Flashcards in Mass Exam Deck (215)
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:
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.
A broker who wishes to place a For Sale sign on a listed property must first
obtain the written consent of the owner of the property
When advertising real property, RE licensees:
All advertising must be made in the name of the employing broker. The ad does not need to list a box number, street address, telephone number or identify the owner.
A RE salesperson decides to sell his own property without using a broker. The salesperson:
The licensee must disclose the fact that he holds a RE license. The FSBO licensee obviously will not need to include information about the employing broker.
A broker has developed a Web site advertising the broker's office. What, if anything, does the broker need to include?
Each screen of the Web site must include the name of the brokerage, the office address, and the states where the brokerage holds licenses.
A salesperson has developed a Web site, What, if anything, does the broker need to include?
Each screen of the Web site must include the name of the brokerage, the office address, and the states where the brokerage holds licenses.
Listings based on a "net price" are
illegal in MA at any time
The seller told the broker that she wanted to clear $50,000 when she sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000 to the seller and kept the rest,
This is illegal it is a net listing and the broker should have walked away.
In MA, a broker's commission:
negotiable between the seller, buyer and broker.
Commissions earned by a broker in a Re Sales transaction:
are determined by agreement of the broker and the principal.
All funds received by a broker on behalf of his or her principal must be deposited an escrow or trust account:
Immediately Other peoples money, such as earnest money and security deposits held during the pendency of a transaction must be deposited immediately!
A broker received an earnest money deposit from a buyer. Under MA law the broker should
The broker must immediately deposit the buyer's funds into an escrow account the may contain money from other customers and clients. Detailed record keeping is required
The broker received a buyer's earnest money check for $5,000 and immediately cashed it. At closing the broker handed the seller a personal check drawn on her own bank account for $5,300, representing the original earnest money plus 6% interest. The broker:
Should have deposited the money in an escrow account and should have discussed the interest with the parties.
If a broker establishes an account t hold money belonging to others:
A broker does not need to open a new account for each earnest money received; however, the broker must keep careful records to accurately account for all funds and maintain a copy of each check for a period of 3 years. The account may be in the same bank as other accounts owned by the broker.
All of the following are requirements for escrow account record keeping:
the date of the deposit and from whom the broker received the monies
the date of the deposit and the check number
the date of withdrawal and the name of the person receiving the monies.
The salesperson may NEVER hold escrow funds!`
Upon obtaining a listing a broker of licensed salesperson is obligated to:
The licensee is obligated to give the seller signing the listing a legible, signed, true and correct copy. Other brokers are not required to participate in marketing. Advertising or numbering the files is not required.
The seller listed his house for sale with the broker on Feb 1. The listing agreement was to last five months. In April, the seller decided that the house was no longer for sale. Which of the following is TRUE:
The listing agreement may be canceled by agreement of both parties. The Board of Registration will not be involved.
In MA, brokers and salespeople who are not lawyers may:
Fill in blanks on preprinted forms contracts customarily used in their community.
A salesperson engaged in activities that constitutes violations of MA Fair Housing Law know as MA General Law (MGL) Chapter 151B. In addition to the actions taken by the court, the Board of Reg must suspend the license of the salesperson for a period of how many days for the first offense?
60 days for the first offense (two Months)
A person who believes that he or she has been illegally discriminated against may file a complaint with the
Fair Housing complaints are generally directed to HUD or the MA Commission Against Discrimination. REALTOR organizations and the attorney general do not receive discrimination complaints.
A person feels that discrimination has taken a place. A complaint must be filed with the MA Commission Against Discrimination within:
one year. A person has one year to file a complaint with the MCAD
A buyer wants to have a clause included in the sales contracts in which the seller offers assurances against the existence of werewolves, vampires, and trolls on the property in MA:
only a licensed attorney may prepare a clause for inclusion in the sales contract. Salespeople should be careful to avoid the unlawful practice of law by writing such a clause.
A Ma RE salesperson may lawfully collect compensation from:
his or her broker only!
What are the procedures that a salesperson must follow when the salesperson decides to terminate his or her affiliation with eat employing broker:
When leaving his or her employing broker, the salesperson must promptly give written notice to the Board of Registration. The broker is also responsible for notifying the Board of Reg of any termination of relationship at the time such relationship is terminated.
A licensed salesperson may hold a concurrent license with more than one MA broker under which of the following circumstances:
Never, a salesperson may only be associated with one broker.
Several weeks after a closing, an associate broker received a thank-you and a nice bonus check from the seller of the house. The associate broker cashed the check because he felt it was earned. in this situation, which of the following is true?
Accepting the money is a violation of MA RE license Law and Regulations.
When a broker acting as a sole proprietor has his or her license suspended for two years, what effect does this have on the salespeople affiliated with the proprietor?
If the broker's license is suspended or revoked, all salesperson's licenses are returned to the Board on inactive status, each must find a new broker with whom to affiliate.
In any RE sales transaction that a broker negotiates, the broker is NOT required to:
The broker my not offer a title opinion, which could be construed as an unauthorized practice of law. License Law requires that all parties are provided with a copy of the agreement and that all terms are included in the agreement. State law requires that these documents be retained for 5 years.
All of the following are necessary for a broker to be entitled to a commission:
A ready, willing and able buyer
the buyer and seller must sign a contract to purchase
and a closing must occur, unless prevented by the wrongful conduct of the seller.
Every MA RE office is required to:
State law requires that brokers keep escrow records for at least 3 years. There is no requirement that a broker must empty a salesperson. There are many one person offices.
Under the terms of a sales contract, the seller is required to provide a termite certificate The seller requests that the salesperson order one. The salesperson does so knowing she will receive a referral fee from the pest control company . Is this violation of the license Law?
YES--A salesperson may not receive a referral fee.
An ailing pilot told a broker about some friends who were looking for a new home. The broker contacted the friends and eventually sold them a house. When may the broker pay the airline pilot for his lead?
Only if the pilot holds a valid RE license and only after the closing.
A broker is convicted on May 1 of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the Board of Reg and leaves a message informing the board of the conviction. Based on these facts, which of the following is TRUE:
The Board must be notified within 30 days of conviction. Both the conviction and the broker's failure to notify the board within 30 days violated regulation.
A buyer has just entered into a contract to buy a condominium unit from a person who originally bought the unit from the developer and has lived there for the past ten years. This new buyer has a right to cancel the contract within:
The buyer does not have the right to cancel the contract in this situation. A buyer has the right to remind the contract only when purchasing from the original developer and then only within five days of receipt of the contract.
In a RE sales transaction, the broker's commission
Must be stated in the listing agreement and is negotiated between the broker and seller
State law requires that a preprinted offer to purchase that is intended to become a binding contract have which of the following headings?
The law requires the phrase "RE Sale Contract" be in Capital letters to avoid confusion to the consumer Offer is too vague and may be confusing.
A broker wants to list a property but is getting a lot of competition from other brokers who also would like to list it. The broker offers the seller the following inducement to sign his listing agreement: "I'll buy your property if it doesn't sell in 90 days." With this inducement, the broker must to all of the following:
The agreement said if it doesn't sell in 90 days so the broker is not obligated to buy it until the 90 day expiration. The broker must indicate all terms and special considerations so that the seller is fully informed and not surprised. The broker must be able to substantiate his offer to purchase.
A broker has obtained an offer to purchase a residence that is listed with his firm. After the buyer sign a purchase and sales agreement and the broker accepts their earnest money deposit, the broker must:
The broker must immediately provide the buyers with a copy of the agreement as a receipt for their deposit.
The amount of commission due to a real estate broker is determined by
mutual agreement between the parties.
In MA, the age of legal competence is
In MA, what disclosure(s) is required of an agent when selling a home built prior to 1978?
They must provide the buyer with the "lead paint packet" and the Property Transfer Notification certification form, and must have a verbal discussion with the buyer about the dangers of lead paint poisoning.
