Real Estate Licensing Massachusetts Real Estate Salesperson Massachusetts-Real-Estate-Salesperson Exam Practice Test

Answer : D

Comprehensive and Detailed Explanation (150--250 words):

Two key clauses permit a lender to enforce foreclosure:

Acceleration clause -- allows the lender to declare the entire debt immediately due and payable if the borrower defaults. Without this clause, the lender could only sue for past-due installments.

Power of sale clause -- common in Massachusetts ''title theory'' mortgages, it authorizes the lender to sell the property at public auction without going through full judicial foreclosure.

The alienation clause (also called a ''due-on-sale'' clause) allows the lender to demand payoff when the property is transferred, not for foreclosure. The escalation clause allows interest rate or payment adjustments, not foreclosure.

Therefore, the correct pair that authorizes foreclosure is D: acceleration clause and power of sale clause.

Answer : C

Under 254 CMR 3.10, all deposit money received by a salesperson must be immediately turned over to the salesperson's broker for deposit into the escrow account. It is the broker's responsibility to ensure that the funds are properly held and protected, not the salesperson's.

The rule is clear that the funds should be handed over immediately. Any delay in submitting the funds to the broker could violate escrow rules and could result in disciplinary action.

Answer : D

Comprehensive and Detailed Explanation (150--250 words):

A listing agreement must be signed by the legal owner or someone who has proper legal authority to act on the owner's behalf. That authority is established through a written power of attorney; the person acting is called the attorney-in-fact.

A: A broker cannot sign on behalf of an owner without written power of attorney; telephone instructions are not sufficient.

B: A trust beneficiary has no signing authority unless also appointed as trustee.

C: Heirs apparent have no legal rights until the owner passes away and probate is complete.

Thus, only an attorney-in-fact can legally bind the owner in a listing agreement.

Answer : B

In Massachusetts, deeds are recorded at the county registry of deeds. The county registry is where all real estate documents (such as deeds, mortgages, and liens) are officially recorded. These records are public and provide legal notice of ownership and other property rights.

City or town halls may have certain records, such as local property tax assessments, but deeds must be recorded at the county level. The Massachusetts Board of Registration handles licensing and disciplinary actions for real estate professionals, but it does not record deeds.

Answer : C

The Massachusetts Commission Against Discrimination (MCAD) enforces the state's Fair Housing Law (M.G.L. c. 151B). A person who believes they have experienced housing discrimination must file a written complaint with MCAD within 300 days of the alleged discriminatory act.

Complaints filed after 300 days will be dismissed as untimely. This timeframe aligns with federal Equal Employment Opportunity Commission (EEOC) procedures but is tailored for housing discrimination enforcement at the state level.

Thus, the deadline is 300 days.

Answer : B

The cost approach to value is based on the principle of substitution, which states that a buyer will not pay more for a property than the cost to build a comparable one. In this method, the appraiser estimates the current cost of constructing the improvements using either the replacement cost (cost to build a similar building with modern materials and methods) or the reproduction cost (exact duplicate of the original).

The appraiser then subtracts depreciation (physical deterioration, functional obsolescence, or economic obsolescence) and adds the land value (determined separately). This approach is most often used for special-purpose properties (schools, churches, government buildings) where comparable sales are limited.

The other options are incorrect:

Assessed value (A) is for taxation, not appraisal.

Price per square foot (C) is a sales comparison method.

Location/financing (D) are factors but not a direct step in the cost approach.

Answer : D

Under Massachusetts law (specifically M.G.L. c. 183A), tenants in properties being converted to condominiums are given the right of first refusal to purchase the unit they occupy. The offer must be made at terms that are equal to or better than those offered to the general public.

This ensures that tenants have the opportunity to buy their units at the same price or better terms than any outside buyers. This protection allows tenants the chance to remain in their homes as owners, rather than being displaced.

The law does not stipulate that the unit must be offered at a discount (such as 20% or 15% off); rather, the terms must be equal or more favorable than those available to others.