from families with children under the age of 18. B. Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs. C. Metro Agents hired an interpreter to assist Spanish-speaking clients with the real estate process. D. The Golden Gate senior housing center has no exercise or activity center for its residents.

Which of these situations represents the illegal practice of blockbusting? A. Celia, a licensee, distributed a flyer in several neighborhoods, claiming that gentrification of those neighborhoods will increase property values. B. Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values. C. Estelle, a broker, warns potential clients about the upcoming zoning change in a neighborhood that is currently zoned as residential. D. Kian, a mortgage broker, refuses to underwrite mortgage applications from applicants who are Hispanic or Asian.

Xavier deposited a $3,000 earnest money check into his personal account for safekeeping while he was on vacation. The balance in his account when he left on vacation was $4,200, and when he returned, it was $2,800. He withdrew enough funds from his savings account to cover the earnest money check and delivered the funds to the escrow agent. Which statement best represents Xavier's issue? A. Xavier is guilty of commingling. B. Xavier is guilty of commingling and conversion. C. Xavier is guilty of conversion. D. Xavier is guilty of theft.

Your listing is a 1918 Craftsman with some significant foundation issues. So significant that the buyers walked away after the inspection. They provided you and your sellers with a copy of the inspection report, which also points out some wiring concerns. At today's open house, a prospective buyer asked to see a copy of any inspections done on the property. What should your response be? A. You should provide an inspection report, but only if specifically asked. B. You should disclose any adverse material facts, but you don't have to provide the report. C. You should provide an inspection report to all prospects along with seller disclosures. D. You should ask the buyers who walked away whether you can provide a copy.

Zach wants to purchase a property that's subject to an existing lease agreement, which includes the tenant's right to renew the lease. What is Zach's obligation, if any, to uphold the terms of the lease agreement? A. As the new owner and landlord, Zach can disregard the renewal option. B. Zach must honor that right and allow the tenant to renew at the end of the term. C. As the new owner and landlord, Zach can terminate the existing lease. D. Zach is under no obligation to uphold any part of the existing lease agreement.

__________________ involves an agreement between brokers to divide up the market and then refrain from competing for business. A. Price fixing (collusion) B. Market allocation C. Group boycotting D. Per Se

__________________ means putting your client's interests ahead of others, including your own. It also means working in the client's best interests. A. Obedience B. Loyalty C. Disclosure D. Confidential E. Accounting F. Reasonable Skill and Care

___________________ is a legal doctrine implying that time is of the essence, and that delays may result in individuals losing various legal rights. A. Police power B. Doctrine of laches C. Power of escheat D. Municipal master plan

____________________ is when the signed contract is delivered to all parties. A. Acceptance B. Binding acceptance C. Personal delivery D. Notarization

______________________ is when trust funds are spent for any purpose other than that for which they were intended. A. Commingling B. Conversion C. Theft

_______________________ is the practice of inducing the sale of properties in a neighborhood by threatening that members of a minority class moving into the neighborhood will decrease property values A. Reverse redlining B. Blockbusting C. Steering D. Fraud

________________________ means that liability may be applied backwards—to previous owners. A. Joint liability B. Retroactive liability C. Several liability D. Strict liability

_________________________ is used when an area was previously allowed high density structures but wants to reduce the density of the area. A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning

__________________________ are often linked with indexes—such as the one set by the U.S. Treasury—so their rates can fluctuate with the national economy. Rates adjust periodically, based on the loan terms, but payment caps apply for periodic adjustments and total adjustment over the life of the loan. A. Purchase money mortgage B. Adjustable rate mortgage C. Wrap-around mortgage D. A straight-term loan

______________________________ are commonly used in financing. A. A lien theory state B. A deed of trust theory state C. A title theory state D. An intermediary theory state

______________________________basically gives a date by which all performance must be completed or the party forfeits any legal rights. A. Specific time B. Statute of limitations C. Time is of the essence D. Time of performance

A former client has filed a formal complaint against Ajit, claiming he failed to properly disclose a material fact that the seller didn't disclose. Which of these statements about Ajit's liability is true? A. Ajit is only responsible for disclosing adverse material facts. B. The claim has no base because the seller didn't disclose the information. C. Ajit may be liable if he operates in a state that requires licensees to make a reasonable effort to discover adverse material facts. D. The claim is likely to be dismissed if Ajit operates in a caveat emptor state, which places the burden for discovery of material facts on the buyer.

A requirement that all property owners in a subdivision have a six-foot privacy fence surrounding their entire property is an example of a ______. A. Deed B. Doctrine of laches C. Restrictive covenant D. Setback

Adams County implemented a 10 p.m. curfew for youths under age 18 because of the high number of fights that have been occurring late at night in public places. Which of the following gives Adams County the right to restrict the movements of its minor citizens? A. Doctrine of laches B. Municipal master plan C. Police power D. Power of escheat

Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed restriction prohibiting any building taller than one story. Ronesha wants a three-story house. What should she do? A. Apply to the zoning board of appeals for a variance. B. Check to see if the building code will permit a larger house. C. Conform to the deed restriction. C. File a suit against Alice to have the restriction removed.

Beverly doesn't represent either party to this Massachusetts real estate transaction. She's just here to handle the paperwork once the two parties finish negotiations. What role is Beverly taking in this transaction? A. A designated agent B. A dual agent C. A facilitator D. A sub-agent

Centennial Development is constructing a new condo. The exterior of the building is 60 feet square. Which of these about the air lot is true? A. The air lot above the condo extends to the middle of the adjacent streets. B. The air lot is the same area as the condominium building. C. The air lot is the same perimeter as the condo and the lot on which it's built. D. The air lot perimeter is the same as the condominium's perimeter.

Charles is selling his property to Seth. Charles paid off his own mortgage on the property years ago, so he's in a position to provide 100% financing of Seth's purchase. Seth will make payments to Charles while Charles retains the property title. What's this an example of? A. Purchase money mortgage B. Wrap-around mortgage C. Land contract D. A straight-term loan

Chris owns Country Time Ranch and wants to expand his sheep and lamb farm by branching into milk production and cheese making. He wants to purchase the property adjacent to his farm, which would give him an extra 10 acres of farmland. Chris's ranch will provide a significant boost to the local economy. Assuming his income meets the program's criteria, what type of loan may Chris find the most desirable? A. VA-guaranteed loan B. Wrap-around mortgage C. Rural development loan D. Growing equity mortgage

During underwriting the borrower's ability to repay the loan A. Credit B. Collateral C. Capacity D. Credentials

Farm families financing the purchase of properties in rural areas may be able to obtain financing through this government agency if they meet certain criteria, such as income requirements. A. Department of Veterans Affairs B. Environmental Protection Agency C. Farm Service Agency D. Federal Housing Authority

First-time buyers Marina and Cody have a very strict budget. They are shying away from fixer-uppers because they don't have the money to address hidden issues that often arise from older properties in need of numerous repairs. Inventory is low, but they just found a newer two-bedroom ranch that appears to be in great shape. Their agent Jack recommends that they go in with a strong offer, but to NOT waive the inspection contingency. Why this recommendation? A. The home is only 22 years old, so an inspection isn't a big deal. B. None of the other offers will likely waive the inspection contingency. C. If their funds are limited, not having an inspection could lead to many high-priced repairs down the road—and they don't have the money. D. The inspection contingency shows that Marina and Cody are serious about their offer.

Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency. A. Capital B. Grants C. Guaranteed Loans D. Secondary market for agricultural loans

Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements? A. No, because Gus won't be using a real estate professional. B. No, because there's no transfer of title involved. C. Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit. D. Yes, because the bank is also the lender for his home mortgage. If he'd used a different lender, RESPA would not apply.

Home inspector Maura was walking Thad through a property inspection. The frame house, on a slab foundation, had mulch piled up about 18 inches next to the house. Why was Maura noting this as a concern? A. Mulch isn't a sustainable material. B. That much mulch might kill the plants it's meant to protect. C. Mulch next to wood siding may lead to wood rot. D. Mulch can be expensive to maintain.

If you see sawdust that can't be explained, it's probably a sawdust-like material called frass created by ______. A. Carpenter ants B. Fire ants C. Powderpost beetles D. Termites

In a real estate transaction in which you represent the seller, your duty to other parties is to ______. A. Maintain the confidentiality of all matters that other parties disclose to you B. Be honest in all matters that do not affect your client's interests C. Treat them honestly and fairly D. Be polite and courteous

In which of the following situations would the state be able to use its power of escheat? A. Sam died with no will, and his son lives overseas. B. Hannah passed away with no children and no debt, other than $83,000 left to pay on her mortgage. C. Nadine died with no children and no debt. D. Maury died, and his three children are upset because his estate isn't large enough to settle all of his debts.

Jared wants to purchase property. One of the properties his agent shows him was formerly zoned for commercial use. It has a steep drop off at the back of the property, as well as some soft spots and mounds. Should his agent recommend that he have a home inspector investigate it? A. No, Jared can address the cliff by bringing in additional soil. B. No, Jared is going to bulldoze the entire property to flatten it out anyway. C. Yes, these are clues that the property may have been used as a waste disposal site. D. Yes, these are indications of an underground storage tank.

Jason is the seller's agent. His seller has a leaky roof he'd rather keep secret from buyers. What should Jason do? A. Fulfill his duty of loyalty. Revealing the roof leak may not be in his client's best interest. B. Fulfill his duty of obedience by keeping the roof secret, as his client instructed. C. Inform the seller that the roof leak is a material fact that he is obligated to disclose to buyers. D. Quit representing the seller.

Jenson signed a seller's agency agreement with Susan. A few weeks after that, right before closing, a hurricane destroyed the property. What happens to Jenson and Susan's agreement? A. It's terminated once the specified term in the agency agreement expires. B. Jenson and Susan can mutually agree to terminate the agreement. C. The agreement terminates by force of law. D. The client can revoke the agreement but may be considered in breach of contract.

Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer. Kendra is now considering the counter. What is Kendra in this scenario? A. Executor B. Offeror C. Offeree D. Trustor

Leases can end in several key ways. Mutual agreement and eviction are two. What is another way that a lease can terminate? A. Conversion B. Criminal use C. Expiration D. Neglect

Leonard is offered a loan at 5.75%. Because he plans to be in his home for several years, he chooses to pay points up front to have the rate reduced to 5.25%. What's this an example of? A. Down payment B. Usury C. Buydown D. Gap financing

Marion gave her granddaughter Sheila the deed to a brand new home, on the condition that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got a job as a greeter at a big box store instead, Marion ______ to regain ownership of the property. A. Had no recourse B. Had to purchase the property from Sheila C. Had to take legal action D. Wasn't required to take any action

Nathan is placing a listing ad for a soon-to-be-built expensive home in a gated community. He includes the words "exclusive" and "ultra-conservative community" in his ad. Does this violate fair housing law? A. No, because the terms are a true characterization of the neighborhood and the property. B. No, as long as the developers have used the same terms to describe the development. C. Yes, because it implies that the listing is suitable only for a particular type of buyer. D. Yes, unless the owners specified that he use these terms in all marketing tools.

Nelson manages a building with a strict "no pets" policy. Shanna, who is disabled and uses an assistance animal, wants to rent a unit in the building. What action can Nelson legally take? A. Nelson can allow Shanna to rent the unit and can charge a pet deposit. B. Nelson can allow Shanna to rent the unit, but at a higher rate. C. Nelson can allow Shanna to rent the unit but can't charge a pet deposit or any extra fees. D. Nelson can deny Shanna's application because pets aren't allowed in the building.

Niko leased a unit in a residential building Jenna owned. Niko notified Jenna about a broken window and offered to repair it if it weren't fixed by a certain date. That date had come and gone, and Jenna hadn't fixed the window. Niko hired someone to make the repair and deducted the cost from his next rent payment. Can he do this (assuming the area where he lives has adopted the Uniform Residential Landlord Tenant Act)? A. No, only Jenna can make repairs to the property. B. No, Niko must receive written permission from Jenna to make repairs to the property. C. Yes, but Niko should submit the receipts along with his rent payment. D. No, Niko can't deduct the amount from his rent but can instead seek reimbursement for the costs.

Property managers must recognize the federally protected classes under ADA and the federal Fair Housing Act. Which list most accurately lists these classes? A. Race, color, religion, national origin, familial status, or disability B. Race, color, religion, national origin, sex, familial status, age, marital status, or disability C. Race, color, religion, national origin, sex, familial status, or disability D. Race, color, religion, national origin, sex, marital status, or disability

Ramon and Bill are victims of fair housing discrimination. Which of the following must have occurred if their landlord violated the specific terms of the federal Fair Housing Act? A. They were refused an apartment because they're gay. B. They were refused housing because Ramon is a smoker. C. They were refused an apartment because Ramon is from Nicaragua. D. They were shown an inferior apartment because the landlord doesn't like 20-somethings.

Robert is the general contractor for a home under construction in a new development. The foundation has been poured, and he's working with the homeowners to make some decisions that weren't identified in the blueprints he's working from. Which of the following details will be guided by local building codes? A. Number and type of windows per square foot B. Material used for shingles C. Number and type of electrical breakers D. Placement of gas range in the kitchen

Sander and Ginny bought an old industrial site with plans to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that they've made a great investment because the land is in great shape. This reflects which physical characteristic of real property? A. Immobility B. Improvements C. Indestructibility D. Uniqueness

Sebastian owns a country house and vacations there every summer and on holiday weekends. As much as he'd like to will it to his niece when he passes, his ownership of the house ends when he dies. What type of estate does Sebastian own? A. Fee simple estate B. Free leasehold estate C. Life estate D. Remainder estate

Smalltown is building a new interstate exchange to facilitate access to shopping and restaurants. In order to do so, it purchased two homes and tore them down so the ramps to and from the interstate could be constructed. What principal allowed Smalltown to do this? A. Abandonment B. Doctrine of laches C. Eminent domain D. Escheat

Sondra thinks the new business contract she's signed with her business partner is valid. Both parties are legally competent, the purpose is a business transaction so it's a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered? A. Whether the contract is in writing. B. Whether the parties are over 21. C. Whether consent was voluntary. D. Whether the contract has been translated into all possible languages.

Stan and Margo want to redevelop an old industrial site in order to create a microbrewery and event space. However, an environmental review found that hazardous chemicals were once used on site, and there is a possibility they will be released during redevelopment. Stan and Margo may not be liable for cleanup, under what federal law? A. CERCLA B. EIS C. SARA D. Wetlands Conservation Act

Tabitha listed her small-town property for sale. The community is in a decline; the largest local employer just shut its doors. The house has been on the market for several months with no offers. Tabitha decides to rent the property out instead of selling it. Under which of these circumstances can she do this without penalty? A. She's received no offers on the listing, so she can terminate her listing agreement. B. The local economy doesn't support sale of the property, so she's permitted to move the listing agreement to a firm in the larger city. C. The listing agreement with her current broker has expired. D. Since she's converting it to a rental, she can terminate the listing.

Tawna agrees to sell her small plot of land to Morris for $5,000 cash. They don't write up a contract, but otherwise all the necessary elements for a valid contract are in place. What's the status of this contract? A. It's void. B. It's valid and enforceable. C. It's valid but not enforceable. D. It's illegal.

The MARIA acronym helps to identify the five tests of a fixture. In MARIA, what do the two As stand for? A. Acceptability of the fixture and agreement of the parties B. Adaptability of item and accessibility to the property C. Adaptability of item to land's use and agreement of the parties d. Allowable use and acceptable use

The Office of Fair Housing and Equal Opportunity is a part of which federal department? A. CIA B. HHS C. HUD D. NHA

The ________________________ approach is based on the principle of substitution and uses the prices for which similar properties have sold recently to estimate the subject property's market value. The similar properties are referred to as "comps" or "comparables." The property being appraised is called "subject property." A. Cost Approach B. Income Approach C. Sale Comparison Approach

The lender "holds" the title during the repayment period. A. A lien theory state B. A deed of trust theory state C. A title theory state D. An intermediary theory state

The property management agreement between owner Susan and property manager Phil creates a relationship where Phil is the general agent for Susan. This means that Phil has the legal ability to independently __________. A. Refinance the property B. Buy other properties in the owner's name C. Handle all the daily operations required to manage the property D. Sell the property when he sees an opportunity

The state's claim to property when a property owner dies, leaving no will, heirs or creditors, is the power of ______. A. Condemnation B. Eminent domain C. Escheat D. Taking

Under which of the following circumstances is age an acceptable qualifier for a Massachusetts buyer or tenant? A. When deciding whether to show upper story properties with no elevator B. When determining whether the presence of young children would require lead-based paint remediation C. When screening for tenants interested in renting in a community designated for elderly residents D. When selecting the best neighborhoods for a buyer client based on available schools

Under which of these circumstances are the client and agent most likely to mutually agree to terminate a listing? A. The client has found a buyer and wants to avoid paying a commission. B. The client's cousin just became licensed and needs her first listing. C. The agent and client don't agree on the best way to price, maintain, and market the property. D. A buyer approached the seller with a much higher offer than the current listing price.

What factors affect an adjustable rate mortgage? A. Amortization tables, index, and rate B. Index, tax basis, and margin C. Rate, index, and margin D. Rate, loan-to-value ratio, and index

What might the government do if property owners fail to pay taxes on their property? A. Do nothing. B. Evict those living on the property. C. Place a lien on the property. D. Take ownership of the property.

What's the meaning of "good faith" in relation to contract law? A. The contract was formed without undue influence or duress. B. The parties agree to arbitration or mediation instead of legal action as a means of settling any disputes. C. The parties agree that they'll execute the contract to the best of their ability and without any fraud or misrepresentation. D. The contract terms are written to be equally beneficial to each party.

What, in addition to ensuring that rent is paid on time, is a tenant obligated to do? A. Develop a partnership with building maintenance to schedule weekly fixes. B. Reduce the landlord's effective workload by making things as easy as possible. C. Take reasonable care of the property. D. Unionize with other tenants to ensure the landlord stays on top of maintenance.

When Stacy's clients ask her if she can recommend a mortgage broker, she promptly gives them the name of the best mortgage broker she knows, Gary Jones. Later, she always receives a check from Gary as payment for the referral. Would this be legal or illegal under the Real Estate Settlement Procedures Act (RESPA)? A. This is legal under RESPA because the referral fee didn't involve granting credit. B. This is legal under RESPA because Stacy has proven experience with the mortgage broker she referred, so it's an honest transaction. C. This is illegal under RESPA because it's considered a kickback between settlement service providers. D. This is illegal under RESPA because it's considered a referral.

When calculating loan-to-value ratios, which of the following will be used by the lender? A. The appraisal value B. The greater of the sales price or appraisal value C. The lesser of the sales price or appraisal value D. The sales price

Which of these scenarios is considered steering and is therefore a violation of federal fair housing laws? A. Maureen, a buyer, selects a house in a neighborhood because of its demographic makeup. B. Knowing that West Palms Condos is a community primarily of Cuban immigrants, Miranda asks her agent to show her properties in that area. C. At his client's request, Miguel shows his client only properties where the neighborhood is mainly Hispanic. D. Janae refuses to rent an apartment to a Greek couple whose credit history is sketchy.

Which of these statements about statutory duties and fiduciary duties is true? A. Statutory duties are typically imposed in addition to fiduciary duties. B. Statutory duties spring from common law and include six duties that licensees owe clients. C. Statutory duties spring from state statutes and tend to be more specific than fiduciary duties. D. Statutory duties tend to be more broad than fiduciary duties.

Which of these statements best describes a listing that terminates by performance? A. Greg lists a property that fails to sell during the term of the listing agreement. However, he's performed all the tasks promised to the seller. B. Marty lists Todd's condo. With Marty's efforts, they get to closing, only to have the buyer's financing fall through. C. Roberto lists a property for Terrence. After two failed offers, the property makes it to a successful closing. D. Evan performs all required fiduciary duties and tasks in listing Von's house, even though it didn't sell before the listing expired.

___________________________________ involves handling the day-to-day activities of an existing mortgage. A. Real estate investor B. Mortgage banker C. Mortgage servicer D. Mortgage broker

A brokerage firm that hires licensees as employees instead of as independent contractors must ______. A. Advise the state licensing regulators of the non-traditional working relationship B. Avoid controlling their activities too closely to ensure proper worker classification C. Offer incentive bonuses to ensure a motivated workforce D. Pay licensees a regular salary regardless of the revenue they generate

A landlord refuses to show or rent an apartment to someone who is not Christian or Jewish. What type of discrimination is this? A. Disability discrimination B. Familial status discrimination C. Racial discrimination D. Religious discrimination

A prospective buyer is curious why a previous owner is selling such a perfect home. The licensee knows that the previous owner recently died due to complications from AIDS. How should the licensee respond to the prospective buyer's inquiry? A. The licensee can disclose that the owner had AIDS, but can't reveal whether the owner died from the disease. B. The licensee can obtain permission from the seller to reveal the previous owner's AIDS diagnosis. C. The licensee can share that the previous owner died from AIDS. D. The licensee can't disclose that a previous owner had HIV or AIDS.

A(n) ________________________ rate loan may include taxes and insurance, but the payment will fluctuate based on the current index rate it's associated with. A. Straight B. Budget C. Amortized D. Adjustable

A__________________________ lease, the tenant pays a base rent plus an additional charge that's a percentage of the tenant's gross sales once a specific 'breakpoint' is met. The landlord usually pays all the property's costs (as seen in a gross lease), but this may not always be the case. A. Graduated B. Gross C. Net D. Percentage

Allentown sits on the river, and its many bridges need repair. Which police power is Allentown likely to use in order to fund improvements to its bridges? A. Condemnation B. Escheat C. Taking D. Taxation

Allentown sits on the river, and many of its bridges are in need of repair. Which police power is Allentown administration likely to use in order to fund improvements to its bridges? A. Condemnation B. Escheat C. Taking D. Taxation

An agent is trying to drum up business for a friend's mortgage company. She offers to charge a lower commission rate to clients who use her friend's mortgage company for their financing. What's this an example of? A. Group boycotting B. Market allocation C. Price fixing D. Tie-in arrangement

An example of this type of leasehold estate is a month-to-month lease. A. Estate at sufferance B. Estate at will C. Estate for months D. Periodic estate

Anna manages an apartment complex for her landlord, Katherine. Anna's friend Kevin is looking for an apartment, and without asking Katherine's permission, Anna rents him a long-vacant two-bedroom apartment for the one-bedroom rate. Which of these statements is true? A. As the property manager, Anna's permitted to make decisions of this type. B. It's illegal and unethical for Anna to rent units to her friends. C. Since she'd had trouble renting the apartment, it was within Anna's authority to reduce the rental rate. D. Anna has breached her fiduciary duties to Katherine.

Bart just toured his fourth patio home of the day. To help him remember what he saw in each one, he's making notes about décor, updates, and inclusions that will stay with the property. Which of the following items is NOT considered personal property and would therefore stay with a home? A. The chimenea on the back patio B. The area rug in the dining room C. The banker's lamps in the den D. The chandelier in the foyer

Beth is considering buying the one and only geodesic dome in her town and turning it into a writer's retreat. The price is a good bit more than she wanted to pay, and the appraiser is having trouble finding good comparables. What physical characteristic of land has likely driven up the price of the property? A. Immobility B. Indestructibility C. Scarcity D. Uniqueness

Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______. A. A real estate licensee B. Unhappy with Scott's services C. Willing to find his own buyer D. Willing to pay Scott's commission anyway

Examples of real property include which of the following? A. Above-ground pool and pool accessories B. Bathroom mirror hanging on a hook C. Photos and wall hangings D. Shelves attached to the wall with brackets

Gail was supposed to close on her new home by the end of May, but she kept asking the sellers if they could push the closing back. Even after the summer was over the transaction still hadn't closed. Gail was guilty of not adhering to which aspect of the contract? A. Assignment B. Novation C. Reasonable time D. Time is of the essence

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this? A. General B. Special assessment C. Vendor's D. Voluntary

In order to be an effective property manager, a licensee must be familiar with a variety of ______. A. Agency disclosures B. Employment contracts C. Independent contractor agreements D. Lease agreements

Jeanetta, who leases an apartment from Quad City Leasing, has filed a complaint with the state real estate licensing division stating that Marissa, Quad City's property manager, breached her fiduciary duty of loyalty to Jeanetta. Which of these statements about this situation is true? A. If Marissa did breach a fiduciary duty to Jeanetta, Jeanetta has a legitimate complaint. B. Marissa owes fiduciary duties only to the landlord. C. As a property manager, Marissa doesn't owe fiduciary duties to clients or residents. D. Marissa owes fiduciary duties to her client and the apartment community.

Jessie, the buyer's agent, decides to informally inspect the property while she waits for the professional inspection. She notices a small puddle of water in the basement behind a stack of boxes. Later, Jessie calls the seller's agent and tells him what she found. The agent tells her not to worry; the seller is aware of the leak and plans to have it fixed within the week. Which one of these statements about this situation is true? A. Since the seller intends to fix the leak, Jessie doesn't need to disclose it to her buyer. B. Jessie can rely on the inspector to discover and disclose the leak. C. Jessie can check the basement later to be sure the leak is fixed. D. Jessie should disclose this to her buyer.

Joan is representing the buyer, Carlton, and Reggie is representing the sellers, Zeb and Teresa Martin. Carlton's great aunt, Matilda, has agreed to pay any portion of Joan's commission the sellers don't cover. Teresa Martin's father, Teddy, has agreed to pay half of the sales commission that will be owed to the listing agent. Which of these statements is true? A. Since she's paying Carlton's share of the commission, Matilda is Joan's client. B. Reggie's clients are Zeb, Teresa, and Teddy. C. Compensation determines agency, so Matilda and Teddy are the agents' principals in this transaction. D. Signed agency agreements are the best method of determining agency. Carlton and the Martins are the agents' principals in this transaction.

Katelyn really wants to include an inspection contingency in her purchase offer. Her agent explains that the inspection contingency only documents which of the following? A. How much money the sellers will spend on fixing inspection issues B. The inspector who Katelyn will use C. Whether Katelyn will ignore some of the inspection issues D. The date by which all inspection issues must be addressed

Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks prior to turning 18, which is the age of majority in their state. Debra found out about his age prior to the closing but honored the contract and they closed on the condo a month after Ken's birthday. What was the status of the contract when Ken and Debra entered into it? A. Executed B. Illegal C. Void D. Voidable

Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided? A. Barbie and Midge each own 50%. B. Barbie and Skipper each own 50%. C. Barbie, Midge, and Ken's heirs each own one-third. D. Barbie owns two-thirds, and Midge owns one-third.

Kyle owns six acres of land with 400 feet of river frontage. He wants to plant a buffer of shrubbery along the riverbank to minimize any erosion of the bank into the river. He can do this because as the owner of river frontage, he has ________ rights. A. Alluvial B. Erosion C. Littoral D. Riparian

Latrell purchased an old warehouse intending to create shared studio space for artists. However, he didn't perform due diligence before the purchase and it turns out that there are hazardous materials present that need to be cleaned up first. Latrell took the previous owners to court, and the court ruled that Latrell is responsible for the costs of cleanup. What kind of liability is this? A. Joint liability B. Retroactive liability C. Several liability D. Strict liability

Lawrence is a buyer closing on a home for which he's obtaining financing. Which document will give Lawrence an estimate of the costs he'll likely pay at closing? A. Closing Disclosure B. Mortgage Disclosure C. Buyer Worksheet D. Loan Estimate

Licensee Dionne pointed out to her buyer client the items in the house she was showing that would be considered real property. One of the key determinants, she explained, was whether the item were _______. A. Internal or external to the house B. Made of the same material as an interior or exterior wall C. Over or under a certain value D. Permanently affixed to the property

Marilyn is reviewing the inspection report with her buyer clients. Which of the following issues in the report should Marilyn flag as most significant? A. Broken dishwasher B. Lack of deadbolts C. Non-working sump pump D. Presence of mold

Massachusetts State Sanitary Code protects ____________ should the rental property they reside in becomes uninhabitable. A. Landlords B. Lessors C. Owners D. Tenants

Niko leased a unit in a residential building Jenna owned. Niko notified Jenna about a broken window and offered to repair it if it weren't fixed by a certain date. That date had come and gone, and Jenna hadn't fixed the window. Niko hired someone to make the repair and deducted the cost from his next rent payment. Can he do this (assuming the area where he lives has adopted the Uniform Residential Landlord Tenant Act)? A. No, Niko can't deduct the amount from his rent but can instead seek reimbursement for the costs. B. No, Niko must receive written permission from Jenna to make repairs to the property. C. No, only Jenna can make repairs to the property. D. Yes, but Niko should submit the receipts along with his rent payment.

Physical characteristics of land include its immobility, indestructibility, and ______. A. Location B. Permanence of investment C. Scarcity D. Uniqueness (nonhomogeneity)

Principal broker Todd is often extremely busy supervising his brokerage and training new licensees. He doesn't have time for his own clients, so he frequently sends his wife Cindy to meet with clients to sign transactional paperwork. Cindy doesn't hold a real estate license, but she does have a power of attorney (POA) for Todd. All fees are paid to Todd. What is the issue with Todd doing this? A. There is no issue as long as Cindy has a POA for Todd. B. There is no issue as long as the fees are paid directly to Todd. C. Cindy should be paid any fees due. D. Todd is prohibited from allowing anyone to use his principal broker's license in order to perform real estate activities.

Recently retired Admiral Bongo and his wife, Lucy, contact you. They want you to help them purchase their dream house now that he's retired, but one that has the necessary accommodations for the admiral's disability. They also confide in you that they don't have a lot of money saved up for a down payment. Which type of financing may work best for them? A. a conventional loan combined with a seller carry back B. A conventional loan using the admiral's retirement money as a down payment C. An FHA 203(k) loan to fix their new home up D. A VA Loan, which requires no down payment

Rex has a reputation in the community for being a bit odd. He lists his ranch for sale at a price vastly lower than what his agent recommended, but Rex insists. Rex's distant family hears of the potential sale, files a motion in court claiming that Rex isn't legally competent, and wins. What's the status of the listing agreement? A. It's still valid; Rex's family must abide by it. B. The listing is temporarily on hold until a court gives permission to invalidate it or until the listing expires. C. Rex's agent can continue to market the property, but Rex's family must approve the sale. D. The listing agreement is terminated by force of law.

Ron's company leased a building so that they could build an escape room experience. After operating for two years, their attendance (and thus their profits) started to drop significantly, so they decided it was time to close the location. When they started taking down the installation, they realized that some of the structures they built will damage the walls if they try to remove them. Which of these is true about these trade fixtures. A. If Ron leaves them in place and the lease expires, he has three months to remove them. B. Ron is required to leave the fixtures if they're attached. C. Ron is required to take the fixtures and return the premises to its original condition. D. Ron may take the fixtures as long as he repairs any damage caused by removal.

Samuel and Yoshi have worked at the same firm for a few months and get along well. Samuel mentions he has a credit score in the low 800s. Yoshi, who's just starting out, persuades Samuel to sign for a loan to help Yoshi buy a property, since his credit isn't good enough. Yoshi promises to make the mortgage payments, but two months after the deal closes, Yoshi moves across the country. Samuel's now stuck with a $400,000 mortgage. What type of scheme is this? A. Equity Skimming B. Inflated Appraisal C. Silent Second D. Straw Buyer

Some states are ____________________________________, where the title remains with the borrower, but the lender may take back title to the property if the borrower defaults on the loan. A. A lien theory state B. A deed of trust theory state C. A title theory state D. An intermediary theory state

Steven owns 114 acres of wooded, rural land. The abundance of wildlife on his property means that his friends are always asking for permission to hunt on it during various game seasons. If Steven gives a friend permission to hunt on his land, it can be said that he has given his friend a ______. A. Covenant B. Easement C. Grant D. License

The Bransons have a conventional loan for which they were required to obtain private mortgage insurance. Their local real estate market has been on fire lately, and their house is now appraised at twice their loan balance! Will their PMI be automatically cancelled? A. Yes, because their equity is over 20%. B. No, because PMI lasts for the life of the loan. C. Yes, because their equity position is at least 50%. D. Maybe, but they'll have to petition their lender.

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____. A. Condemnation B. Eminent domain C. Escheat D. Inverse condemnation

Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this? A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning

Tristan refuses to let Marla list his property on the MLS, even though Marla knows that more exposure to the property will generate more potential buyers. Which two fiduciary duties are at odds in this situation? A. Loyalty and obedience B. Reasonable skill and care and confidentiality C. Loyalty and confidentiality D. Obedience and reasonable skill and care

Vicky and Lee vacation in Cancun, Mexico, every year. They purchased the right to stay in a beach condo for the first two weeks in May, in perpetuity. They don't actually own a share of the unit. What did they purchase? A. Condo estate B. Cooperative unit C. Timeshare estate D. Timeshare use

Victor buys a property from Yolanda for $200,000. Using a land contract, Victor agrees to pay Yolanda in monthly installments of $4,000 over the course of 50 months. Until Victor pays Yolanda the $200,000, who retains the title? A. A trustee B. Victor C. Victor's Beneficiary D. Yolanda

What could be a consequence if there was no secondary mortgage market? A. Interest rates would fall. B. There wouldn't be any institutions available to service loans. C. Unemployment would increase. D. Lenders might not have funds available to make new loans to the public.

What factors does the underwriter consider in reviewing a mortgage loan application? A. Credit, capacity, and collections B. Capacity, collateral, and criminal record C. Credit, credentials, and collateral D. Credit, capacity, and collateral

What is true about a material fact that must be disclosed by a licensee? A. All parties considering the property would consider the material fact in the same way. B. All material facts relate to physical conditions.C . Material facts are only those which can be easily seen or discovered. D. A material fact may have more or less of an effect on a buyer based on the buyer's needs and values.

