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| Section | Weight | Objectives |
|---|---|---|
| Massachusetts Real Estate Law | 33% | - Massachusetts License Law
|
| General Real Estate Knowledge | 67% | - Contracts
|
>> Exam Massachusetts-Real-Estate-Salesperson Preparation <<
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NEW QUESTION # 66
When real estate brokers and salespersons engage in renting residential dwelling units, they must provide a prospective tenant with written notice of the
Answer: D
Explanation:
Under M.G.L. c. 112, § 87DDD½, Massachusetts law requires real estate brokers and salespersons engaged in renting residential property to provide prospective tenants with a written notice stating the amount of any broker's fee, and whether the tenant will be responsible for paying it. This disclosure must be made before the tenant is obligated to pay any fee.
This law protects tenants from unexpected costs and ensures transparency in rental transactions. While rental amount, landlord details, and public information such as the state's sex offender registry may be relevant, the statutory requirement specifically addresses broker compensation. Failure to provide this written notice may result in disciplinary action by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons.
Reference: M.G.L. c. 112, 87DDD½; 254 CMR 7.00.
NEW QUESTION # 67
A salesperson owns an apartment complex in Boston. The salesperson has decided to advertise the property for sale in a local newspaper and personally sell it. If the salesperson proceeds in this manner, the salesperson is
Answer: A
Explanation:
A salesperson in Massachusetts, when selling their own property, has the same rights as a non-salesperson owner. The broker-salesperson distinction does not apply when an individual is selling their own property. A salesperson is not restricted from selling their own property, even if it is an income-producing property like an apartment complex.
The key distinction is that salespersons are prohibited from engaging in real estate activities for others without the supervision of a licensed broker. However, in this scenario, the salesperson is acting as an individual property owner and is free to advertise and sell the apartment complex without violating the law.
Therefore, the salesperson is not violating the law and has all the rights of a non-salesperson property owner.
Reference: M.G.L. c. 112, 87RR - Licensee Requirements; Massachusetts Real Estate Candidate Information Bulletin.
NEW QUESTION # 68
A buyer and seller have signed a binding purchase-and-sale agreement, but closing has not yet taken place.
How is the contract classified?
Answer: D
Explanation:
The agreement is executory, making A correct. An executory contract is one in which material obligations remain to be performed. Signing may create binding obligations, but the buyer has not yet paid the final purchase funds, the seller has not yet delivered the deed, and closing conditions may remain outstanding.
An executed contract, in the contract-classification sense, is one whose required performance has been completed. Candidates must not confuse "the parties executed the document," meaning they signed it, with the technical distinction between an executed and executory contract.
Massachusetts Board curriculum explicitly identifies executed versus executory as a required contract classification and separately recognizes purchase-and-sale agreements as core contracts used by licensees.
"Non-recourse" relates to borrower liability in financing and has no bearing on whether a purchase agreement remains to be performed.
The source set repeats this concept because it is a common exam trap: signed but not completed = executory.
Study Guide Reference: Contracts - Purchase and Sale Agreements; executed versus executory contracts.
NEW QUESTION # 69
When using the cost approach to appraise a building constructed many decades ago, which component is generally the most difficult to estimate reliably?
Answer: D
Explanation:
The correct technical answer is C, Accrued depreciation.
This question corrects an internally inconsistent answer in the older source bank, which pointed to obtaining historic building codes while its own explanation discussed the difficulty of measuring depreciation. Modern appraisal methodology supports accrued depreciation as the substantive challenge.
The cost approach estimates current replacement or reproduction cost, deducts accrued depreciation, and then adds land value. Massachusetts Board CMA guidance expressly sets out this sequence.
Depreciation can result from physical deterioration, functional obsolescence, and economic/external obsolescence. Massachusetts assessment standards state that accrued depreciation incorporating those categories must be supported by market evidence and note that the cost approach becomes less reliable for older structures.
A newly constructed building generally presents less accumulated depreciation. With a structure from the
1930s, however, estimating decades of physical deterioration and functional/external obsolescence introduces substantial judgment.
Study Guide Reference: Property Valuation and Appraisal - Cost Approach and Accrued Depreciation.
NEW QUESTION # 70
A seller tells the listing agent, "Do not show me any offers below $500,000." The agent later receives an offer for $490,000. Under Massachusetts Board guidance, what should the agent do?
Answer: A
Explanation:
The correct answer is B, Present the offer. Massachusetts regulations require offers received by brokers or salespersons concerning property they have authority to sell or rent to be conveyed promptly to the owner or the owner ' s representative.
Board guidance specifically addresses seller instructions attempting to limit presentation of offers and states that agents remain obligated to present offers they receive. A licensee should not substitute personal judgment for the principal ' s decision by suppressing an offer merely because the amount appears too low or the terms seem unattractive.
The seller is free to reject the offer, counter it, or take no action, but that decision belongs to the seller-not the salesperson.
This rule also reinforces the agent ' s fiduciary obligations of obedience and disclosure. Obedience applies only to lawful instructions and does not authorize conduct inconsistent with licensing regulations.
Study Guide Reference: Massachusetts License Law/Agency - Presentation of Offers and Fiduciary Duties.
NEW QUESTION # 71
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