Massachusetts State Exam Questions

Prior to a closing in Massachusetts, who is responsible for calculating the pro-rations between the buyer and seller, searching the title, and preparing the mortgage note?

closing attorney

A real estate license is required for which of the following activities?

company that charges a fee to match individuals who want to exchange properties and assists them in doing so

Which of the following is required for a salesperson or broker to renew an active license?

complete 12 hours of continuing education in preceding two years

Which of the following must be done to renew an inactive license in Massachusetts?

complete the required continuing ed course and submit a license reactivation form with the current renewal fee

Which of the following is NOT required in order to obtain a broker's license in Massachusetts?

Have completed 125 transactions.

When Nelson listed his house he told his broker that the basement leaked and they agreed not to tell any prospective buyers. Six months after the new buyer moved in, the basement leaked and considerable damage resulted. Because the buyer did not ask about the basement, the broker claims he is not responsible. What recourse does the buyer have?

He can sue the broker.

Ceaser is the agent for an estate that includes a detached villa in a residential community. The former owner of the villa died on the property and her cause of death was the AIDS virus. Ceaser also knows that a highly publicized murder took place in the villa five years ago. What are his disclosure responsibilities regarding this villa?

He cannot disclose the AIDS related death; if asked he must disclose the murder

Bell Realty Company has entered into agency agreements with both a seller and a buyer who have signed a Dual Agency Consent Agreement. Which of the following actions may be taken by a Bell salesperson who had been working with the buyer?

He may provide comparable market data to the seller if the buyer requests, and receives, such data.

Regarding the homestead right in Massachusetts, which of the following is true?

The homeowner, surviving spouse, and minor children have a life estate.

Which of the following activities can be performed by a real estate broker or salesperson?

provide an opinion on a property's value

How long after the incident does a person have to file a complaint of illegal discrimination

1 year

After the first license renewal, what classes are required to renew an active salesperson's real estate license?

12 hours of Board approved curriculum

Doug signed his sales contract on May 1. The closing was held June 10 and the deed was recorded on June 15. His first payment is due August 30. What is the earliest date that his broker could receive the commission check?

15-Jun

What is the age of legal competence in Massachusetts?

18

What is the statutory usury ceiling on loans secured by real estate in Massachusetts?

20 percent

After what period of time do unclaimed estates escheat to the state?

20 years

What is the prescriptive period to acquire an easement in Massachusetts?

20 years

When the remaining balance of a mortgage loan, secured by real property, is equal or less than a specific percentage of the original amount, the homeowner may terminate the Private Mortgage Insurance. In Massachusetts what is this percentage?

80 percent

Which of the following persons must have a real estate broker's license in order to transact business?

A person who negotiates the sales of entire businesses, including stock equipment and buildings, for a promised fee.

Marcie is an associate broker in Massachusetts. Several weeks after a closing, she received a letter of appreciation and a nice bonus check from the seller of the house. Marcie kept the money because she felt she earned it. In this situation, which of the following is correct?

Accepting the money is illegal

Which of the following is true concerning applications for any real estate license in Massachusetts?

Applications must be completed before one takes the real estate exam

When should an Agency Disclosure form be provided to a prospective buyer or seller of real estate in Massachusetts?

At the first personal meeting held for the purpose of discussing a specific property

Which of the following administers the real estate license law in Massachusetts?

Board of Registration of Real Estate Brokers and Salespersons

A Massachusetts broker was convicted on May 1st of possession and distribution of a controlled substance in another state. On June 15, the broker called to inform the Board of Registration. Which of the following is true?

Both the conviction and the broker's failure to notify the Board within 30 days violates the Board regulations

Brian listed his house for sale with Susan on February 1. The listing agreement specified five months but in April, Brian changed his mind and decided the house was no longer for sale. Which of the following is a true statement?

Brian has canceled the agreement and if the broker also agrees, there are no penalties.

Which of the following protects consumers in Massachusetts from fraudulent misrepresentation and unscrupulous behavior from a real estate agent?

Chapter 93A

Massachusetts's annual Continuing Education (CE) requirement would be satisfied by which of the following situations?

Complete 12 hrs CE by the time you're scheduled to renew your license.

What should a listing agent do when he becomes aware of an underground oil tank during a home inspection?

Disclose the existence of the tank to any prospective buyer

Which of the following best describes an exclusive right-to-buy contract in Massachusetts

It is equivalent to an exclusive right-to-sell listing agreement.

When is a Property Condition Statement required?

It is not required in Massachusetts.

Leslie's listing agreement with Mr. and Mrs. Wilson has expired and they have listed with a different brokerage firm. When Leslie has a buyer who is interested in the Wilson property, which of the following is correct?

Leslie cannot disclose to the buyer any offers received on the Wilson property while he had the listing.

Which of the following correctly describes a primary focus of the Massachusetts Board of Registration of Real Estate Brokers and Salespersons?

Makes and enforces the rules by which all real estate licensees must abide

With whom should a complaint be filed when a person believes he or she has been a victim of illegal discrimination in Massachusetts?

Massachusetts Commission Against Discrimination

Leslie is selling her house and has no knowledge of any plumbing problems. However, the plumbing stack is seriously corroded and will require replacement soon. In the seller property condition disclosure, how should Leslie respond when asked whether she has any knowledge of plumbing system problems?

No

Roger is a real estate salesman who is often asked by buyers for assistance with securing a mortgage. He knows a lender who pays a referral fee. Should Roger refer them to this lender?

No, because salespeople may only be compensated by their employing broker.

Neil has just entered into a contract to buy a zero lot line from a person who originally bought the unit from the developer and has lived there for 4 years. What is the length of time allowable for cancellation of the contract?

Neil cannot cancel the contract.

Three weeks before she begins her real estate pre-license class, Leslie agrees to help her neighbor sell her house. The neighbor agrees to pay 3% commission. An offer is accepted while Leslie is taking the class and the sale closes the day before Leslie passes the exam and receives her salesperson's license. The neighbor refuses to pay the commission. Can Leslie sue to recover payment?

No, because Leslie was not a licensed broker when they made the agreement

If a person successfully completes his real estate education requirement on November 1, 2003, what is the latest date on which he can apply for a salesperson's license?

November 1, 2005

Peter, a licensed broker, finds a buyer for his seller-principal, the Noonans. After accepting the buyer's offer in writing, the Noonans change their minds and withdraw their acceptance. Which of the following is Peter's recourse?

Peter is entitled to collect a commission.

Which of the following actions is legal and is NOT a violation of license law?

Placing a For Sale sign in front of a house after listing the property, with the owner's written permission

Nelson is a broker who has a listing agreement with a seller. The buyer's broker has learned about the property through the MLS. When should the cooperating broker identify his representation to Nelson?

Prior to the showing

Which of the following is NOT required of a broker in any real estate transaction that the broker negotiates?

Provide a personal opinion on the condition of the seller's title to the property

Tarik represents Alan in selling his property. When potential buyers ask to see the property, which of the following is an appropriate step for Tarik to take?

Provide them with the Agency Disclosure form indicating in writing that he represents Alan's interests

Lupita contracted with RCVX Construction to install a new deck on her house. They started work on May 1st and finished by June 1, but their invoice was never paid. On July 1, Lupita sold the house to a buyer who received a mortgage loan from Country Bank and a mortgage loan from City Bank. The mortgages were recorded by City Bank on July 1 and by Country Bank on July 2. RCVX Construction recorded a mechanic's lien on July 3. What is the priority of the liens?

RCVX Construction, City Bank, Country Bank

Which of the following headings is required for a preprinted offer to purchase that will become a binding contract?

Real Estate Sale Contract

A real estate license is required in Massachusetts for performance of which of the following activities?

Receiving payment for procuring buyers or renters of real estate

When a broker is listing a home in Massachusetts and asks the seller to complete a property condition disclosure, which of the following statements is true?

The disclosure is optional

Samantha is a real estate licensee who has signed a buyer brokerage agreement with Gila, a prospective home buyer. Samantha will receive her commission from the seller and does not charge Gila a fee. Samantha tells the seller that Gila could probably pay a somewhat higher amount than the seller is asking. Which of the following statements is true?

Samantha violated the statutory duties owed to Gila, the buyer.

Which of the following is NOT a proper legal description for real estate parcels in Massachusetts?

Section 12 of T 3 N, R 4 E, Boise Principal Meridian

Which types of agency are recognized in Massachusetts?

Seller's, buyer's, subagency, disclosed dual

Howard contacts a real estate office and indicates an interest in buying a home in the community. Sue is a salesperson at the agency who meets with Howard during his visit. Which of the following actions should NOT be taken by Sue?

She may advise Howard on how much to offer for a home in the area.

Shira, a licensed salesperson, obtains a premium listing and within a few days has interested buyers. She tells the Thompsons, who are prospective buyers, "I am the listing agent for this property, and so I am very familiar with it." Which of the following best describes Shira's action?

Shira has failed to properly disclose her agency relationship

If Doug and John own a house as joint tenants and Doug leaves his interest to his son Bob and John dies and will's his interest to his daughter... what type of tenancy do the daughter and bob have?

Tenancy in Common

Denny is selling his house and told his broker he needed to walk away with $100,000. The broker accepted the listing and sold it for $179,000. After giving Denny the $100,000, the broker kept the remaining money. Which of the following is correct?

The broker accepted an illegal net listing.

Abby Drunn requested this listing for the Real Estate section of the phone directory: "Abby Drunn, Real Estate Salesperson, Residential Property Is My Specialty." Which of the following must she also include?

The name of her employing broker.

Henry purchased a home two years ago and obtained a 30-year mortgage loan at a 9.275% rate. Henry is currently prepared to pay off the loan early. Which of the following statements is correct given these facts?

The prepayment penalty may not exceed the balance of the first year's interest or 3 months interest, whichever is less.

Bonnie does not wish to enter into a buyer agency agreement, but she is interested in seeing a house they have listed. Which of the following conditions must be met in order for a salesperson from the agency to show Bonnie the listing?

The salesperson must provide Bonnie an agency disclosure stating that the real estate company represents the seller.

Sam wishes to purchase a house that Charles, a broker, has for sale on behalf of a seller. Sam is also one of Charles' clients. Which of the following is true in this situation?

The seller and the buyer must be informed of the situation and agree that Charles may represent both of them

A man who had never made a will was killed in a car accident. He had a wife, two children and a stepchild. How will the estate be handled?

The surviving spouse receives the first $100,000 plus half of the estate, and the remaining half is divided among the decedent's children

Stephan is a broker acting as a sole proprietor. If his license is suspended for two years, what effect will this have on the salespeople affiliated with him?

They must find a new broker.

Ryan is a broker who has listed a small office building which is in excellent condition and produces steady income. His salesperson Tom would like to purchase it as an investment. Which of the following actions is necessary in order for Tom to buy this property?

Tom must inform the owner in writing that he is a licensed salesperson before he makes an offer

What kind of deed is used when conveying deed of a condo

Unit Deed

When a real estate company has agency agreements with both a seller and a buyer, can the buyer make an offer on the seller's property?

Yes, if both parties have completed written agency agreements

Is it acceptable in Massachusetts for a broker to "sweeten" a MLS property listing by making a blanket offer of subagency?

Yes, this is one of the ways a subagency relationship may be created

Which of the following does NOT have to be disclosed by a real estate agent under Massachusetts Stigmatized Property Law?

a ghost

All of the following are grounds for the Board of Registration of real estate Brokers and Salespersons to undertake investigation of a licensee EXCEPT which one?

a random selection of licensees

Which of the following is NOT necessary in order for a broker to be entitled to a commission?

a signed listing agreement

Which of the following is NOT grounds for revocation of a broker's license in Massachusetts?

agreeing with a seller to accept a listing for higher than the normal commission rate

Which of the following guidelines apply to the establishment of an earnest money account by a broker?

all bank records for the account must be kept for three years

Members of the Massachusetts Board of Registration of Real Estate Brokers and Salesperson are selected by which of the following?

appointed by the Governor

Which of the following persons, if engaged in real estate activities, is exempt from having to pass the real estate licensing exam?

attorneys at law

A nephew served as a witness to his uncle's will. When the will was read after the uncle's demise, the nephew learned that he was a devisee of his uncle's will. Which of the following statements is correct given these facts?

because the nephew was a witness, the devise is void

When must a brokerage relationship as agent for a buyer or seller be determined and all agreements finalized?

before the formulation of a contract to purchase

Which of the following is NOT performed by a broker or salesperson preparing for the closing?

conducting any requisite title searches

Which of the following actions by a salesperson would be grounds for the Real Estate Commission to revoke his license?

depositing a buyer's down payment in a personal bank account

In Massachusetts, when does a real estate salesperson's license expire?

every two years on the salesperson's birthday

Unlicensed real estate assistants may perform many duties in Massachusetts. Which of the following would require the assistant to hold a real estate license?

explaining simple contract documents to prospective buyers

Brokers and salespeople who are not attorneys may do which of the following in Massachusetts?

fill in the blanks on preprinted form contracts

What is the penalty for an unlicensed person who engages in activities that require a real estate license?

fine not to exceed $500

A broker or licensed salesperson is obligated to do which of the following upon obtaining a listing in Massachusetts?

give a copy of the listing to the seller

The Massachusetts Home Inspection Law states that a real estate agent must do which of the following?

give the buyer a "Facts for the Consumer" brochure

Nelson is an on-site property manager for Greentree Apartments which includes negotiating leases for the apartments. Which of the following is true concerning an on-site manager?

he is exempt from the licensing requirements

From whom may a Massachusetts real estate salesperson lawfully collect compensation?

his or her employing broker only

Which of the following conditions must be met in order for a partnership, association, or corporation to be granted a license in Massachusetts?

if a designated officer or partner has been issued a broker's license

When received by a broker on behalf of a principal, when must funds be deposited in an escrow or trust account?

immediately

Which of the following correctly describes a broker's commission in Massachusetts?

it is negotiable between the seller, buyer, and broker

Which of the following is true relative to a broker's commission in a real estate transaction?

it must be stated in the listing agreement and is negotiated between the broker and seller

When a broker receives earnest money from a buyer, how does Massachusetts law dictate this be handled?

it should be deposited in an existing escrow account established for earnest money

Which of the following title search methods is NOT commonly used by an attorney in Massachusetts?

land court certificate

To whom does the responsibility belong for the preparation of promissory notices involved in a closing?

lender

Which of the following must be provided to the Board by a nonresident license applicant?

letter of good standing from the regulatory agency of the state in which they are licensed

Which of the following is a requirement of every real estate office in Massachusetts?

maintain escrow account records for 3 years

A broker's unlicensed assistant worked many extra hours to ensure the successful closing of a difficult transaction. Extra work included making numerous phone calls to encourage the prospective buyers to accept the seller's counteroffer. The broker wishes to pay the assistant a percentage of the commission "because she has really earned it." Under Massachusetts law, the broker should do which of the following?

may not pay a commission to the assistant under the facts presented here

Which of the following is required for a person to obtain a Massachusetts reciprocal real estate license?

must be licensed in a state that extends the same privilege to licensed Massachusetts brokers and salespersons

Ralph is a broker who holds a Massachusetts license by reciprocity, yet resides in New Hampshire. In order for Ralph to be exempt from the requirement of maintaining a place of business in Massachusetts, he must meet all of the following requirements except that he:

must employ at least one Massachusetts licensee, either as a salesperson or associate broker.

Which of the following is true for a real estate license applicant in Massachusetts?

must pass the license examination and pay the prescribed fee prior to receiving his license

What information must be included on a real estate broker's web site in Massachusetts?

name and address of the broker's office and the states in which the brokerage holds licenses

If a licensee has allowed her license to expire, how long does she have to reinstate it without paying a penalty?

one year

If a buyer wants to include a clause in a sales contract wherein a seller must offer assurance against the existence of werewolves, vampires and trolls on the property, how is this handled in Massachusetts?

only a licensed attorney may prepare the clause

Who pays the cost of an inspection for the promotion of out-of-state property

owner or developer

When a salesperson wishes to terminate an affiliation with an employing broker, what are the procedures that must be followed?

provide the broker with notice of termination and provide the Board of Registration of Real Estate Brokers and Salespersons with written notice of termination

Which one of the following activities is NOT considered "engaging in the real estate business" ?

reselling a mobile home

Which of the following applies to a real estate salesperson who wishes to sell her own property without using a broker?

she must disclose the fact that she is a real estate licensee

Andrea is a salesperson who engaged in activities that constituted violations of the Massachusetts Fair Housing Law. This is her first offense. In addition the actions taken by the court, what must the Board of Registration of Real Estate Brokers and Salespersons do?

suspend her license for a period of sixty days

What is the principal method of delineating property boundaries or legal descriptions in Massachusetts?

system of metes and bounds

Which of the following accurately describes an inspection report on out-of-state property?

the Board of Registration prepares the report

Members of the Board of Registration of Real Estate Brokers and Salespersons are selected by which of the following?

the governor

Which of the following is NOT a requirement for escrow account record keeping?

the name of the salesperson who holds the escrow funds

A broker knows that the property he represents has a roof that leaks and that its previous owner committed suicide in the garage. What is the broker required to disclose?

the roof problem, but not the suicide unless asked

Which of the following is correct with regard to listings based on a "net price?"

they are illegal in Massachusetts at any time

Which of the following is required of an owner broker in Massachusetts?

to display a copy of his license in a location readily observable to the general public

What is the purpose of the Massachusetts "anti-snob" law?

to ensure that local zoning ordinances do not bar low- and moderate-income housing

What is the purpose of the homestead exemption?

to protect a person's home equity

What is the required number of witnesses to a will to fulfill the legal minimum

two

Under which of the following circumstance may a licensed salesperson hold a concurrent license with more than one Massachusetts broker?

under no circumstances

Sale of which of the following is regulated by the Interstate Land Sales Full Disclosure Act?

unimproved lots

A Massachusetts home owner knows the house contains lead paint but her children have never been shown to have elevated blood lead levels. Must the property owner take any further action?

yes, she must abate defective lead paint