What responsibility does a seller's agent have to the buyer? A. Confidentiality and honesty B. None C. To get the best price possible D. To inform the buyer that the agent represents the seller

Which of the following financial details is likely NOT documented in a property management agreement? A. The property manager's compensation B. The scope of the property manager's spending authority C. Whether or not the manager can disburse trust funds without specific permission D. The standard rent increases for the next three years

Which of the following is an example of constructive eviction? A. A landlord locks a tenant out of her unit after she fails to pay her rent for three months. B. A tenant chooses not to renew a lease when the term expires and moves out. C. A tenant dies. D. A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.

Which of the following is not a federal antitrust law? A. The Sherman Act (1980) B. The Clayton Act (1914) C. Federal Trade Commission Act (1914) D. Fair Housing Act (1968)

Which of the following statements about escrow accounts is correct? A. An escrow account is a temporary account that's opened for use with a single transaction and closed after the transaction closes. B. An escrow account is held by either the buyer or seller, and houses the buyer's earnest money until closing. C. Escrow accounts are managed by brokerage firms, and hold funds used to pay operating expenses and agent commissions. D. Escrow accounts are managed by escrow agents, and are used to hold funds belonging to others, such as earnest money deposits.

Which of these actions is a violation of the Residential Lead-Based Paint Hazard Reduction Act when a property constructed before 1978 is being marketed by a licensee? A. The buyer is given more than 10 days to complete a lead inspection of the property. B. The buyer's agent fails to complete the lead-based paint disclosure form. C. The seller refuses to perform lead abatement work requested in buyer's offer. D. The seller's agent fails to provide the pamphlet, "Protect Your Family from Lead in Your Home," to prospective buyers.

Which of these actions is a violation of the Residential Lead-Based Paint Hazard Reduction Act when a property constructed before 1978 is being marketed by a licensee? A. The seller refuses to perform lead abatement work requested in buyer's offer. B. The buyer's agent fails to complete the lead-based paint disclosure form. C. The buyer is given more than 10 days to complete a lead inspection of the property. D. The seller's agent fails to provide the pamphlet, "Protect Your Family From Lead in Your Home" to prospective buyers.

Which of these is a violation of the RRP Rule? A. A homeowner performs DIY work in a home built prior to 1978. B. A seller of a home built in 1952 doesn't make the appropriate lead disclosures. C. Contractors from a home improvement store install windows or doors. D. Contractors perform renovations that disturb lead-based paint without holding proper certification.

Which of these is an example of a sub-agency relationship? A. Aldrich accepts a designated agency appointment from his broker so his firm can represent both the buyer and the seller. B. Blaine represents the buyer in a transaction with an unrepresented seller. C. Greta refers a buyer client to a more experienced colleague, asking for a referral fee from the colleague. D. Morris, who's licensed independently, finds a buyer customer for Greg's listing with Marvel Homes and is obligated to act in the best interest of Marvel Homes' client.

Which offer would be the most appealing to a seller? A. An all-cash offer $15,000 over list price, closing in two weeks. B. An offer $10,000 over list price, contingent upon appraisal and inspection, conventional financing with 20% down, closing in 30 days. C. A full-price offer waiving inspection, conventional financing with 20% down, closing in 45 days. D. It depends on the needs and motivations of the seller.

You represent Ember as her listing agent. Ashley is the buyer, and Trinity represents her. What duties do you owe Trinity? A. Loyalty B. Confidentiality C. The same duties you owe Ember D. Honesty and fairness

You're explaining to your client that using electronic documents and signatures simplifies the homebuying process. Your client is skeptical about these signatures. You describe the Uniform Electronic Transactions Act (UETA) and tell your client that ______. A. UETA provides a guarantee that electronic signatures will hold up in court B. UETA gives electronic signatures the same legal weight as "wet" signatures C. UETA requires states to permit electronic signatures on all real estate-related documents D. State laws take precedence over UETA

___________________________ addresses zoning and growth in a community. A. Police power B. Doctrine of laches C. Power of escheat D. Municipal master plan

_____________________ means proper handling of client property, which includes keys, funds, paperwork, and the property itself. This means no commingling or conversion of the earnest money, among other requirements. A. Obedience B. Loyalty C. Disclosure D. Confidential E. Accounting F. Reasonable Skill and Care

Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______. A. Unhappy with Scott's services B. Willing to find his own buyer C. A real estate licensee D. Willing to pay Scott's commission anyway

Eileen is preparing a quarterly report pursuant to the terms of a property management agreement. This report shows the property owner whether this property operated at a surplus or deficit during the reporting period. What report is she preparing? A. Budget comparison statement B. Cash flow report C. Operating budget D. Profit and loss statement

The _______________________, required by the Dodd-Frank Act, informs buyers of the costs they're likely to pay at settlement and discloses the mortgage loan specifics, such as its key features, costs, and risks. A. Closing Disclosure B. Mortgage Disclosure C. Buyer Worksheet D. Loan Estimate

Tyra owns a nail salon located in a strip mall. Her rent every month includes an $1,800 base rent and 10% of her gross sales. What kind of lease does Tyra have? A. Graduated B. Gross C. Net D. Percentage

___________ antitrust violation is one in which the competing firms agreed to violate antitrust laws. A __________________ violation means that authorities don't need to make any additional inquiries about the violation to impose penalties. The fact that collusion existed is enough. A. Price fixing (collusion) B. Market allocation C. Group boycotting D. Per Se

True or False Agency is determined by agreement only, no matter who's paying the firm's commission.

true

True or False VA-guaranteed loans can be obtained without any down payment and don't require mortgage insurance.

True

True or False While agents don't owe fiduciary duties to customers or third parties, they owe all parties to the transaction the duties of honesty, fairness, integrity, disclosure, and accounting.

True

Cancellation of PMI happens once the borrower reaches a _________ % equity position or has a loan-to-ratio value that is ________% or lower.

22 80

A _________________ loan is typically a temporary loan taken to assist with financing when buying a home and selling another. A. Bridge loan B. Balloon loan C. Graduated payment loan D. Budget loan

A __________________________ is a contingency placed on property ownership. A. Deed restriction B. Deed covenant C. Deed limitation D. CC&Rs

A part of your property is used by the local utility company to maintain its power lines. What's this an example of? A. Easement B. Eminent domain C. Encroachment D. Illegal use

A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of settlement, has already paid annual property taxes of $1,949. Using calendar year proration, the seller will be ______ on the closing statement. A. Credited $1,207 B. Credited $742 C. Debited $1,207 D. Debited $742

Claudius has some trust issues; he's been to three different brokerages already and still refuses to sign an agency agreement. He says he wants to keep his " options open." What should you tell him? A. "I can't represent you without a written agreement." B. "You won't be able to enter into a contract without buyer representation." C. "If you sign today, I'll waive the administrative fee." D. "Signing the form is legally required."

Kenneth enters into a contract to sell his home to Valerie, who puts down a $5,000 earnest money deposit. At the last minute, Valerie backs out of the deal. Kenneth keeps the earnest deposit. This is an example of ______. A. Accepting liquidated damages B. Accepting partial performance C. Suing for damages D. Suing for specific performance

Sheila is unable to use her designated timeshare week this year. What will happen? A. She can exchange the week for another. B. She won't have to pay the annual maintenance fee this year. C. The owners association will reimburse her for the week. D. There is nothing she can do if she can't use the week.

The __________________ is based on the concept that the entire property is worth the sum of the value of the land and the value of the improvements on that land. This approach assumes the land is vacant and bases the opinion of value on highest and best use. A. Cost Approach B. Income Approach C. Sale Comparison Approach

_______________ means following a client's lawful instructions. Licensees may not obey a client's illegal or unethical instructions. A. Obedience B. Loyalty C. Disclosure D. Confidential E. Accounting F. Reasonable Skill and Care

__________________ is defined as the right of government to make decisions relative to the welfare and safety of its citizens. A. Police power B. Doctrine of laches C. Power of escheat D. Municipal master plan

__________________ mortgages involve interest-only payments until the end of the loan term, when the entire principal balance comes due. A. Straight B. Budget C. Amortized D. Adjustable

____________ is a measure of both the interest rate and other fees associated with the mortgage loan.

APR

A 4-bedroom, 4-bath 4,875 square feet house was listed at $445,000. Andreas, the seller, accepted an offer that was 95% of the listing price. What price per square foot did he get for the house? A. $91.28 B. $86.72 C. $82.15 D. $45.64

A ________________________ is one in which the landlord pays all expenses related to the property, such as taxes, repairs, insurance, utilities, maintenance while the tenant pays a fixed rent. A. Graduated B. Gross C. Net D. Percentage

As Brandon's listing agent, Lily must disclose all known material facts relative to Brandon's property. Which of the following is a zoning-related fact that Lily might have to disclose to prospective buyers? A. Brandon's subdivision was farmland back in the 1950s. B. The property is right in the middle of a historic preservation district. C. The zoning board may require the developer to include parklands in the neighborhood expansion. D. Two of the residents on Brandon's street have in-home occupations.

Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000. What's the loan-to-value ratio? A. 0.72 B. 0.75 C. 0.82 D. 0.96

Home Value during underwriting A. Credit B. Collateral C. Capacity D. Credentials

Regulation ____ requires lenders to use a standardized measure for loan costs, including interest rates, which is the APR. A. X B. Z C. M D. N

Which type of listing can help a real estate professional determine how quickly a home in a given price range received an accepted offer? A. Expired B. Foreclosed C. Pending D. Withdrawn

You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben? A. No, because agents can't share information with their clients. B. No, because it's hearsay. C. No, because you can't share one client's confidential information with another client. D. Yes, because Ben is your client and has a right to know.

____________ is an agreement between two or more parties who conspire to not do business with a particular person or company. A. Price fixing (collusion) B. Market allocation C. Group boycotting D. Per Se

________________ is the act of guiding prospective buyers to or away from specific areas based on membership in or a preference for or against a protected class A. Reverse redlining B. Blockbusting C. Steering D. Fraud

_______________________ applies when someone dies without a will, an heir, or a creditor. A. Police power B. Doctrine of laches C. Power of escheat D. Municipal master plan

_______________________ is what parties are supposed to adhere to if a date hasn't been specified in the contract. A. Assignment B. Novation C. Reasonable time D. Time is of the essence

________________________ is a way of saying that no party should create undue delays in the contract process. A. Specific time B. Statute of limitations C. Time is of the essence D. Time of performance

____________________________ is a way to grant an exception to a developer for something in return that will benefit the community. A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning

Corinne is 68 years old and employed full time. She's of Spanish descent, is raising her 12-year-old grandson, and lives with her partner, Katherine. She requires an accessible apartment because she uses a wheelchair. Under which of the following federally protected classes might Corinne be protected if she faces housing discrimination? A. Age, employment status, national origin, familial status, and sex B. Sex, religion, familial status, and disability C. Age, race, familial status, sex, and disability D. National origin, sex, disability, and familial status

Developer A has a project planned that does not conform to the community zoning regulations of the community, and wants to make a change request. Which local land use group would the developer ask, and for what? A. City council for a special use permit B. Planning board for a special use variance permit C. The town board for a variance D. The zoning board of appeals for either a variance or a special use permit

Sylvia, 15, and her neighbor, Marge, 24, agree that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this? A. Enforceable B. Unilateral C. Valid D. Voidable

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______. A. By licensed real estate professionals B. By members of the Appraisal Foundation C. In the most expeditious and inexpensive way possible D. In writing, and in accordance with uniform standards

To which of the following borrowers might a lender be most likely to recommend an FHA loan? A. An investor who intends to use equity in another investment property as his down payment B. A retired couple interested in downsizing from a large four-bedroom house they own free and clear to a condominium C. A single stockbroker with a $40,000 down payment and significant assets in a stock portfolio D. A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores

What type of estate involves a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one- to two-week intervals during the year? A. Apartment B. Leasehold C. Lifetime D. Timeshare

Which entity typically enforces the code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code? A. Builder/developer B. Department of Environmental Conservation C. Department of Health D. Local building department

Which of the following actions would result in the legal termination of an agency agreement? A. The client wants the seller to make improvements to the property. B. The client wants to add another addendum to the sales contract. C. There is an unexpected death in the agent's family. D. The specified term in the agency agreement expires.

Which of the following best describes annual percentage rate (APR)? A. The amount a borrower pays in interest for a single year B. Fees charged by a lender, expressed as a percentage C. The amount a lender can collect in interest from a borrower during a single year D. A standardized measure for interest rates and other loan costs

Which of the following is an advantage of condominium ownership? A. No HOA dues B. No neighbors C. No shared walls D. No yard work

Which of the following is true regarding property management agreements? A. A property management agreement establishes a relationship between a broker and a client, where the broker provides real estate services. B. Property management agreements are synonymous with brokerage agreements. C. Property management agreements may be oral or in writing to be enforceable. D. Property managers must have a written property management agreement with all clients.

Which of the following scenarios accurately describes the similarities between an open listing and an exclusive agency listing? A. In both types of listings, the broker owns the commission regardless of who sells the property. B. In both types of listings, the seller is required to pay a commission to one or another broker. C. In both types of listings, the seller will owe a commission to the broker that brings the buyer. D. In both types of listings, the seller won't owe a commission if she finds the buyer herself.

Which of these situations does the Americans with Disabilities Act address? A. Metro Agents hired an interpreter to assist Spanish-speaking clients with the real estate process. B. The Golden Gate senior housing center has no exercise or activity center for its residents. C. Marcus, a property manager, routinely dismisses rental applications from families with children under the age of 18. D. Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs.

Which of these would be a breach of Margo's fiduciary duty of confidentiality? A. Margo told a potential buyer that the city council was considering rezoning the area around the property to commercial/light industrial. B. Margo told her seller client Troy the percentage commission split she gets from her broker. C. Under court order, Margo revealed conversations about the financial status of her previous client. D. When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent.

Which statement is true regarding the rights and duties of landlords and tenants when it comes to leases? A. A landlord must honor a prospective tenant's requested change and document it in writing. B. Oral and written lease agreements equally protect the tenant and the landlord. C. Tenants can be excused from honoring a lease if they didn't understand or read it before they signed. D. A lease signed by both parties is a binding legal contract, and any party who defaults on the terms can be sued.

While walking around the exterior of a rural home she's inspecting, Juanita noticed a metal vent pipe sticking out of the ground 25 feet from the house. She documents this because it may be a sign of what potential environmental hazard? A. Capped well B. Radon vent system C. Septic system D. Underground storage tank

You must keep ______________________ any information that could harm your client's negotiating position in a transaction. This includes your client's motivations, time frames, willingness to settle for terms/price other than those offered, and any other information your client deems confidential (unless disclosure is required by law). A. Obedience B. Loyalty C. Disclosure D. Confidential E. Accounting F. Reasonable Skill and Care

_______________________ loan's rates don't fluctuate at any point. A. Purchase money mortgage B. Adjustable rate mortgage C. Wrap-around mortgage D. A straight-term loan

The _____________________ Act requires that certain information be provided to borrowers during the lending process.

Dodd-Frank

The duty of _____________________ requires agents to operate within the scope of their expertise and advise clients to seek expert advice on matters that are outside of the agent's scope of knowledge. It also refers to the expert performance of a licensee's tasks. Licensees should always encourage clients to seek an attorney's advice before signing contracts. A. Obedience B. Loyalty C. Disclosure D. Confidential E. Accounting F. Reasonable Skill and Care

Does PMI last for the life of the loan? Yes or No

True or False Government agencies aren't involved in creating a conventional loan.

True

True or False RESPA prohibits kickbacks between settlement service providers. Real Estate Agents/Brokers may suggest a few mortgage brokers, but the final decision is up to her clients.

True

________________________ are granted when the property owner can demonstrate that existing zoning regulations present a practical difficulty in making use of the property.

Variance

_________________ and _____________________ address the substitution of one party in a contract for another party. A. Assignment B. Novation C. Reasonable time D. Time is of the essence

a and b

________________ involves businesses that conspire to restrict competition or trade, resulting in diminished choices or higher prices (or both) for the consumer.

antitrust

____________________ is when lenders refuse to provide mortgage financing to borrowers in specific geographic areas based on area demographics

redlining

A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400' deep. What was the price per front foot of the property? A. 1335.67 B. 2000 C. 363.64 D. 598.95

A seller tells his agent that he has to sell his house quickly because of a divorce proceeding and that he's willing to accept less than his list price. His agent tells a buyer that the seller will accept as much as $10,000 less than the list price. Which of these is true? A. The agent has breached his duty of confidentiality to his client. B. The agent hasn't violated any fiduciary responsibilities to his client. C. The buyer is prohibited from making an offer because of the agent's breach of confidentiality. D. Unless the agent has the seller's permission to share this information, the agent should have disclosed only that the seller is willing to reduce his price, not the amount.

Allen and Lewis are friends who each recently purchased real estate. Allen purchased a patio home in a small town an hour from the city, while Lewis purchased a condo in a really hot area near the city center. Although they paid similar amounts for their properties, if in six months Lewis' condo is worth much more. Which economic characteristic does this demonstrate? A. Area preference B. Improvements C. Permanence D. Scarcity

Chrissy lives in Lake Ridge Estates, a neighborhood in which no one is allowed to put up vinyl siding on their homes. This HOA regulation is what kind of private land control? A. CC&R B. Deed restriction C. Law D. Regulation

Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a commission. What type of agreement do Desmond and the Harpers have? A. Bilateral B. Executed C. Mutual D. Unilateral

Gladys and her husband, Ralph, owned their Cambridge home as joint tenants. After Ralph died, Gladys owned the home in severalty. When she dies, which of these will happen to her home? A. Her heirs, as described in her will or according to state law, will receive the property. B. Her home will transfer automatically to a co-owner. C. The property will have no owner and must be sold at auction. D. The property will revert to a remainderman.

In a standard real estate transaction, ownership is conveyed by deed. How is ownership of registered land conveyed? A. Through a certificate of title issued by the Massachusetts Land Court B. Through a leasehold agreement C. Through a quitclaim deed D. Through a superior court hearing in which the deed transfer is approved by the state

Massachusetts antitrust laws closely parallel federal laws. Which of the following actions are prohibited under both federal and state law? A. ABC Brokerage agrees to handle transactions in the east side of the city, and XYZ Brokerage, the west side of the city. B. George and Georgia agree to allow the brokers in both their firms to adjust commission rates to suit a given transaction. C. Gina refuses to show properties offered by Bay City Realty unless Bay City agrees to pay a cooperating broker commission. D. Rita offers her seller clients the choice of using her brother's title insurance firm or another firm of the seller's choice.

Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true? A. If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed. B. If the disability is not obvious, the tenant must provide the landlord with full medical records to support the request. C. The landlord is not obligated to consider the request unless the tenant can produce either the original or a certified true copy of the animal's service certification. D. The landlord must consider the request but may require an additional "pet" security deposit.

Richard owns a 25-unit apartment complex in Springfield. He's modified five of his units to be fully accessible, and all five units are occupied. Which of the following statements is true based on state fair housing laws? A. Richard has met the requirement for number of units that must be modified for accessibility. B. Richard is required to have all first-floor units modified for accessibility. C. Richard must modify an additional unit if another disabled individual wishes to rent it. D. Richard must modify at least 25% of his units for handicapped accessibility.

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights? A. Joint tenancy B. Tenancy by the entirety C. Tenancy in common D. Tenancy in severalty

Which of the following is most likely to be the cause of an adjustment to a comparable (competitive) when preparing a CMA? A. Busy street B. Color C. Demographics D. Interest rates

Which of the following statements is true about a tenancy at will lease, according to the Massachusetts lease's Term provision? A. Early termination by either party requires 30 days' prior written notice. B. The landlord can terminate the lease at will and without notice. C. The lease renews automatically upon expiration. D. Upon expiration, the lease converts to a month-to-month tenancy.

Which of these actions is the Board of Registration of Real Estate Brokers and Salespersons responsible for performing? A. Auditing brokerage escrow accounts to verify proper handling of earnest money B. Auditing brokerage operational accounts to ensure the firm's financial stability C. Examining brokerage contracts with salespeople to ensure compliance with employment laws D. Examining brokerage policies and procedures manuals for compliance with ethical standards

Which of these questions can an agent in a dual agency transaction answer without breaching her duties to either client? A. Are you aware of any structural issues with the property? B. How much should my counter-offer to the buyer be? C. What repairs or concessions should I ask for from the home inspection? D. What should I agree to fix from this list the buyer sent?

A deed may be best described as what? A. A covenant B. A document to transfer ownership/interest in real estate C. An abstract of title D. A recording fee

Douglas is the buyer's agent for a transaction in Massachusetts which May (from a different brokerage) listed her seller client George's property. From whom will Douglas receive his compensation? A. From George B. From his own broker C. From May's broker D. It depends

Emma, a Massachusetts licensed salesperson, wants to place an advertisement in Brookline's local real estate magazine. What must she be sure to include? A. A fair housing statement B. Her broker's complete information C. Her email address D. Her license number

Even though Massachusetts is a caveat emptor state, and sellers don't have to volunteer a great deal of information about a property's condition, what must sellers disclose? A. A basement that floods B. The potential presence of lead-based paint C. The property's square footage D. Why they're selling the property

Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier's check for $35,025 comprising the balance of her 20% down payment and closing costs. What's the amount of her total down payment? A. 35,025 B. 54,150 C. 57,000 D. 62,100

Licensee Madge is moving to her new home. What must she remember to do or risk losing her license? A. Notify her principal broker of her change of address B. Notify the board of her change of address C. Take out a newspaper ad to notify the public of her change of address D. Write in her new address on her real estate license

Licensee Maria is being sued under the Massachusetts Consumer Protection Act. Jacob claims he incurred a $50,000 loss as a result of Maria's intentionally misleading advertising. If Jacob wins the suit, what's the most the court can award Jacob for damages? A. 15,000 B. 150,000 C. 25,000 D. 50,000

Roger is an unlicensed assistant in Dave's office in Attleboro. He performs tasks for several of the firm's licensees. Katherine is a licensed assistant, and she performs tasks for three of the firm's independent contractor licensees. The firm's broker, Michaela, has her own licensed assistant. Which of these statements best represents Michaela's liability for the acts of all these assistants? A. Michaela is only responsible only for her own personal assistant. B. Michaela is responsible for all licensees and employees associated with the firm. C. Michaela is responsible only for the licensed assistants. D. Michaela is ultimately responsible for her assistant and for Roger (the unlicensed assistant).

When must the Massachusetts home inspection disclosure fact sheet be given to a buyer? A. During the home inspection B. When a signed Offer to Purchase is submitted C. When the buyer signs an agency agreement D. When the seller verbally accepts the buyer's offer

Which approach to value is typically used for investment property of two- to four-family units? A. Cost approach B. Income approach C. Revenue approach D. Sales comparison approach

A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do? A. Advertise for a tenant of a specific race. B. Move out of the property and rent both portions of it, relying on the "Mrs. Murphy" exemption to permit renting only to single females. C. Refuse to rent to a female tenant. D. Use the services of a real estate professional to advertise for a male tenant.

Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed restriction prohibiting anything taller than a one-story building. Ronesha wants a three-story house. What should she do? A. Apply to the zoning board of appeals for a variance. B. Check to see if the building code will permit a larger house. C. Conform to the deed restriction. D. File a suit against Alice to have the restriction removed.

Ashish is purchasing a bank-owned property. His real estate agent tells him the bank is offering insurable, not marketable, title. What does this mean to Ashish? A. An insurable title has uncurable title defects, so Ashish terminate his contract. B. Insurable title carries a higher standard of assurance than marketable title, so Ashish shouldn't be concerned. C. Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy. D. The title company will include any easements or other title defects as exceptions on the policy, which is a concern for Ashish.

Because there were no deadlines specified in the contract, Myron didn't think there was a problem with his waiting to apply for a loan to help purchase the property. He was therefore a little surprised and not very happy when the seller sued him for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did Myron fail to do? A. Complete his loan application correctly. B. Notify the seller that he had a loan contingency. C. Perform his contractual obligations within a reasonable time. D. Talk to the seller about the seller's contingency to sell his house in order to buy another property.

Chelsea's mother owns several rental properties and intends to keep them to pass on to the family. Chelsea holds a special power of attorney to manage the rental properties, including working with the property manager to place and evict tenants as necessary. Which of these would violate the POA? A. At the property manager's recommendation, Chelsea evicts a long-time tenant for failure to pay rent. B. Chelsea instructs the property manager to prepare the quarterly financial reports. C. Without consulting her mother, Chelsea decides to completely refurbish one of the properties. D. Without consulting her mother, Chelsea hires a plumber to fix a major plumbing problem in one of the properties.

Dana lives in her Newport property nine months out of the year and uses it as a rental for the remaining three months. Is she liable for paying an excise tax on her short-term rental? A. No, because it only applies to short-term rentals of fewer than eight consecutive days. B. No, because it's her primary residence for nine months out of the year. C. Yes, because it applies to residential short-term properties unless they are rented for fewer than 14 days per calendar year. D. Yes. The excise applies to short-term rentals of any length.

Jim represents Joel in the sale of Joel's country acreage and house. Jim's business partner, Rolly, is interested in purchasing the property to subdivide. Which statement best represents the disclosure requirements regarding this transaction? A. Because Jim isn't buying the property for himself, he has no disclosure requirements. B. Jim must disclose that he's partners with Rolly. C. Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property to make a profit. D. Rolly must disclose that he and Jim are business partners.

Leo's client is looking for a property with at least 2,500 finished square feet. He finds a 2,200-square-foot property with all the other features the client is looking for and purposely fails to mention the square footage. His client agrees to look at the property, falls in love with it, and wants to make an offer. Which of these statements accurately represents Leo's level of misrepresentation in this situation? A. Because Leo didn't state the square footage, he's not guilty of misrepresentation. B. It's the buyer's responsibility to ensure that the property has the proper square footage, so Leo's in the clear. C. Leo obviously knew about the square footage and intentionally didn't mention it. He's guilty of intentional misrepresentation. D. Leo omitted a material fact. This is considered unintentional misrepresentation.

Massachusetts lead-based paint hazards law requires owners and landlords to ______. A. Disclose the presence, but not the potential presence, of lead-based paint in a home B. Perform a lead-based paint inspection prior to selling or renting a home C. Remediate lead-based paint in mouthable locations such as window sills, stair risers, wall corners, etc., if a child under six years of age will reside in the home, up to a height of five feet D. Remediate (remove or encapsulate) lead-based paint in any location where it occurs in a home up to a height of five feet

Massachusetts requires that agency disclosures be given to consumers who are considering becoming clients of a licensee. In what other circumstance must an agency disclosure be provided? A. At an open house, to inform all attendees about types of agency available B. When a licensee and client meet to discuss an offer C. When an offer is made to a seller, to let all parties know who the licensee represents D. When anyone comes into the brokerage office

On Monday morning, Sammie, a Massachusetts broker, is making a trip to the bank to deposit a check for earnest money she received the previous night. Which of the following is a true statement? A. She may use the funds to cover expenses related to the transaction. B. She must deposit the funds into an interest-bearing account. C. She must deposit the funds into a trust or escrow account. D. She owns the funds.

What happens to an initial offer from the buyer after a seller counters? A. It becomes the back-up offer. B. It's accepted by the seller, until the buyer accepts the counter. C. It's no longer in play. D. Sellers cannot counter a buyer's initial offer.

What violation of license law will the board penalize with a fine of up to $500? A. Discriminatory actions B. Mishandling of trust funds C. Practicing real estate without a license D. Substantial misrepresentation

Which of the following applicants meets the experience requirements for a broker license in Massachusetts? A. Jill is a certified residential appraiser and has a real estate degree. B. Kerry has had a Massachusetts salesperson license for 30 months. C. Maggie has been affiliated as a salesperson with a Massachusetts broker since May 1988. D. Mike has held his Massachusetts salesperson license for 20 months and is working on his real estate degree.

Which of the following is a promise on the part of the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms? A. Deed of trust B. Mortgage lien C. Promissory note D. Usury

Which of the following statements about the federal Wild and Scenic Rivers Act is true? A. Communities may designate various waterways as scenic rivers. B. Massachusetts created the Wild and Scenic Rivers System to protect its inland waterways. C. Rivers with remarkable attributes may be designated as scenic, thereby earning additional protections. D. The act is designed to permit damming of various rivers to increase recreational use.

A local buyer is purchasing a property for $120,000. What will the seller pay in transfer tax if the rate is $.37 per $100? A. 370 B. 3,700 C. 4,400 D. 444

An easement dictates that property owner A gives the right to property owner B to use a portion of the property. Which term describes property A? A. Domain estate B. Dominant estate C. Service estate D. Servient estate

An example of this type of leasehold estate is a month-to-month lease. A. Estate at sufferance B. Estate at will C. Estate for months D. Periodic estate

Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over several others he used. What process is he utilizing? A. Averaging B. Bracketing C. Conformity D. Correlation

Assuming licensee Shannon has actual knowledge of all of the following property issues, which should she disclose to prospective buyers? A. The nearby school system is one of the worst in the area. B. The neighbors like to throw a lot of parties. C. The tree in the front yard is at least 50 years old. D. The upstairs bathroom has a leaky toilet.

Blake is allowed to use his property in a way that's prohibited under current zoning ordinances, because those ordinances would cause undue hardship for him. What gives him this permission? A. Area variance B. Moratorium C. Special use permit D. Use variance

Ethan, a Massachusetts real estate licensee, has signed an exclusive right-to-sell brokerage agreement with a seller client, Olivia. Which of the following statements is true about their agency relationship? A. Ethan can't act as a dual agent in the transaction. B. Ethan must work exclusively with Olivia and may not work with other clients engaged by the firm. C. Olivia agrees to have Ethan represent her, but she won't owe him a commission if she brings a buyer to the table. D. Olivia will work exclusively with Ethan and his brokerage firm.

Eva, Stella, and Lynn own a vacation home two blocks from the beach. Sadly, Stella passed away this winter, and so when summer arrives Eva and Lynn will be sharing the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this? A. Estate in severalty B. Joint tenancy C. Tenancy by the entirety D. Tenancy in common

Evan bought into a Massachusetts housing cooperative that's focused on cultural exchange. Each month the co-op residents have dinner meetings and share food and culture from their respective regions. When Evan made his purchase, he received a proprietary lease for his unit. What else did he receive? A. Contract of mortgage B. Deed C. Plat maps D. Shares in the cooperative corporation

Gerald is selling a property in Lancaster that is not on the public water and sewer systems. He must provide a copy of the results proving that water from the well is safe and that the sewage disposal system works. Within what time frame must the results be provided to the local board of health? A. Within 10 days B. Within 20 days C. Within 22 days D. Within 30 days

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this? A. General B. Special assessment C. Vendor's D. Voluntary

In a real estate transaction in which you represent the seller, your duty to other parties is to ______. A. Be honest in all matters that do not affect your client's interests B. Be polite and courteous C. Maintain the confidentiality of all matters that other parties disclose to you D. Treat them honestly and fairly

Isaac keeps a record of the age, race, and gender of his clients to help him better target his marketing efforts. Which of the following statements is true? A. Isaac may keep records on the age and gender of his clients, but not on race. B. Isaac may maintain such records if the records are inaccessible to anyone else in his firm. C. Isaac may maintain such records if they aren't used to discriminate. D. Keeping any record regarding the protected class status of clients is prohibited.

Jamison, the seller, is closing on his property with Conrad, the buyer. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement? A. The taxes are an accrued expense and will appear as a buyer credit and a seller debit. B. The taxes are an accrued expense and will appear as a buyer debit and a seller credit. C. The taxes are a prepaid expense and will appear as a buyer credit and a seller debit. D. The taxes are a prepaid expense and will appear as a buyer debit and a seller credit.

Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA? A. 10% down payment B. 30-year fixed rate with no points C. A monthly payment of $900 D. Get a low 4.925% APR

Monica and Chandler terminated their lease and moved out of their Worcester rental 20 days ago, but they haven't received their security deposit even though they kept their unit spotless. What should they do? A. Advise the landlord in writing that they are now owed their security deposit plus 5% interest. B. File a formal complaint with the National Association of Landlords. C. Take the landlord to court and sue for the security deposit or attorney's fees and $200, whichever is greater. D. Wait because the landlord has 30 days to return the deposit.

What special concern do foreclosed properties often present? A. Buying the property at a discount may have tax implications. B. The homeowners may or may not have property insurance. C. The property sale may be subject to additional fees that will be passed to the new buyer. D. There could be hidden title issues.

Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor? A. Whether another broker supervises the licensee B. Whether the brokerage offers regular guidance and instruction to the licensee C. Whether the firm provides the licensee with a copy of the brokerage's policies and procedures manual D. Whether the licensee receives benefits from the brokerage firm

Which of the following is price fixing? A. A brokerage requires all licensees to offer a fair cooperative brokerage fee. B. Three brokerages agree to purchase office supplies together to obtain a bulk discount. C. Twelve brokerages discuss compensation of associated independent contractor licensees. D. Two brokerages determine a standard commission rate.

Which of the following statements about smoke alarms in Massachusetts is true? A. At least one smoke alarm must be installed on each level of a home, including the attic and basement. B. Combination smoke alarms and carbon monoxide detectors are not permitted. C. Smoke alarms are required in garage areas. D. Smoke alarms must be installed on all habitable levels of a home, outside each sleeping area, and in the basement.

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