Unclaimed estates escheat to the state after a period of
A couple wit a five year old son lives in their own home in MA. Knowing their house contains some surfaces with lead paint, the couple had their son tests for elevated blood levels. The tests showed he had no lead in his system. Does MA law require that the parents take any action to remove the lead paint from their home?
MA lead law requires owner to bring a residential property into compliance with the lead law if a child under the age of six will reside in the house.
The Interstate Land Sales Full Disclosure Act regulates the sale of:
The Interstate Land Sales Full Disclosure Act regulates the sale of unimproved lots.
A homeowner has a mortgage loan secured by real property. Under MA law, the homeowner may terminate the private mortgage insurance when the remaining balance is equal to or less than what percentage of the original amount?
With good credit, the remaining loan balance must be 80 percent or less of the original loan amount before the homeowner can terminate private mortgage insurance.
Two years ago, a homeowner obtained a 30-year mortgage loan to purchase a home. The interest rate on the loan was 9.275%. Today, the homeowner is prepared to pay off the loan early. Based on these facts, which of the following statements is TRUE in MA?
The prepayment penalty may not exceed the balance of the first year's interest or three months interest, whichever is less.
In MA, when RE is transferred by deed, the deed must be:
be acknowledged for recording at the Registry of Deeds
All of the following are title search methods commonly used by an attorney in MA:
Title search and opinion
Certificate of title
A land court certificates are a result of a search, not a method of search.
The purpose of the MA "anti-snob" law is to:
ensures that local zoning ordinances do not bar low-income and moderate income housing.
In MA, the responsibility for preparing any promissory notes involved in a closing belongs to the:
The lender is responsible for preparing any promissory notes.
A sales contract is signed on May 1. Closing takes place on June 10, and the deed is recorded on June 15. The borrowers first payment is due on August 30. When is the soonest that the broker can receive his or her commission check?
June 15th. The broker receives the commission check when the deed is recorded and funds are disbursed.
In MA, prior to closing, who is responsible for calculation the protons between the buyer and seller, searching the title, and preparing the mortgage note?
the closing attorney is responsible for calculating the prorations, title search and note preparation.
The broker may preform all of the following in preparing for the closing:
The broker may maintain the time schedule,
explain closing procedures,
coordinate inspections, and
deliver documents and escrow monies.
They may however NEVER conduct a title search as this may be construed as the unauthorized practice of law.
A husband is survived by his wife and their two daughters. The couple's joint property is worth $50,000; in addition, the husband owns another home valued at $150,000. Because the husband died suddenly without leaving a will, the wife:
The wife receives all of the joint property and half of the separate property. The children equally divide the remainder of the separate property, in this case $37,500 each.
A nephew was a witness to his uncle's will. When the will was read after the uncle's death, the nephew discovered that he was a devisee his uncle's will. Which of the following is true?
The witness cannot also be a devisee: the devise is void.
A husband thought wills were unlucky, so he never had one made. Last week, he was killed in a car accident. He is survived by his wife and two adult children. How is the husband's estate divided?
The wife receives one half of the estate, and the remainder is divided equally between the children.
After the payment of all taxes and debts, the decedent left an estate valued at $800,000. She had no surviving husband, but she had 3 children. The first son died shortly after his mother did, leaving two children, one which is adopted. The daughter has 3 children and the remaining son has 2. The decedent did not write a will. How is her property divided?
the daughter and remaining son each take $266,666. and the first son's children each take $133,333. The property will not escheat to the state since there are living heirs.
How old must a citizen of MA be before he or she may prepare a legally binding will?
18 is the age of majority without exception.
How many witnesses in the presence of the person making a will must sign it to fulfill the legal minimum?
Two witnesses must sign in the presence of the person making the will
A married couple are MA residents and have filed a homestead on their property. If their co-owned home is sold in order to satisfy their unpaid credit card debts, how much will the creditors receive if the property sells for $350,000?
The creditors will receive $50,000. The homestead provides a protection of $300,000 per residence.
how much of an estate of homestead is an individual entitled to in his or her MA residence?
They are entitled to a life estate in the land and buildings occupied as their principal residence as a protection against attachment, levy on exception, or sale to satisfy debts to the extent of $300,000 per residence.
Which of the following is a True statement regarding the homestead right in MA?
The homeowners, surviving spouse and minor children have a life estate. The mortgage is exempt from the debt.
The purpose of the homestead exemption is to:
protect a person's equity in his or her home.
A single parent with 3 young children owns a house worth $75,000. What is the total maximum value of the homestead exemption?
The maximum value of the homestead exemption per residence is $300,000
Which of the following statements concerning the homestead exemption is correct?
The homeowners filing for homestead exemption does not necessarily indicate financial difficulties
Which of the following legal life estates could be available to a surviving husband in MA?
Dower now refers to both the husband's and wife's future interest in the deceased spouse property.
The principal method of delineating property boundaries of legal descriptions in MA is known as the
The primary method of describing property in MA is metes and bounds.
In MA, all of the following are commonly used as monuments:
Granite Blocks or Boulders
Farm animals are not!
Which of the following legal descriptions are used in MA?
Metes and Bounds
MA does not use the government rectangular system
All of the following constitutes proper legal descriptions of parcels of RE in MA:
Metes and Bounds
MA does not use the government rectangular system
A homeowner contacted with ABC construction co to put a new deck on her house. they began work on May 1 and finished on June 1, but is was never paid. On July 1, the homeowner sold her house to a buyer, who received a mortgage loan from Country Bank and a mortgage from City Bank. City Bank recorded its mortgage on July 1. Country Bank recorded it's mortgage on July 2. ABC construction Co recorded a mechanic's lien on July 3. What is the priority of the liens?
The Mechanic has 90 days to file the lien, which begins on the date of completion of construction. Thus the mechanic's lien is first, then the mortgage co as recorded.
For 3 days, a property owner watched from his kitchen window as a small construction crew built an attractive gazebo in his back yard. The owner had not contracted with anyone to build a gazebo and in fact had never given much thought to having one. But the homeowner liked what he saw. When the contractor presented the homeowner with a bill for the work, the homeowner refused to pay, pointing out that he never signed a contract to have the work done. Can the contractor impose a mechanic's lien on the homeowner's property under MA Law?
Yes, when a landowner knows work is being done on his or her property and does not object or disclaim responsibility, a mechanic's lien may be created.
To Claim a mechanic's lien for materials supplied, a supplier must file a notice of the lien in the public record within:
90 days of supplying the materials.
Once a judgement is rendered, a creditor on the judgement must enforce it within
a creditor must enforce a judgement within 20 years.
If a minor enters into a contract in MA, what is the statutory period within which he may legally void the contract after reaching the age of majority?
There is no statutory period, A contract signed by a minor may be voided at any time in the future.
In MA, the prescriptive period to acquire an easement is:
continuos, open, and notorious use must be established for 20 years to establish an easement by prescription in MA
An easement that has not been re-recorded in the last 50 years is
in the state of MA, the prescriptive period to acquire title to Real property by adverse possession is:
Continuous use, hostile to the owner, must be established for at lease 20 years to acquire title by adverse possession.
To acquire land by adverse possession requires the land"
without out eh owners permission for at least 20 years
Who of the following has a license and therefore is not entitled to a claim of adverse possession?
A revocable license is given when the owner permits someone to enter an orchard to pick apples. No time frame is built up for a license. the license can be revoked at any time. Time periods can be established to lead to adverse possession or easement by prescription, even by a person who tacks on years to another persons adverse possession.
A neighbor has a ten-foot easement through W's forested lot of the purpose of walking to the bank of the river. The neighbor widens the path to 14 feet to accommodate his truck so he can launch his boat. W is furious. Which of the following is true?
The new use is hostile and if not stopped within 20 years , could become an easement by prescription.
