Massachusetts Real Estate License
Exam Practice – KGO Questions with
Correct Answers
A real estate transaction has a closing date of May 20. The seller, who's responsible
for closing costs up to but not including the day of settlement, has already paid
annual property taxes of $1,949. Using calendar year proration, the seller will be
______ on the closing statement.
A. Credited $1,207
B. Credited $742
C. Debited $1,207
D. Debited $742 - ANSWER-A
Related to reasonable accommodation of being allowed to have an assistance
animal, which statement is true?
A. If the disability for which the tenant is making the request is obvious, the landlord
may not ask why it is needed.
B. If the disability is not obvious, the tenant must provide the landlord with full
medical records to support the request.
C. The landlord is not obligated to consider the request unless the tenant can
produce either the original or a certified true copy of the animal's service certification.
D. The landlord must consider the request but may require an additional "pet"
security deposit. - ANSWER-A
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
states that its purpose, in part, is to require that real estate appraisals used in
connection with federally related transactions be performed ______.
A. By licensed real estate professionals
B. By members of the Appraisal Foundation
C. In the most expeditious and inexpensive way possible
D. In writing, and in accordance with uniform standards - ANSWER-D
Which of these actions is the Board of Registration of Real Estate Brokers and
Salespersons responsible for performing?
A. Auditing brokerage escrow accounts to verify proper handling of earnest money
B. Auditing brokerage operational accounts to ensure the firm's financial stability
C. Examining brokerage contracts with salespeople to ensure compliance with
employment laws
,D. Examining brokerage policies and procedures manuals for compliance with
ethical standards - ANSWER-A
Which of these is an example of commingling?
A. Mixing earnest money with personal funds
B. Mixing two earnest money deposits
C. Paying licensee bonuses from forfeited escrow deposits
D. Using escrow funds to pay business expenses - ANSWER-A
Which of the following applicants meets the experience requirements for a broker
license in Massachusetts?
A. Jill is a certified residential appraiser and has a real estate degree. B. Kerry has
had a Massachusetts salesperson license for 30 months. C. Maggie has been
affiliated as a salesperson with a Massachusetts broker since May 1988.
D. Mike has held his Massachusetts salesperson license for 20 months and is
working on his real estate degree. - ANSWER-C
Blake is allowed to use his property in a way that's prohibited under current zoning
ordinances, because those ordinances would cause undue hardship for him. What
gives him this permission?
A. Area variance
B. Moratorium
C. Special use permit
D. Use variance - ANSWER-D
Assuming licensee Shannon has actual knowledge of all of the following property
issues, which should she disclose to prospective buyers?
A. The nearby school system is one of the worst in the area.
B. The neighbors like to throw a lot of parties.
C. The tree in the front yard is at least 50 years old.
D. The upstairs bathroom has a leaky toilet. - ANSWER-D
What's the maximum amount of compensation an unlicensed individual in
Massachusetts may legally receive for assisting someone in the sale of a home?
A. 0
B. No maximum
C. Not more than $200 in cash or items of value
D. Not more than $500 in cash or items of value - ANSWER-A
A deed may be best described as what?
A. A covenant
B. A document to transfer ownership/interest in real estate
C. An abstract of title
D. A recording fee - ANSWER-B
,Jamison, the seller, is closing on his property with Conrad, the buyer. Jamison paid
the current year's property taxes already. Is this a prepaid or accrued expense, and
how will it be represented on the settlement statement?
A. The taxes are an accrued expense and will appear as a buyer credit and a seller
debit.
B. The taxes are an accrued expense and will appear as a buyer debit and a seller
credit.
C. The taxes are a prepaid expense and will appear as a buyer credit and a seller
debit.
D. The taxes are a prepaid expense and will appear as a buyer debit and a seller
credit. - ANSWER-D
To which of the following borrowers might a lender be most likely to recommend an
FHA loan?
A. An investor who intends to use equity in another investment property as his down
payment
B. A retired couple interested in downsizing from a large four-bedroom house they
own free and clear to a condominium
C. A single stockbroker with a $40,000 down payment and significant assets in a
stock portfolio
D. A young couple with only a few thousand dollars saved for a down payment and
relatively low credit scores - ANSWER-D
In a standard real estate transaction, ownership is conveyed by deed. How is
ownership of registered land conveyed?
