MA Real Estate Practice Exam
Questions with Verified Answers
The key to a storage locker located in the basement of a condominium building is:
A Realty
B Personalty
C trade fixture
D An emblement - ANSWER-B Personalty
A key is an example of personalty (aka personal property or chattel) since it is not
directly or indirectly attached to land.
George is hired to pave Martha's driveway. After George finishes his work, he and
Martha have a disagreement about the work that was done, and Martha refuses to
pay him. George files for a lien against Martha's property to secure payment. This
encumbrance is a:
A Attachment lien
B Judgment lien
C Mechanic's lien
D Contractor's lien - ANSWER-C Mechanic's lien
A mechanic's lien is a lien placed on real estate by someone who contributed to real
property improvement, in order to secure payment for their work.
Louis shares a driveway with Larry. Larry has an easement which gives him the right
to walk across Louis' parking spot in order to gain access to his car. In this scenario,
Louis owns the:
A Servient tenement
B Voluntary tenement
C Dominant tenement
D Involuntary tenement - ANSWER-A Servient tenement
The servient tenement is the property that is encumbered by someone else's right
(the dominant tenement). In this scenario, Louis is the one who has to allow Larry to
walk across his property; therefore, he is the one who is encumbered.
A property owner wishes to build a six story office building in an area that limits
building heights to four stories. What must they file for in order to build the six story
building?
A a variance
,B Non-conforming use permit
C Title V permission
D Police power exclusion - ANSWER-A a variance
A variance is special permission to do something that zoning prohibits. In this
example, the property owner would need a variance to build their six story building.
During month 9 of a 12 month lease that contains an option to purchase, the lease
is:
A Executory and unilateral
B Executory and bilateral
C Executed and unilateral
D Executed and bilateral - ANSWER-B Executory and bilateral
A lease is bilateral (both parties make a promise) and executory (not yet completed).
Options may be unilateral, but the lease is still bilateral even if it contains an option.
A Purchase and Sale agreement was agreed to and signed by both buyer and seller
on August 15th, with a closing scheduled for September 15th. From the 15th of
August till the 15th of September, what is the best description of this contract's
status?
A Executed
B Voidable
C Executory
D. Valid - ANSWER-C Executory
An executory status means that the promises in the contract have not yet been
fulfilled, even though the contract has been signed and accepted.
Claudia, a real estate agent is at an open house and using the bathroom. Upon
exiting, Claudia forgets to shut off the faucet on the sink all the way. Claudia leaves
the open house and when the sellers return from vacation three days later, they find
that the sink has overflowed and caused damage to the floors in the hallways just
outside the bathroom. Which of the following would likely cover this incident so
Claudia doesn't have to pay out of pocket?
A General Liability Insurance
B Errors And Omissions Insurance
C Professional Liability Insurance
D Corporate Insurance - ANSWER-A General Liability Insurance
General liability insurance covers damage done by agents to personal or real
property while on showings or at open houses.
Which of the following activities would a salesperson be able to perform?
A Take listings
B Deposit client money
,C Advertise listings
D All of the above - ANSWER-C Advertise listings
Salespersons are never allowed to handle client money or technically take listings,
since the listings belong to the brokerage. The broker is the one who takes the listing
and the salesperson may work to advertise, sell and negotiate the terms as an
extension of the broker
A facebook advertisement for a members-only studio residence at a private men's
club lists, "only suitable for a single gentleman." Is this discriminatory advertising?
A Yes, because the club is discriminating against women, which is a protected class
under fair housing law
B No, because it's a men's club; therefore, only men are allowed
C Yes, because the club is advertising discrimination against women, and sex is a
protected class under fair housing law
D No, because private clubs are exempt from fair housing laws - ANSWER-D No,
because private clubs are exempt from fair housing law
Private clubs are exempt from fair housing law (except race) when they offer housing
only to their members for non commercial use. However, in this case, the club made
a public facebook advertisement and therefore, they lose their ability to be exempt
from fair housing law, and the advertisement is discriminatory.
The highest form of ownership is:
A Estate for years
B Pur autre vie
C Fee simple defeasible
D Fee simple indefeasible - ANSWER-D Fee simple indefeasible
Fee simple indefeasible is the most complete form of ownership without limitations
on rights of ownership, aside from any public or private restrictions. A fee simple
defeasible estate is qualified in some way, and may have certain limitations or
conditions to title.
Donna lives in a luxury building called 300 Main Street LLC. Donna lives in the
penthouse and pays a monthly fee towards the building's common area expenses,
property taxes, mortgage, and full service amenities. Donna likely owns which type
of property?
A A condominium
B A mixed use development
C A cooperative
D A subdivision - ANSWER-C A cooperative
, A cooperative is a type of ownership where originally a corporation, often an LLC.,
was formed in order to provide housing to its shareholders.
If two people are married, they can choose to co own a property as all of the
following, except:
A Tenancy in Common
B Tenancy at Will
C Tenancy by the Entirety
D Joint Tenancy - ANSWER-B Tenancy at Will
Tenancy at will is a type of lease term and not co-ownership.
In which of the following forms of ownership does the owner receive a lease to real
estate, rather than a deed?
Condominium
A Condominium
B Fee simple
C Life estate
D Cooperative - ANSWER-D Cooperative
In a cooperative property, owners receive shares in the cooperative, and proprietary
leases to their individual units. The actual real estate is owned by the cooperative
itself (which is often an LLC or other corporate entity).
Richard is a retired, 64 year old fisherman. He qualifies for a $1,000 tax exemption
as a result of his retirement status. His home is valued at $150,000, and assessed at
40% market value. His tax rate is $30 per $1000 of assessed value. What is his
payment?
A $800
B $400
C $3,500
D $1,800 - ANSWER-A $800
Property taxes are calculated on the assessed value of the property, so that's the
first place to start: $150,000 x 0.40 = $60,000 assessed value. The tax rate is $30
per $1000 of value, so the property taxes are: $60,000 / $1,000 = 60 x $30 = $1,800.
Richard can take a an exemption of $1,000 from this tax bill, so his final tax bill is:
$1,800 - $1,000 = $800
Sam has fallen on hard times and is unable to pay his property tax bill of $10,000.
The town puts a property tax lien against Sam's house. The town sells Sam's house
to Rick through a tax sale. A week after the tax sale, Sam wins $25,000 through a
scratch ticket and wants to get his house back. Can he do so?
A No, because the house was sold to Rick
B Yes, because he can redeem the home by paying off the tax debt plus interest and
costs
Questions with Verified Answers
The key to a storage locker located in the basement of a condominium building is:
A Realty
B Personalty
C trade fixture
D An emblement - ANSWER-B Personalty
A key is an example of personalty (aka personal property or chattel) since it is not
directly or indirectly attached to land.
George is hired to pave Martha's driveway. After George finishes his work, he and
Martha have a disagreement about the work that was done, and Martha refuses to
pay him. George files for a lien against Martha's property to secure payment. This
encumbrance is a:
A Attachment lien
B Judgment lien
C Mechanic's lien
D Contractor's lien - ANSWER-C Mechanic's lien
A mechanic's lien is a lien placed on real estate by someone who contributed to real
property improvement, in order to secure payment for their work.
Louis shares a driveway with Larry. Larry has an easement which gives him the right
to walk across Louis' parking spot in order to gain access to his car. In this scenario,
Louis owns the:
A Servient tenement
B Voluntary tenement
C Dominant tenement
D Involuntary tenement - ANSWER-A Servient tenement
The servient tenement is the property that is encumbered by someone else's right
(the dominant tenement). In this scenario, Louis is the one who has to allow Larry to
walk across his property; therefore, he is the one who is encumbered.
A property owner wishes to build a six story office building in an area that limits
building heights to four stories. What must they file for in order to build the six story
building?
A a variance
,B Non-conforming use permit
C Title V permission
D Police power exclusion - ANSWER-A a variance
A variance is special permission to do something that zoning prohibits. In this
example, the property owner would need a variance to build their six story building.
During month 9 of a 12 month lease that contains an option to purchase, the lease
is:
A Executory and unilateral
B Executory and bilateral
C Executed and unilateral
D Executed and bilateral - ANSWER-B Executory and bilateral
A lease is bilateral (both parties make a promise) and executory (not yet completed).
Options may be unilateral, but the lease is still bilateral even if it contains an option.
A Purchase and Sale agreement was agreed to and signed by both buyer and seller
on August 15th, with a closing scheduled for September 15th. From the 15th of
August till the 15th of September, what is the best description of this contract's
status?
A Executed
B Voidable
C Executory
D. Valid - ANSWER-C Executory
An executory status means that the promises in the contract have not yet been
fulfilled, even though the contract has been signed and accepted.
Claudia, a real estate agent is at an open house and using the bathroom. Upon
exiting, Claudia forgets to shut off the faucet on the sink all the way. Claudia leaves
the open house and when the sellers return from vacation three days later, they find
that the sink has overflowed and caused damage to the floors in the hallways just
outside the bathroom. Which of the following would likely cover this incident so
Claudia doesn't have to pay out of pocket?
A General Liability Insurance
B Errors And Omissions Insurance
C Professional Liability Insurance
D Corporate Insurance - ANSWER-A General Liability Insurance
General liability insurance covers damage done by agents to personal or real
property while on showings or at open houses.
Which of the following activities would a salesperson be able to perform?
A Take listings
B Deposit client money
,C Advertise listings
D All of the above - ANSWER-C Advertise listings
Salespersons are never allowed to handle client money or technically take listings,
since the listings belong to the brokerage. The broker is the one who takes the listing
and the salesperson may work to advertise, sell and negotiate the terms as an
extension of the broker
A facebook advertisement for a members-only studio residence at a private men's
club lists, "only suitable for a single gentleman." Is this discriminatory advertising?
A Yes, because the club is discriminating against women, which is a protected class
under fair housing law
B No, because it's a men's club; therefore, only men are allowed
C Yes, because the club is advertising discrimination against women, and sex is a
protected class under fair housing law
D No, because private clubs are exempt from fair housing laws - ANSWER-D No,
because private clubs are exempt from fair housing law
Private clubs are exempt from fair housing law (except race) when they offer housing
only to their members for non commercial use. However, in this case, the club made
a public facebook advertisement and therefore, they lose their ability to be exempt
from fair housing law, and the advertisement is discriminatory.
The highest form of ownership is:
A Estate for years
B Pur autre vie
C Fee simple defeasible
D Fee simple indefeasible - ANSWER-D Fee simple indefeasible
Fee simple indefeasible is the most complete form of ownership without limitations
on rights of ownership, aside from any public or private restrictions. A fee simple
defeasible estate is qualified in some way, and may have certain limitations or
conditions to title.
Donna lives in a luxury building called 300 Main Street LLC. Donna lives in the
penthouse and pays a monthly fee towards the building's common area expenses,
property taxes, mortgage, and full service amenities. Donna likely owns which type
of property?
A A condominium
B A mixed use development
C A cooperative
D A subdivision - ANSWER-C A cooperative
, A cooperative is a type of ownership where originally a corporation, often an LLC.,
was formed in order to provide housing to its shareholders.
If two people are married, they can choose to co own a property as all of the
following, except:
A Tenancy in Common
B Tenancy at Will
C Tenancy by the Entirety
D Joint Tenancy - ANSWER-B Tenancy at Will
Tenancy at will is a type of lease term and not co-ownership.
In which of the following forms of ownership does the owner receive a lease to real
estate, rather than a deed?
Condominium
A Condominium
B Fee simple
C Life estate
D Cooperative - ANSWER-D Cooperative
In a cooperative property, owners receive shares in the cooperative, and proprietary
leases to their individual units. The actual real estate is owned by the cooperative
itself (which is often an LLC or other corporate entity).
Richard is a retired, 64 year old fisherman. He qualifies for a $1,000 tax exemption
as a result of his retirement status. His home is valued at $150,000, and assessed at
40% market value. His tax rate is $30 per $1000 of assessed value. What is his
payment?
A $800
B $400
C $3,500
D $1,800 - ANSWER-A $800
Property taxes are calculated on the assessed value of the property, so that's the
first place to start: $150,000 x 0.40 = $60,000 assessed value. The tax rate is $30
per $1000 of value, so the property taxes are: $60,000 / $1,000 = 60 x $30 = $1,800.
Richard can take a an exemption of $1,000 from this tax bill, so his final tax bill is:
$1,800 - $1,000 = $800
Sam has fallen on hard times and is unable to pay his property tax bill of $10,000.
The town puts a property tax lien against Sam's house. The town sells Sam's house
to Rick through a tax sale. A week after the tax sale, Sam wins $25,000 through a
scratch ticket and wants to get his house back. Can he do so?
A No, because the house was sold to Rick
B Yes, because he can redeem the home by paying off the tax debt plus interest and
costs
