Practice Exam Massachusetts State-
Questions with Complete Answers
Which of the following best describes an exclusive right-to-buy contract in
Massachusetts?
A. It is illegal.
B. It should be indicated as such in the buyer agency agreement.
C. It is equivalent to an exclusive right-to-sell listing agreement.
D. It requires the signature of the principal. - ANSWER-C. It is equivalent to an
exclusive right-to-sell listing agreement.
When should an Agency Disclosure form be provided to a prospective buyer or seller
of real estate in Massachusetts?
A. At the first contact with the customer
B. At the closing
C. At the first personal meeting held for the purpose of discussing a specific property
D. Just prior to presentation of an offer - ANSWER-C. At the first personal meeting
held for the purpose of discussing a specific property
Which types of agency are recognized in Massachusetts?
A. Sub-agency, disclosed dual, seller's
B. Seller's, buyer's, subagency, disclosed dual
C. Seller's, buyer's, full fiduciary
D. Seller's buyer's, undisclosed dual - ANSWER-B. Seller's, buyer's, subagency,
disclosed dual
When is a Property Condition Statement required?
A. whenever a seller employs a real estate agent
B. when the seller is not assisted by a licensed agent
C. It is not required in Massachusetts.
D. if the property has vacant for a least one year - ANSWER-C. It is not required in
Massachusetts.
Leslie is selling her house and has no knowledge of any plumbing problems.
However, the plumbing stack is seriously corroded and will require replacement
soon. In the seller property condition disclosure, how should Leslie respond when
asked whether she has knowledge of plumping system problems?
A. No
B. Unknow
C. I don't know
D. She would not be require to respond to this question - ANSWER-A. No
When a broker is listing a home in Massachusetts and asks the seller to complete a
property condition disclosure, which of the following statements is true?
,A. Seller disclosure is required but repairs that are up to building code are optional
B. The disclosure is optional
C. The standard disclosure should cover structural conditions only
D. Seller disclosure is required - ANSWER-B. The disclosure is optional
Tarik represents Alan in selling his property. when potential buyer ask to see the
property, which of the following is an appropriate step for Tarik to take?
A. Inform them, verbally or in writing, that the he represents Alan
B. provide them with the Agency Disclosure form indicating in writing that he
represents Alan's interests
C. show them the property without making any disclosures about his relationship
with Tarik
D. request they enter into a buyer representation agreement with a different licensee
- ANSWER-B. provide them with the Agency Disclosure form indicating in writing that
he represents Alan's interests
Ceaser is the agent for an estate that included a detached villa in a residential
community. The former owner of the villa died on the property and her cause of
death was the AIDS virus. Ceaser also knows that a highly publicized murder took
place in the villa five years ago. What are his disclosure responsibilities regarding
this villa?
A. Ceaser is specifically relieved of liability for nondisclosure of either according to
Massachusetts license law.
B. He must disclose the AIDS- related death, but he does not need to disclose the
murder.
C. He must disclose both.
D. He cannot disclose the AIDS related death; if asked he must disclose the murder.
- ANSWER-D. He cannot disclose the AIDS related death; if asked he must disclose
the murder.
When Nelson listed his house he told his broker that the basement leaked and they
agreed not to tell any prospective buyers. Six months after the new buyer moved in,
the basement leaked and considerable damage resulted. Because the buyer did not
ask about the basement, the broker claims he is not responsible. What recourse
does the buyer have?
A. He can sue Nelson, the former owner.
B. He cannot do anything because the leaking basement could have been
discovered by a home inspection.
C. He cannot sue the broker because he did not ask about the basement.
D. He can sue the broker. - ANSWER-D. He can sue the broker.
Which of the following does NOT have to be disclosed by a real estate agent under
Massachusetts Stigmatized Property Law?
A. a ghost
B. urea formaldehyde foam insulation (UFFI)
C. Everything must be disclosed
D. a foreclosure sale - ANSWER-A. a ghost
Shira, a licensed salesperson, obtains a premium listing and within a few days has
interested buyers. She tells the Thompsons, who are prospective buyers, "I am the
, listing agent for this property, and so I am very familiar with it." Which of the following
best describes Shira's action?
A. Shira is in violation of regulations because the listing actually belongs to the
broker.
B. Shira has failed to properly disclose her agency relationship.
C. Shira has adequately disclosed he agency relationship.
D. Shira has created dual agency which is a violation of Massachusetts regulations. -
ANSWER-B. Shira has failed to properly disclose her agency relationship.
A broker knows that the property he represents has a roof that leaks and that it
previous owner committed suicide in the garage. What is the broker required to
disclose?
A. the suicide, but not the roof problem unless asked
B. both facts
C. neither fact
D. the roof problem, but not the suicide unless asked - ANSWER-D. the roof
problem, but not the suicide unless asked
Bell Realty Company has entered into agency agreements with both a seller and a
buyer who have signed a Dual Agency Consent Agreement. Which of the following
actions may be taken by a Bell salesperson who had been working with the buyer?
A. He may disclose the buyer's financial qualifications to the seller.
B. He may disclose to the buyer that the seller will accept less than the listed price.
C. He may disclose to the seller that the buyer will pay more than the asking price.
D. He may provide comparable market data to the seller if the buyer requests, and
receives, such data. - ANSWER-D. He may provide comparable market data to the
seller if the buyer requests, and receives, such data.
Is it acceptable in Massachusetts for a broker to "sweeten" a MLS property listing by
making a blanket offer of subagency?
A. No because subagency is illegal in Massachusetts
B. No, subagency relationships may only be created by specific agreement between
parties
C. Yes, this is one of the ways a subagency relationship may be created
D. Yes because Massachusetts law permits the creation of subagency relationships
only through MLS listings - ANSWER-C. Yes, this is one of the ways a subagency
relationship may be created
When must a brokerage relationship as agent for a buyer or seller be determined
and all agreements finalized?
A. before the closing
B. at the time of the first face to face meeting
C. before the formulation of a contract to purchase
D. any time after a purchase agreement is executed - ANSWER-C. before the
formulation of a contract to purchase
Sam wishes to purchase a house that Charles, a broker, has for sale on behalf of a
seller. Sam is also one of Charles' clients. Which of the following is true in this
situation?
Questions with Complete Answers
Which of the following best describes an exclusive right-to-buy contract in
Massachusetts?
A. It is illegal.
B. It should be indicated as such in the buyer agency agreement.
C. It is equivalent to an exclusive right-to-sell listing agreement.
D. It requires the signature of the principal. - ANSWER-C. It is equivalent to an
exclusive right-to-sell listing agreement.
When should an Agency Disclosure form be provided to a prospective buyer or seller
of real estate in Massachusetts?
A. At the first contact with the customer
B. At the closing
C. At the first personal meeting held for the purpose of discussing a specific property
D. Just prior to presentation of an offer - ANSWER-C. At the first personal meeting
held for the purpose of discussing a specific property
Which types of agency are recognized in Massachusetts?
A. Sub-agency, disclosed dual, seller's
B. Seller's, buyer's, subagency, disclosed dual
C. Seller's, buyer's, full fiduciary
D. Seller's buyer's, undisclosed dual - ANSWER-B. Seller's, buyer's, subagency,
disclosed dual
When is a Property Condition Statement required?
A. whenever a seller employs a real estate agent
B. when the seller is not assisted by a licensed agent
C. It is not required in Massachusetts.
D. if the property has vacant for a least one year - ANSWER-C. It is not required in
Massachusetts.
Leslie is selling her house and has no knowledge of any plumbing problems.
However, the plumbing stack is seriously corroded and will require replacement
soon. In the seller property condition disclosure, how should Leslie respond when
asked whether she has knowledge of plumping system problems?
A. No
B. Unknow
C. I don't know
D. She would not be require to respond to this question - ANSWER-A. No
When a broker is listing a home in Massachusetts and asks the seller to complete a
property condition disclosure, which of the following statements is true?
,A. Seller disclosure is required but repairs that are up to building code are optional
B. The disclosure is optional
C. The standard disclosure should cover structural conditions only
D. Seller disclosure is required - ANSWER-B. The disclosure is optional
Tarik represents Alan in selling his property. when potential buyer ask to see the
property, which of the following is an appropriate step for Tarik to take?
