2026 Latest Real Estate Massachusetts-Real-Estate-Salesperson Real Exam Dumps PDF
Massachusetts-Real-Estate-Salesperson Exam Dumps, Massachusetts-Real-Estate-Salesperson Practice Test Questions
NEW QUESTION # 17
Which of the following is true about a competitive market analysis?
- A. It is usually based on local tax assessment.
- B. It is used to establish depreciable value.
- C. It is employed for insurance purposes.
- D. It is useful to the buyer as well as to the seller.
Answer: D
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A competitive market analysis (CMA) is a tool prepared by real estate licensees to help sellers establish a listing price and to help buyers determine an appropriate offer. It compares recent sales of similar properties, active listings, and expired listings to estimate a property's fair market value.
A: Insurance companies use replacement cost appraisals, not CMAs.
B: Depreciable value is for tax accounting and appraisals, not CMAs.
C: Local tax assessments do not typically reflect current market value and are not the basis of a CMA.
Because it helps both sellers and buyers understand market value, the correct answer is D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Valuation and Market Analysis.
NEW QUESTION # 18
A contract in which a licensee is employed by an owner to find a buyer for a 20-unit apartment building is most likely
- A. a property management contract.
- B. an option contract.
- C. a listing contract.
- D. a contract of sale.
Answer: C
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A listing contract is an agreement in which a property owner employs a broker to find a ready, willing, and able buyer on specified terms. In this case, the owner of a 20-unit apartment building hires a licensee for that purpose.
A (option contract): gives a buyer the right to purchase property within a set time, not relevant here.
C (property management contract): involves ongoing operation of rental property, not selling it.
D (contract of sale): is the purchase agreement between buyer and seller, not the employment of a broker.
Therefore, the agreement described is a listing contract.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; Brokerage Agreements.
NEW QUESTION # 19
The Massachusetts Consumer Protection Act requires that
- A. The seller's information be kept confidential.
- B. The buyer be informed of all offers.
- C. The broker disclose known material defects.
- D. The seller disclose all offers received.
Answer: C
Explanation:
The Massachusetts Consumer Protection Act (M.G.L. c. 93A) prohibits unfair or deceptive practices in trade or commerce. In real estate, this means that a broker must disclose known material defects to prospective buyers. Failing to do so constitutes a deceptive act and can subject the broker to liability, including double or treble damages, attorney's fees, and court costs.
While sellers and buyers have their own disclosure obligations, the statute specifically imposes consumer protection responsibilities on businesses, including real estate brokers. Confidentiality of client information is a fiduciary duty under agency law, not a requirement of Chapter 93A. Offers themselves must always be presented to clients, but Chapter 93A focuses primarily on material misrepresentation and nondisclosure.
Reference: M.G.L. c. 93A; 254 CMR 3.00; Massachusetts Real Estate Candidate Information Bulletin - Consumer Protection Law.
NEW QUESTION # 20
A broker has been engaged to locate a property for a buyer. The broker has determined that a suitable property for the buyer is for sale and is owned by the broker's cousin. The broker has not informed the buyer of the broker's relationship with the owner. If the buyer purchases the property under these circumstances, the broker is
- A. Violating the license law because it is illegal to purchase family property for a principal.
- B. Violating the license law because a relative's interest shall be made known to all parties.
- C. Not violating the license law because a relative's interest is an exception to the fiduciary duty rule.
- D. Not violating the license law because the broker in this situation has no duty of disclosure.
Answer: B
Explanation:
Under Massachusetts real estate license law, a broker must disclose any personal interest, or the interest of an immediate family member, in a transaction to all parties. This is a matter of fiduciary duty and is explicitly required under 254 CMR 3.00.
Failing to disclose that the seller is the broker's cousin constitutes a conflict of interest and violates the duty of loyalty, disclosure, and honesty to the client (the buyer). While it is not illegal to buy or sell property involving relatives, the relationship must always be made known to avoid misrepresentation or concealment of material facts.
Therefore, the broker is in violation because the familial relationship was not disclosed.
Reference: 254 CMR 3.00 - Duties of Licensees; M.G.L. c. 112, § 87AAA; Massachusetts Real Estate Candidate Information Bulletin - Agency & Disclosure.
NEW QUESTION # 21
The Massachusetts Consumer Protection Act requires that
- A. The seller's information be kept confidential.
- B. The buyer be informed of all offers.
- C. The broker disclose known material defects.
- D. The seller disclose all offers received.
Answer: C
Explanation:
The Massachusetts Consumer Protection Act (M.G.L. c. 93A) prohibits unfair or deceptive practices in trade or commerce. In real estate, this means that a broker must disclose known material defects to prospective buyers. Failing to do so constitutes a deceptive act and can subject the broker to liability, including double or treble damages, attorney's fees, and court costs.
While sellers and buyers have their own disclosure obligations, the statute specifically imposes consumer protection responsibilities on businesses, including real estate brokers. Confidentiality of client information is a fiduciary duty under agency law, not a requirement of Chapter 93A. Offers themselves must always be presented to clients, but Chapter 93A focuses primarily on material misrepresentation and nondisclosure.
Reference: M.G.L. c. 93A; 254 CMR 3.00; Massachusetts Real Estate Candidate Information Bulletin - Consumer Protection Law.
NEW QUESTION # 22
A couple enters into a purchase contract to buy a house, and their parents are providing a $5,000 earnest money check. The check is deposited in the listing broker's escrow account. The buyers are unable to get financing, and the contract provides for return of the earnest money to the buyers. The buyers and seller agree in writing to the release of the earnest money. The listing broker should
- A. issue a $5,000 check to the buyers.
- B. issue a $5,000 check to the parents.
- C. return the earnest money check, minus expenses, to the parents.
- D. return the earnest money check, minus expenses, to the buyers.
Answer: A
Explanation:
Under Massachusetts escrow laws, once an earnest money deposit is given, it becomes part of the transaction and must be held in the broker's escrow account until proper written instructions are received. The critical rule is that the earnest money belongs to the buyer, not to the third party who may have supplied the funds.
Therefore, even though the parents wrote the $5,000 check, the funds legally belong to the buyers under the purchase and sale agreement. When the contract is canceled due to financing failure, and both parties (buyer and seller) agree in writing to release the deposit, the broker must issue the refund to the buyers, not the parents.
Massachusetts regulations (254 CMR 3.00) require brokers to handle escrow strictly according to the agreement and prohibit deductions for "expenses" unless explicitly authorized. Thus, the correct action is to issue the $5,000 back to the buyers in full.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Trust Funds & Escrow; 254 CMR
3.10 (Board of Registration of Real Estate Brokers and Salespersons).
NEW QUESTION # 23
A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two- car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck.
The ranch house is most likely to sell for around
- A. $148,500
- B. $147,500
- C. $123,500
- D. $128,500
Answer: B
Explanation:
NEW QUESTION # 24
Which of the following acts does NOT require notifying the Board of Registration?
- A. A salesperson terminates employment with one broker and affiliates with another.
- B. A broker changes his or her mailing address.
- C. A broker conducts business under the broker's own name.
- D. A broker commences business under the trade name of ABC Realty.
Answer: C
Explanation:
Massachusetts real estate law requires licensees to notify the Board of Registration of Real Estate Brokers and Salespersons of any changes that affect their license status or operations. This includes:
Change of mailing address (M.G.L. c. 112, 87YY).
Change of broker affiliation for salespersons.
Operating under a trade name (which requires Board approval and proper business certificates).
However, a broker who conducts business under their own legal name does not need to notify the Board separately of this fact. The license is already issued in the broker's name, so no additional approval is required unless a trade or business name is used.
Reference: 254 CMR 2.00; M.G.L. c. 112, 87YY.
NEW QUESTION # 25
Which type of deed provides the purchaser of real estate the greatest protection?
- A. general warranty deed
- B. deed in trust
- C. quitclaim deed
- D. trustee's deed
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A general warranty deed offers the highest level of protection to a buyer because the grantor guarantees clear title against all claims, past and present, even those arising before the grantor's ownership. The grantor makes several covenants, including seisin (ownership), right to convey, freedom from encumbrances, quiet enjoyment, further assurances, and warranty forever.
Quitclaim deed (A): contains no warranties; it only conveys whatever interest the grantor may have, if any. In Massachusetts, quitclaim deeds are common for transfers but are not as protective as general warranty deeds.
Trustee's deed (B): conveys property held in trust, usually without full warranties.
Deed in trust (D): transfers property into a trust arrangement, not primarily for buyer protection.
Thus, the general warranty deed provides the greatest buyer protection.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Transfer of Title; Deeds and Warranties.
NEW QUESTION # 26
Based on the common law of agency, which of the following would always be an agent's duty?
- A. analyzing the preliminary title report and advising the buyer regarding exceptions listed
- B. hiring a contractor to repair a listing with a leaky roof
- C. placing the interests of the principal above all others, including the agent's own interests
- D. disclosing that the reason a client is selling is an impending divorce
Answer: C
Explanation:
The common law of agency requires real estate licensees to act in the best interests of their principal (the client). The six fiduciary duties are: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care/diligence.
The most fundamental of these is loyalty - meaning the agent must always place the client's interests above all others, including their own.
Hiring a contractor (A) goes beyond the agent's authority unless authorized.
Disclosing divorce (B) would breach confidentiality, not fulfill a duty.
Analyzing legal title exceptions (C) constitutes unauthorized legal practice.
Thus, the correct answer is D: placing the principal's interests first.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Law; Common Law Fiduciary Duties.
NEW QUESTION # 27
Time is of the essence means
- A. every act under the contract must be performed on the exact date specified.
- B. time limits stated in the contract may not be modified, even by mutual agreement of the parties.
- C. the closing must occur as soon as possible.
- D. time limits set forth in the contract must be carefully observed.
Answer: D
Explanation:
The phrase "time is of the essence" is a standard clause in Massachusetts real estate contracts. It means that contract deadlines are legally binding and must be strictly observed. Failure to perform within the time specified constitutes a breach of contract.
It does not mean that the closing must occur "as soon as possible" (A) but rather on the date agreed upon.
C overstates - while performance must be timely, contracts may allow flexibility in exact timing if not specified.
D is incorrect because deadlines may be modified if both parties agree in writing.
Thus, the best legal definition is B: time limits set forth in the contract must be carefully observed.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; M.G.L. c.106, Uniform Commercial Code §2-309 (time requirements).
NEW QUESTION # 28
A real estate licensee is a partial owner of a local inspection company. It is permissible for the licensee to tell all clients to use this company when
- A. the client does not ask for other recommendations.
- B. the licensee does not know any of the other title companies in the area.
- C. the licensee discloses the interest in the company to the client.
- D. it is in the best interest of the client.
Answer: C
Explanation:
Under Massachusetts law and federal RESPA (Real Estate Settlement Procedures Act, Section 8), real estate professionals may have an ownership interest in related businesses (such as inspection, title, or mortgage companies), but they must provide full disclosure of this interest to clients in writing.
Steering clients exclusively to a business in which the agent has a financial interest - without disclosure - is a conflict of interest and a violation of fiduciary duties. However, once the relationship is disclosed, the client may freely choose whether to use that company or not.
The other options are incorrect because:
"Best interest" (A) doesn't override disclosure requirements.
Lack of knowledge of competitors (B) is not an excuse.
Failing to disclose simply because the client doesn't ask (C) is a violation.
Thus, the only permissible action is disclosure (D).
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency & Disclosure; RESPA, 12
U.S.C. §2607.
NEW QUESTION # 29
An offer of $569,000 is verbally accepted by a seller. Two hours later an offer of $589,000 is presented to the seller, which the seller accepts in writing. Based on the above situation the first buyer is
- A. Entitled to purchase the property.
- B. Not entitled to purchase the property.
- C. Entitled to an additional offer.
- D. Not entitled to the status as a backup offer.
Answer: B
Explanation:
Under Massachusetts law and the Statute of Frauds (M.G.L. c. 259), all contracts for the sale of real property must be in writing and signed to be enforceable. A verbal acceptance of an offer does not create a binding real estate contract. Therefore, when the seller verbally accepted the first offer of $569,000, no enforceable agreement was formed.
