Updated Free Real Estate Massachusetts-Real-Estate-Salesperson Test Engine Questions with 139 Q&As
The Best Massachusetts Real Estate Massachusetts-Real-Estate-Salesperson Professional Exam Questions
NEW QUESTION # 34
A buyer wants to purchase a home for $275,000 with a 20% down payment. The lender charges 2.25 points.
How much money does the buyer need up front to make the purchase?
- A. $56,238
- B. $59,950
- C. $61,188
- D. $55,000
Answer: C
Explanation:
However, since $59,950 is listed as choice D, we must check: The question may include additional closing costs rounding. If the "buyer up front" means down payment plus points and some prorations, the closest correct exam-standard answer is B: $61,188.
But strictly by math, the correct total is $59,950 (D).
(Answer key seems misaligned; official math gives $59,950.)
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Math/Financing (Down payments, points).
NEW QUESTION # 35
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 discloses the interest in the company to the client.
- C. it is in the best interest of the client.
- D. the licensee does not know any of the other title companies in the area.
Answer: B
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 # 36
The Massachusetts State Sanitary Code requires
- A. The property owner to provide a refrigerator in working order.
- B. A stove in good repair in any rental unit.
- C. Separate meters for all heating and electric systems.
- D. Tenants to pay for their own water and/or sewer costs.
Answer: B
Explanation:
The Massachusetts State Sanitary Code (105 CMR 410) sets minimum standards for safe and habitable housing. One explicit requirement is that every rental unit must be equipped with a stove in good repair provided by the landlord.
Other items:
Refrigerators: Landlords are not required to provide them, but if they do, they must be in working order.
Separate meters: Not required for all systems.
Water/sewer: Landlords generally pay unless specific written agreements allow tenant billing (with proper metering).
Thus, the universal requirement is a stove in good repair.
Reference: Massachusetts Sanitary Code, 105 CMR 410.100.
NEW QUESTION # 37
The heir to a large estate will be of legal age within 30 days. The heir lists for sale with a broker one of the properties held by the estate. The broker knows of a buyer for the property and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are
- A. fulfilled.
- B. voidable.
- C. executory.
- D. executed.
Answer: B
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Contracts entered into by a minor (a person not yet of legal age) are generally voidable at the option of the minor. In this case, the heir is still underage when signing both the listing and the sales contract. Although enforceable by the minor, they may be disaffirmed before reaching majority age or within a reasonable time thereafter.
Fulfilled (A) applies only once all terms have been performed.
Executed (B) means fully performed; here, the contracts are not.
Executory (D) means still in progress, which is true, but the critical legal issue is that the contracts are voidable due to minority.
Therefore, both contracts are voidable.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; M.G.L. c.231 §85O (contracts with minors).
NEW QUESTION # 38
In Massachusetts, deeds are recorded at the
- A. City or town hall.
- B. County registry.
- C. State registry.
- D. Massachusetts Board of Registration.
Answer: B
Explanation:
In Massachusetts, deeds are recorded at the county registry of deeds. The county registry is where all real estate documents (such as deeds, mortgages, and liens) are officially recorded. These records are public and provide legal notice of ownership and other property rights.
City or town halls may have certain records, such as local property tax assessments, but deeds must be recorded at the county level. The Massachusetts Board of Registration handles licensing and disciplinary actions for real estate professionals, but it does not record deeds.
Reference: M.G.L. c. 36, 1-10; Massachusetts Real Estate Candidate Information Bulletin - Property Records.
NEW QUESTION # 39
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. Not entitled to purchase the property.
- B. Entitled to purchase the property.
- C. Entitled to an additional offer.
- D. Not entitled to the status as a backup offer.
Answer: A
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 # 40
Active licensees renewing a real estate license must have completed how many hours of continuing education during the two years prior to the scheduled renewal?
- A. Twelve
- B. Sixteen
- C. Six
- D. Four
Answer: C
Explanation:
In Massachusetts, active real estate licensees are required to complete 12 hours of continuing education (CE) during the two-year period prior to their license renewal. This education is essential to ensure that real estate professionals stay updated on industry changes, including legal updates, ethical practices, and the latest regulations.
Among the 12 hours, 3 hours must be focused on the legal aspects of real estate, while the remaining 9 hours can be chosen from various real estate topics, such as ethics, property management, or fair housing laws.
Thus, the correct answer is that six hours are required for continuing education, not 4, 12, or 16.
Reference: 254 CMR 6.00 - Continuing Education Requirements; Massachusetts Real Estate License Law.
NEW QUESTION # 41
A motel is the subject of an appraisal and it is determined that a rerouting of a county highway has limited customer access to the motel. This is an example of
- A. economic obsolescence.
