Authentic Real Estate Massachusetts-Real-Estate-Salesperson Exam Dumps PDF - 2026 Updated
Get Prepared for Your Massachusetts-Real-Estate-Salesperson Exam With Actual 139 Questions
NEW QUESTION # 60
What kind of lease would require the lessee to pay the taxes, insurance, repairs, and other operating expenses of the premises in addition to the regular rental payment?
- A. percentage lease
- B. net lease
- C. gross lease
- D. graduated lease
Answer: B
Explanation:
In a net lease, the tenant (lessee) is responsible not only for the base rent but also for additional property expenses such as real estate taxes, insurance, maintenance, and sometimes repairs. This is common in commercial leasing, particularly for office buildings and retail space.
A gross lease (B) means the landlord pays all expenses, while the tenant pays only rent. A percentage lease (A) bases rent partly on tenant sales (common in retail malls). A graduated lease (C) allows rent increases at set intervals.
Because the question describes a tenant paying rent plus taxes, insurance, and operating expenses, this is a net lease.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Leasing & Property Management; Commercial Leasing Practices.
NEW QUESTION # 61
A buyer receives a seller's property condition disclosure in which the buyer's agent believes the seller has misrepresented the condition of the property. The buyer's agent should
- A. point out this concern to the buyer and recommend further inspection or investigation before proceeding.
- B. remain silent as the agent does not know for certain that the seller has misrepresented the property.
- C. recommend that the buyer withdraw from the transaction.
- D. call the listing agent and express this concern.
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
An agent owes a fiduciary duty of care, loyalty, and disclosure to their client. If a buyer's agent suspects misrepresentation in a seller disclosure, they cannot remain silent (A) because that fails fiduciary duty. They also cannot simply instruct withdrawal (B) without investigation. Communicating only with the listing agent (C) does not fulfill the duty to protect the buyer.
The proper action is to disclose the concern to the buyer and recommend further investigation, inspections, or professional evaluations before proceeding. This allows the buyer to make an informed decision and protects the agent from liability.
Correct answer: D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Obligations; Seller Disclosure Laws.
NEW QUESTION # 62
Who establishes zoning ordinances?
- A. individual states
- B. regional councils
- C. the federal government
- D. local authorities
Answer: D
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Zoning ordinances are enacted at the local (municipal) level-cities and towns-under police power delegated by the state. While states pass enabling legislation and can set broad land-use frameworks, the actual creation and administration of zoning (district maps, permitted uses, dimensional regulations, variances, special permits) is done by local authorities such as city or town councils and implemented by local planning and zoning boards. Federal and regional bodies may influence land use through funding or environmental regulations, but they do not enact local zoning ordinances. On the Massachusetts exam, candidates are expected to know that municipalities adopt zoning bylaws/ordinances to promote public health, safety, and welfare, and administer them via local boards, inspectors, and appeals processes. Thus, the correct answer is D.
References: Massachusetts Real Estate Salesperson Candidate Handbook - Land Use Controls (Public restrictions: zoning); M.G.L. c. 40A (The Zoning Act).
NEW QUESTION # 63
Which of the following acts does NOT require notifying the Board of Registration?
- A. A broker changes his or her mailing address.
- B. A broker commences business under the trade name of ABC Realty.
- C. A broker conducts business under the broker's own name.
- D. A salesperson terminates employment with one broker and affiliates with another.
Answer: C
Explanation:
Massachusetts real estate law requires licensees to notify the Board of Registration of Real Estate Brokers and Salespersons of any changes that affect their license status or operations. This includes:
Change of mailing address (M.G.L. c. 112, 87YY).
Change of broker affiliation for salespersons.
Operating under a trade name (which requires Board approval and proper business certificates).
However, a broker who conducts business under their own legal name does not need to notify the Board separately of this fact. The license is already issued in the broker's name, so no additional approval is required unless a trade or business name is used.
Reference: 254 CMR 2.00; M.G.L. c. 112, 87YY.
NEW QUESTION # 64
To be legally binding, a listing agreement can be signed for the owner by the
- A. owner's heirs apparent.
- B. broker, upon telephone instructions from the owner.
- C. attorney-in-fact.
- D. trust beneficiary acting under a valid trust.
Answer: C
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A listing agreement must be signed by the legal owner or someone who has proper legal authority to act on the owner's behalf. That authority is established through a written power of attorney; the person acting is called the attorney-in-fact.
A: A broker cannot sign on behalf of an owner without written power of attorney; telephone instructions are not sufficient.
B: A trust beneficiary has no signing authority unless also appointed as trustee.
C: Heirs apparent have no legal rights until the owner passes away and probate is complete.
Thus, only an attorney-in-fact can legally bind the owner in a listing agreement.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; M.G.L. c.190B (Powers of Attorney).
NEW QUESTION # 65
Two top licensees in a small town have agreed not to show listings of a new real estate firm charging a low commission rate to sellers. This behavior is a violation of the
- A. federal fair housing laws.
- B. Sherman Antitrust Act.
- C. Blue-Sky laws.
- D. Equal Credit Opportunity Act.
Answer: B
Explanation:
The Sherman Antitrust Act is a federal law that prohibits any contract, combination, or conspiracy that restrains trade or creates monopolies. In the context of real estate, antitrust violations include price fixing, market allocation, group boycotts, and tie-in arrangements.
The situation described - where two licensees agree not to show listings from a competing brokerage charging lower commissions - is a classic example of a group boycott. By conspiring to cut out competition, they are restraining trade and harming both consumers and the new brokerage.
The Equal Credit Opportunity Act (A) deals with lending discrimination, Blue-Sky laws (B) regulate securities, and federal fair housing laws (D) prohibit housing discrimination. Only the Sherman Antitrust Act applies here.
Massachusetts licensees are specifically tested on recognizing antitrust violations. The penalties for Sherman Act violations are severe, including fines, loss of license, and even imprisonment.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Real Estate Practice & Antitrust Laws; Sherman Antitrust Act, 15 U.S.C.1-7.
NEW QUESTION # 66
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 determine if architectural review requirements exist for the subdivision.
- C. Take no action because other properties have detached buildings.
- D. Recommend the buyer obtain the current CC&Rs and all current HOA documents.
Answer: D
Explanation:
In a Planned Unit Development (PUD), buyers are subject to both subdivision-level rules (via HOAs) and overarching covenants, conditions, and restrictions (CC&Rs) that govern the entire development. Even if other neighbors have similar structures, this does not guarantee that new construction or business use will be allowed.
The broker's role is to protect the buyer's interests by ensuring they review all current CC&Rs and HOA governing documents. These documents will reveal architectural review requirements, use restrictions (including home businesses), and other limitations. The broker should not assume permissibility based on observation alone.
Thus, the best and legally correct advice is D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Property Ownership & PUDs; Restrictive Covenants.
NEW QUESTION # 67
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. exclusive agency representation
- B. nonexclusive buyer-agency
- C. nonexclusive right-to-lease
- D. exclusive right to sell
Answer: B
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
A nonexclusive buyer-agency agreement allows the buyer to work with multiple agents at the same time. The buyer is only responsible for paying commission to the agent who actually finds the property they purchase.
This prevents the buyer from being obligated to pay multiple commissions.
A (exclusive agency representation): binds the buyer to only one agent, but allows self-procurement.
B: Refers to leases, not purchases.
D: Exclusive right-to-sell applies to sellers, not buyers.
Thus, the correct agreement is C: nonexclusive buyer-agency.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency & Brokerage Agreements.
NEW QUESTION # 68
A rectangular lot contains 16,500 square feet. It has a depth of 150 feet. Each of two adjacent rectangular lots contains 4,950 square feet with a depth of 150 feet. What is the total street frontage of the three lots in linear feet?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
Explanation:
But notice the answer choices do not include 176 except as D. This matches our calculation.
Therefore, the correct frontage is 176 feet (D).
(Note: The original problem text contained a typo listing 15 ft depth for the smaller lots, which is mathematically inconsistent. With the corrected 150 ft depth, the frontage answer is 176.) Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Math (Area, Frontage, Lot Dimensions).
NEW QUESTION # 69
A prescriptive easement is proven by a
- A. quiet title action.
- B. recorded abstract.
- C. previous recorded deed.
- D. title policy.
Answer: A
Explanation:
A prescriptive easement is established through open, notorious, continuous, and adverse use of another's land for a statutory period (in Massachusetts, typically 20 years).
To legally recognize and establish the easement, the claimant must usually bring a quiet title action in court.
This court proceeding clarifies ownership rights and confirms the existence of the easement.
A (deed): not applicable since prescriptive easements arise without written agreements.
C (abstract): summarizes recorded documents but would not establish prescriptive rights.
D (title policy): insures title, does not prove an easement.
Thus, the correct answer is B: quiet title action.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Easements & Rights; M.G.L. c.
187, §2.
NEW QUESTION # 70
An advertisement emphasizes information meant to appeal to a particular ethnic or national group in an effort to maintain the character of the neighborhood. From the viewpoint of the federal Fair Housing Act, this could constitute a violation known as
- A. steering.
- B. panic selling.
- C. redlining.
- D. blockbusting.
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
The Fair Housing Act prohibits discriminatory advertising that suggests preference, limitation, or discrimination based on race, color, national origin, religion, sex, familial status, or disability. Advertising designed to appeal to a particular ethnic or national group in order to "maintain neighborhood character" is an example of steering - influencing or directing prospective buyers or sellers based on protected class considerations.
Blockbusting (C) involves inducing owners to sell due to fear of demographic changes.
Redlining (B) refers to lenders refusing loans in certain neighborhoods.
Panic selling (D) is essentially synonymous with blockbusting, not advertising.
Thus, targeted ethnic advertising with the intent to control neighborhood composition is considered steering.
Reference: Fair Housing Act, 42 U.S.C. 3604(c); Massachusetts Real Estate Salesperson Candidate Handbook - Fair Housing.
NEW QUESTION # 71
Prospective buyers for a house want to operate a recycling center in their backyard. Local zoning laws do not allow this. What do they need to do first?
- A. Obtain a modification to the local master plan.
- B. File an appeal with the local court.
- C. Obtain a building permit.
- D. Obtain a variance or special exception.
Answer: D
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
When a property use is prohibited by zoning, the property owner must apply for a variance or special exception/permit through the local zoning board of appeals. These are administrative remedies that allow deviations from zoning requirements in specific circumstances.
Variance: granted when strict application of zoning causes hardship.
Special exception: allows certain uses if standards are met.
A building permit (A) only authorizes construction consistent with zoning and cannot override use restrictions. A modification to the master plan (B) is a long legislative process, not an individual remedy. A court appeal (D) may follow if variance or exception requests are denied, but it is not the first step.
Thus, the correct first action is C: variance or special exception.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Land Use Controls; M.G.L. c.40A (Zoning Act).
NEW QUESTION # 72
A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two- car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck.
The ranch house is most likely to sell for around
- A. $123,500
- B. $128,500
- C. $148,500
- D. $147,500
Answer: D
Explanation:
NEW QUESTION # 73
The listing broker has been presented with multiple offers. The seller would accept only a cash offer on the home, so the broker will present
- A. only cash offers to the seller.
- B. the highest offer to the seller.
- C. all offers to the seller.
- D. the highest cash offer to the seller.
Answer: C
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Under license law and the broker's fiduciary duty of obedience and disclosure, the listing broker must present all offers to the seller promptly, regardless of terms, unless the seller gives prior written instructions to the contrary. The broker does not have discretion to screen offers or present only those that match the seller's preferences.
It is the seller's decision whether to reject, accept, or counter offers (including non-cash offers). By law, withholding offers could constitute a violation of fiduciary duty and possibly discrimination if done selectively.
Thus, the correct answer is D: all offers to the seller.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Duties; 254 CMR 3.00.
NEW QUESTION # 74
The purpose of Regulation Z is to
- A. set maximum interest charges.
- B. regulate interest charges.
- C. control the use of credit.
- D. inform the borrower of credit costs.
Answer: D
Explanation:
Regulation Z, part of the Truth in Lending Act (TILA), was enacted to ensure that consumers are fully informed of the true cost of borrowing. It requires lenders to disclose credit terms, including the annual percentage rate (APR), finance charges, payment schedule, and total repayment amount.
The purpose is not to control or limit credit (A), regulate or set interest rates (B or C), but to provide transparency. This allows borrowers to compare loan offers on equal terms.
In Massachusetts, lenders must comply with both federal TILA (Regulation Z) and state consumer protection laws (M.G.L. Chapter 140D - Massachusetts Truth in Lending). Borrowers receive a Loan Estimate and Closing Disclosure summarizing credit costs, ensuring informed financial decisions.
Reference: Federal Truth in Lending Act (TILA) - Regulation Z; Massachusetts General Laws Chapter 140D; Massachusetts Real Estate Salesperson Candidate Handbook - Financing.
NEW QUESTION # 75
A licensee must provide disclosure of licensed status when acting as a principal if
- A. any relative of the licensee has ever lived in the residence.
- B. the licensee does not have errors and omission insurance.
- C. the agent of the other party asks about this specifically.
- D. the licensee has any economic interest in the property.
Answer: D
Explanation:
Under Massachusetts license law (254 CMR 3.00), a real estate licensee who acts as a principal in a transaction (buyer, seller, lessor, or lessee) must disclose in writing that they are a licensed broker or salesperson if they hold any direct or indirect ownership or economic interest in the property.
This rule is intended to protect the public from potential conflicts of interest and ensure transparency. The disclosure must be made in writing before entering into any binding contract.
Simply being asked (A) is not enough; disclosure is mandatory regardless.
Insurance coverage (B) is irrelevant.
Family members (D) may trigger disclosure if the licensee has an ownership/economic interest, but not merely because they lived there.
Correct answer: C.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - License Law & Disclosure; 254 CMR 3.00.
NEW QUESTION # 76
A broker may withdraw money from the broker's escrow account
- A. When the transaction has been consummated.
- B. To cover the broker's commission.
- C. When ordered by the seller's attorney.
- D. To pay for advertising expenses related to the sale.
Answer: A
Explanation:
Escrow accounts are regulated under 254 CMR 3.10 and Massachusetts licensing law. All deposits, such as earnest money, must be kept in a separate escrow account maintained by the broker. These funds remain the property of the client until the transaction is consummated (closed) or otherwise terminated by mutual agreement or legal judgment.
A broker may only withdraw money when the transaction has been completed or when the parties have agreed in writing how the funds should be disbursed. Brokers cannot use escrow funds to pay commissions, marketing expenses, or other business costs until the closing. Misuse or commingling of escrow funds is a serious violation and can result in license suspension or revocation.
Reference: 254 CMR 3.10 - Handling of Client Funds; M.G.L. c. 112, 87AAA-87DDD.
NEW QUESTION # 77
Licensee A and Licensee B work for a principal broker for ABC Realty. For Licensee A, the principal broker supervises the work as a listing/buyer's agent, collects commissions, and pays out based on their commission split agreement. Licensee A works from home and attends training meetings at the office. Licensee B works 8 a.m. to 4 p.m. in the ABC Realty office for relocations, showing local properties to relocating clients.
Licensee B is licensed to show homes and submits offers for purchase from individuals who are relocating but is paid by salary based on hours worked, with a bonus for production. What are Licensee A and B's relationships with ABC Realty?
- A. Licensee A is a contractor and Licensee B is an employee.
- B. Licensee A is an employee and Licensee B is a contractor.
- C. Licensee A and Licensee B are both contractors.
- D. Licensee A and Licensee B are both employees.
Answer: A
Explanation:
Massachusetts real estate law (M.G.L. c.112 87RR) and IRS guidelines distinguish between independent contractors and employees based on supervision, pay structure, and benefits.
Licensee A: Works on commission, covers own business expenses, sets flexible work hours, and is paid according to production. This is the hallmark of an independent contractor relationship.
Licensee B: Works fixed hours (8-4), is paid by salary with possible bonuses, and has employer-like supervision. This structure makes Licensee B an employee of ABC Realty.
Thus, the correct classification is: A is a contractor; B is an employee.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - License Law; IRS Independent Contractor Guidelines.
NEW QUESTION # 78
To avoid triggering full disclosure under TILA when advertising financing availability on a listed property, which of the following statements must a real estate licensee avoid using?
- A. owner willing to finance
- B. buy for less than $650 per month
- C. FHA and VA financing available
- D. assumable loan
Answer: B
Explanation:
The Truth in Lending Act (TILA, Regulation Z) regulates advertising of credit terms. If an advertisement contains a triggering term such as the amount of down payment, monthly payment, interest rate, or repayment period, then full disclosure of all financing terms must be provided.
"Buy for less than $650 per month" (D) is a triggering term because it states a specific monthly payment. This requires full disclosure of the APR, down payment, term, and total cost of financing.
"Assumable loan" (A), "owner willing to finance" (B), and "FHA and VA financing available" (C) are general financing terms that do not trigger mandatory disclosure.
Thus, the correct answer is D.
Reference: Federal TILA (Regulation Z), 12 C.F.R.1026; Massachusetts Real Estate Salesperson Candidate Handbook - Financing.
