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| Section | Objectives |
|---|---|
| Massachusetts State-Specific Real Estate Law | - Real Estate Practices in Massachusetts
|
| National Real Estate Principles & Practices | - Property Ownership
|
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NEW QUESTION # 43
A buyer and a seller have a purchase agreement that contains a home inspection contingency. The buyer has applied for a VA mortgage. After the home inspection is completed, the buyer writes an addendum requesting that the seller pay to repair several items found by the home inspector. The seller counters the addendum by requiring that the buyer agree that the repairs will be made, but that no further expenses will be incurred by the seller. The VA appraisal inspection has not been conducted. Under these circumstances, which of the following is correct?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (150-250 words):
In this scenario, the parties have entered into a binding purchase agreement with a home inspection contingency. The buyer submitted an addendum requesting seller repairs, but the seller countered. Since the buyer has not yet accepted, the counter is not binding - therefore, the original contract remains in effect until both parties agree to a modification.
Additionally, because the financing is a VA loan, the VA still requires a VA appraisal (separate from the buyer's home inspection) to determine value and minimum property requirements. The VA inspection cannot be waived by substituting the home inspector's report.
Thus, the correct answer is B: the original contract is still in effect.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; VA Loan Program Guidelines.
NEW QUESTION # 44
A seller is selling a Massachusetts residence constructed before 1978 to buyers who have a four-year-old child. Which statement is correct?
Answer: C
Explanation:
C is correct. Massachusetts requires sellers and real-estate agents involved in sales of qualifying pre-1978 residential properties to provide prospective purchasers with the Property Transfer Lead Paint Notification before execution of the purchase-and-sale agreement. Known lead information and applicable reports must also be disclosed.
The seller is not automatically required to delead the property merely as a condition of selling it. The prospective purchaser also has an opportunity-generally ten days unless modified by agreement-to conduct a lead inspection but is not automatically required to perform one.
Where a child under six will live in the pre-1978 home, the new owner has substantive Massachusetts Lead Law obligations. Current Massachusetts guidance states that the property must be made lead safe through deleading or interim control as legally required, generally within 90 days of taking title in the circumstance described.
Study Guide Reference: Massachusetts Lead Law - Property Transfer Lead Paint Notification and purchaser inspection rights.
NEW QUESTION # 45
A home is publicly offered for $198,750. When an African American couple asks about the property, the broker tells them the price is $210,000 solely because of their race. Is this lawful?
Answer: C
Explanation:
The correct answer is C. Race is a protected characteristic under federal and Massachusetts fair-housing law.
A broker cannot impose different prices, terms, or conditions because a prospective purchaser belongs to a particular racial group.
Massachusetts law prohibits refusing to sell or otherwise discriminating in housing terms and conditions based on race, color, religion, national origin, sex, marital status, and numerous other protected classifications.
The seller ' s approval would not make discriminatory conduct lawful. A real-estate licensee cannot escape legal responsibility by claiming to follow a client ' s discriminatory instructions.
This conduct differs from steering, which involves directing consumers toward or away from neighborhoods based on protected status, and from blockbusting, which involves inducing owners to sell by exploiting fear about protected groups entering an area. Here the discriminatory act is unequal pricing and terms.
Study Guide Reference: Practice of Real Estate - Fair Housing; Race Discrimination and Unequal Terms of Sale.
NEW QUESTION # 46
When real estate brokers and salespersons engage in renting residential dwelling units, they must provide a prospective tenant with written notice of the
Answer: D
Explanation:
Under M.G.L. c. 112, § 87DDD½, Massachusetts law requires real estate brokers and salespersons engaged in renting residential property to provide prospective tenants with a written notice stating the amount of any broker's fee, and whether the tenant will be responsible for paying it. This disclosure must be made before the tenant is obligated to pay any fee.
This law protects tenants from unexpected costs and ensures transparency in rental transactions. While rental amount, landlord details, and public information such as the state's sex offender registry may be relevant, the statutory requirement specifically addresses broker compensation. Failure to provide this written notice may result in disciplinary action by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons.
Reference: M.G.L. c. 112, 87DDD½; 254 CMR 7.00.
NEW QUESTION # 47
How long must Massachusetts brokers generally retain copies of escrow checks required by Board regulation?
Answer: A
Explanation:
The correct answer is C, Three years. Massachusetts Board curriculum and regulations require specified escrow documentation, including copies of escrow checks, to be retained for a three-year period.
This recordkeeping requirement enables the Board to reconstruct the handling of money if a transaction becomes disputed or a complaint is filed. Proper records can establish when a deposit was received, where it was placed, whether it remained properly segregated, and how it was eventually disbursed.
The three-year regulatory rule should not be confused with general recommendations to retain some contractual records longer because the statute of limitations for certain contract claims can exceed three years.
Board seller-agency curriculum, for example, recommends longer retention of contracts even though the mandatory disclosure forms and escrow-check copies have a three-year regulatory retention period.
Study Guide Reference: Massachusetts License Law - Escrow and Transaction Recordkeeping.
NEW QUESTION # 48
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