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Read Online Massachusetts-Real-Estate-Salesperson Test Practice Test Questions Exam Dumps [Q12-Q28]

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Read Online Massachusetts-Real-Estate-Salesperson Test Practice Test Questions Exam Dumps

Easily To Pass New Massachusetts-Real-Estate-Salesperson Premium Exam Updated [May 01, 2026]

QUESTION 12
Standard title insurance would protect a buyer

when the seller has forged an ex-partner’s signature on the deed.

if after closing, the HOA placed a lien on the property for the previous owner’s unpaid dues.

in a purchase where the buyer had knowledge of a shed violating setback requirements.

for the purchase of a property bought sight unseen where the buyer discovers a tenant living at the property.

Comprehensive and Detailed Explanation (150-250 words):
Standard title insurance protects against defects in title that existed prior to closing and were not discovered in the public record. Covered risks include:
Forged deeds or signatures.
Fraud in the chain of title.
Undisclosed heirs.
Mistakes in recording.
Therefore, if a seller forged a co-owner’s (ex-partner’s) signature on the deed, title insurance would cover the buyer.
B: Post-closing liens (such as new HOA liens) are not covered.
C: Known defects or issues (shed violating setbacks) are not covered.
D: Occupancy issues are outside the scope of standard title coverage.
Thus, the correct answer is A.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Transfer of Title; Title Insurance.

QUESTION 13
What kind of lease would require the lessee to pay the taxes, insurance, repairs, and other operating expenses of the premises in addition to the regular rental payment?

net lease

gross lease

graduated lease

percentage lease

In a net lease, the tenant (lessee) is responsible not only for the base rent but also for additional property expenses such as real estate taxes, insurance, maintenance, and sometimes repairs. This is common in commercial leasing, particularly for office buildings and retail space.
A gross lease (B) means the landlord pays all expenses, while the tenant pays only rent. A percentage lease (A) bases rent partly on tenant sales (common in retail malls). A graduated lease (C) allows rent increases at set intervals.
Because the question describes a tenant paying rent plus taxes, insurance, and operating expenses, this is a net lease.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Leasing & Property Management; Commercial Leasing Practices.

QUESTION 14
When practicing as a facilitator, the facilitator

Has an agency obligation of disclosure to the seller.

Must have signed Disclosed Dual Agency.

Must represent a seller or a buyer.

Does not represent the seller or the buyer.

A facilitator is a neutral party who assists both the buyer and the seller in a real estate transaction but does not have the agency responsibilities of an agent. Facilitators do not represent either party (seller or buyer) and do not owe fiduciary duties to either. The role of a facilitator is limited to helping both parties complete the transaction by providing guidance on the process, preparing documents, and ensuring that all procedural steps are followed.
Unlike agents, facilitators are not required to disclose confidential information or negotiate on behalf of either party. Their primary function is to assist with the logistics of the transaction without representing one party’s interests over the other.
Reference: 254 CMR 3.00 – Agency Relationships; Massachusetts Real Estate Candidate Information Bulletin – Facilitator Role.

QUESTION 15
A licensee listed a property that had an unfinished garage. The licensee received an offer subject to the garage being finished. Was a contractual obligation created?

Yes, because both the seller and buyer offered to enter into a contract.

Yes, because a definite and certain offer was made by the buyer.

No, because the seller has not accepted the offer.

No, because contractual obligations must be in writing and notarized.

A contract is only created when there is an offer, acceptance, and consideration. In this case, the buyer made an offer subject to a condition (the garage being finished). However, until the seller accepts the offer, no contractual obligation exists. The mere existence of an offer-even if definite and certain-does not bind either party until acceptance has been communicated.
Massachusetts real estate exam law and practice stress that the offer to purchase is not binding on the seller until accepted. Once the seller accepts, it becomes a valid and enforceable contract, provided that all other legal elements (consideration, competent parties, lawful purpose, and in writing per the Statute of Frauds) are satisfied. The requirement for notarization is not necessary for a valid sales contract in Massachusetts; notarization is only required in the case of deeds or certain recorded instruments.
Thus, since the seller had not yet accepted, there was no contract-only a pending offer with a condition.
Reference: Massachusetts Real Estate Salesperson Exam Content Outline – Contracts; Massachusetts General Laws Chapter 259 (Statute of Frauds).

QUESTION 16
A first-year licensee without either a degree in finance, or a strong background in real estate investment should generally refrain from

listing commercial income property.

representing an owner who wants to sell raw land to a developer.

representing a first time home buyer.

acting as the seller’s agent in selling an oceanfront lot to a retiree.

Comprehensive and Detailed Explanation (150-250 words):
Commercial income property brokerage requires specialized competencies: analyzing rent rolls, operating statements, cap rates, cash flow, expense recoveries, lease structures (NNN, modified gross), and investment metrics (IRR, NOI, debt coverage). A first-year licensee lacking finance/investment background typically does not yet possess these skills. Massachusetts licensing materials stress competence and reasonable care
/diligence as fiduciary duties; taking assignments beyond one’s expertise can breach those duties. While raw land or unique residential properties can also be complex, the exam recognizes commercial income listings as particularly finance-heavy and analysis-driven. New licensees should seek mentorship, co-list with experienced commercial practitioners, or refer such opportunities until competency is established.
Representation of first-time homebuyers (C) is a common early-career practice area, provided the agent understands agency, disclosures, financing basics, and transaction timelines. Therefore, the prudent, exam- correct choice is to refrain from listing commercial income property without appropriate background.
References: Massachusetts Real Estate Salesperson Candidate Handbook – Agency/Fiduciary Duties; Real Estate Brokerage Practice sections on competence and scope of services.

QUESTION 17
A buyer is purchasing a $625,000 property. The lender requires a 20% down payment to avoid mortgage insurance. The buyer provided $5,000 in earnest money. The buyer closing costs are $13,000. What is the amount the buyer must bring to settlement to close the transaction?

$120,000

$133,000

$138,000

$143,000

Comprehensive and Detailed Explanation (150-250 words):
First compute the down payment at 20% of $625,000:
Down payment = $625,000 × 0.20 = $125,000.

Mortgage insurance is avoided because the LTV is 80% (loan of $500,000 on $625,000 purchase), consistent with typical underwriting. Massachusetts exam math emphasizes accurate handling of down payment percentages, credits for deposits, and inclusion of buyer’s closing costs. The only choice that matches this computation is $133,000.
References: Massachusetts Real Estate Salesperson Candidate Handbook – Real Estate Math (Down payments, buyer credits/debits, cash to close); Financing basics (LTV and PMI thresholds).

QUESTION 18
Real estate taxes that are paid in advance are prorated on the closing statement as

no entry to buyer; a credit to seller.

no entry to buyer; a debit to seller.

a credit to buyer; a debit to seller.

a debit to buyer; a credit to seller.

When real estate taxes are paid in advance, the seller has already paid for a period extending beyond the closing date. Since the buyer will benefit from part of that prepaid period, the buyer must reimburse the seller for the portion after closing.
In the closing statement, this appears as:
Credit to Buyer (because the buyer is receiving benefit from prepaid taxes).
Debit to Seller (because the seller has already advanced the payment).
This ensures fairness so that each party pays taxes only for the time they own the property.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Closing & Settlement; Real Estate Math (Prorations).

QUESTION 19
A buyer receives a seller’s property condition disclosure in which the buyer’s agent believes the seller has misrepresented the condition of the property. The buyer’s agent should

remain silent as the agent does not know for certain that the seller has misrepresented the property.

recommend that the buyer withdraw from the transaction.

call the listing agent and express this concern.

point out this concern to the buyer and recommend further inspection or investigation before proceeding.

Comprehensive and Detailed Explanation (150-250 words):
An agent owes a fiduciary duty of care, loyalty, and disclosure to their client. If a buyer’s agent suspects misrepresentation in a seller disclosure, they cannot remain silent (A) because that fails fiduciary duty. They also cannot simply instruct withdrawal (B) without investigation. Communicating only with the listing agent (C) does not fulfill the duty to protect the buyer.
The proper action is to disclose the concern to the buyer and recommend further investigation, inspections, or professional evaluations before proceeding. This allows the buyer to make an informed decision and protects the agent from liability.
Correct answer: D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Agency Obligations; Seller Disclosure Laws.

QUESTION 20
Who establishes zoning ordinances?

the federal government

regional councils

individual states

local authorities

Comprehensive and Detailed Explanation (150-250 words):
Zoning ordinances are enacted at the local (municipal) level-cities and towns-under police power delegated by the state. While states pass enabling legislation and can set broad land-use frameworks, the actual creation and administration of zoning (district maps, permitted uses, dimensional regulations, variances, special permits) is done by local authorities such as city or town councils and implemented by local planning and zoning boards. Federal and regional bodies may influence land use through funding or environmental regulations, but they do not enact local zoning ordinances. On the Massachusetts exam, candidates are expected to know that municipalities adopt zoning bylaws/ordinances to promote public health, safety, and welfare, and administer them via local boards, inspectors, and appeals processes. Thus, the correct answer is D.
References: Massachusetts Real Estate Salesperson Candidate Handbook – Land Use Controls (Public restrictions: zoning); M.G.L. c. 40A (The Zoning Act).

