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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. 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 has any economic interest in the property.
C) the agent of the other party asks about this specifically.
D) the licensee does not have errors and omission insurance.

2. A buyer and a seller have a purchase agreement that contains a home inspection contingency. The buyer has applied for a VA mortgage. After the home inspection is completed, the buyer writes an addendum requesting that the seller pay to repair several items found by the home inspector. The seller counters the addendum by requiring that the buyer agree that the repairs will be made, but that no further expenses will be incurred by the seller. The VA appraisal inspection has not been conducted. Under these circumstances, which of the following is correct?

A) There is no longer a valid contract.
B) The VA inspection is not necessary because the buyer's home inspection report will be sent to the mortgage company.
C) The original contract is still in effect.
D) The licensee should encourage the seller to place the home back on the market.

3. 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) remain silent as the agent does not know for certain that the seller has misrepresented the property.
B) point out this concern to the buyer and recommend further inspection or investigation before proceeding.
C) call the listing agent and express this concern.
D) recommend that the buyer withdraw from the transaction.

4. A broker received a birthday check from a client. The broker decided to put it in the escrow account because it was from a client. This is

A) conversion.
B) commingling.
C) acceptable if the client has had a transaction within the last 18 months.
D) acceptable if the check was written on the client's business account.

5. What type of loan would allow homeowners to utilize the equity built up in their home without having to sell?

A) sale-and-leaseback
B) graduated payment
C) reverse mortgage
D) accelerated mortgage

Solutions: