Massachusetts State Exam Questions With Complete Solution

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? - Answer No Members of the Board of Registration of Real Estate Brokers and Salespersons are selected by which of the following? - Answer the governor To whom does the responsibility belong for the preparation of promissory notices involved in a closing? - Answer lender 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? - Answer Prior to the showing 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? - Answer She may advise Howard on how much to offer for a home in the area. Which of the following persons must have a real estate broker's license in order to transact business? - Answer A person who negotiates the sales of entire businesses, including stock equipment and buildings, for a promised fee. Which of the following conditions must be met in order for a partnership, association, or corporation to be granted a license in Massachusetts? - Answer if a designated officer or partner has been issued a broker's license 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? - Answer yes, she must abate defective lead paint 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? - Answer Peter is entitled to collect a commission. Which of the following does NOT have to be disclosed by a real estate agent under Massachusetts Stigmatized Property Law? - Answer a ghost Which of the following is NOT required of a broker in any real estate transaction that the broker negotiates? - Answer Provide a personal opinion on the condition of the seller's title to the property 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? - Answer suspend her license for a period of sixty days What information must be included on a real estate broker's web site in Massachusetts? - Answer name and address of the broker's office and the states in which the brokerage holds licenses After what period of time do unclaimed estates escheat to the state? - Answer 20 years Which one of the following activities is NOT considered "engaging in the real estate business" ? - Answer reselling a mobile home Which of the following is NOT grounds for revocation of a broker's license in Massachusetts? - Answer agreeing with a seller to accept a listing for higher than the normal commission rate If a licensee has allowed her license to expire, how long does she have to reinstate it without paying a penalty? - Answer one year Which of the following best describes an exclusive right-to-buy contract in Massachusetts - Answer It is equivalent to an exclusive right-to-sell listing agreement. Which of the following is true concerning applications for any real estate license in Massachusetts? - Answer Applications must be completed before one takes the real estate exam What is the penalty for an unlicensed person who engages in activities that require a real estate license? - Answer fine not to exceed $500 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? - Answer The disclosure is optional Which of the following is NOT necessary in order for a broker to be entitled to a commission? - Answer a signed listing agreement 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? - Answer No, because Leslie was not a licensed broker when they made the agreement Unlicensed real estate assistants may perform many duties in Massachusetts. Which of the following would require the assistant to hold a real estate license? - Answer explaining simple contract documents to prospective buyers 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? - Answer Tenancy in Common 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? - Answer Tom must inform the owner in writing that he is a licensed salesperson before he makes an offer 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? - Answer Neil cannot cancel the contract. 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? - Answer 80 percent When received by a broker on behalf of a principal, when must funds be deposited in an escrow or trust account? - Answer immediately What is the age of legal competence in Massachusetts? - Answer 18 Regarding the homestead right in Massachusetts, which of the following is true? - Answer The homeowner, surviving spouse, and minor children have a life estate. What should a listing agent do when he becomes aware of an underground oil tank during a home inspection? - Answer Disclose the existence of the tank to any prospective buyer What kind of deed is used when conveying deed of a condo - Answer Unit Deed 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? - Answer Leslie cannot disclose to the buyer any offers received on the Wilson property while he had the listing. 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? - Answer a random selection of licensees A broker or licensed salesperson is obligated to do which of the following upon obtaining a listing in Massachusetts? - Answer give a copy of the listing to the seller Which of the following is correct with regard to listings based on a "net price?" - Answer they are illegal in Massachusetts at any time Which of the following is required for a salesperson or broker to renew an active license? - Answer complete 12 hours of continuing education in preceding two years 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? - Answer RCVX Construction, City Bank, Country Bank Which of the following applies to a real estate salesperson who wishes to sell her own property without using a broker? - Answer she must disclose the fact that she is a real estate licensee