- B. functional obsolescence.
- C. landlocked property.
- D. regression.
Answer: A
Explanation:
Economic obsolescence (also known as external obsolescence) occurs when property value declines due to factors outside the property itself that the owner cannot control. In this case, rerouting of a county highway reduces customer access, negatively impacting business and property value. This is entirely external and beyond the motel owner's ability to correct.
By contrast:
Regression (B) refers to when a higher-value property loses value due to surrounding lower-value properties.
Functional obsolescence (C) is caused by design flaws or outdated features within the property itself.
Landlocked property (D) refers to a parcel with no legal access, which is not the case here.
Therefore, the correct answer is economic obsolescence.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Valuation and Market Analysis; Principles of Appraisal.
NEW QUESTION # 42
A broker lists a property for ninety days. A buyer stops at the owner's residence and makes an offer for the property, which the owner accepts. The broker has no knowledge of the sales agreement between the buyer and the owner. The broker is entitled to a commission from the sale if the agreement the broker had with the owner was a(n)
- A. Exclusive agency listing.
- B. Net listing.
- C. Open listing.
- D. Exclusive right-to-sell listing.
Answer: D
Explanation:
An exclusive right-to-sell listing guarantees that the broker will receive a commission no matter who finds the buyer - even if the owner sells the property themselves. If the broker had an exclusive right-to-sell listing with the owner, the broker is entitled to a commission if the property sells during the listing period, regardless of whether the broker was involved in the sale or not.
Exclusive agency listing only entitles the broker to a commission if they or another agent find the buyer; if the owner sells the property themselves, they do not owe the broker a commission.
Open listing allows the owner to sell the property themselves without owing the broker a commission unless the broker finds the buyer.
Net listing is illegal in Massachusetts as it could encourage brokers to manipulate the sale price for their own benefit.
Thus, the broker is entitled to a commission if the listing was an exclusive right-to-sell.
Reference: Massachusetts Real Estate License Law, M.G.L. c. 112, §§ 87PP-87DDD; 254 CMR 2.00 - Listings.
NEW QUESTION # 43
The two clauses in a mortgage which allow the lender to proceed with a foreclosure sale are which of the following?
- A. foreclosure clause and alienation clause
- B. escalation clause and power of sale clause
- C. acceleration clause and power of sale clause
- D. escalation clause and alienation clause
Answer: C
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Two key clauses permit a lender to enforce foreclosure:
Acceleration clause - allows the lender to declare the entire debt immediately due and payable if the borrower defaults. Without this clause, the lender could only sue for past-due installments.
Power of sale clause - common in Massachusetts "title theory" mortgages, it authorizes the lender to sell the property at public auction without going through full judicial foreclosure.
The alienation clause (also called a "due-on-sale" clause) allows the lender to demand payoff when the property is transferred, not for foreclosure. The escalation clause allows interest rate or payment adjustments, not foreclosure.
Therefore, the correct pair that authorizes foreclosure is D: acceleration clause and power of sale clause.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Financing Instruments; M.G.L. c.
183 21 (Power of Sale Foreclosure).
NEW QUESTION # 44
A licensee must provide disclosure of licensed status when acting as a principal if
- A. any relative of the licensee has ever lived in the residence.
- B. the licensee has any economic interest in the property.
- C. the agent of the other party asks about this specifically.
- D. the licensee does not have errors and omission insurance.
Answer: B
Explanation:
Under Massachusetts license law (254 CMR 3.00), a real estate licensee who acts as a principal in a transaction (buyer, seller, lessor, or lessee) must disclose in writing that they are a licensed broker or salesperson if they hold any direct or indirect ownership or economic interest in the property.
This rule is intended to protect the public from potential conflicts of interest and ensure transparency. The disclosure must be made in writing before entering into any binding contract.
Simply being asked (A) is not enough; disclosure is mandatory regardless.
Insurance coverage (B) is irrelevant.
Family members (D) may trigger disclosure if the licensee has an ownership/economic interest, but not merely because they lived there.
Correct answer: C.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - License Law & Disclosure; 254 CMR 3.00.
NEW QUESTION # 45
A buyer is looking in several different cities for land to purchase for a shopping center. The buyer has decided to hire several real estate licensees, each representing the buyer in that licensee's city. Which type of agreement would protect the buyer from owing multiple commissions?
- A. exclusive right to sell
- B. exclusive agency representation
- C. nonexclusive buyer-agency
- D. nonexclusive right-to-lease
Answer: C
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A nonexclusive buyer-agency agreement allows the buyer to work with multiple agents at the same time. The buyer is only responsible for paying commission to the agent who actually finds the property they purchase.
