Massachusetts-Real-Estate-Salesperson Questions - Pass On First Try [2025]

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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q46-Q51):

NEW QUESTION # 46
Which of the following is true about a competitive market analysis?

A. It is employed for insurance purposes.
B. It is useful to the buyer as well as to the seller.
C. It is usually based on local tax assessment.
D. It is used to establish depreciable value.

Answer: B

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A competitive market analysis (CMA) is a tool prepared by real estate licensees to help sellers establish a listing price and to help buyers determine an appropriate offer. It compares recent sales of similar properties, active listings, and expired listings to estimate a property's fair market value.
A: Insurance companies use replacement cost appraisals, not CMAs.
B: Depreciable value is for tax accounting and appraisals, not CMAs.
C: Local tax assessments do not typically reflect current market value and are not the basis of a CMA.
Because it helps both sellers and buyers understand market value, the correct answer is D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Valuation and Market Analysis.

NEW QUESTION # 47
A first-year licensee without either a degree in finance, or a strong background in real estate investment should generally refrain from

A. listing commercial income property.
B. acting as the seller's agent in selling an oceanfront lot to a retiree.
C. representing an owner who wants to sell raw land to a developer.
D. representing a first time home buyer.

Answer: A

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Commercial income property brokerage requires specialized competencies: analyzing rent rolls, operating statements, cap rates, cash flow, expense recoveries, lease structures (NNN, modified gross), and investment metrics (IRR, NOI, debt coverage). A first-year licensee lacking finance/investment background typically does not yet possess these skills. Massachusetts licensing materials stress competence and reasonable care
/diligence as fiduciary duties; taking assignments beyond one's expertise can breach those duties. While raw land or unique residential properties can also be complex, the exam recognizes commercial income listings as particularly finance-heavy and analysis-driven. New licensees should seek mentorship, co-list with experienced commercial practitioners, or refer such opportunities until competency is established.
Representation of first-time homebuyers (C) is a common early-career practice area, provided the agent understands agency, disclosures, financing basics, and transaction timelines. Therefore, the prudent, exam- correct choice is to refrain from listing commercial income property without appropriate background.
References: Massachusetts Real Estate Salesperson Candidate Handbook - Agency/Fiduciary Duties; Real Estate Brokerage Practice sections on competence and scope of services.

NEW QUESTION # 48
When practicing as a facilitator, the facilitator

A. Must represent a seller or a buyer.
B. Has an agency obligation of disclosure to the seller.
C. Does not represent the seller or the buyer.
D. Must have signed Disclosed Dual Agency.

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 # 49
Broker N has five affiliated salespersons. On Monday at 10:00 a.m., Salesperson J submitted an offer to purchase from a prospective buyer. The offer price was $300,000. An hour later, Salesperson R submitted an offer of $296,000. However, Broker N held the second offer until the seller rejected the first offer. Broker N's conduct in this situation is

A. Not permissible because a broker must present all offers to the principal forthwith.
B. Permissible as long as both salespeople share a commission on either of the offers accepted by the seller.
C. Not permissible because a broker must inform all potential buyers of existing offers.
D. Permissible as long as both salespeople knew of Broker N's action.

Answer: A

Explanation:
Massachusetts law and professional practice require that all offers must be presented to the seller forthwith (immediately). A broker may not withhold or delay offers, regardless of their order of arrival, price, or terms.
In this scenario, Broker N violated fiduciary duty to the seller by withholding the second $296,000 offer until the first was rejected. The seller is entitled to see all offers promptly in order to make an informed decision.
The broker has no authority to filter, delay, or prioritize offers.
The law does not require informing other buyers about competing offers (that would be a separate issue of disclosure), but the broker's obligation is always to the client-the seller-to present all offers immediately.
Reference: 254 CMR 3.00 - Duties of Licensees; NAR Code of Ethics, Article 1.

NEW QUESTION # 50
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 does not know any of the other title companies in the area.
C. it is in the best interest of the client.
D. the licensee discloses the interest in the company to the client.

Answer: D

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 # 51
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Massachusetts-Real-Estate-Salesperson Questions - Pass On First Try [2025]

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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q46-Q51):

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