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| Section | Objectives |
|---|---|
| Massachusetts State-Specific Real Estate Law | - Real Estate Practices in Massachusetts
|
| National Real Estate Principles & Practices | - Contracts
|
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NEW QUESTION # 66
If owners ask a broker not to show a property to recipients of government assistance, the broker must
Answer: B
Explanation:
Massachusetts law (M.G.L. c. 151B, 4) prohibits discrimination in housing based on receipt of public assistance, such as Section 8 housing vouchers or other government aid. If a seller instructs a broker not to show a property to prospective buyers or renters receiving government assistance, the broker cannot legally comply with that request.
The broker's fiduciary duty to the client does not extend to violating fair housing law. In such cases, the broker must refuse the listing because accepting it would require them to engage in unlawful discriminatory practices. Reporting to the Board or MCAD is not required; the appropriate action is simply to refuse participation in illegal activity.
This aligns with the Massachusetts Real Estate Licensing Law and MCAD enforcement rules, which hold licensees personally responsible for discriminatory conduct in real estate transactions.
Reference: Massachusetts General Laws c. 151B, Massachusetts Fair Housing Law; MCAD Fair Housing Guidelines; 254 CMR 3.00.
NEW QUESTION # 67
For an ordinary deed conveying Massachusetts real estate, whose signature is fundamentally required as the party making the conveyance?
Answer: B
Explanation:
The correct answer is A, the grantor. The grantor is the person transferring the real-property interest and must properly execute the deed.
The grantee is the recipient of the conveyed interest and ordinarily does not need to sign simply to make the grantor ' s conveyance effective, although particular instruments or transaction arrangements may involve additional signatures.
Massachusetts recording and registered-land procedures also impose acknowledgment requirements. Current Land Court guidance explains that where an acknowledgment is required, the signer appears before the notary, is properly identified, and acknowledges signing voluntarily and for the purposes stated in the document.
A properly executed deed must also adequately identify the parties and property and must ultimately be delivered and accepted for the conveyance to become effective.
The salesperson is not a party to the deed merely because the salesperson handled the brokerage transaction.
Study Guide Reference: Transfer of Title - Grantor/Grantee, Execution of Deeds, Acknowledgment, Delivery and Acceptance.
NEW QUESTION # 68
Which statement correctly describes an estate for years?
Answer: C
Explanation:
The correct answer is B. An estate for years is a leasehold estate created for a definite period. Despite its name, the term does not actually need to be measured in years; it could be for months, weeks, or another precisely defined period.
Its defining characteristic is that the tenancy has a specified termination point.
Massachusetts Board landlord-tenant curriculum expressly distinguishes an estate for years from periodic tenancy or tenancy at will. It also recognizes that leases exceeding one year implicate Massachusetts Statute of Frauds requirements.
A periodic tenancy differs because it renews automatically from period to period until proper termination notice is given.
An estate for years is also a non-freehold or leasehold estate. The tenant receives a possessory interest rather than the landlord ' s fee ownership.
When the fixed contractual term expires, the tenant ' s right of possession under that estate generally terminates unless the parties establish a new tenancy.
Study Guide Reference: Contracts - Estate for Years versus Periodic Tenancy/Tenancy at Will.
NEW QUESTION # 69
A broker receives a buyer ' s earnest-money check and places it promptly into the required brokerage escrow account rather than the broker ' s operating account. Which prohibited practice is this procedure designed to avoid?
Answer: B
Explanation:
The correct answer is B, Commingling. Commingling means improperly mixing money belonging to clients or transaction parties with the broker ' s own personal or business funds.
Massachusetts Board guidance explains that escrow accounts are specifically used for earnest-money deposits and other qualifying transaction funds. Only appropriately licensed brokers may maintain such accounts, and salespersons are prohibited from independently holding client funds.
The broker has no personal claim to escrow money simply because the broker possesses it. The funds must be maintained and distributed according to the transaction, applicable contracts, and Massachusetts regulations.
Candidates should distinguish commingling from conversion. Commingling is the improper mixing of funds.
Conversion occurs when the broker actually appropriates or uses client money for unauthorized purposes.
Steering and blockbusting are fair-housing violations, not escrow violations.
Study Guide Reference: Massachusetts License Law - Escrow Accounts; Commingling and Conversion.
NEW QUESTION # 70
A buyer purchases an owner ' s title-insurance policy. Does this mean that a proper title search is no longer necessary?
Answer: A
Explanation:
The correct answer is C. Title insurance does not eliminate the need for a title examination. A title search investigates the public records and related evidence to determine ownership, identify liens and encumbrances, and reveal defects that could affect marketability or the priority of interests.
Title insurance provides contractual protection against specified covered title risks, subject to exclusions, exceptions, policy conditions, and coverage limits. It is risk protection, not a substitute for investigating title in the first place.
Massachusetts guidance concerning recorded land specifically explains that recording a deed does not guarantee that property is free from liens, encumbrances, or other title problems and that a title search is generally necessary to determine title status.
An owner ' s policy protects the insured owner ' s title interest, whereas a lender ' s title policy protects the mortgage lender ' s insured security interest.
Candidates should therefore remember the sequence: examine title, resolve identified problems where possible, then insure against covered residual title risks.
Study Guide Reference: Transfer of Title - Title Examination, Marketable Title and Title Insurance.
NEW QUESTION # 71
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