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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A broker received a birthday check from a client. The broker decided to put it in the escrow account because it was from a client. This is

A) conversion.
B) commingling.
C) acceptable if the client has had a transaction within the last 18 months.
D) acceptable if the check was written on the client's business account.

2. 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) Recommend the buyer obtain the current CC&Rs and all current HOA documents.
C) Recommend the buyer determine if architectural review requirements exist for the subdivision.
D) Take no action because other properties have detached buildings.

3. A broker has listed a property for $225,000. An offer of $210,000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205,000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spend $5,000 in repairs before going through with the purchase. The seller may do any of the following EXCEPT

A) agree to do the needed repairs and consummate the transaction with the first offeror.
B) refuse to do the repairs and still proceed with the sale in as-is condition.
C) ignore the demand and sell the property to the second offeror.
D) terminate the first agreement in writing and sell to the second offeror.

4. According to the CAN-SPAM Act, every email advertisement for real estate services must do all of the following EXCEPT

A) clearly indicate the nature of the content of the email.
B) allow a method for the recipient to opt out and not receive future emails.
C) advise the recipient that it will take 180 days to remove the recipient's name from this email list.
D) inform the recipient of the name and location of the brokerage firm.

5. What is the function of a promissory note or bond when used in conjunction with a mortgage?

A) It provides the elements necessary to make the mortgage valid.
B) It makes the borrower personally obligated to pay the debt.
C) It furnishes a complete legal description of the property.
D) In case of default, it limits the lender's rights to interest only.

Solutions: