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| Section | Weight | Objectives |
|---|---|---|
| General Real Estate Knowledge | 67% | - Real Estate Practice
|
| Massachusetts Real Estate Law | 33% | - Massachusetts License Law
|
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NEW QUESTION # 218
A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two- car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck.
The ranch house is most likely to sell for around
Answer: D
Explanation:
NEW QUESTION # 219
The broker has a single agency relationship with the seller. The broker will show the property to a buyer who is a customer. The broker must disclose that the
Answer: A
Explanation:
In Massachusetts, when a broker represents the seller, the buyer is treated as a customer (not a client). While the broker owes fiduciary duties to the seller, they also have a duty of honest dealing and disclosure of material defects to customers.
A leaky roof in heavy rains is a material defect that affects the property's value and safety. The broker must disclose it regardless of agency relationship.
The seller's urgency to move (A) and dislike of a neighbor (D) are not material facts.
A positive feature like a lake view (B) may be marketed but is not a required disclosure.
Thus, the correct answer is C: leaky roof.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency & Disclosure; 254 CMR
3.00 (Licensee Obligations).
NEW QUESTION # 220
Dennis has been adjudicated mentally incompetent by a court, and a guardian has been appointed to manage his affairs. Dennis independently signs a contract to purchase a house. What is the usual status of the agreement?
Answer: D
Explanation:
The correct answer is A under the facts stated. Legal capacity is an essential element of contract formation.
Where a court has already adjudicated a person legally incompetent and appointed a guardian with authority over the relevant affairs, the person generally cannot independently enter into a binding contract of the type covered by that guardianship authority.
This is distinguishable from a person who has never been adjudicated incompetent but whose mental capacity is questioned after entering an agreement. Such cases can involve more fact-specific analysis and may result in a contract being voidable rather than automatically void.
The decisive fact in this examination question is the prior judicial adjudication and guardian appointment.
A real estate salesperson has no authority to determine competency or override a guardianship order merely by witnessing a signature. Where capacity is uncertain, the parties should obtain legal advice rather than expect the licensee to resolve the legal issue.
Contract-law examinations regularly distinguish competent parties from minors and judicially incapacitated persons.
Study Guide Reference: Contracts - Competency of Parties, Incapacity, Guardianship and Validity of Contracts.
NEW QUESTION # 221
Which of the following agreements may be enforceable in Massachusetts even if made orally, assuming no other legal defect?
Answer: C
Explanation:
A Massachusetts listing contract may be oral, making B correct. The Massachusetts Board ' s current Contract Law curriculum expressly identifies listing agreements as employment contracts and states that they may be in writing or oral.
The other choices implicate Massachusetts Statute of Frauds requirements. An agreement for the purchase and sale of real estate must generally be evidenced by a sufficient signed writing to be enforceable against the party to be charged. Likewise, an agreement that by its terms cannot be performed within one year falls within the Statute of Frauds; a twenty-year lease therefore cannot rely on a bare oral agreement for ordinary enforceability.
This does not mean oral listing agreements are good brokerage practice. Written agreements provide much stronger evidence concerning price, term, commission, scope of authority, agency relationship, and other duties. Certain brokerage or consumer disclosures also have independent statutory or regulatory requirements and must not be confused with whether the underlying listing employment agreement can technically be oral.
For exam purposes, the Massachusetts-specific rule is clear: listing agreement = potentially oral; purchase/sale of real estate = writing required for enforceability.
Study Guide Reference: Contracts - Statute of Frauds; listing agreements and purchase-and-sale contracts.
NEW QUESTION # 222
A homeowner sells a single-family house and purchases the right to occupy a unit in a cooperative building.
What does the purchaser generally acquire?
Answer: A
Explanation:
The correct answer is B. In a cooperative, the building itself is generally owned by a corporation or other cooperative entity. The resident purchases shares or another ownership interest in that entity and receives a proprietary lease or occupancy right tied to a particular unit.
This differs fundamentally from condominium ownership. A condominium purchaser ordinarily receives a deed to the individual unit together with an undivided percentage interest in common areas.
The cooperative resident therefore becomes a shareholder/member rather than the direct fee-simple owner of the apartment itself.
Monthly cooperative assessments can cover building-level expenses such as maintenance, operating costs, taxes, and underlying financing obligations according to the cooperative ' s governing documents.
Massachusetts recognizes cooperative interests, and Massachusetts tax authority materials acknowledge the combination of cooperative stock and proprietary leases as a distinct ownership structure.
The condominium-versus-cooperative distinction is frequently tested because both provide multi-unit housing but use fundamentally different legal ownership structures.
Study Guide Reference: Property Ownership - Cooperatives, Proprietary Leases and Condominiums.
NEW QUESTION # 223
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