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| Section | Objectives |
|---|---|
| Topic 1: National Real Estate Principles & Practices | - Agency Principles
|
| Topic 2: Massachusetts State-Specific Real Estate Law | - Real Estate Practices in Massachusetts
|
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NEW QUESTION # 284
A person leaves an estate as follows: 54% to a spouse, 18% to a daughter, 16% to a son, and the remainder to a church. The church receives $79,000. Approximately how much does the daughter receive?
Answer: D
Explanation:
The correct answer is C, approximately $118,500.
First determine the percentage going to the church:
54% + 18% + 16% = 88%
Therefore:
100% # 88% = 12% to the church
If 12% equals $79,000, determine the total estate:
$79,000 ÷ 0.12 = $658,333.33
The daughter ' s share is 18%:
$658,333.33 × 0.18 = $118,500
Therefore C is correct.
An efficient alternative is to compare the daughter ' s 18% directly to the church ' s 12%:
18 ÷ 12 = 1.5
$79,000 × 1.5 = $118,500
Both methods produce the same answer.
The problem is primarily a percentage calculation, not a Massachusetts intestacy problem, because the decedent expressly specifies the distributions. Actual estate administration can involve debts, taxes, probate costs, non-probate assets, and other considerations.
Study Guide Reference: Real Estate Calculations - Percentages, Estates and Distribution Calculations.
NEW QUESTION # 285
A Massachusetts homeowner defaults on a residential mortgage and the property is sold through a completed mortgage foreclosure sale. Does Massachusetts generally give the borrower a statutory right to redeem the mortgage after the foreclosure auction has been completed?
Answer: D
Explanation:
The correct Massachusetts answer is D. This is an important correction to the older source-bank question.
Massachusetts Board foreclosure curriculum expressly states that Massachusetts has no statutory right of redemption after a mortgage foreclosure. Instead, the borrower has an equitable right of redemption before completion of the foreclosure sale-described in the curriculum as existing until the auctioneer ' s hammer comes down.
Candidates must not confuse mortgage foreclosure with municipal tax-title redemption. Massachusetts tax- title law follows a different statutory framework and allows property owners to redeem tax-taken or tax-sold property until the right of redemption is legally foreclosed by the Land Court.
Thus, the original generic practice question claiming that a Massachusetts mortgage borrower can simply pay the debt after the foreclosure sale under a statutory right of redemption is wrong.
Study Guide Reference: Financing - Massachusetts Foreclosure; Equitable Right of Redemption versus Tax-Title Redemption.
NEW QUESTION # 286
A seller pays the commission of a broker who has an exclusive buyer-agency agreement with the purchaser.
Who does the broker represent?
Answer: A
Explanation:
The correct answer is B, Buyer. Massachusetts Board buyer-agency guidance explicitly recognizes that compensation alone does not create an agency relationship.
The broker ' s representation is determined by the agency agreement, disclosures, informed consent, and conduct-not simply by which party ultimately funds the broker ' s compensation.
Thus, a buyer ' s broker can remain the fiduciary representative of the buyer even where compensation is paid through a seller concession or another lawful transaction structure.
The broker continues to owe the buyer obligations such as loyalty, confidentiality, disclosure, reasonable care, accountability, and obedience to lawful instructions.
Payment by the seller does not automatically create dual agency. Dual representation requires the separate legal consent process described by Massachusetts agency law.
Study Guide Reference: Agency - Buyer Agency and Compensation.
NEW QUESTION # 287
A buyer wants to purchase a home for $275,000 with a 20% down payment. The lender charges 2.25 points.
How much money does the buyer need up front to make the purchase?
Answer: D
Explanation:
However, since $59,950 is listed as choice D, we must check: The question may include additional closing costs rounding. If the "buyer up front" means down payment plus points and some prorations, the closest correct exam-standard answer is B: $61,188.
But strictly by math, the correct total is $59,950 (D).
(Answer key seems misaligned; official math gives $59,950.)
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Math/Financing (Down payments, points).
NEW QUESTION # 288
An agreement is inferred from the conduct and actions of the parties rather than being expressly stated orally or in writing. What type of contract is this?
Answer: C
Explanation:
The correct answer is A, Implied contract. An implied contract arises when the parties ' actions, conduct, and surrounding circumstances demonstrate an intention to create contractual obligations even though no express oral or written agreement states all of the terms.
For example, one person may knowingly accept valuable services from another under circumstances where compensation would reasonably be expected. The conduct can demonstrate mutual agreement.
An express contract, by contrast, exists where the parties explicitly state their agreement orally or in writing.
Massachusetts Board real-estate curriculum expressly recognizes that a contract can be implied by an act or expressly created orally or in writing.
Candidates should nevertheless distinguish the general concept of implied contracts from requirements imposed by the Statute of Frauds. Certain real-estate agreements must have sufficient written evidence to be enforceable even though general contractual principles might otherwise recognize an agreement.
Agency can similarly be implied from conduct, although licensees should avoid inadvertently creating agency relationships because fiduciary responsibilities can follow.
Study Guide Reference: Contracts - Express versus Implied Contracts; Formation by Conduct.
NEW QUESTION # 289
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