MA Real Estate License - State Exam Questions and Answers Already Passed

MA Real Estate License - State Exam Questions and Answers Already Passed A licensed RE broker finds a ready, willing and able buyer for the seller. The seller initial signs and accepts the buyer's written offer, then later changes his mind and withdraws the acceptance of the offer. In this scenario, the broker is... still entitled to collect a commission. After the initial listing agreement btw. a seller & broker has expired, the seller lists the property w/ a different broker. If the original listing broker then finds a ready, willing and able buyer, the broker is... unable to disclose any offers the seller received while he was the listing broker for the property. A potential buyer approaches a RE agent expressing interest in property. Before the agent enters into an agency relationship, he/she is able to provide all of the following services except... tell the buyer how much they should offer on a property. In order for a buyer-brokerage contract to be enforceable in the state of MA, the agreement must... be in writing. The only time a broker can receive a commission from both the buyer and seller in a dual agency situation is if... both the buyer and seller agree to pay the dual compensation. Define "Dual Agency"... Representing both parties in a transaction. This is illegal unless both parties agree to it. A buyer drives by a property listed by ABC Realty and is interested but not in an agency relationship. An agent from XYZ Realty can show the buyer the property only if... ABC Realty can obtain the seller's written consent to subagency, and the buyer is given an Agency Disclosure form stating ABC Realty represents the seller. For a licensed broker to list a home for sale in MA, is it required they provide a Property Condition Statement? No In MA, if a seller decides to provide a Property Condition Statement, they... must disclose any and all facts and defects they know about. A seller provides a Property Condition Disclosure. If unaware, what should the seller's response be as to whether they have any knowledge of pluming system problems? "no"... You are listing the home of a dead man killed by AIDs. Prior to that man purchasing the home there was a murder-suicide. As the agent what are your disclosure responsibilities? Cannot disclose the AIDS, if asked directly must disclose the murder-sucide. A seller discloses the roof leaks during heavy storms. The broker tells the seller he will omit that fact w/ prospective buyers. Within two months of the sale, the new owner learns about the leak... Since the buyer never asked specifically about the condition of the roof, he now can... sue the broker under the Consumer Protection Statute, MGL 93A Consumer Protection Act/Statue: MGL 93A deals with unfair/deceptive acts, and empowers a consumer to voice their concern they were treated unfairly. [b2b & b2c] + [could be liable for Treble Damages (3x) + Court Costs + Legal Fees] Under the MA Stigmatized Property Law, there is no requirement for a listing agent to affirmatively disclose... that the home is widely believed to be haunted by a ghost. Stigmatized Property A property that has acquired an undesirable reputation due to an event that occurred on or near it, such as a violent crime, gang-related activity, illness or a personal tragedy. The listing agent knows the property has an unsound foundation that will require extensive repairs. He also knows the seller's son committed suicide in the home. The broker must disclose... The damaged foundation, but not the suicide unless directly asked. A broker wishes to entice more business for his brokerage so he decides to make a blanket offer of subagency on the MLS listing. This action is... Acceptable, because a subagency may be created via an agreement btw. the parties involved or by placing a blanket offer in the MLS listing. The listing broker for a property has a client he believes would be interested in buying the property. If the buyer decides on the home, what is true? if the buyer and seller are informed and agree to let the same broker represent them, the broker may. In regards to MA Home Inspection Law, a RE salesperson must... provide a copy of the Home Inspector "Facts for the Consumer" brochure. Which MA General Law protect buyers and sellers from "fraudulent misrepresentations and unscrupulous behavior" of RE agents and brokers? Chapter 93A What entity oversees the real estate license law in MA? Board of Registration of Real Estate Brokers and Salespersons The Board of Registration of Real Estate Brokers/salespersons does not make the rules by which license holders must abide, the administer them and the exams. Which of the following individuals involved in a real estate transaction would need to be a license broker or salesperson in the state of MA? the designated officer for ABC Realty. Under MA licensing law, a partnership, corporation or association will only be granted a license if... the designated officer or one of the partner holds a current broker's license. What individuals are exempt from having to pass the MA RE Licensing Exam? Attorneys at law An officer manager organizing paperwork, posting listings and supervising salespersons working in the office is not required to... have an active real estate license. An unlicensed person who engages in activists which require a RE license in the state of MA faces... a possible fine up to $500 The inspection report for an out of state property development would be prepared by... the Board of Registration. A RE office manager WOULD need to hold an active RE license to... explain simple contract documents to prospective buyers. an unlicensed person helps a broker with a deal... the broker wants to reward that person... According to MA Law the broker may... NOT pay a commission. Is negotiating with a seller to pay higher than normal commission rates legal in MA? yes Net listing... seller says they want $X for the property, anything above the broker can keep... net listings are illegal in MA. All Earnest money must... go into an escrow account. If a broker establishes an account specifically for earnest money and other monies belonging to others involved in real estate transactions, then... a copy of checks deposited to and withdrawn from this account must be kept on file for a minimum of three years. if a salesperson is found to be in violation of the MA Fair Housing Law (MGL Chapter 151B) they are subject to action taken by the court in addition to the Board of Registration of RE Brokers that must... suspend the license of the salesperson for sixty days. What procedures must a salesperson follow when they terminate their affiliation with their employing broker? Give written notice to both the broker and the Board of Registration of RE Brokers and Salespersons. MA Real Estate License Law states that a pre-printed offer to purchase must include which heading? Real Estate Sale Contract A couple suspects their home has lead paint because it was built prior to 1978... a lead test confirms... they can then... They must abate all defective lead paint in the home. According to MA RE license law, when RE is transferred by deed, the deed must be... filed at the Registry of Deeds. The purpose of the "anti-snob" law is to... prevent local zoning ordinances from barring low and moderate income housing. a grandson was witness to his grandfathers will. After his grandfather's passing he learns he was a devisee of the will. However... A witness cannot also be a devisee of the will so the devise is void. Definition "Devise" a transfer of real property by will. The decedent is the devisor and the recipient is the devisee. What is true regarding the Homestead Right in MA? The homeowners, surviving spouse, and minor children have a life estate. The Government rectangular survey system is... Not used in MA for purposes of legal description. If a minor enters into a RE contract in MA, what is the statute of limitations within which it may legally be void? There is no statutory period. Neighbor X has an easement thru Z's lot to walk to river bank. X widens the path from 10 feet to 14 feet so he can launch his boat... this expansion is against Z's wishes... What is true? The new use is hostile and if not stopped within 20 years, it could become an "easement by prescription". How long must a landlord wait before he/she can raise rents to reflect a substantial increase in property taxes? When the lease expires, unless provisions with the lease allow for the increase. If an owner defaults on his or her mortgage loan and the property is ordered to be sold at a foreclosure auction, the owner may redeem the property... prior to the sale, under equitable right of redemption. Grantors/transfer tax in MA= $2.28 per $500 A woman buys a home prior to marriage. After marriage her husband and her continue to live in the house together. If the wife were to die, the husband would come into a life estate because of... Dower rights [legal rights to interest] Unless other arrangements are previously laid out in the deed, ownership of a parcel of land by a married couple is assumed to be by... Tenancy in common.