NEW QUESTION # 79
Time is of the essence means
- A. the closing must occur as soon as possible.
- B. time limits set forth in the contract must be carefully observed.
- C. every act under the contract must be performed on the exact date specified.
- D. time limits stated in the contract may not be modified, even by mutual agreement of the parties.
Answer: B
Explanation:
The phrase "time is of the essence" is a standard clause in Massachusetts real estate contracts. It means that contract deadlines are legally binding and must be strictly observed. Failure to perform within the time specified constitutes a breach of contract.
It does not mean that the closing must occur "as soon as possible" (A) but rather on the date agreed upon.
C overstates - while performance must be timely, contracts may allow flexibility in exact timing if not specified.
D is incorrect because deadlines may be modified if both parties agree in writing.
Thus, the best legal definition is B: time limits set forth in the contract must be carefully observed.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; M.G.L. c.106, Uniform Commercial Code §2-309 (time requirements).
NEW QUESTION # 80
A couple enters into a purchase contract to buy a house, and their parents are providing a $5,000 earnest money check. The check is deposited in the listing broker's escrow account. The buyers are unable to get financing, and the contract provides for return of the earnest money to the buyers. The buyers and seller agree in writing to the release of the earnest money. The listing broker should
- A. return the earnest money check, minus expenses, to the buyers.
- B. issue a $5,000 check to the buyers.
- C. issue a $5,000 check to the parents.
- D. return the earnest money check, minus expenses, to the parents.
Answer: B
Explanation:
Under Massachusetts escrow laws, once an earnest money deposit is given, it becomes part of the transaction and must be held in the broker's escrow account until proper written instructions are received. The critical rule is that the earnest money belongs to the buyer, not to the third party who may have supplied the funds.
Therefore, even though the parents wrote the $5,000 check, the funds legally belong to the buyers under the purchase and sale agreement. When the contract is canceled due to financing failure, and both parties (buyer and seller) agree in writing to release the deposit, the broker must issue the refund to the buyers, not the parents.
Massachusetts regulations (254 CMR 3.00) require brokers to handle escrow strictly according to the agreement and prohibit deductions for "expenses" unless explicitly authorized. Thus, the correct action is to issue the $5,000 back to the buyers in full.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Trust Funds & Escrow; 254 CMR
3.10 (Board of Registration of Real Estate Brokers and Salespersons).
NEW QUESTION # 81
Disclosure of licensee relationships to prospective buyers and sellers is required
- A. When listing commercial properties.
- B. At the first personal meeting to discuss a specific single-family property.
- C. When discussing any real estate issue.
- D. When responding to a telephone or internet inquiry.
Answer: B
Explanation:
In Massachusetts, licensee relationship disclosure is governed by M.G.L. c. 112, § 87AAA and 254 CMR
3.00. State law requires that real estate agents disclose their agency relationship to prospective buyers and sellers at the first personal meeting to discuss a specific property. This requirement is primarily intended for residential transactions involving one- to four-family properties.
This disclosure clarifies whether the agent represents the seller, the buyer, or is functioning in another capacity (such as a facilitator). It ensures that consumers are fully informed about where the licensee's loyalty lies before substantive discussions occur.
The law does not require agency disclosure for mere inquiries (phone or internet), for general real estate discussions, or for commercial property listings. The specific trigger is the first personal meeting to discuss a specific single-family property.
Reference: 254 CMR 3.00; Massachusetts Real Estate License Law Summary; Consumer Guide to Real Estate Agency Relationships.
NEW QUESTION # 82
A married couple owns property as tenants by the entirety. If they were to divorce, their ownership would be
- A. Tenancy by the entirety.
- B. Tenancy in severalty.
- C. Tenancy in common.
- D. Joint tenancy.
Answer: C
Explanation:
Tenancy by the entirety is a special form of ownership available only to married couples in Massachusetts. It provides rights of survivorship and protection from individual creditors of one spouse.
Upon divorce, the law automatically converts a tenancy by the entirety into a tenancy in common, unless otherwise stated in the divorce decree. In tenancy in common, each former spouse owns an undivided share of the property without survivorship rights, and they are free to transfer or sell their interest independently.
It does not convert into joint tenancy or tenancy in severalty unless agreed to or ordered by the court.
Reference: M.G.L. c. 209, 1; Massachusetts Real Estate Candidate Information Bulletin - Forms of Ownership.
NEW QUESTION # 83
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