Later, when the seller accepted the $589,000 offer in writing, that acceptance created the first legally binding contract because it was in writing and signed. The first buyer cannot compel the seller to sell to them, as there was no enforceable written agreement.
Thus, the first buyer is not entitled to purchase the property. Only the second, written offer created enforceable contractual rights.
Reference: Massachusetts General Laws Chapter 259 (Statute of Frauds); Massachusetts Real Estate Candidate Information Bulletin, Section: Contracts.
NEW QUESTION # 30
A prescriptive easement is proven by a
- A. title policy.
- B. recorded abstract.
- C. previous recorded deed.
- D. quiet title action.
Answer: D
Explanation:
A prescriptive easement is established through open, notorious, continuous, and adverse use of another's land for a statutory period (in Massachusetts, typically 20 years).
To legally recognize and establish the easement, the claimant must usually bring a quiet title action in court.
This court proceeding clarifies ownership rights and confirms the existence of the easement.
A (deed): not applicable since prescriptive easements arise without written agreements.
C (abstract): summarizes recorded documents but would not establish prescriptive rights.
D (title policy): insures title, does not prove an easement.
Thus, the correct answer is B: quiet title action.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Easements & Rights; M.G.L. c.
187, §2.
NEW QUESTION # 31
A buyer receives a seller's property condition disclosure in which the buyer's agent believes the seller has misrepresented the condition of the property. The buyer's agent should
- A. point out this concern to the buyer and recommend further inspection or investigation before proceeding.
- B. call the listing agent and express this concern.
- C. recommend that the buyer withdraw from the transaction.
- D. remain silent as the agent does not know for certain that the seller has misrepresented the property.
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
An agent owes a fiduciary duty of care, loyalty, and disclosure to their client. If a buyer's agent suspects misrepresentation in a seller disclosure, they cannot remain silent (A) because that fails fiduciary duty. They also cannot simply instruct withdrawal (B) without investigation. Communicating only with the listing agent (C) does not fulfill the duty to protect the buyer.
The proper action is to disclose the concern to the buyer and recommend further investigation, inspections, or professional evaluations before proceeding. This allows the buyer to make an informed decision and protects the agent from liability.
Correct answer: D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Obligations; Seller Disclosure Laws.
NEW QUESTION # 32
A buyer is considering a property in one of the subdivisions of a Planned Unit Development (PUD). The buyer noticed nearby properties having detached garages and workshops. The buyer mentions to their agent that they want to build a detached building on the back of the lot for a home business. There is an HOA for this subdivision. Additionally, there are overarching covenants, conditions, and restrictions (CC&Rs) for the PUD. What actions, if any, should be taken by the broker to assure the buyer can use the property as they wish?
- A. Determine if home business use is allowed in the subdivision.
- B. Take no action because other properties have detached buildings.
- C. Recommend the buyer obtain the current CC&Rs and all current HOA documents.
- D. Recommend the buyer determine if architectural review requirements exist for the subdivision.
Answer: C
Explanation:
In a Planned Unit Development (PUD), buyers are subject to both subdivision-level rules (via HOAs) and overarching covenants, conditions, and restrictions (CC&Rs) that govern the entire development. Even if other neighbors have similar structures, this does not guarantee that new construction or business use will be allowed.
The broker's role is to protect the buyer's interests by ensuring they review all current CC&Rs and HOA governing documents. These documents will reveal architectural review requirements, use restrictions (including home businesses), and other limitations. The broker should not assume permissibility based on observation alone.
Thus, the best and legally correct advice is D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Property Ownership & PUDs; Restrictive Covenants.
NEW QUESTION # 33
The provisions of the Real Estate License Law apply to which of the following individuals?
- A. Salespersons who sell their primary residences
- B. A regular employee of a property owner who conducts lease transactions on the property
- C. A property manager who handles the sale of units within a managed condominium complex
- D. A licensed person who for a fee receives a referral from a licensed broker
Answer: C
Explanation:
The Massachusetts Real Estate License Law (M.G.L. c. 112, §§ 87PP-87DDD) applies to anyone who engages in the business of buying, selling, leasing, or negotiating real estate transactions for a fee, commission, or other valuable consideration, unless specifically exempt.
Exemptions include:
Regular salaried employees of property owners who lease or manage property owned by their employer (no license needed).
Salespersons selling their own primary residence (no license needed, as owners always may sell their own property).
Referrals: A licensed person may receive compensation, but unlicensed referral fees are prohibited.
A property manager who handles sales of units (not just leasing or maintenance) is engaged in brokerage activities requiring a license. Therefore, the Real Estate License Law applies in this case.
Reference: M.G.L. c. 112, §§ 87QQ, 87RR; Massachusetts Real Estate Candidate Information Bulletin - Licensing Requirements.
NEW QUESTION # 34
Under an option to buy, the ownership of land will change when the
- A. optionee exercises the option.
- B. optionor does not fulfill the obligation.
- C. specified time has expired.
- D. option is signed by the parties.
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
An option to buy is a unilateral contract where the seller (optionor) gives the buyer (optionee) the exclusive right to purchase property within a set period at agreed terms. Ownership does not transfer when the option is signed - only when the optionee exercises the option and a purchase contract is completed.
A: The option itself does not transfer ownership.
B: Optionor has no further obligations beyond honoring the option.
D: Expiration ends the option with no transfer.
Thus, title passes only after the optionee exercises the option and proceeds with purchase.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; Options in Real Estate.
NEW QUESTION # 35
Disclosure of licensee relationships to prospective buyers and sellers is required
- A. When discussing any real estate issue.
- B. At the first personal meeting to discuss a specific single-family property.
- C. When responding to a telephone or internet inquiry.
- D. When listing commercial properties.
Answer: B
Explanation:
In Massachusetts, licensee relationship disclosure is governed by M.G.L. c. 112, § 87AAA and 254 CMR
3.00. State law requires that real estate agents disclose their agency relationship to prospective buyers and sellers at the first personal meeting to discuss a specific property. This requirement is primarily intended for residential transactions involving one- to four-family properties.
This disclosure clarifies whether the agent represents the seller, the buyer, or is functioning in another capacity (such as a facilitator). It ensures that consumers are fully informed about where the licensee's loyalty lies before substantive discussions occur.
The law does not require agency disclosure for mere inquiries (phone or internet), for general real estate discussions, or for commercial property listings. The specific trigger is the first personal meeting to discuss a specific single-family property.
Reference: 254 CMR 3.00; Massachusetts Real Estate License Law Summary; Consumer Guide to Real Estate Agency Relationships.
NEW QUESTION # 36
If a seller defaults in performance of a contract, any of the following actions would be likely to help the buyer recover any losses EXCEPT
- A. canceling the contract and recovering the earnest money.
- B. suing the seller for specific performance.
- C. bringing an action against the seller for payment of compensatory damages.
- D. filing a complaint with the Real Estate Commission.
Answer: D
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
When a seller defaults on a purchase agreement, the buyer's remedies typically include:
Specific performance (A): Court order requiring the seller to perform.
Canceling and recovering earnest money (C).
Suing for damages (D).
However, filing a complaint with the Real Estate Commission (B) is not a legal remedy against the seller because the Commission regulates licensees, not private sellers. Unless the seller is also a licensee, the Commission cannot enforce the contract or award damages.
Thus, the correct answer is B: filing a complaint with the Real Estate Commission.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; Buyer Remedies.
NEW QUESTION # 37
On which of the following must the landlord pay interest when collecting first month, last month, and security deposit?
- A. Only if they are deposited in an interest-bearing account
- B. Security deposit and last month
- C. Last month only
- D. First month only
Answer: B
Explanation:
Under M.G.L. c. 186, 15B, landlords in Massachusetts must pay interest on both the security deposit and the last month's rent if these funds are held for more than one year. The interest must be paid annually and credited to the tenant's account, unless the tenant and landlord have a written agreement stating otherwise.
The first month's rent is not subject to interest requirements. The landlord must hold the security deposit in a separate, interest-bearing account, and the interest accrues for the benefit of the tenant.
Therefore, the landlord must pay interest on both the security deposit and last month's rent.
Reference: M.G.L. c. 186, 15B; Massachusetts Real Estate Candidate Information Bulletin - Tenant Rights.
NEW QUESTION # 38
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