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| Section | Objectives |
|---|---|
| Massachusetts State-Specific Real Estate Law | - Real Estate Practices in Massachusetts
|
| National Real Estate Principles & Practices | - Valuation and Market Analysis
|
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NEW QUESTION # 135
A married couple may hold real property together in all of the following forms except:
Answer: D
Explanation:
Tenancy at will is not a form of concurrent ownership, so B is correct. A tenancy at will is a landlord-tenant arrangement-a form of leasehold possession that generally continues without a fixed termination date until ended in accordance with applicable law. It gives the tenant possessory rights rather than co-ownership of the fee estate.
A married couple can own property as tenants by the entirety, a specialized form of concurrent ownership available to married spouses and carrying survivorship characteristics and other legal consequences.
Depending on the conveyance, spouses may also hold property as joint tenants, which generally includes a right of survivorship, or as tenants in common, where each co-owner has an undivided interest but there is no automatic survivorship between them.
The Massachusetts Board contract-law curriculum expressly identifies month-to-month or periodic tenancy as a tenancy-at-will concept, confirming its leasehold character. Massachusetts property materials separately distinguish tenancy in common and joint tenancy as forms of ownership.
The exam technique is therefore to distinguish the word "tenancy" used in ownership estates from the same word used in landlord-tenant possession.
Study Guide Reference: Property Ownership - concurrent estates; Contracts - periodic tenancy/tenancy at will.
NEW QUESTION # 136
A buyer and broker enter into a 3-month exclusive buyer agency agreement. With regard to the broker's right to be compensated and to work with other clients, this means that during the term of this agreement, the broker
Answer: D
Explanation:
An exclusive buyer agency agreement creates a contractual relationship between the buyer and the broker, obligating the buyer to compensate the broker if they purchase any property during the agreement period - regardless of who finds the property (buyer, another broker, or even a FSBO).
This ensures the broker is compensated for their time, loyalty, and fiduciary duties. However, the agreement does not prevent the broker from working with other clients at the same time.
Incorrect options:
A: Compensation may come from the seller's broker via cooperation, but the buyer is ultimately responsible.
B: Compensation applies to any property, not only the broker's listings.
D: Brokers can still show properties to other buyers; exclusivity applies to the client relationship, not the broker's business.
Correct answer: C.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Agreements; M.G.L. c.
112, 87AAA.
NEW QUESTION # 137
A seller lists the same property nonexclusively with several brokers and agrees to compensate only the broker who successfully procures the buyer. What type of listing is this?
Answer: D
Explanation:
The correct answer is C, Open listing. An open listing is a nonexclusive brokerage arrangement under which the owner can engage multiple brokers simultaneously. Ordinarily, only the broker who becomes the procuring cause of the completed transaction is entitled to the agreed compensation.
This contrasts with an exclusive-right-to-sell listing, under which the listing brokerage may be entitled to compensation if the property sells during the listing term even when the owner personally locates the buyer, depending on the contract.
An exclusive-agency listing generally allows one broker exclusive agency while reserving the owner ' s right to sell personally without owing the brokerage commission under specified conditions.
Massachusetts Board curriculum expressly lists open listings among recognized listing-agreement forms. It also identifies net listings as illegal in Massachusetts.
Procuring cause centers on which brokerage ' s efforts originated the continuous series of events culminating in the transaction.
Study Guide Reference: Contracts - Listing Agreements; Open Listing and Procuring Cause.
NEW QUESTION # 138
The broker has a single agency relationship with the seller. The broker will show the property to a buyer who is a customer. The broker must disclose that the
Answer: D
Explanation:
In Massachusetts, when a broker represents the seller, the buyer is treated as a customer (not a client). While the broker owes fiduciary duties to the seller, they also have a duty of honest dealing and disclosure of material defects to customers.
A leaky roof in heavy rains is a material defect that affects the property's value and safety. The broker must disclose it regardless of agency relationship.
The seller's urgency to move (A) and dislike of a neighbor (D) are not material facts.
A positive feature like a lake view (B) may be marketed but is not a required disclosure.
Thus, the correct answer is C: leaky roof.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency & Disclosure; 254 CMR
3.00 (Licensee Obligations).
NEW QUESTION # 139
Who may have check-signing authority over a Massachusetts real estate brokerage escrow account under current Board interpretation?
Answer: D
Explanation:
The correct answer is C. Massachusetts Board guidance interprets 254 CMR 3.10 as allowing brokers-not salespersons or unlicensed employees-to maintain and exercise authority over brokerage escrow accounts.
The Board recognizes that modern firms may have several affiliated brokers, so it permits appropriately affiliated brokers within the brokerage to serve as account signato ries. What it does not permit is handing escrow-account control to an affiliated salesperson, accountant, bookkeeper, or unlicensed employee.
This allocation of authority reflects the broker ' s regulatory responsibility for safeguarding funds belonging to consumers. Earnest-money deposits and other transaction funds must remain segregated from business funds and properly accounted for.
A salesperson may receive a deposit during a transaction but must transmit it to the employing broker according to applicable procedures rather than assuming independent control of the escrow account.
Study Guide Reference: Massachusetts License Law - Escrow Accounts and Broker Responsibility.
NEW QUESTION # 140
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