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| Section | Objectives |
|---|---|
| National Real Estate Principles & Practices | - Property Ownership
|
| Massachusetts State-Specific Real Estate Law | - State Licensing Laws
|
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NEW QUESTION # 315
The Massachusetts State Sanitary Code requires
Answer: C
Explanation:
The Massachusetts State Sanitary Code (105 CMR 410) sets minimum standards for safe and habitable housing. One explicit requirement is that every rental unit must be equipped with a stove in good repair provided by the landlord.
Other items:
Refrigerators: Landlords are not required to provide them, but if they do, they must be in working order.
Separate meters: Not required for all systems.
Water/sewer: Landlords generally pay unless specific written agreements allow tenant billing (with proper metering).
Thus, the universal requirement is a stove in good repair.
Reference: Massachusetts Sanitary Code, 105 CMR 410.100.
NEW QUESTION # 316
Which action, standing alone, is generally not a violation of RESPA Section 8?
Answer: A
Explanation:
The correct answer is C. RESPA does not prohibit a real estate professional from simply identifying or recommending a lender to a consumer. What Section 8 targets is the exchange of fees, kickbacks, or other things of value pursuant to an agreement or understanding for referral of settlement-service business.
Current Regulation X states that no person may give or accept a referral fee or kickback for settlement-service referrals involving federally related mortgage loans. It also prohibits splitting settlement charges except for services actually performed.
The CFPB confirms that prohibited referrals can involve lenders, mortgage brokers, real estate agents, title companies, appraisers, and other settlement providers.
Therefore, the mere professional recommendation of a lender is not inherently illegal. The problem arises when compensation or another thing of value is tied to that referral or when another prohibited RESPA arrangement exists.
Study Guide Reference: Financing - RESPA Section 8; Kickbacks, Referrals and Unearned Fees.
NEW QUESTION # 317
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: A
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 # 318
A Massachusetts salesperson creates a website advertising personal brokerage services but does not identify the employing broker or brokerage. Is this permitted?
Answer: A
Explanation:
The correct answer is C. Massachusetts professional standards require real estate advertising to identify the responsible broker or brokerage. A salesperson cannot advertise in a manner that makes the salesperson appear to operate an independent real estate business.
The Board specifically states that salespersons cannot advertise their professional real estate services independently. A brokerage may advertise its affiliated salespersons, but the advertisement must clearly identify the brokerage responsible for the real estate activity.
This requirement applies to online media as well as traditional advertising. Social-media posts, websites, digital advertisements, team pages, and similar communications do not avoid the broker-identification requirement merely because the medium has limited space.
The underlying reason is consumer protection: members of the public must be able to determine which licensed broker is responsible for supervision of the salesperson and the brokerage transaction.
Study Guide Reference: Massachusetts License Law - Advertising, Broker Identification and Salesperson Supervision.
NEW QUESTION # 319
Tommy, a licensed real estate broker, receives a $21,600 brokerage commission on a property sale. If the commission rate was 6%, what was the property ' s sale price?
Answer: C
Explanation:
The correct answer is B, $360,000. When the amount of commission and commission rate are known, the gross selling price is calculated by dividing the commission by the commission rate expressed as a decimal.
$21,600 ÷ 0.06 = $360,000
A useful way to verify the calculation is to multiply the resulting sale price by 6%:
$360,000 × 0.06 = $21,600
Therefore, the calculation reconciles exactly.
Candidates should distinguish this type of calculation from a seller-net problem. Here, there are no closing expenses, mortgage payoff amounts, tax adjustments, or seller net figures. Only the brokerage commission and percentage are relevant.
Real-estate commission rates are negotiable rather than established by Massachusetts law. A 6% rate in a mathematical problem is simply an assumed contractual figure and should not be interpreted as a statutory or standard mandatory commission.
Percentage, commission, seller-net, and brokerage-split problems form an important component of licensing- exam calculations.
Study Guide Reference: Real Estate Calculations - Brokerage Commissions, Percentages and Sale Price.
NEW QUESTION # 320
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