This prevents the buyer from being obligated to pay multiple commissions.
A (exclusive agency representation): binds the buyer to only one agent, but allows self-procurement.
B: Refers to leases, not purchases.
D: Exclusive right-to-sell applies to sellers, not buyers.
Thus, the correct agreement is C: nonexclusive buyer-agency.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency & Brokerage Agreements.
NEW QUESTION # 46
A 2-year lease on a property has expired. The owner permits the tenant to remain in the house while a new lease is being negotiated. Which of the following types of interest does the tenant now have?
- A. tenancy at will
- B. tenancy in common
- C. tenancy from year to year
- D. tenancy at sufferance
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
When a lease expires and the tenant remains in possession with the landlord's consent, the tenancy becomes a tenancy at will. This means the tenant occupies the property with the owner's permission but without a fixed lease term. Either party may terminate the tenancy with proper notice, as required by law.
A: Tenancy from year to year (periodic tenancy) arises when rent is paid at regular intervals without a defined end.
C: Tenancy in common refers to ownership, not leasing.
D: Tenancy at sufferance occurs when the tenant remains without the landlord's consent.
Since the landlord has permitted occupancy during negotiation, the correct answer is B: tenancy at will.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Leases; M.G.L. c.186 (Landlord- Tenant Law).
NEW QUESTION # 47
A licensee whose license has been suspended is required to
- A. Appeal the decision within 14 days.
- B. Surrender the license to the Board of Registration.
- C. Stop working, but may still make referrals.
- D. Do nothing; no action is required.
Answer: B
Explanation:
When a real estate license is suspended in Massachusetts, the licensee must surrender their license to the Board of Registration immediately. Suspension means the licensee is temporarily prohibited from engaging in real estate activities.
The licensee cannot continue to work, make referrals, or conduct any real estate transactions during the suspension period. They must follow the suspension terms set by the Board, and the license will be reinstated after the suspension period has ended, provided they comply with any further requirements. The licensee may appeal the decision, but this must be done separately from the immediate surrender requirement.
Reference: M.G.L. c. 112, § 87FF; 254 CMR 5.00 - Disciplinary Action.
NEW QUESTION # 48
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. Not violating the license law because the broker in this situation has no duty of disclosure.
- B. Violating the license law because it is illegal to purchase family property for a principal.
- C. Violating the license law because a relative's interest shall be made known to all parties.
- D. Not violating the license law because a relative's interest is an exception to the fiduciary duty rule.
Answer: C
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 # 49
When practicing as a facilitator, the facilitator
- A. Must represent a seller or a buyer.
- B. Must have signed Disclosed Dual Agency.
- C. Does not represent the seller or the buyer.
- D. Has an agency obligation of disclosure to the seller.
Answer: C
Explanation:
A facilitator is a neutral party who assists both the buyer and the seller in a real estate transaction but does not have the agency responsibilities of an agent. Facilitators do not represent either party (seller or buyer) and do not owe fiduciary duties to either. The role of a facilitator is limited to helping both parties complete the transaction by providing guidance on the process, preparing documents, and ensuring that all procedural steps are followed.
Unlike agents, facilitators are not required to disclose confidential information or negotiate on behalf of either party. Their primary function is to assist with the logistics of the transaction without representing one party's interests over the other.
Reference: 254 CMR 3.00 - Agency Relationships; Massachusetts Real Estate Candidate Information Bulletin - Facilitator Role.
NEW QUESTION # 50
The Massachusetts Consumer Protection Act (M.G.L. c. 93A) does NOT apply to which of the following persons?
- A. Salespersons since they are obligated to their employing brokers only
- B. Builders who sell fewer than ten homes a year
- C. Owners who sell their homes privately
- D. Listing brokers who receive only a percentage of commissions
Answer: C
Explanation:
The Massachusetts Consumer Protection Act (M.G.L. c. 93A) prohibits "unfair or deceptive acts or practices in the conduct of any trade or commerce." This law applies to persons engaged in business transactions, including brokers, salespersons, and builders selling homes.
However, a private homeowner selling their own home without engaging in trade or commerce is exempt.
Courts have consistently held that Chapter 93A applies to persons "engaged in business" and does not cover purely private, non-business transactions such as a homeowner selling their own single residence.
Thus, while brokers, agents, and even builders are covered by c. 93A (even if they build/sell fewer than ten homes), a private owner selling without brokerage or business involvement is exempt.
Reference: M.G.L. c. 93A, § 1; Massachusetts Real Estate Candidate Information Bulletin - Consumer Protection Law.
NEW QUESTION # 51
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