With respect to leases for terms in excess of one year, the landlord may record, instead of the actual lease a
notice of lease, instead of the lease itself.
A couple has signed a lease containing a provision to waive their rights to the interest earned fro the security deposit. This provision is
In MA the provision is unenforceable, but the lease is still valid.
When should the landlord first present the rules and regulations for tenants of leased property?
The landlord should present the rules when the tenant is entering into the rental agreement or whenever the rules are adopted. Waiting until they are requested or after the tenant violates them is too late!
In MA, the landlord may terminate the rental agreement if a tenant fails to pay rent within how many days of the scheduled due date?
4 days after the due date, a landlord may begin the termination process of the rental agreement with a 14 day notice to quit
How long must a landlord wait before he can raise rents to reflect a substantial increase in property taxes?
When the lease expires, the landlord may raise the rents to cover the increase in property taxes. Sometimes the lease contains a tax escalation clause and the landlord will be bound by that clause
A tenant leased space in a warehouse and put down a one-month security deposit. What percent interest does her security deposit earn?
Current rate paid by the bank.
A tenant skips out on his last scheduled monthly payment on a one year lease. The landlord may:
Since this question does not address whether the landlord has taken a security deposit, the most complete response is to sue the tenant for back rent. Landlords are allowed to use security deposits to pay back rent.
If an evicted tenant does not remove his belongings, under summary process, the belongings of the evicted tenant may be:
placed in storage by the owner.
Regarding security deposits,
The landlord must return the security deposit to the tenant within 30 days of the termination of the lease minus any costs for documented damages. Security deposits may be required for rental of any kind of property. Paying interest is not required for security deposits held less than one year. The landlord cannot use SD's for unpaid rent if the rent has been validly withheld.
One person is a landlord of a 3-unit apartment building. Another is the landlord of a 30 unit building. Based on these facts, which of the following is True of security Deposits?
Landlords of all rental units must pay interest on security deposits and give tenants an itemized statement to document withholdings from the SD.
the tenant is in default only for failing to pay rent on time. In MA, how much written notice is a landlord required to give the tenant to pay overdue rent prior to terminating the lease?
The statutory requirement in MA requires a 14 day notice to quit from the landlord to the tenant.
Which of the following is True?
A lease that begins one year after the date of signing would have to be in writing to be enforceable. A lease for 6 months or less may be oral and enforceable.
In MA, if a landlord wants to terminate a year to year tenancy, how much notice must be given?
30 days notice to terminate
During a crime wave, a tenant decides to install a burglar alarm in a rented house. Does the tenant need to inform the landlord?
When installing a burglar alarm in a rented house, the tenant must notify the landlord and supply instructions and passwords.
If a lease runs for 7 years or longer, it must be:
Written, acknowledged and recorded.
After the lease terminates, the tenant is entitled to the return of his SD.
The SD, including interest, must be returned within 30 days. Any amount withheld must be documented.
How soon should deeds of conveyance be recorded after closing?
Deeds should be recorded within a reasonable time.
In MA, the local official who records deeds and maintains the grantor/grantee lists is the
registrar of deeds
To be eligible for recording in MA, a document must be:
Acknowledged and written in English to be eligible for recording
in MA, when registered RE is transferred, in order of this transfer to be valid, the new owner must:
The new owner must record the land court certificate in his name.
To acquire title to the land, a tax sale purchaser:
The tax sale purchaser must bring action in the land court to register the title and confirm ownership.
A homeowners property is being foreclosed through a strict foreclosure process. The homeowner has the right to redeem the property by:
The homeowner has the right of equity of redemption: that is, to redeem the property before title passed to the foreclosing creditor.
In MA, if an owner defaults on his or her mortgage loan and the property is ordered to be sold at a foreclosure sale, the owner may redeem the property
The homeowner has the right of equity of redemption: that is to redeem the property before title passes to the foreclosing creditor. MA law does not allow a statutory right of redemption after the sale.
How long must a tax sale purchaser wait before starting action to obtain title to the land if there is no redemption of the property?
A tax sale purchaser must wait two years from the tax sale before starting action to obtain title to the land.
How long is the defaulted borrower's redemption period after a foreclosure sale is complete?
There is no redemption period after a foreclosure sale.
The MA statutes require a revaluation of real properties in any given town once every:
State statue require revaluation of real property every 12 years.
From a strictly legal standpoint, real property taxes become a lien on the property as of the
Taxes become delinquent on the due date and become a lien on the property at that time.
The transfer tax levied by the state on the seller of the property is based on:
The conveyance or transfer tax is based on the sale price.
How must the real property transfer tax by paid?
Transfer tax stamps must be used to pay the real property transfer tax and may be purchased from the county recorder.
Which of the following properties are subject to general real estate taxes?
A disabled veteran would have to pay tax on his house. Exempt properties include cemeteries, government building, public and private schools.
How often is the assessed valuation of all RE in MA adjusted by county authorities?
in MA, RE taxes become a lien on the property on
July 1, the day they are due, the beginning of the fiscal year.
In MA, a parcel of RE may be sold for the unpaid RE taxes when such taxes are delinquent for:
A property may be sold when taxes are delinquent for more than two years.
In MA, a reduction in RE taxes for a personal residence may be available to some. Of the following, however, who has to pay the full amount?
Signal parents are not entitled for a reduction in taxes.
Deductions are available to retirees,
widows and widowers and disabled veterans.
A recently recorded deed states that the purchase price was "$10 and other good and valuable consideration." The conveyance tax stamp indicates that $192.50 was paid for town conveyance tax. What was the property sold for?
Transfer tax stamps are assessed at $4.56 per $1,000.
192.50 ./. 4.56 = 42.2149 x 1000 = 42,215
The state wishes to widen a highway. It exercises its right of eminent domain and takes a portion of a property through condemnation proceedings. the conveyance tax on this conveyance to the state would be:
The state does not add insult to injury: there is no conveyance tax on the condemnation sale.
In MA, if the market value of a home is $125,000 and $25,000 of this amount is an assumed mortgage, how are the transfer taxes calculated?
The transfer tax stamps are calculated on the purchase price minus the assumed mortgage.
In MA, dower and curtsey are:
In 1976, MA made dower rights applicable to both spouses and curtesy was abolished.
In MA, dower rights become effective
at the moment of the spouses death.
A man and a woman are married and live in a home owned by the wife. When the wife died, the husband came into a life estate because of
All of the following forms of ownership are recognized by the state of MA law:
tenancy in common
joint tenancy with survivorship rights
tenancy by the entireties.
Community property is not recognized under MA law.
To establish a "marketable recordable title" an unbroken chain of title must be established for a period of at least:
How far back does a normal MA title search go?
Unless stated to the contrary in a deed, ownership of land by a married couple is assumed to be:
tenancy in common
A buyer enters into a purchase and sale contract to buy a house on 10/15. The closing occurs on 11/15, at which time the seller delivers the deed. The deed is recorded on 11/17. The buyer moves into the property on 11/18. in MA, title would have passed from the seller to the buyer on.
The husband owns a rental property occupied by a tenant. The wife has no ownership interest in the property. If the husband wants to sell the property, who is required by law to sign the agreement?
The husband only, since the property is in his name only.
Sam and Sally are selling their home which was recently converted from oil heat to gas heat. The Sellers had a 2,000 gallon underground oil tank that is no longer in use. What must the sellers do, if anything, prior to selling the property?
Any tank that has been used for storing flammable or combustible fluids cannot be removed or relocated unless a permit has been obtained from the state fire marshall or official designated by him.
As of 3/31/2006, all homes heated with fossil fuel heating equipment will be required to be equipped with:
carbon monoxide detectors. The regulations require that CO detectors be placed on each habitable level of a dwelling. The local fire department will be inspecting for compliance with this requirement at the same time they are inspecting for compliance with the smoke detector law prior to closing.