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| Section | Weight | Objectives |
|---|---|---|
| General Real Estate Knowledge | 67% | - Property Ownership
|
| Massachusetts Real Estate Law | 33% | - Massachusetts Real Estate Practices
|
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NEW QUESTION # 150
Erica purchases a property for $330,000 and later sells it for $425,000. Ignoring transaction expenses, what is her percentage profit based on the original purchase price?
Answer: D
Explanation:
The correct answer is C, approximately 28.79%.
First calculate the dollar profit:
$425,000 # $330,000 = $95,000
Then divide the profit by the original investment:
$95,000 ÷ $330,000 = 0.287878...
Convert the decimal to a percentage:
0.287878 × 100 = 28.79%
Therefore C is correct.
The denominator matters. Because the question asks for the return or profit as a percentage of the purchase price, the original $330,000 investment is used as the base. Dividing $95,000 by the eventual $425,000 selling price would produce a different percentage and would not answer the question.
The calculation also deliberately ignores transaction costs. In an actual investment analysis, acquisition fees, financing expenses, repairs, taxes, carrying costs, commissions, closing costs, and capital improvements would materially change net profit.
Licensing examinations commonly test percentage gain and loss because the same mathematical principles apply to commissions, appreciation, capitalization, and financing calculations.
Study Guide Reference: Real Estate Calculations - Profit, Percentage Change and Investment Return.
NEW QUESTION # 151
How long must Massachusetts brokers generally retain copies of escrow checks required by Board regulation?
Answer: D
Explanation:
The correct answer is C, Three years. Massachusetts Board curriculum and regulations require specified escrow documentation, including copies of escrow checks, to be retained for a three-year period.
This recordkeeping requirement enables the Board to reconstruct the handling of money if a transaction becomes disputed or a complaint is filed. Proper records can establish when a deposit was received, where it was placed, whether it remained properly segregated, and how it was eventually disbursed.
The three-year regulatory rule should not be confused with general recommendations to retain some contractual records longer because the statute of limitations for certain contract claims can exceed three years.
Board seller-agency curriculum, for example, recommends longer retention of contracts even though the mandatory disclosure forms and escrow-check copies have a three-year regulatory retention period.
Study Guide Reference: Massachusetts License Law - Escrow and Transaction Recordkeeping.
NEW QUESTION # 152
A Massachusetts tenant independently hires a broker to locate an apartment. What must the broker provide concerning the broker ' s fee?
Answer: C
Explanation:
The correct answer is B. Massachusetts apartment-rental regulations require written disclosure of broker fees, and current guidance requires clarity concerning who hired the broker and who is responsible for paying the fee.
The disclosure must identify the amount of the fee or applicable percentage, the manner and time of payment, and relevant circumstances concerning whether the fee becomes payable. The licensee must identify the licensee and provide the appropriate license information.
Under the law effective August 1, 2025, a tenant may be charged a brokerage fee only where the tenant actually hired the broker or salesperson to act on the tenant ' s behalf. A broker hired by the landlord cannot simply shift that expense to the tenant.
Rental fee disclosures and related records must also be retained according to applicable Board requirements.
Study Guide Reference: Property Management - Residential Rental Fee Disclosure; 254 CMR 7.00.
NEW QUESTION # 153
A buyer receives a seller's property condition disclosure in which the buyer's agent believes the seller has misrepresented the condition of the property. The buyer's agent should
Answer: B
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
An agent owes a fiduciary duty of care, loyalty, and disclosure to their client. If a buyer's agent suspects misrepresentation in a seller disclosure, they cannot remain silent (A) because that fails fiduciary duty. They also cannot simply instruct withdrawal (B) without investigation. Communicating only with the listing agent (C) does not fulfill the duty to protect the buyer.
The proper action is to disclose the concern to the buyer and recommend further investigation, inspections, or professional evaluations before proceeding. This allows the buyer to make an informed decision and protects the agent from liability.
Correct answer: D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Obligations; Seller Disclosure Laws.
NEW QUESTION # 154
A Massachusetts condominium unit is being sold. Which document is commonly required at closing to establish whether condominium common-expense charges are outstanding?
Answer: A
Explanation:
The correct answer is A, the 6(d) certificate. In Massachusetts condominium practice, the certificate associated with M.G.L. c.183A 6(d) is used to establish the status of common-expense obligations relating to a condominium unit.
Condominium associations have statutory lien rights for unpaid common expenses. Consequently, closing attorneys and title professionals need evidence regarding whether amounts are outstanding before issuing title protection or completing the transfer.
The certificate is therefore an important Massachusetts-specific condominium closing document.
It should not be confused with Title 5, which concerns on-site sewage disposal systems, or with a homestead declaration, which protects qualifying home equity against specified creditor claims.
The salesperson need not render a legal opinion concerning the association lien but should recognize the role of the 6(d) certificate in a condominium transaction.
Study Guide Reference: Property Ownership/Transfer of Title - Massachusetts Condominiums and 6(d) Certificates.
NEW QUESTION # 155
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