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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A broker has been engaged to locate a property for a buyer. The broker has determined that a suitable property for the buyer is for sale and is owned by the broker's cousin. The broker has not informed the buyer of the broker's relationship with the owner. If the buyer purchases the property under these circumstances, the broker is

A) Violating the license law because it is illegal to purchase family property for a principal.
B) Not violating the license law because the broker in this situation has no duty of disclosure.
C) Not violating the license law because a relative's interest is an exception to the fiduciary duty rule.
D) Violating the license law because a relative's interest shall be made known to all parties.

2. A real estate licensee is a partial owner of a local inspection company. It is permissible for the licensee to tell all clients to use this company when

A) the client does not ask for other recommendations.
B) it is in the best interest of the client.
C) the licensee discloses the interest in the company to the client.
D) the licensee does not know any of the other title companies in the area.

3. A rectangular lot contains 16,500 square feet. It has a depth of 150 feet. Each of two adjacent rectangular lots contains 4,950 square feet with a depth of 150 feet. What is the total street frontage of the three lots in linear feet?

A) 176
B) 133
C) 143
D) 159

4. A licensee lists a property and discovers that the property is too far away to market effectively. The licensee's firm retains the listing, but does not advertise or show it. Which of the following has been violated?

A) seller disclosure laws
B) fiduciary responsibility
C) statute of frauds
D) Consumer Protection Act

5. If a lender has granted a VA-guaranteed loan to a veteran, the veteran

A) cannot prepay any of the principal amount of the loan.
B) makes the down payment directly to the VA.
C) cannot apply for another VA loan in the veteran's lifetime.
D) may sell the property to another veteran who assumes the loan.

Solutions: