Massachusetts-Real-Estate-Salesperson by Real Estate Valid Free Exam Practice Test

Question 1

What type of relationship does NOT require confidentiality?

A. Facilitator B. Seller agency C. Buyer agency D. Dual agency

Correct Answer: A

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Question 2

A broker may withdraw money from the broker ' s escrow account

A. When ordered by the seller ' s attorney. B. To cover the broker ' s commission. C. To pay for advertising expenses related to the sale. D. When the transaction has been consummated.

Correct Answer: D

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Question 3

A client makes an offer on a residential property and provides a check for $2,000 as earnest money. The client instructs his buyer agent to hold the check for five days so it will clear the bank. What should the agent do with the check?

A. Inform the client that the offer will be presented without any earnest money since the agent is required to submit all offers. B. Refuse to present the offer to the seller ' s agent until the earnest money can be deposited. C. Hold it for five days before submitting the check to his broker for deposit in the escrow account. D. Provide the check to his broker immediately with the client ' s instruction to hold it for five days before depositing it in the escrow account.

Correct Answer: D

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Question 4

A brokerage wants to make unsolicited sales calls to homeowners. Which federal system must the brokerage consider before conducting covered telemarketing calls?

A. National Do Not Call Registry B. National Fair Housing Registry C. Mortgage Call Registry D. Federal Property Registry

Correct Answer: A

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Question 5

How many hours of approved continuing education must a Massachusetts real estate licensee ordinarily complete during each license term to maintain an active license?

A. 8 hours B. 24 hours C. 6 hours D. 12 hours

Correct Answer: D

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Question 6

A broker prepares a comparative market analysis (CMA) for a prospective seller. Which formal appraisal approach does the CMA most closely resemble?

A. Cost approach B. Sales comparison approach C. Replacement-reserve approach D. Income capitalization approach

Correct Answer: B

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Question 7

Joan personally signs an offer to purchase a property. She later discovers that the salesperson who had been assisting her was terminated by the brokerage the previous day. Assuming no other defect in Joan ' s offer, what is its status?

A. Automatically unenforceable B. Void C. Executed D. Valid

Correct Answer: D

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Question 8

To avoid triggering full disclosure under TILA when advertising financing availability on a listed property, which of the following statements must a real estate licensee avoid using?

A. owner willing to finance B. FHA and VA financing available C. buy for less than $650 per month D. assumable loan

Correct Answer: C

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Question 9

Which of the following acts does NOT require notifying the Board of Registration?

A. A broker changes his or her mailing address. B. A broker commences business under the trade name of ABC Realty. C. A salesperson terminates employment with one broker and affiliates with another. D. A broker conducts business under the broker ' s own name.

Correct Answer: D

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Question 10

Sam owes $10,000 in municipal real estate taxes. The municipality takes or sells the property for the tax debt.
One week later Sam obtains enough money to resolve the delinquency. Can Sam redeem the property?

A. No; tax redemption is available only when the debt exceeds $25,000 B. No; any tax sale immediately ends all ownership rights C. Yes; before foreclosure of the right of redemption, Sam can generally redeem by paying the required taxes, interest and statutory charges D. Yes, but only if Sam proves financial hardship

Correct Answer: C

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Question 11

Which statement most accurately summarizes the Massachusetts real estate salesperson ' s legal position within a brokerage?

A. The salesperson operates an independent brokerage and may control escrow funds B. The salesperson may practice without broker supervision after passing the exam C. The salesperson performs licensed brokerage activities through and under the supervision of the employing broker D. The salesperson has the same independent authority as the broker of record

Correct Answer: C

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Question 12

Which statement accurately reflects current FHA policy regarding construction financing?

A. FHA may insure qualifying construction-to-permanent or rehabilitation financing under approved programs B. FHA finances construction only through direct federal loans C. FHA can never insure financing connected with construction D. FHA construction financing is limited exclusively to commercial property

Correct Answer: A

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Question 13

Time is of the essence means

A. every act under the contract must be performed on the exact date specified. B. the closing must occur as soon as possible. C. time limits stated in the contract may not be modified, even by mutual agreement of the parties. D. time limits set forth in the contract must be carefully observed.

Correct Answer: D

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Question 14

Can a Massachusetts real estate salesperson simultaneously affiliate with multiple unrelated brokers and independently practice under each?

A. Yes B. No, the salesperson practices through the employing broker rather than independently C. Yes, if disclosed to clients D. Yes, if no escrow money is handled

Correct Answer: B

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Question 15

An income-producing property generates $72,000 annually and has $60,000 of applicable annual expenses. If an 8% capitalization rate is appropriate, what is its indicated value?

A. $120,000 B. $96,000 C. $900,000 D. $150,000

Correct Answer: D

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Real Estate Massachusetts Real Estate Salesperson - Massachusetts-Real-Estate-Salesperson Exam Practice Test