A. Inform them, verbally or in writing, that the he represents Alan
B. provide them with the Agency Disclosure form indicating in writing that he
represents Alan's interests
C. show them the property without making any disclosures about his relationship
with Tarik
D. request they enter into a buyer representation agreement with a different licensee
- ANSWER-B. provide them with the Agency Disclosure form indicating in writing that
he represents Alan's interests
Ceaser is the agent for an estate that included a detached villa in a residential
community. The former owner of the villa died on the property and her cause of
death was the AIDS virus. Ceaser also knows that a highly publicized murder took
place in the villa five years ago. What are his disclosure responsibilities regarding
this villa?
A. Ceaser is specifically relieved of liability for nondisclosure of either according to
Massachusetts license law.
B. He must disclose the AIDS- related death, but he does not need to disclose the
murder.
C. He must disclose both.
D. He cannot disclose the AIDS related death; if asked he must disclose the murder.
- ANSWER-D. He cannot disclose the AIDS related death; if asked he must disclose
the murder.
When Nelson listed his house he told his broker that the basement leaked and they
agreed not to tell any prospective buyers. Six months after the new buyer moved in,
the basement leaked and considerable damage resulted. Because the buyer did not
ask about the basement, the broker claims he is not responsible. What recourse
does the buyer have?
A. He can sue Nelson, the former owner.
B. He cannot do anything because the leaking basement could have been
discovered by a home inspection.
C. He cannot sue the broker because he did not ask about the basement.
D. He can sue the broker. - ANSWER-D. He can sue the broker.
Which of the following does NOT have to be disclosed by a real estate agent under
Massachusetts Stigmatized Property Law?
A. a ghost
B. urea formaldehyde foam insulation (UFFI)
C. Everything must be disclosed
D. a foreclosure sale - ANSWER-A. a ghost
Shira, a licensed salesperson, obtains a premium listing and within a few days has
interested buyers. She tells the Thompsons, who are prospective buyers, "I am the
, listing agent for this property, and so I am very familiar with it." Which of the following
best describes Shira's action?
A. Shira is in violation of regulations because the listing actually belongs to the
broker.
B. Shira has failed to properly disclose her agency relationship.
C. Shira has adequately disclosed he agency relationship.
D. Shira has created dual agency which is a violation of Massachusetts regulations. -
ANSWER-B. Shira has failed to properly disclose her agency relationship.
A broker knows that the property he represents has a roof that leaks and that it
previous owner committed suicide in the garage. What is the broker required to
disclose?
A. the suicide, but not the roof problem unless asked
B. both facts
C. neither fact
D. the roof problem, but not the suicide unless asked - ANSWER-D. the roof
problem, but not the suicide unless asked
Bell Realty Company has entered into agency agreements with both a seller and a
buyer who have signed a Dual Agency Consent Agreement. Which of the following
actions may be taken by a Bell salesperson who had been working with the buyer?
A. He may disclose the buyer's financial qualifications to the seller.
B. He may disclose to the buyer that the seller will accept less than the listed price.
C. He may disclose to the seller that the buyer will pay more than the asking price.
D. He may provide comparable market data to the seller if the buyer requests, and
receives, such data. - ANSWER-D. He may provide comparable market data to the
seller if the buyer requests, and receives, such data.
Is it acceptable in Massachusetts for a broker to "sweeten" a MLS property listing by
making a blanket offer of subagency?
A. No because subagency is illegal in Massachusetts
B. No, subagency relationships may only be created by specific agreement between
parties
C. Yes, this is one of the ways a subagency relationship may be created
D. Yes because Massachusetts law permits the creation of subagency relationships
only through MLS listings - ANSWER-C. Yes, this is one of the ways a subagency
relationship may be created
When must a brokerage relationship as agent for a buyer or seller be determined
and all agreements finalized?
A. before the closing
B. at the time of the first face to face meeting
C. before the formulation of a contract to purchase
D. any time after a purchase agreement is executed - ANSWER-C. before the
formulation of a contract to purchase
Sam wishes to purchase a house that Charles, a broker, has for sale on behalf of a
seller. Sam is also one of Charles' clients. Which of the following is true in this
situation?
