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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A buyer is considering a property in one of the subdivisions of a Planned Unit Development (PUD). The buyer noticed nearby properties having detached garages and workshops. The buyer mentions to their agent that they want to build a detached building on the back of the lot for a home business. There is an HOA for this subdivision. Additionally, there are overarching covenants, conditions, and restrictions (CC&Rs) for the PUD. What actions, if any, should be taken by the broker to assure the buyer can use the property as they wish?

A) Recommend the buyer determine if architectural review requirements exist for the subdivision.
B) Recommend the buyer obtain the current CC&Rs and all current HOA documents.
C) Determine if home business use is allowed in the subdivision.
D) Take no action because other properties have detached buildings.

2. Which of the following best completes the following metes and bounds description? "Beginning at the intersection of Bunker Hill Road and Munson Avenue, thence 150 feet south; thence 85 feet west; thence 150 feet north; thence"

A) 150 feet west to the Point of Beginning.
B) 150 feet south to the Point of Beginning.
C) 85 feet west to the Point of Beginning.
D) 85 feet east to the Point of Beginning.

3. Time is of the essence means

A) the closing must occur as soon as possible.
B) every act under the contract must be performed on the exact date specified.
C) time limits stated in the contract may not be modified, even by mutual agreement of the parties.
D) time limits set forth in the contract must be carefully observed.

4. A broker maintains a trust or escrow account. A $10,000 earnest money deposit is received from a buyer and deposited in the account. Several weeks later and prior to closing, the broker withdraws $7,000 from the account and puts it in an operating account. This transaction is

A) a violation of federal banking regulations.
B) an instance of illegal conversion of funds.
C) permissible if the seller was informed about the transfer of funds.
D) permissible as long as the broker is entitled to at least $7,000 in commission.

5. Which of the following will NOT be considered relevant if HUD investigates a prospective home buyer's allegation of discriminatory treatment by a licensee in a brokerage office?

A) the reports of undercover testers who visited the office
B) whether or not the HUD Equal Housing Opportunity poster is displayed in the office
C) whether the licensee believed they were acting in the best interests of the prospective buyer
D) records of the houses shown and properties suggested to the prospective buyer

Solutions: