Mass Exam Flashcards
A licensed broker procures a ready, willing and able buyer for his or her seller-principal. The seller first accepts the buyer’s offer in writing and then experiences a change of heart and withdraws the original acceptance. In this situation, the broker:
is entitled to collect a commission, because the seller accepted the offer. If the buyer had changed his mind, then the broker would not be entitled to earn a commission.
A R/E company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller’s property. Can this occur?
Yes, as long as both the buyer and the seller give their consent to dual agency.
The Listing agreement with a seller has expired, and the seller lists with a different brokerage firm. The original listing agent now has a buyer interested in the seller’s property. The original agent:
cannot disclose to the buyer any offers received on the seller’s property while it was listed with him.
A R/E salesperson has been working with buyer-customers. After helping them negotiate for their dream home, the buyers as the salesperson if she can help them secure a mortgage. The salesperson knows a lender that pays a fee for referring purchasers to them. Should the salesperson refer the buyers to this lender?
NO!, salespeople are not allowed to receive compensation from anyone other than their employing broker.
A buyer contacts a R/E office and indicates an interest in purchasing a home in the area. without entering into a buyer agency relationship with the buyer, a salesperson from the R/E office can not:
Advise the buyer on how much to offer. A salesperson working with a customer can’t advise the buyer on how much to offer. To do so would indicate or imply some form of representation. The salesperson can provide a customer with information on properties for sale in the area and mortgage interest rates and terms, and also discuss various agency options.
A buyer prospect is interested in seeing a house listed with a R/E co, but does not wish to enter into a buyer agency agreement. A salesperson form the R/E co can show the buyer an in-house listing if the
salesperson provides the buyer with a Massachusetts Mandatory licensee-Consumer Relationship Disclosure saying that the R/E co represents the seller.
In MA, and exclusive-right- to buy contract
Whatever type of agreement is entered into, the parties must clearly be defined and exclusive-right-to-sell agreement obligates the seller an exclusive-right to buy obligates the buyer
Buyer-Brokerage contracts in MA
Should be in writing. The buyer brokerage contract is an employment or personal service contract and should be in writing. in order for contracts in MA to be enforceable, they must be in writing.
The MA Mandatory Licensee Consumer Relationship Disclosure form shall be provided to a prospective purchaser or seller of R/E:
at the first personal meeting for the specific purpose of discussing the property. Any time after that is TOO Late!
What are the types of agency recognized in MA?
Seller’s, Buyer’s, subagency, disclosed dual & designated agency are all recognized in MA.
In a dual agency situation, a broker may collect a commission from both the seller and the buyer if:
Both parties must give their informed consent to the dual compensation.
The MA Mandatory License Consumer Relationship Disclosure Form does what?
Discloses the relationship between the licensee and the consumer as well as the company’s business model.
A buyer is interested in seeing a house listed with XYZ Realty but does not wish to enter into an agency relationship. A salesperson from MLN Realty can show the buyer the house if:
The buyer has just indicated that he or she does not desire representation. The seller must give permission for subagency. At that point, the salesperson can show the property to the unrepresented buyer while representing the seller.
A property condition Statement is required? True or False
False, MA is not a mandatory disclosure state
Because MA does not require a Property Condition Statement
if a seller chooses to provide a disclosure of Property Condition Statement she must disclose all she knows about the property.
The seller has no knowledge of any plumbing system problems on the property she is selling. In actuality, however, the pipes are seriously corroded and will need to be replaced soon. In the seller property condition disclosure, when responding to weather the seller has any knowledge of plumbing system problems, she should respond:
NO! Because she had NO knowledge of at the present time.
In MA, when a broker is listing a home and asks the seller to complete a property condition disclosure, which is true?
MA is not a mandatory property disclosure state. If teh seller agrees to fill out eh disclosure form, the agent should encourage the seller to be honest and disclose known problems.
The salesperson represents the seller in a transaction. When prospective buyers ask to look at the property, the salesperson must:
Disclosure must be made early on so that the buyer understands that he or she is not being represented. Buyers do not have to be represented to work with the seller’s agent. Such disclosure must be made in writing on the mandatory MA Mandatory Licenssee-Consumer Relationship Disclosure Form.
Five years ago, Unit 5Bin a condo community was the site of a brutal and highly publicized murder. The unit sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. As the agent for the woman’s estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B?
You cannot disclose the AIDS-related death; however, if directly asked you must disclose the murder.
A broker took a listing for a small office building. Because property is in excellent condition and produces a good, steady income, the broker’s salesperson wishes to buy this property, the salesperson must:
The salesperson will have to inform the owner in writing that he or she is a licensee before making the offer. The salesperson does not have to resign and notify the R/E commission, definitely should NOT use a third party.
