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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. The Massachusetts Consumer Protection Act (M.G.L. c. 93A)

A) Prohibits use of unfair and deceptive practices in business.
B) Protects homeowners who sell their homes without a broker.
C) Prohibits use of only deceptive practices in landlord-tenant law.
D) Protects tenants from personal property disputes.

2. When lending standards are tightened, lenders typically require

A) a waiver of the Equal Credit Opportunity Act.
B) a higher loan-to-value ratio.
C) a balloon payment after 5 years.
D) a lower loan-to-value ratio.

3. The two clauses in a mortgage which allow the lender to proceed with a foreclosure sale are which of the following?

A) acceleration clause and power of sale clause
B) foreclosure clause and alienation clause
C) escalation clause and power of sale clause
D) escalation clause and alienation clause

4. A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two- car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck.
The ranch house is most likely to sell for around

A) $128,500
B) $123,500
C) $148,500
D) $147,500

5. A seller has entered into an exclusive right to sell agreement with a broker. The buyer presents the seller with an offer to purchase which is 20% less than the list price. Which of the following is appropriate?

A) The seller is obligated to make a counteroffer to the buyer if the offer is unacceptable.
B) The seller is obligated to pay the buyer a commission or the offer price if the seller rejects the offer.
C) The seller is under no obligation to accept the offer or make a counteroffer.
D) The seller has 72 hours to submit a counteroffer or else the offer is considered to be accepted.

Solutions: