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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. When a licensee is hired to find a tenant for a summer vacation home on Cape Cod built in 1950, for a period of two weeks,

A) The Massachusetts Lead Law is not applicable.
B) The Massachusetts Fair Housing Law does not apply.
C) An unlicensed assistant may handle the transaction.
D) There is no limit on the amount of the security deposit.

2. The Massachusetts Consumer Protection Act (M.G.L. c. 93A)

A) Prohibits use of only deceptive practices in landlord-tenant law.
B) Protects tenants from personal property disputes.
C) Protects homeowners who sell their homes without a broker.
D) Prohibits use of unfair and deceptive practices in business.

3. A broker maintains a trust or escrow account. A $10,000 earnest money deposit is received from a buyer and deposited in the account. Several weeks later and prior to closing, the broker withdraws $7,000 from the account and puts it in an operating account. This transaction is

A) permissible as long as the broker is entitled to at least $7,000 in commission.
B) permissible if the seller was informed about the transfer of funds.
C) a violation of federal banking regulations.
D) an instance of illegal conversion of funds.

4. A veteran has applied for a VA loan to purchase a house with a sale price of $90,000. The Department of Veterans Affairs (VA) appraised the house at $85,000. In this situation, the veteran

A) may buy the property with the VA loan only if the seller agrees to take back a second mortgage for
$5,000.
B) may use the VA loan to buy the house after making a down payment of $5,000.
C) may buy the property with the VA loan only if the price is reduced to $85,000.
D) cannot secure a VA loan because such loans are limited to a maximum of $75,000.

5. Which of the following is incorrect regarding carbon monoxide inspection?

A) The inspection must be completed by the local fire department.
B) The inspection must be completed as a prerequisite to sell a residential property burning fossil fuel.
C) There is no additional fee if the inspection is done at the same time as the smoke detector inspection.
D) The inspection must be completed by a building inspector.

Solutions: