Master Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam with Reliable Practice Questions
Upgrade to PremiumWhat type of loan would allow homeowners to utilize the equity built up in their home without having to sell?
Correct : D
Comprehensive and Detailed Explanation (150--250 words):
A reverse mortgage allows homeowners, typically aged 62 or older, to convert part of the equity in their home into cash without selling the home or making monthly payments. The loan is repaid when the homeowner sells the property, moves out permanently, or passes away. This program is particularly useful for seniors who are ''house-rich but cash-poor.''
Accelerated mortgage (A): involves faster repayment, not equity access.
Graduated payment mortgage (B): starts with lower payments that increase over time.
Sale-and-leaseback (C): involves selling property and leasing it back, which requires giving up ownership.
Thus, the correct answer is D: reverse mortgage.
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A client makes an offer on a residential property and provides a check for $2,000 as earnest money. The client instructs his buyer agent to hold the check for five days so it will clear the bank. What should the agent do with the check?
Correct : A
Under 254 CMR 3.10 and Massachusetts escrow rules, all deposits must be turned over immediately to the broker for deposit into the escrow account. However, if the buyer gives written instructions that the check is to be held (for example, for a certain number of days), the broker must honor those instructions.
The correct procedure is to deliver the check to the broker right away, along with the buyer's instruction to hold it for five days before depositing. The agent may not personally hold the check, nor may the agent refuse to present the offer due to escrow timing. All offers must be submitted promptly regardless of deposit status.
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A motel is the subject of an appraisal and it is determined that a rerouting of a county highway has limited customer access to the motel. This is an example of
Correct : A
Economic obsolescence (also known as external obsolescence) occurs when property value declines due to factors outside the property itself that the owner cannot control. In this case, rerouting of a county highway reduces customer access, negatively impacting business and property value. This is entirely external and beyond the motel owner's ability to correct.
By contrast:
Regression (B) refers to when a higher-value property loses value due to surrounding lower-value properties.
Functional obsolescence (C) is caused by design flaws or outdated features within the property itself.
Landlocked property (D) refers to a parcel with no legal access, which is not the case here.
Therefore, the correct answer is economic obsolescence.
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If owners ask a broker not to show a property to recipients of government assistance, the broker must
Correct : A
Massachusetts law (M.G.L. c. 151B, 4) prohibits discrimination in housing based on receipt of public assistance, such as Section 8 housing vouchers or other government aid. If a seller instructs a broker not to show a property to prospective buyers or renters receiving government assistance, the broker cannot legally comply with that request.
The broker's fiduciary duty to the client does not extend to violating fair housing law. In such cases, the broker must refuse the listing because accepting it would require them to engage in unlawful discriminatory practices. Reporting to the Board or MCAD is not required; the appropriate action is simply to refuse participation in illegal activity.
This aligns with the Massachusetts Real Estate Licensing Law and MCAD enforcement rules, which hold licensees personally responsible for discriminatory conduct in real estate transactions.
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Active licensees renewing a real estate license must have completed how many hours of continuing education during the two years prior to the scheduled renewal?
Correct : B
In Massachusetts, active real estate licensees are required to complete 12 hours of continuing education (CE) during the two-year period prior to their license renewal. This education is essential to ensure that real estate professionals stay updated on industry changes, including legal updates, ethical practices, and the latest regulations.
Among the 12 hours, 3 hours must be focused on the legal aspects of real estate, while the remaining 9 hours can be chosen from various real estate topics, such as ethics, property management, or fair housing laws.
Thus, the correct answer is that six hours are required for continuing education, not 4, 12, or 16.
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