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| Section | Objectives |
|---|---|
| Massachusetts State-Specific Real Estate Law | - State Licensing Laws
|
| National Real Estate Principles & Practices | - Contracts
|
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NEW QUESTION # 297
A deed states that the grantor warrants only against title defects or encumbrances created during the grantor ' s own period of ownership. What type of deed is this?
Answer: A
Explanation:
The correct answer is B, Special warranty deed. A special warranty deed provides title protection limited primarily to defects or claims attributable to the grantor ' s own ownership period.
This differs from the traditional general warranty deed, under which the grantor gives broader warranties reaching qualifying title defects originating before the grantor acquired the property as well as during the grantor ' s ownership.
A basic national-law quitclaim deed conveys whatever interest the grantor may have without broad warranties.
Massachusetts candidates should be careful because Massachusetts statutory conveyancing terminology differs somewhat from simplified national textbook terminology. A Massachusetts statutory quitclaim deed can carry limited covenants and is frequently used in ordinary transactions.
Nevertheless, when a national examination question says that the seller warrants title only against defects created while the seller owned the property, the intended classification is a special or limited warranty deed.
Deed warranties concern legal title-not physical condition, future market value, or zoning.
Study Guide Reference: Transfer of Title - Deed Types and Covenants of Title.
NEW QUESTION # 298
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: A
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 # 299
What is the maximum ordinary security deposit a Massachusetts residential landlord may require?
Answer: A
Explanation:
The correct answer is B, One month ' s rent. Massachusetts General Laws Chapter 186, 15B limits an ordinary residential security deposit to no more than one month ' s rent.
A landlord may also generally collect first month ' s rent, last month ' s rent in advance, and the actual cost of purchasing and installing a lock and key, subject to applicable requirements. These permitted charges should not be confused with the security-deposit amount itself.
Massachusetts regulates security deposits unusually strictly. Failure to comply with segregation, receipt, accounting, interest, deduction, or return requirements can expose a landlord to significant liability.
Since August 1, 2025, Massachusetts also separately limits who may be required to pay residential broker fees: the party who actually hires the broker or salesperson bears that fee. A landlord cannot simply disguise an impermissible fee as an additional security payment.
Study Guide Reference: Property Management - Security Deposits and Residential Tenancies; M.G.L. c.
186 15B.
NEW QUESTION # 300
A broker maintains a trust or escrow account. A $10,000 earnest money deposit is received from a buyer and deposited in the account. Several weeks later and prior to closing, the broker withdraws $7,000 from the account and puts it in an operating account. This transaction is
Answer: B
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Escrow (trust) accounts must hold client funds untouched until proper disbursement (closing, termination, or mutual written instructions). Withdrawing funds prematurely is considered conversion, the illegal taking or use of another's money.
A: Brokers may only disburse commission funds after closing, not in advance.
B: This is not primarily a banking violation, but a license law violation.
D: Disclosure to the seller does not legalize misappropriation.
Massachusetts law (254 CMR 3.10) strictly prohibits commingling and conversion of escrow funds.
Violations can result in loss of license and criminal liability.
Correct answer: C.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Escrow Accounts; 254 CMR 3.10.
NEW QUESTION # 301
A rectangular lot contains 16,500 square feet. It has a depth of 150 feet. Each of two adjacent rectangular lots contains 4,950 square feet with a depth of 150 feet. What is the total street frontage of the three lots in linear feet?
Answer: A
Explanation:
But notice the answer choices do not include 176 except as D. This matches our calculation.
Therefore, the correct frontage is 176 feet (D).
(Note: The original problem text contained a typo listing 15 ft depth for the smaller lots, which is mathematically inconsistent. With the corrected 150 ft depth, the frontage answer is 176.) Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Math (Area, Frontage, Lot Dimensions).
NEW QUESTION # 302
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