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| Section | Weight | Objectives |
|---|---|---|
| Massachusetts State Portion | 33% | - Fair Housing and Consumer Protection
|
| National Portion | 67% | - Real Estate Calculations
|
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NEW QUESTION # 258
An owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that the owner would NOT sell the property. A lawsuit filed by the buyers would be for
Answer: A
Explanation:
In real estate contract law, when a seller refuses to close after entering into a valid purchase and sale agreement, the buyer can sue for specific performance. This legal remedy compels the seller to perform the exact terms of the contract, meaning they must proceed with the sale.
A lis pendens (B) is merely a recorded notice that litigation is pending, not a lawsuit itself. A quiet title action (C) is used to resolve disputes over property ownership or defects in title, not to enforce a sales contract. A deficiency judgment (D) arises when a foreclosure sale does not produce enough funds to cover the outstanding loan, which is unrelated to this scenario.
Massachusetts recognizes specific performance as an equitable remedy available to real estate buyers because each parcel of real estate is unique. Courts often side with the buyer in such cases, ordering the seller to transfer title as originally agreed.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts Section; Massachusetts General Laws, Contract Remedies in Real Estate Transactions.
NEW QUESTION # 259
Dennis has been adjudicated mentally incompetent by a court, and a guardian has been appointed to manage his affairs. Dennis independently signs a contract to purchase a house. What is the usual status of the agreement?
Answer: B
Explanation:
The correct answer is A under the facts stated. Legal capacity is an essential element of contract formation.
Where a court has already adjudicated a person legally incompetent and appointed a guardian with authority over the relevant affairs, the person generally cannot independently enter into a binding contract of the type covered by that guardianship authority.
This is distinguishable from a person who has never been adjudicated incompetent but whose mental capacity is questioned after entering an agreement. Such cases can involve more fact-specific analysis and may result in a contract being voidable rather than automatically void.
The decisive fact in this examination question is the prior judicial adjudication and guardian appointment.
A real estate salesperson has no authority to determine competency or override a guardianship order merely by witnessing a signature. Where capacity is uncertain, the parties should obtain legal advice rather than expect the licensee to resolve the legal issue.
Contract-law examinations regularly distinguish competent parties from minors and judicially incapacitated persons.
Study Guide Reference: Contracts - Competency of Parties, Incapacity, Guardianship and Validity of Contracts.
NEW QUESTION # 260
A broker lists a property for ninety days. A buyer stops at the owner ' s residence and makes an offer for the property, which the owner accepts. The broker has no knowledge of the sales agreement between the buyer and the owner. The broker is entitled to a commission from the sale if the agreement the broker had with the owner was a(n)
Answer: B
Explanation:
An exclusive right-to-sell listing guarantees that the broker will receive a commission no matter who finds the buyer - even if the owner sells the property themselves. If the broker had an exclusive right-to-sell listing with the owner, the broker is entitled to a commission if the property sells during the listing period, regardless of whether the broker was involved in the sale or not.
Exclusive agency listing only entitles the broker to a commission if they or another agent find the buyer; if the owner sells the property themselves, they do not owe the broker a commission.
Open listing allows the owner to sell the property themselves without owing the broker a commission unless the broker finds the buyer.
Net listing is illegal in Massachusetts as it could encourage brokers to manipulate the sale price for their own benefit.
Thus, the broker is entitled to a commission if the listing was an exclusive right-to-sell.
Reference: Massachusetts Real Estate License Law, M.G.L. c. 112, 87PP-87DDD; 254 CMR 2.00 - Listings.
NEW QUESTION # 261
A prospective tenant wishes to rent an apartment and is told by the owner that the owner does not want to rent to anyone with children because of the lead paint. The prospective tenant, who has children ages four, six, and nine years old, is not concerned about lead paint and wants to rent the apartment for six months. The owner agrees to lease them the unit. Concerning the lead paint, the owner must
Answer: C
Explanation:
Under the Massachusetts Lead Law (M.G.L. c. 111, 189A-199B), the presence of lead paint in any residential property built before 1978 where children under six will be residing requires that the property be either deleaded or brought into interim control (made lead-safe). The law does not exempt short-term leases, and the landlord must comply regardless of the lease term (even for a six-month rental).
Since the tenant has children ages four, six, and nine, the landlord must take appropriate action to either de- lead or make the property lead-safe. The tenant's lack of concern does not exempt the owner from the obligation to comply with the law.
Reference: M.G.L. c. 111, 189A-199B; Massachusetts Lead Poisoning Prevention and Control Law.
NEW QUESTION # 262
Under Massachusetts contract law, what is the usual enforceability of an oral three-year lease of real estate?
Answer: D
Explanation:
The correct answer is B. A three-year lease falls within the class of agreements that ordinarily requires sufficient written evidence under the Statute of Frauds. An oral agree ment calling for a three-year lease therefore generally cannot be enforced as a three-year term in the same manner as a properly documented written lease, absent some applicable legal exception.
The important distinction is between void and unenforceable. A Statute of Frauds problem does not necessarily mean that no relationship or legal rights can ever arise. For example, occupancy and acceptance of rent can potentially create another form of tenancy depending on the circumstances. But the originally asserted three-year term ordinarily cannot simply be enforced on the basis of an oral promise.
Massachusetts Board contract curriculum requires candidates to understand the Statute of Frauds, leases, contract validity classifications, and the distinction between oral and written agreements. It also specifically recognizes that some brokerage listing agreements can be oral-a separate rule that should not be confused with a multi-year lease.
Study Guide Reference: Contracts - Statute of Frauds; Leases; Enforceable versus Unenforceable Agreements.
NEW QUESTION # 263
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