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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q60-Q65):

NEW QUESTION # 60
The Massachusetts Consumer Protection Act requires that

A. The buyer be informed of all offers.
B. The seller disclose all offers received.
C. The broker disclose known material defects.
D. The seller's information be kept confidential.

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 # 61
In a jurisdiction where the common law of agency applies, a broker has listed a home and then presented to the seller an offer from another client of the broker. The offer has been accepted. The broker has what type of agency relationship with the parties?

A. seller agency, no agency relationship with buyer
B. dual agency
C. no agency relationship; in this situation the broker becomes a facilitator only
D. seller agency, buyer sub-agency

Answer: B

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Under the common law of agency, an agent owes fiduciary duties to the party they represent. If a broker represents a seller under a listing agreement but also brings a buyer who is their client, the broker now represents both parties in the same transaction. This creates a dual agency relationship.
Dual agency is lawful in Massachusetts only if there is full disclosure and written informed consent from both parties. Without disclosure, it would be an undisclosed dual agency, which is illegal.
A: Incorrect - the broker does represent the buyer.
B: Facilitation is a non-agency relationship, but that's not the case here.
C: Buyer is not a sub-agent of the seller; they are a client.
Correct answer: D: dual agency.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Law; 254 CMR 3.00.

NEW QUESTION # 62
A buyer is purchasing a $625,000 property. The lender requires a 20% down payment to avoid mortgage insurance. The buyer provided $5,000 in earnest money. The buyer closing costs are $13,000. What is the amount the buyer must bring to settlement to close the transaction?

A. $120,000
B. $138,000
C. $133,000
D. $143,000

Answer: C

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
First compute the down payment at 20% of $625,000:
Down payment = $625,000 × 0.20 = $125,000.

Mortgage insurance is avoided because the LTV is 80% (loan of $500,000 on $625,000 purchase), consistent with typical underwriting. Massachusetts exam math emphasizes accurate handling of down payment percentages, credits for deposits, and inclusion of buyer's closing costs. The only choice that matches this computation is $133,000.
References: Massachusetts Real Estate Salesperson Candidate Handbook - Real Estate Math (Down payments, buyer credits/debits, cash to close); Financing basics (LTV and PMI thresholds).

NEW QUESTION # 63
When real estate brokers and salespersons engage in renting residential dwelling units, they must provide a prospective tenant with written notice of the

A. Presence of any sex offenders living in the neighborhood.
B. Name and address of the landlord.
C. Amount of the rent.
D. Amount of fee, if any, that the prospective tenant will have to pay for the broker's services.

Answer: D

Explanation:
Under M.G.L. c. 112, § 87DDD½, Massachusetts law requires real estate brokers and salespersons engaged in renting residential property to provide prospective tenants with a written notice stating the amount of any broker's fee, and whether the tenant will be responsible for paying it. This disclosure must be made before the tenant is obligated to pay any fee.
This law protects tenants from unexpected costs and ensures transparency in rental transactions. While rental amount, landlord details, and public information such as the state's sex offender registry may be relevant, the statutory requirement specifically addresses broker compensation. Failure to provide this written notice may result in disciplinary action by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons.
Reference: M.G.L. c. 112, 87DDD½; 254 CMR 7.00.

NEW QUESTION # 64
Which of the following types of agreements applies when the seller retains the right to sell?

A. MLS Listing
B. Net Listing
C. Exclusive Right to Sell Listing
D. Exclusive Agency Listing

Answer: D

Explanation:
An Exclusive Agency Listing agreement is one where the seller hires a broker to sell the property but retains the right to sell the property themselves without owing the broker a commission. If the seller sells the property directly, the broker will not be entitled to a commission.
In contrast, with an Exclusive Right to Sell Listing, the broker receives a commission regardless of whether they or the seller finds the buyer. An MLS Listing is not an agreement type but refers to listing the property in the Multiple Listing Service. Net Listings are illegal in Massachusetts, as they can lead to unethical practices.
Reference: Massachusetts Real Estate Candidate Information Bulletin - Agency Relationships and Listings.

NEW QUESTION # 65
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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q60-Q65):

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