A. Through a certificate of title issued by the Massachusetts Land Court
B. Through a leasehold agreement
C. Through a quitclaim deed
D. Through a superior court hearing in which the deed transfer is approved by the
state - ANSWER-A
Bernie is representing Oscar in the sale of Oscar's home. They have signed an
exclusive right-to-sell listing agreement. If Oscar finds his own buyer, does he owe
Bernie a commission?
A. No, because he found his own buyer
B. No, because Oscar retained his exclusive right to sell
C. Yes, because exclusive right to sell means Bernie gets paid no matter who finds
the buyer
D. Yes, because Oscar is not a real estate licensee - ANSWER-C
Which of these questions can an agent in a dual agency transaction answer without
breaching her duties to either client?
A. Are you aware of any structural issues with the property?
B. How much should my counter-offer to the buyer be?
C. What repairs or concessions should I ask for from the home inspection?
, D. What should I agree to fix from this list the buyer sent? - ANSWER-A
Ashton, an appraiser, is estimating value using the sales comparison approach. He
applies more weight to two comparables over several others he used. What process
is he utilizing?
A. Averaging
B. Bracketing
C. Conformity
D. Correlation - ANSWER-D
Licensee Madge is moving to her new home. What must she remember to do or risk
losing her license?
A. Notify her principal broker of her change of address
B. Notify the board of her change of address
C. Take out a newspaper ad to notify the public of her change of address
D. Write in her new address on her real estate license - ANSWER-B
Allen and Lewis are friends who each recently purchased real estate. Allen
purchased a patio home in a small town an hour from the city, while Lewis
purchased a condo in a really hot area near the city center. Although they paid
similar amounts for their properties, if in six months Lewis' condo is worth much
more. Which economic characteristic does this demonstrate?
A. Area preference
B. Improvements
C. Permanence
D. Scarcity - ANSWER-A
Which of the following is most likely to be the cause of an adjustment to a
comparable (competitive) when preparing a CMA?
A. Busy street
B. Color
C. Demographics
D. Interest rates - ANSWER-A
A seller wants to break even after the broker's commission of 5% and loan balance
of $300,000 are paid. At what price must the house sell?
A. 150,000
B. 300,000
C. 315,789
D. 450,000 - ANSWER-C
Gerald is selling a property in Lancaster that is not on the public water and sewer
systems. He must provide a copy of the results proving that water from the well is
safe and that the sewage disposal system works. Within what time frame must the
results be provided to the local board of health?
Exam Practice – KGO Questions with
Correct Answers
A real estate transaction has a closing date of May 20. The seller, who's responsible
for closing costs up to but not including the day of settlement, has already paid
annual property taxes of $1,949. Using calendar year proration, the seller will be
______ on the closing statement.
A. Credited $1,207
B. Credited $742
C. Debited $1,207
D. Debited $742 - ANSWER-A
Related to reasonable accommodation of being allowed to have an assistance
animal, which statement is true?
A. If the disability for which the tenant is making the request is obvious, the landlord
may not ask why it is needed.
B. If the disability is not obvious, the tenant must provide the landlord with full
medical records to support the request.
C. The landlord is not obligated to consider the request unless the tenant can
produce either the original or a certified true copy of the animal's service certification.
D. The landlord must consider the request but may require an additional "pet"
security deposit. - ANSWER-A
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
states that its purpose, in part, is to require that real estate appraisals used in
connection with federally related transactions be performed ______.
A. By licensed real estate professionals
B. By members of the Appraisal Foundation
C. In the most expeditious and inexpensive way possible
D. In writing, and in accordance with uniform standards - ANSWER-D
Which of these actions is the Board of Registration of Real Estate Brokers and
Salespersons responsible for performing?
A. Auditing brokerage escrow accounts to verify proper handling of earnest money
B. Auditing brokerage operational accounts to ensure the firm's financial stability
C. Examining brokerage contracts with salespeople to ensure compliance with
employment laws
,D. Examining brokerage policies and procedures manuals for compliance with
ethical standards - ANSWER-A
Which of these is an example of commingling?
A. Mixing earnest money with personal funds
B. Mixing two earnest money deposits
C. Paying licensee bonuses from forfeited escrow deposits
D. Using escrow funds to pay business expenses - ANSWER-A
Which of the following applicants meets the experience requirements for a broker
license in Massachusetts?
A. Jill is a certified residential appraiser and has a real estate degree. B. Kerry has
had a Massachusetts salesperson license for 30 months. C. Maggie has been
affiliated as a salesperson with a Massachusetts broker since May 1988.
D. Mike has held his Massachusetts salesperson license for 20 months and is
working on his real estate degree. - ANSWER-C
Blake is allowed to use his property in a way that's prohibited under current zoning
ordinances, because those ordinances would cause undue hardship for him. What
gives him this permission?
A. Area variance
B. Moratorium
C. Special use permit
D. Use variance - ANSWER-D
Assuming licensee Shannon has actual knowledge of all of the following property
issues, which should she disclose to prospective buyers?
A. The nearby school system is one of the worst in the area.
B. The neighbors like to throw a lot of parties.
C. The tree in the front yard is at least 50 years old.
D. The upstairs bathroom has a leaky toilet. - ANSWER-D
What's the maximum amount of compensation an unlicensed individual in
Massachusetts may legally receive for assisting someone in the sale of a home?
A. 0
B. No maximum
C. Not more than $200 in cash or items of value
D. Not more than $500 in cash or items of value - ANSWER-A
A deed may be best described as what?
A. A covenant
B. A document to transfer ownership/interest in real estate
C. An abstract of title
D. A recording fee - ANSWER-B
,Jamison, the seller, is closing on his property with Conrad, the buyer. Jamison paid
the current year's property taxes already. Is this a prepaid or accrued expense, and
how will it be represented on the settlement statement?
A. The taxes are an accrued expense and will appear as a buyer credit and a seller
debit.
B. The taxes are an accrued expense and will appear as a buyer debit and a seller
credit.
C. The taxes are a prepaid expense and will appear as a buyer credit and a seller
debit.
D. The taxes are a prepaid expense and will appear as a buyer debit and a seller
credit. - ANSWER-D
To which of the following borrowers might a lender be most likely to recommend an
FHA loan?
A. An investor who intends to use equity in another investment property as his down
payment
B. A retired couple interested in downsizing from a large four-bedroom house they
own free and clear to a condominium
C. A single stockbroker with a $40,000 down payment and significant assets in a
stock portfolio
D. A young couple with only a few thousand dollars saved for a down payment and
relatively low credit scores - ANSWER-D
In a standard real estate transaction, ownership is conveyed by deed. How is
ownership of registered land conveyed?
A. Through a certificate of title issued by the Massachusetts Land Court
B. Through a leasehold agreement
C. Through a quitclaim deed
D. Through a superior court hearing in which the deed transfer is approved by the
state - ANSWER-A
Bernie is representing Oscar in the sale of Oscar's home. They have signed an
exclusive right-to-sell listing agreement. If Oscar finds his own buyer, does he owe
Bernie a commission?
A. No, because he found his own buyer
B. No, because Oscar retained his exclusive right to sell
C. Yes, because exclusive right to sell means Bernie gets paid no matter who finds
the buyer
D. Yes, because Oscar is not a real estate licensee - ANSWER-C
Which of these questions can an agent in a dual agency transaction answer without
breaching her duties to either client?
A. Are you aware of any structural issues with the property?
B. How much should my counter-offer to the buyer be?
C. What repairs or concessions should I ask for from the home inspection?
, D. What should I agree to fix from this list the buyer sent? - ANSWER-A
Ashton, an appraiser, is estimating value using the sales comparison approach. He
applies more weight to two comparables over several others he used. What process
is he utilizing?
A. Averaging
B. Bracketing
C. Conformity
D. Correlation - ANSWER-D
Licensee Madge is moving to her new home. What must she remember to do or risk
losing her license?
A. Notify her principal broker of her change of address
B. Notify the board of her change of address
C. Take out a newspaper ad to notify the public of her change of address
D. Write in her new address on her real estate license - ANSWER-B
Allen and Lewis are friends who each recently purchased real estate. Allen
purchased a patio home in a small town an hour from the city, while Lewis
purchased a condo in a really hot area near the city center. Although they paid
similar amounts for their properties, if in six months Lewis' condo is worth much
more. Which economic characteristic does this demonstrate?
A. Area preference
B. Improvements
C. Permanence
D. Scarcity - ANSWER-A
Which of the following is most likely to be the cause of an adjustment to a
comparable (competitive) when preparing a CMA?
A. Busy street
B. Color
C. Demographics
D. Interest rates - ANSWER-A
A seller wants to break even after the broker's commission of 5% and loan balance
of $300,000 are paid. At what price must the house sell?
A. 150,000
B. 300,000
C. 315,789
D. 450,000 - ANSWER-C
Gerald is selling a property in Lancaster that is not on the public water and sewer
systems. He must provide a copy of the results proving that water from the well is
safe and that the sewage disposal system works. Within what time frame must the
results be provided to the local board of health?