6 Months after the buyer bought the house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to tell prospective buyers. The broker claims that the buyer did not ask about the roof and therefore is not responsible. Under these facts, the buyer:
Can sue the broker for non-disclosure of a material fact as required by Chapter 93A of the CPS. The broker is required by law to disclose any fact that would materially affect the buyer’s decision to purchase a home. The fact that the buyer did not ask is irrelevant. Under Chapter 93A, the buyer can not sue the seller!
A R/E licensee must give a Massachusetts Mandatory Licensee-Consumer Relationship Disclosure Form to a prospective pruchaser
When face-to-Face with a prospective purchaser before they discuss a specific property.
A R/E licensee has signed a buyer brokerage agreement with a prospective purchaser who is looking to buy a home. The licensee does not charge a fee to the prospective purchaser; rather, the licensee will receive a commission from the seller. The licensee tells the seller that the prospective buyer could probably pa a somewhat higher amount than the seller is asking. Which of the following is true?
The licensee’s disclosure violated the statutory duties owed to the buyer! Representation is by who does the hiring not who pays the fee.
Under the MA Stigmatized Property Law, a R/E agent has no affirmative obligation to disclose
The MA stigmatized Property Law pertains to ghosts, murders and suicides. UFFI is a separate disclosure. Divorce is confidential in nature until published, and a foreclosure once published is public information
A licensed salesperson obtains a listing. Several days later, the salesperson meets prospective buyers at the property and tells them, “I am the listing agent for this property, so I’m very familiar with it” Under these circumstances, the salesperson:
The salesperson has failed to properly disclose his or her agency relationship. Agency representation is not about the property, but the duties and obligations to a client and a customer.
A R/E broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker must disclose:
The broker must disclose the cracked foundation-this is a material defect. Disclosing the suicide without being asked is not required.
A broker has entered into a listing agreement with the seller. Another broker, who has been working with the buyer, learns of the property through MLS. The cooperating broker must identify whom he or she represents:
The cooperating broker who takes a buyer to see another company’s listing must identify who he or she represents prior to showing the property.
When a broker represents the seller of R/E, a MA Mandatory Licensee-Consumer Relationship Disclosure Form must be given to the:
Purchaser at the first personal face-to face meeting
The Realty Co has entered into agency agreements with both a seller and a buyer. The seller and the buyer have signed the Dual Agency Consent Agreement. The salesperson with the Realty Co had been working with the buyer. The salesperson may:
The salesperson may provide comparable market data to the seller after the buyer requests and receives such data from the salesperson. The dual agent may not disclose the buyer’s financial qualifications to the seller, disclose to the buyer that the seller will accept less than the listing price, or disclose to the seller that the buyer will pay more than the offering price.
A broker decides to “sweeten” an MLS by making a blanket offer of subagency. Is the broker’s action acceptable?
The broker’s offer is acceptable providing the seller agrees to subagency in writing. The seller must understand and consent to the vicarious liability that goes with the offering of subagency. The language from the agency regulation must be used to obtain the consent.
A brokerage’s relationship as an agent with a buyer or seller must be determined and all necessary agreements executed
The brokerage relationship as an agent with a buyer or seller must be determined and agreed upon prior to the time that a contract to purchase is formulated.
Under the new brokerage relationship Regulation, which became effective July 1, 2005, a co may practice which of the following relationships?
The new brokerage relationships regulation defines and allows for the practice of buyer agency, seller agency, designated agency, disclosed dual agency and facilitation.
A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale. The co practices designated agency. Which is true?
If the co practices designated agency and a co buyer client is interested in purchasing a home listed by another agent in the co, then with written consent and notice to both parties each agent can continue to fully represent his or her client. The broker would be a dual agent.
In MA, Chapter 93A of the Consumer Protection Law requires that the:
the broker disclose material information that might affect the buyer’s decision in purchasing a property even if the buyer does not ask. The broker is not obligated to disclose everything that the seller tells him or her. Some information must remain confidential.
During a home inspection, the listing agent notices an underground oil tank. What should the agent do?
The listing agent must notify the prospective buyer of the existence of the underground oil tank.
While showing a prospective purchaser a property, the selling agent must:
Under MGL Chapter 93A agents are prohibited from with holding any information that might affect the buyer’s decision in purchasing a property even if the buyer does not ask for it. The broker is no obligated to disclose the seller’s motivation for selling and should not embellish information in order to get the buyer to make an offer.
Under the MA Home Inspection Law, a R/E agent must:
give the buyer a copy of the Home Inspector “Facts for the consumer” brochure
Consumers in MA are protected from fraudulent misrepresentation and the unscrupulous behavior of a R/E agent by MA General Laws:
Chapter 93A.
In MA, the R/E license law is administered by the
The Board of Registration of R/E Brokers and Salespersons administers the R/E license law.
How are members of the Board of Registration of R/E Brokers and Salespersons selected?
The governor makes the appointments with the advice and consent of the Governor’s Council. The Association of REALTORS is a trade association and neither it, nor the public elects the Board members.
The Board of Registration of R/E Brokers and Salespersons has the authority may not:
administer the exams given at the testing sites. The board may make rules or bylaws, not inconsistent with the law, as it may deem necessary in the performance of its duties. It also administers the laws. MGL Chapter 13 section 87SS states that examinations shall be prepared by the board or a designated independent testing service.
The MA Board of Registration of R/E Brokers and Salespersons may undertake an investigation of a licensee based on all of the following grounds:
The board may not initiate random investigations of licensees. There must be some valid reason!
In MA, who of the following would need to be a licensed R/E broker or salesperson?
The designated officer of a R/E co must hold a broker’s license.
Which of the following activities requires a R/E license?
Matching individuals who want to exchange properties and charging a fee or commission requires a R/E license. Court appointed persons are not required to have a R/E license
MA Law requires owner-brokers to
display a copy of his or her license in a conspicuous location that is readily observable to the general public.
Under MA licensing law a partnership, association, or corporation will be granted a license only if:
the designated partner or officer of a partnership, association, or corporation must first have a broker license before a license can be issued to the corporation. Filing papers with the Secretary of State is a requirement for incorporation, not R/E licensing.
Engaging in the R/E business” consists of acting for another and for a fee in all of the following activities:
Listing R/E, Selling R/E, and negotiating R/E. Reselling a mobil home is personal property and a salesperson selling it does not require a R/E license in order to offer it for sale.
If engaged in R/E activities, which of the following persons are exempt from having to pass the RE exam?
Attorneys at law are exempt from having to pass the RE licensing exam. However, they must apply for a license in order to engage in RE activities. If engaging in RE activities Appraisers, Real property securities dealers, and associations, and partnerships must take the exam before applying for a RE license.
An office manager for a local RE firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. This office manager is
performing non RE activities and therefore is exempt from licensing requirements.
In MA, applications for any RE license must:
be completed before taking the written exam.
in MA an applicant for a broker license must:
be of good moral character, actively engaged as a licensed salesperson full time for one year, completed 30 hours of approved RE courses and be at least 18 years old.
A person successfully completed his RE education requirement on November 1, 2005. What is the date on which this person may apply for a salesperson license?
November 1, 2007. The applicant has two years from the date of completion of the required classroom hours to apply for his license.
3 Weeks before N begins his RE pre licensing class to obtain a salesperson license, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5% commission. An offer is accepted while N is taking the class and closed the day before N passes the examination and receives his salesperson license. The neighbor refuses to pay N the agreed-upon commission. Can N sue to recover payment?
The licensed sales person cannot sue the seller. The injured party must have had an active license at the time the agreement was reached. Only a licensed broker can sue a seller.
Which of the following persons must have a RE Broker license in order to transact business?
A person does not need a RE license to sell personal property, but does need one to sell buildings for a fee.
An applicant for a RE license in MA must
An applicant for a RE license in MA, upon passing the license exam and paying the processing fee, automatically received her license. Must be 18, does not have to go to college. Is required to complete 40 hours of classroom training in an approved school by an improved instructor.
An unlicensed individual who engages in activities for which a RE license is required is subject to which of the following penalties?
The Maximum fine is $500. No penalty of imprisonment is required.
When does a RE salesperson licenses expire in MA?
All licenses must renew their licenses every two years on their birthday
To renew an active license in MA a salesperson or broker Must:
must complete 12 hours of continuing education every two years.
A licensee who allows his or her license to expire has how long to reinstate the license without monetary penalty?
Any license renewal sought after license expiration ust be on the form provided by the Board and prior to the end of the one year grace period. Licensees also must verify to the Board’s satisfaction completion of the 12 hours of required continuing education and they must also pay the prescribed fee.
In MA licenses are renewed
every two years on the licensees birthday
After the first renewal, what mandatory classes are required to renew an active salesperson’s RE license?`
12 Hours of Board approved curriculum are required.
Regarding an inspection report on out-of-state property,
The Board of Registration issues a written report.
The cost of any inspection for the promotion of out-of-state real property is paid by the:
The owner or developer is responsible for the cost of any inspections by the Board.
In Ma an unlicensed RE assistant may preform many activities. However, the personal assistant must hold a RE license to:
explain simple contract documents to prospective buyers
Regarding licensing and duties of personal RE assistants in MA the
may insert factual information into form contracts under the employing broker’s supervision and approval
The broker’s unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant’s extra work included making several phone calls to the prospective buyers encouraging them to accept the seller’s counteroffer. Largely because of the assistant’s efforts, the sale went through with no problem. Now the broker wants to pay the assistant a percentage of the commission “because the assistant has really earned it”. Under MA Law the broker may,
not pay a commission to the assistant under the facts presented here.
For a person to obtain a MA reciprocal RE License, he or she must:
be licensed in a state that extends the same privilege to licensed MA RE brokers and salespersons
A nonresident license applicant must provide the Board with a
letter of good standing from the regulatory agency of the state in which they are licensed.
How are members of the MA board of Registration of RE Brokers and salespersons selected?
The members of the board of registration are appointed by the governor and approved by the council
The MA Board of Registration of RE Brokers and salespersons
The board makes and enforces rules but cannot pass any laws. An executive director administers the operations of the Board. The exams are written under the supervision of the Board and administered by an independent testing company. The Board does not supervise the state ass of REALTORS which is an independent trade association.
The on-site property manager for Acme Apartments is responsible for negotiating leases for the apartments. In this position, the on-site manager
is exempt from the licensing requirements.
Who of the following is NOT exempt from the provisions of the MA RE License Law and must have a RE license to preform the activity?
Individuals who receives compensation for procuring prospective buyers or renters of RE
An individual wants to sell her own house. Regarding RE licensing:
she does not need a re license to sell her house by herself
Which of the following is a requirement to obtain a RE salesperson license in MA
Successful completion of 40 hours of RE classroom hours in general principles of RE
Which of the following situations would satisfy the annual CE Requirement in MA
Taking the 30 hour broker course
to obtain a brokers license in MA a salesperson must do all of the following execpt
an applicant is not required to complete 125 transactions. The applicant must be currently employed or affiliated with a licensed RE broker for a minimum of 25 hours per calendar week under the supervision of a broker. Also, a salesperson must be employed or affiliated with a licensed RE Broker full time for at least one year and attend 30 classroom hours of additional education.
To renew an inactive license in MA, one must
The only requirement to renew an inactive license is to pay the prescribed fee
A broker who holds a MA license by reciprocity, but whose home state is NH, will be exempt from the requirement that he or she maintain a definite place of business in MA if all of the following factors are met:
To obtain a reciprocal license, the out-of-state broker must maintain an office in NH, maintain an active broker license in the state of NH, provide a written statement appointing the Board as his or her MA agent for service of process, and agree to abide by the provisions of the license.
A person must be licensed as a RE broker or salesperson if that person is:
engaging in RE Business and selling homes for a fee.
In MA, which of the following is legal and NOT grounds for revoking a broker license?
Agreeing with a seller to accept a listing for more than the normal commission rate. Commission rates are always negotiable between the seller and the broker.
Commingling of funds is illegal.
No false advertising is allowed
and if convicted of a felony your license may be revoked.
For which of the following acts is the Board of Registration of RE Brokers and Salespersons required to suspend or revoke a licensee’s license?
The Board is specifically required to suspend or revoke a licensee’s license if MCAD has made a final finding that a licensee has committed an unlawful practice in violation of MGL Chapter 151B arising out of , or in the course of , his or her occupation as a licensed broker or salesperson. The Board of Reg may suspend or revoke a license for inducing any party to a contract to break the contract when such action is effected for the personal gain of the licensee, commingling monies or acting in the dual capacity of broker and undisclosed principal in the same transaction.
In MA, which of the following is a proper action and will NOT lead to a broker having his license suspended or revoked?
Depositing earnest money into the firms escrow account
For which of the following acts is the Board of Registration required to suspend or revoke a licensee’s license?
The board is specifically required to suspend or revoke a licensee’s license if MCAD has mad a final finding that a licensee has committed an unlawful practice in violation of MGL Chapter 151B arising our of, or in the course of his occupation as a licensed broker or salesperson.
Which action is legal and is NOT a violation of license law?
Placing a for sale sign with the seller’s written permission in front of the house after listing the property.
A licensed RE broker can
provide an opinion on a property’s value
Salesperson J_H placed the following order with the telephone company: “List my name i the directory under the heading “RE as J_H RE Salesperson, Residential Property MY Specialty.” J-H is also required to include:
the name of her employing broker.
