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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: National Portion | 67% | - Valuation and Market Analysis
|
| Topic 2: Massachusetts State Portion | 33% | - Massachusetts Real Estate Law
|
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NEW QUESTION # 183
A commercial lot measures 50 feet by 125 feet and sells for $455,000. Approximately what is the selling price per square foot?
Answer: C
Explanation:
The correct answer is C, $72.80 per square foot.
First calculate the lot ' s area:
50 feet × 125 feet = 6,250 square feet
Then divide the total sale price by the total square footage:
$455,000 ÷ 6,250 = $72.80 per square foot
The common error is to add the dimensions or divide the sales price by only one dimension. Because the parcel is rectangular, its area is determined through length × width.
Price-per-square-foot calculations can help brokers, buyers, investors, and appraisers compare properties, but the metric should never be used by itself to determine value. Location, zoning, permitted use, frontage, utility availability, environmental conditions, access, shape, topography, development potential, and market conditions can cause two parcels with identical square footage to have substantially different values.
For examination purposes, however, all necessary information is provided and no adjustments are required.
Study Guide Reference: Real Estate Calculations - Land Area, Square Footage and Unit-Price Calculations.
NEW QUESTION # 184
A buyer tells an agent that the buyer wants to live in a neighborhood populated predominantly by people of the buyer ' s own protected racial or ethnic group. The agent then directs the buyer only to neighborhoods selected on that basis. What prohibited practice is illustrated?
Answer: A
Explanation:
The correct answer is C, Steering. Steering occurs when a real-estate professional directs buyers or renters toward or away from particular neighborhoods or properties because of race or another protected characteristic.
A buyer ' s own discriminatory preference does not authorize a licensee to participate in discriminatory housing practices. The professional should focus on objective criteria supplied by the buyer-price range, property type, bedroom count, commute, transportation, school proximity without demographic steering, amenities, and other lawful characteristics.
Redlining traditionally concerns discriminatory lending, insurance, or services based on location or protected- class composition. Blockbusting, also known as panic selling or panic peddling, involves inducing owners to sell because members of a protected group are supposedly entering the neighborhood.
Massachusetts housing law prohibits discriminatory treatment in real-estate transactions based on numerous protected characteristics and imposes broader protections than the historic federal minimum.
Study Guide Reference: Practice of Real Estate - Fair Housing; steering, blockbusting and discriminatory practices.
NEW QUESTION # 185
According to the CAN-SPAM Act, every email advertisement for real estate services must do all of the following EXCEPT
Answer: B
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
The CAN-SPAM Act of 2003 governs commercial email. Key requirements include:
Emails must not use misleading subject lines (A).
Must include the sender's valid physical postal address (B).
Must provide a clear, simple way to opt out of future emails (C).
Opt-out requests must be honored within 10 business days, not 180 days.
Thus, advising that it will take 180 days to remove an email address is not compliant.
Correct answer: D.
Reference: CAN-SPAM Act (15 U.S.C. 7704); Massachusetts Real Estate Salesperson Candidate Handbook
- Advertising Compliance.
NEW QUESTION # 186
A single homeowner bought a principal residence for $177,800 and later sells it for $306,100 after owning and occupying it as the main home for at least two of the five years preceding the sale. Ignoring basis adjustments and assuming all eligibility requirements are satisfied, how much of the $128,300 gain is taxable under the federal home-sale exclusion?
Answer: A
Explanation:
The correct answer is A, $0, under the facts provided.
The simplified gain is:
$306,100 # $177,800 = $128,300.
IRS rules generally permit an eligible single taxpayer to exclude up to $250,000 of gain from the sale of a principal residence. In most cases, the taxpayer must have owned and used the home as the principal residence for at least two years during the five-year period ending on the sale date.
Because $128,300 is below the $250,000 maximum exclusion and the question states that the qualifying conditions are met, the entire simplified gain can be excluded.
Actual tax calculations can be more complicated. Adjusted basis may include capital improvements and selling expenses, while depreciation, prior exclusions, business use, and other facts can change the result.
Study Guide Reference: Federal Taxation/Real Estate Calculations - Sale of Principal Residence and Capital-Gain Exclusion.
NEW QUESTION # 187
A buyer files a complaint against a licensee with the Massachusetts Commission Against Discrimination (MCAD). MCAD denies the complaint because the buyer filed it too long after the discriminatory incident occurred. Within how many days after the alleged incident must a complaint be filed to be considered?
Answer: C
Explanation:
The Massachusetts Commission Against Discrimination (MCAD) enforces the state's Fair Housing Law (M.
G.L. c. 151B). A person who believes they have experienced housing discrimination must file a written complaint with MCAD within 300 days of the alleged discriminatory act.
Complaints filed after 300 days will be dismissed as untimely. This timeframe aligns with federal Equal Employment Opportunity Commission (EEOC) procedures but is tailored for housing discrimination enforcement at the state level.
Thus, the deadline is 300 days.
Reference: M.G.L. c. 151B, 5; MCAD Complaint Procedures.
NEW QUESTION # 188
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