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| Section | Objectives |
|---|---|
| Topic 1: National Real Estate Principles & Practices | - Valuation and Market Analysis
|
| Topic 2: Massachusetts State-Specific Real Estate Law | - Real Estate Practices in Massachusetts
|
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NEW QUESTION # 224
For how long must a Massachusetts broker generally retain the written rental-fee notice provided to a prospective tenant?
Answer: A
Explanation:
The correct answer is C, Three years. Massachusetts 254 CMR 7.00 requires brokers and salespersons engaged in apartment rentals to maintain the written fee notice for three years from the date it was provided to the prospective tenant.
The regulation also contains related record-retention provisions for rental listings, documents demonstrating apartment availability, checks, money orders, cash receipts, and qualifying escrow-account checks.
Record retention is particularly important in rental brokerage because fee disputes can arise concerning who hired the broker, how much was charged, whether the property was actually available, and whether a tenancy was created.
The 2025 rental-broker-fee reforms make these records even more consequential because only the party who hired the broker may now ordinarily be charged the fee.
Study Guide Reference: Property Management - Apartment Rental Records and Fee Disclosures; 254 CMR 7.00.
NEW QUESTION # 225
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: D
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 # 226
When practicing as a facilitator, the facilitator
Answer: C
Explanation:
A facilitator is a neutral party who assists both the buyer and the seller in a real estate transaction but does not have the agency responsibilities of an agent. Facilitators do not represent either party (seller or buyer) and do not owe fiduciary duties to either. The role of a facilitator is limited to helping both parties complete the transaction by providing guidance on the process, preparing documents, and ensuring that all procedural steps are followed.
Unlike agents, facilitators are not required to disclose confidential information or negotiate on behalf of either party. Their primary function is to assist with the logistics of the transaction without representing one party's interests over the other.
Reference: 254 CMR 3.00 - Agency Relationships; Massachusetts Real Estate Candidate Information Bulletin - Facilitator Role.
NEW QUESTION # 227
Which activity is clearly permitted to a Massachusetts salesperson when properly performed for and under the employing broker?
Answer: C
Explanation:
C is correct. This question repeats a concept appearing elsewhere in the source set, but the wording has been corrected so that only one answer is legally defensible.
Massachusetts permits a salesperson to engage in brokerage activities while affiliated with and supervised by a licensed broker. Advertising listings is part of those activities, but Massachusetts professional standards require real estate advertisements to identify the broker appropriately; a salesperson cannot market brokerage services as though they operate an independent brokerage under their own name.
A salesperson also cannot independently maintain client escrow money. Under 254 CMR 3.00, deposit funds received in connection with a transaction must be turned over to the broker, and the broker has responsibility for the escrow account. Board consumer guidance likewise distinguishes the salesperson ' s authority from the broker ' s control over funds and final transaction responsibility.
Massachusetts statutory definitions allow a salesperson to perform broad brokerage functions but exclude completion of negotiation and require affiliation with the broker. That is why D is incorrect: a salesperson is not simply an independently practicing broker with a different title.
Study Guide Reference: Massachusetts License Law - salesperson duties, broker supervision, advertising and escrow.
NEW QUESTION # 228
Time is of the essence means
Answer: D
Explanation:
The phrase "time is of the essence" is a standard clause in Massachusetts real estate contracts. It means that contract deadlines are legally binding and must be strictly observed. Failure to perform within the time specified constitutes a breach of contract.
It does not mean that the closing must occur "as soon as possible" (A) but rather on the date agreed upon.
C overstates - while performance must be timely, contracts may allow flexibility in exact timing if not specified.
D is incorrect because deadlines may be modified if both parties agree in writing.
Thus, the best legal definition is B: time limits set forth in the contract must be carefully observed.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; M.G.L. c.106, Uniform Commercial Code §2-309 (time requirements).
NEW QUESTION # 229
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