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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. In Massachusetts, which of the following statements about smoke detectors prior to closing is always correct?

A) Smoke detectors are optional in single-family houses.
B) All single-family residences must have hard-wired smoke detectors.
C) A three-family residence can have either battery-operated or hard-wired smoke detectors.
D) A smoke detector certificate must be obtained from the local fire department.

2. A seller wants $120,000 for a home and still owes $20,000 of the original loan at 7% interest. The current interest rate is 12%. A buyer can pay $60,000 down and wants to carry a mortgage that includes the seller's
$20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of 10%. What kind of mortgage loan is this?

A) wraparound
B) equity
C) buydown
D) blanket

3. 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) Permissible as long as both salespeople knew of Broker N's action.
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) Not permissible because a broker must present all offers to the principal forthwith.

4. Under an option to buy, the ownership of land will change when the

A) optionee exercises the option.
B) specified time has expired.
C) optionor does not fulfill the obligation.
D) option is signed by the parties.

5. A buyer is looking in several different cities for land to purchase for a shopping center. The buyer has decided to hire several real estate licensees, each representing the buyer in that licensee's city. Which type of agreement would protect the buyer from owing multiple commissions?

A) nonexclusive buyer-agency
B) exclusive right to sell
C) exclusive agency representation
D) nonexclusive right-to-lease

Solutions: