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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q29-Q34):
NEW QUESTION # 29
An appraisal made by a certified appraiser is required
Answer: C
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Federal law (FIRREA, 1989) and HUD regulations require that FHA and VA loans be supported by an appraisal from a state-licensed or certified appraiser. The purpose is to determine whether the property meets minimum standards and supports the loan amount.
A: Appraisals are not required for all property transfers, only certain financed ones.
B: Inheritances may require valuations for estate tax purposes, but not necessarily certified appraisals.
D: Divorce settlements may require appraisals for division of assets, but this is not federally mandated.
Thus, the correct answer is C.
Reference: HUD Handbook 4000.1; Massachusetts Real Estate Salesperson Candidate Handbook - Appraisal
/Financing.
NEW QUESTION # 30
A seller has entered into an exclusive right to sell agreement with a broker. The buyer presents the seller with an offer to purchase which is 20% less than the list price. Which of the following is appropriate?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A listing agreement gives the broker the right to market the property and earn a commission if a ready, willing, and able buyer is found, but it does not obligate the seller to accept any offer. Even if the offer is below asking price, the seller can accept, reject, or counteroffer. The seller has full discretion to decide, and no automatic acceptance or commission liability arises just because the offer is refused.
A: Incorrect, seller never owes buyer a commission.
C: There is no automatic "72-hour" acceptance rule unless specifically written into the offer.
D: Seller is not required to counter.
Thus, the correct answer is B.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Brokerage Agreements; Agency Duties.
NEW QUESTION # 31
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?
Answer: C
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 # 32
If owners ask a broker not to show a property to recipients of government assistance, the broker must
Answer: A
Explanation:
Massachusetts law (M.G.L. c. 151B, § 4) prohibits discrimination in housing based on receipt of public assistance, such as Section 8 housing vouchers or other government aid. If a seller instructs a broker not to show a property to prospective buyers or renters receiving government assistance, the broker cannot legally comply with that request.
The broker's fiduciary duty to the client does not extend to violating fair housing law. In such cases, the broker must refuse the listing because accepting it would require them to engage in unlawful discriminatory practices. Reporting to the Board or MCAD is not required; the appropriate action is simply to refuse participation in illegal activity.
This aligns with the Massachusetts Real Estate Licensing Law and MCAD enforcement rules, which hold licensees personally responsible for discriminatory conduct in real estate transactions.
Reference: Massachusetts General Laws c. 151B, Massachusetts Fair Housing Law; MCAD Fair Housing Guidelines; 254 CMR 3.00.
NEW QUESTION # 33
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
Answer: D
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 # 34
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