Mass Real Estate National Exam
Questions and Answers
Which rule-of-thumb formula for estimating property value is being offered to an
investor who is told that a house renting for $900 a month should sell for about
$90,000? - ANSWER-GRM
A competitive market analysis is MOST often used for - ANSWER-setting a listing
price.
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might
recommend a mortgage banker, instead of a mortgage broker, for all of the following
reasons EXCEPT - ANSWER-more variety of loan programs available.
The FHA functions MOST like - ANSWER-an insurance company.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of
the following disclosures MUST appear in the ad EXCEPT the - ANSWER-
prepayment penalties and rebates.
An agency relationship between a property owner and a property manager is usually
created by - ANSWER-a management agreement.
A realty firm has just entered into an agreement to represent a home builder in the
sale of a new subdivision. The firm has located several potential buyers and five
homes have been sold to purchasers that the firm's agents have contacted. The
realty firm has an agency relationship with - ANSWER-the builder.
A broker supplies the financing for a project to build condominiums with the
stipulation that he has the exclusive right to sell the completed condos. Which of the
following BEST describes this relationship? - ANSWER-Agency coupled with an
interest.
Under the common law of agency, licensees owe the broker with whom they are
associated all of the following duties EXCEPT - ANSWER-indemnification.
A seller tells the listing agent that her home was treated for termites 10 years ago, so
there are no termites now. Before listing the property, the agent should - ANSWER-
tell the seller to disclose the termite treatment on the property disclosure.
Unrepresented buyers ask the licensee who listed the home whether they should
order a property inspection as a part of their due diligence for the purchase of the
Questions and Answers
Which rule-of-thumb formula for estimating property value is being offered to an
investor who is told that a house renting for $900 a month should sell for about
$90,000? - ANSWER-GRM
A competitive market analysis is MOST often used for - ANSWER-setting a listing
price.
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might
recommend a mortgage banker, instead of a mortgage broker, for all of the following
reasons EXCEPT - ANSWER-more variety of loan programs available.
The FHA functions MOST like - ANSWER-an insurance company.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of
the following disclosures MUST appear in the ad EXCEPT the - ANSWER-
prepayment penalties and rebates.
An agency relationship between a property owner and a property manager is usually
created by - ANSWER-a management agreement.
A realty firm has just entered into an agreement to represent a home builder in the
sale of a new subdivision. The firm has located several potential buyers and five
homes have been sold to purchasers that the firm's agents have contacted. The
realty firm has an agency relationship with - ANSWER-the builder.
A broker supplies the financing for a project to build condominiums with the
stipulation that he has the exclusive right to sell the completed condos. Which of the
following BEST describes this relationship? - ANSWER-Agency coupled with an
interest.
Under the common law of agency, licensees owe the broker with whom they are
associated all of the following duties EXCEPT - ANSWER-indemnification.
A seller tells the listing agent that her home was treated for termites 10 years ago, so
there are no termites now. Before listing the property, the agent should - ANSWER-
tell the seller to disclose the termite treatment on the property disclosure.
Unrepresented buyers ask the licensee who listed the home whether they should
order a property inspection as a part of their due diligence for the purchase of the
