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| Section | Objectives |
|---|---|
| Topic 1: National Real Estate Principles & Practices | - Agency Principles
|
| Topic 2: Massachusetts State-Specific Real Estate Law | - Real Estate Practices in Massachusetts
|
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NEW QUESTION # 135
A portion of a garage is accidentally constructed across the property line and extends several feet onto a neighbor ' s land. What is this condition called?
Answer: A
Explanation:
The correct answer is B, Encroachment. An encroachment occurs when a physical improvement or object extends beyond its lawful boundary onto neighboring property.
Common examples include a garage crossing the boundary line, a fence constructed on the wrong side of the line, a driveway extending onto neighboring land, or a building overhang intruding over another parcel.
An encroachment differs from an easement because an easement is a legally recognized right to use another person ' s property. An encroachment may be unauthorized.
Boundary surveys are particularly important in identifying encroachments. Depending on the circumstances, the parties may resolve an encroachment by relocating the structure, granting an easement, transferring a small parcel, executing a boundary agreement, or pursuing court action.
Long-term encroachments can also create adverse-possession or prescriptive-right issues where all required Massachusetts elements are satisfied over the statutory period. Massachusetts ordinarily applies a 20-year period to qualifying adverse possession.
Study Guide Reference: Property Ownership - Encroachments, Easements, Boundary Problems and Adverse Possession.
NEW QUESTION # 136
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: C
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 # 137
Inactive salespersons are permitted to perform which of the following activities?
Answer: D
Explanation:
An inactive salesperson in Massachusetts holds a license that is not active for brokerage activities (buying, selling, leasing). They may not list homes, show property, or handle transactions.
However, under M.G.L. c. 112, an inactive licensee may receive a referral fee from an active broker for referring potential business. This is because the inactive license keeps the person legally affiliated with the licensing system, even though they cannot directly engage in brokerage.
They may not be paid directly by other salespersons, nor may they affiliate with inactive brokers. Referrals and fee-sharing must always flow through an active broker.
Reference: M.G.L. c. 112, 87RR, 87SS; 254 CMR 2.00.
NEW QUESTION # 138
Which event would not necessarily terminate a listing agreement by itself?
Answer: D
Explanation:
The correct answer is C. A minor kitchen fire does not automatically terminate a listing merely because some physical damage occurred. If the property continues to exist and brokerage performance remains possible, the agency relationship can continue, subject to the listing agreement and the parties ' decisions.
Massachusetts Board seller-agency curriculum identifies several common terminating events: expiration, mutual agreement, completion of performance, death or incapacity, bankruptcy, and impossibility of performance, such as destruction of the property.
That distinction is crucial. A casualty severe enough to destroy the subject property can make performance impossible and terminate the relationship. A repairable kitchen fire generally does not.
The damage could nevertheless create new disclosure, insurance, pricing, and contractual issues, particularly if the property is already under agreement.
Repudiation can also terminate the agency authority while potentially exposing the repudiating party to liability for breach. Thus, termination of agency authority and liability under the listing contract are related but distinct questions.
Study Guide Reference: Agency - Termination of Licensee/Consumer Relationships; Impossibility and Repudiation.
NEW QUESTION # 139
How many members serve on the Massachusetts Board of Registration of Real Estate Brokers and Salespersons?
Answer: C
Explanation:
The correct answer is C, Five. Massachusetts establishes a five-member Board of Registration of Real Estate Brokers and Salespersons to administer and enforce the Commonwealth ' s professional licensing framework for real-estate brokers and salespersons.
The Board ' s functions include implementing licensing requirements, establishing professional standards, addressing disciplinary matters, regulating education requirements within its statutory authority, and protecting consumers who engage real-estate professionals.
The Board includes professional and public representation rather than being composed exclusively of industry members. This structure is intended to combine subject-matter expertise with consumer/public oversight.
Candidates should distinguish the Board from professional trade organizations. The Board is a government regulatory body exercising authority granted by Massachusetts law. Organizations such as REALTOR associations are private professional organizations and do not issue Massachusetts real-estate licenses.
The Board also should not be confused with a local planning board, zoning board of appeals, conservation commission, or Board of Assessors, each of which performs very different governmental functions relating to real estate.
Study Guide Reference: Massachusetts License Law - Board of Registration of Real Estate Brokers and Salespersons; Board Composition and Regulatory Authority.
NEW QUESTION # 140
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