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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Massachusetts Real Estate Law | 33% | - Licensing Requirements
|
| Topic 2: General Real Estate Knowledge | 67% | - Laws of Agency
|
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NEW QUESTION # 166
Which of the following agreements may, as a general Massachusetts rule, be enforceable even though made orally?
Answer: C
Explanation:
B, a real-estate listing agreement, is correct. Massachusetts Board contract curriculum specifically provides that listing contracts may be written or oral, although sound professional practice strongly favors written agreements.
The Massachusetts Statute of Frauds generally requires a sufficient signed writing for contracts for the purchase or sale of real property to be enforceable against the party to be charged. Agreements that cannot be performed within one year also generally fall within the Statute of Frauds, which makes a twenty-year oral lease an inappropriate answer.
An oral listing agreement should not be confused with an oral contract transferring ownership of real estate. A listing agreement is fundamentally an employment relationship between broker and client rather than the conveyance itself.
Written listings are preferable because they establish price, duration, scope of authority, brokerage relationship, compensation, and termination provisions and significantly reduce evidentiary disputes.
Study Guide Reference: Contracts - Listing Agreements and Massachusetts Statute of Frauds.
NEW QUESTION # 167
Richard, a real estate agent, refuses to show a Muslim family a house because he believes the neighborhood is not "Muslim-friendly" and instead directs them elsewhere. What prohibited practice is this?
Answer: A
Explanation:
The correct answer is C, Steering. Steering occurs when a real estate professional directs prospective purchasers or renters toward or away from particular properties or neighborhoods because of a protected characteristic.
Religion is a protected class under both federal fair-housing law and Massachusetts law. Richard therefore cannot decide which neighborhoods are appropriate for a Muslim family based on the religious composition or perceived attitudes of those neighborhoods.
A licensee should instead respond to objective housing criteria supplied by the client: price, property size, number of bedrooms, transportation access, commute, amenities, location requested by the client, and other lawful preferences.
Redlining traditionally involves discriminatory lending, insurance, or service decisions based on geography or protected-class composition. Blockbusting involves inducing owners to sell by creating fear concerning the entry of protected groups into a neighborhood.
Steering can occur even when an agent claims to be "protecting" the buyer. The professional ' s motive does not make religious segregation lawful.
Study Guide Reference: Practice of Real Estate - Federal and Massachusetts Fair Housing; Steering and Religious Discrimination.
NEW QUESTION # 168
A seller agrees to transfer freestanding living-room furniture to the buyer along with the house. Which instrument is most appropriate for conveying ownership of the furniture?
Answer: A
Explanation:
The correct answer is B, Bill of sale. Furniture that is not permanently annexed to the building is personal property, also called personalty or chattel. A bill of sale is the conventional instrument used to document transfer of ownership of personal property.
A deed, by contrast, is the principal instrument used to convey an interest in real property. Consequently, when a residential transaction includes freestanding furniture, movable appliances, equipment, or similar items, the parties should clearly distinguish those items from fixtures that transfer with the real estate.
This distinction prevents disputes. A permanently installed cabinet, built-in appliance, or attached lighting fixture may be treated as part of the real estate depending on attachment, adaptation, intent, and agreement. A couch or freestanding table is clearly personal property.
The purchase-and-sale agreement should also specify which personal-property items are included or excluded, and a bill of sale can document transfer at closing.
Massachusetts licensing examination content specifically requires candidates to distinguish real from personal property and understand instruments used in conveyancing.
Study Guide Reference: Property Ownership - Personalty versus Realty; Transfer Instruments and Bills of Sale.
NEW QUESTION # 169
A Massachusetts condominium unit is being sold. Which document is commonly required at closing to establish whether condominium common-expense charges are outstanding?
Answer: B
Explanation:
The correct answer is A, the 6(d) certificate. In Massachusetts condominium practice, the certificate associated with M.G.L. c.183A 6(d) is used to establish the status of common-expense obligations relating to a condominium unit.
Condominium associations have statutory lien rights for unpaid common expenses. Consequently, closing attorneys and title professionals need evidence regarding whether amounts are outstanding before issuing title protection or completing the transfer.
The certificate is therefore an important Massachusetts-specific condominium closing document.
It should not be confused with Title 5, which concerns on-site sewage disposal systems, or with a homestead declaration, which protects qualifying home equity against specified creditor claims.
The salesperson need not render a legal opinion concerning the association lien but should recognize the role of the 6(d) certificate in a condominium transaction.
Study Guide Reference: Property Ownership/Transfer of Title - Massachusetts Condominiums and 6(d) Certificates.
NEW QUESTION # 170
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 # 171
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