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| Section | Objectives |
|---|---|
| Massachusetts State-Specific Real Estate Law | - State Licensing Laws
|
| National Real Estate Principles & Practices | - Land Use Controls & Regulations
|
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NEW QUESTION # 175
A salesperson ' s client is the lessee. Who does the salesperson represent?
Answer: D
Explanation:
In a leasing transaction, the lessee is the tenant - the party obtaining the right to occupy and use the property.
The lessor is the landlord, who owns the property and grants possession through the lease.
Therefore, when a salesperson's client is the lessee, the salesperson represents the tenant in the transaction.
The role is similar to representing a buyer in a purchase transaction - the agent owes fiduciary duties such as loyalty, confidentiality, and disclosure to the tenant client.
The other options do not apply:
Lender (A) provides financing, not leasing services.
Landlord (C) would be the lessor, not the lessee.
Lien holder (D) is a creditor with a security interest in property, unrelated to this relationship.
Thus, the correct answer is B: tenant.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Law; M.G.L. c.112,
87AAA-112.
NEW QUESTION # 176
The heir to a large estate will be of legal age within 30 days. The heir lists for sale with a broker one of the properties held by the estate. The broker knows of a buyer for the property and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are
Answer: C
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Contracts entered into by a minor (a person not yet of legal age) are generally voidable at the option of the minor. In this case, the heir is still underage when signing both the listing and the sales contract. Although enforceable by the minor, they may be disaffirmed before reaching majority age or within a reasonable time thereafter.
Fulfilled (A) applies only once all terms have been performed.
Executed (B) means fully performed; here, the contracts are not.
Executory (D) means still in progress, which is true, but the critical legal issue is that the contracts are voidable due to minority.
Therefore, both contracts are voidable.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; M.G.L. c.231 85O (contracts with minors).
NEW QUESTION # 177
Which practice commonly results from blockbusting?
Answer: D
Explanation:
Blockbusting is an unlawful discriminatory real estate practice in which an owner is encouraged or pressured to sell because people belonging to a particular protected or demographic group are allegedly entering, or expected to enter, the neighborhood. The intended psychological effect is fear: owners are told or led to believe that neighborhood desirability or property values will decline. This can produce panic selling or panic peddling, making B the correct answer.
Massachusetts law is particularly explicit. M.G.L. c. 151B, 4(13) prohibits attempts to induce the sale, purchase, or rental of dwellings through representations concerning the entry or prospective entry of persons of specified characteristics or through representations concerning the supposed consequences of such entry.
This is the statutory mechanism underlying blockbusting.
Redlining is different: it concerns discriminatory denial or restriction of credit, insurance, or services based largely on geographic area or protected-class composition. Blind advertising concerns brokerage advertising that fails to identify the broker appropriately. Therefore, neither C nor D describes the immediate behavior caused by blockbusting.
Study Guide Reference: Practice of Real Estate - Fair Housing; prohibited discriminatory practices; blockbusting/panic selling.
NEW QUESTION # 178
A broker has listed a property for $225,000. An offer of $210,000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205,000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spend $5,000 in repairs before going through with the purchase. The seller may do any of the following EXCEPT
Answer: A
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Once the seller accepted the first buyer's offer, they entered into a legally binding contract. Any additional requests for repairs must be negotiated. The seller may:
Agree to the repairs (A)
Refuse and insist on as-is (B)
Terminate by mutual agreement in writing and move to the secondary offer (C) However, the seller cannot simply ignore the buyer's demands and sell to another buyer. Doing so would be a breach of contract. The second offer is valid only as a backup if the first contract is properly terminated.
Thus, the seller may do anything except D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; Secondary Offers.
NEW QUESTION # 179
A buyer ' s earnest-money check has been deposited into the broker ' s escrow account while the transaction remains pending. Which statement best describes the money?
Answer: C
Explanation:
The correct answer is B. Escrow funds are held by the broker as money belonging to others during the pendency of the transaction. The broker has no personal claim to that money merely because it has been deposited into the brokerage escrow account.
Massachusetts regulation 254 CMR 3.10 requires transaction money held by a broker to be deposited into an escrow account unless the parties have agreed otherwise in writing. The broker remains responsible until the transaction is consummated or terminated, at which point a proper accounting and distribution must be made.
Therefore, deposit money should not casually be described as automatically belonging outright to either buyer or seller while contractual rights remain unresolved. Its ultimate disposition depends on performance, termination provisions, valid agreements between the parties, or potentially legal resolution of a dispute.
A salesperson may not hold client funds independently; deposit money received must be promptly turned over to the employing broker.
Study Guide Reference: Massachusetts License Law - Client Funds, Escrow Accounts and Deposit Handling.
NEW QUESTION # 180
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