QUESTION 21
Which of the following statements about the leasing of apartments in Massachusetts is correct?

Interest on security deposits begins after the first year of tenancy.

Leases terminate when the property is sold.

Death of the landlord terminates residential leases.

Tenancies at will are enforceable under the law.

In Massachusetts, tenancies at will are legally enforceable and governed by M.G.L. c. 186, 12. This type of tenancy exists without a fixed lease term and continues until terminated by proper notice (30 days or one full rental period, whichever is longer).
Other options are incorrect:
Security deposits (M.G.L. c. 186, 15B) accrue interest from the date received, not after one year.
Leases do not terminate when property is sold; the new owner assumes the landlord’s obligations under the lease.
Death of the landlord does not terminate a lease; the landlord’s estate or heirs become the landlord under Massachusetts law.
Therefore, the correct statement is that tenancies at will are enforceable under the law.
Reference: M.G.L. c. 186, 12 & 15B; Massachusetts Sanitary Code 105 CMR 410.

QUESTION 22
Time is of the essence means

the closing must occur as soon as possible.

time limits set forth in the contract must be carefully observed.

every act under the contract must be performed on the exact date specified.

time limits stated in the contract may not be modified, even by mutual agreement of the parties.

The phrase “time is of the essence” is a standard clause in Massachusetts real estate contracts. It means that contract deadlines are legally binding and must be strictly observed. Failure to perform within the time specified constitutes a breach of contract.
It does not mean that the closing must occur “as soon as possible” (A) but rather on the date agreed upon.
C overstates – while performance must be timely, contracts may allow flexibility in exact timing if not specified.
D is incorrect because deadlines may be modified if both parties agree in writing.
Thus, the best legal definition is B: time limits set forth in the contract must be carefully observed.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Contracts; M.G.L. c.106, Uniform Commercial Code §2-309 (time requirements).

QUESTION 23
In a jurisdiction where the common law of agency applies, a broker has listed a home and then presented to the seller an offer from another client of the broker. The offer has been accepted. The broker has what type of agency relationship with the parties?

seller agency, no agency relationship with buyer

no agency relationship; in this situation the broker becomes a facilitator only

seller agency, buyer sub-agency

dual agency

Comprehensive and Detailed Explanation (150-250 words):
Under the common law of agency, an agent owes fiduciary duties to the party they represent. If a broker represents a seller under a listing agreement but also brings a buyer who is their client, the broker now represents both parties in the same transaction. This creates a dual agency relationship.
Dual agency is lawful in Massachusetts only if there is full disclosure and written informed consent from both parties. Without disclosure, it would be an undisclosed dual agency, which is illegal.
A: Incorrect – the broker does represent the buyer.
B: Facilitation is a non-agency relationship, but that’s not the case here.
C: Buyer is not a sub-agent of the seller; they are a client.
Correct answer: D: dual agency.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Agency Law; 254 CMR 3.00.

QUESTION 24
The Massachusetts Consumer Protection Act (M.G.L. c. 93A) does NOT apply to which of the following persons?

Owners who sell their homes privately

Listing brokers who receive only a percentage of commissions

Builders who sell fewer than ten homes a year

Salespersons since they are obligated to their employing brokers only

The Massachusetts Consumer Protection Act (M.G.L. c. 93A) prohibits “unfair or deceptive acts or practices in the conduct of any trade or commerce.” This law applies to persons engaged in business transactions, including brokers, salespersons, and builders selling homes.
However, a private homeowner selling their own home without engaging in trade or commerce is exempt.
Courts have consistently held that Chapter 93A applies to persons “engaged in business” and does not cover purely private, non-business transactions such as a homeowner selling their own single residence.
Thus, while brokers, agents, and even builders are covered by c. 93A (even if they build/sell fewer than ten homes), a private owner selling without brokerage or business involvement is exempt.
Reference: M.G.L. c. 93A, § 1; Massachusetts Real Estate Candidate Information Bulletin – Consumer Protection Law.

QUESTION 25
Broker N has five affiliated salespersons. On Monday at 10:00 a.m., Salesperson J submitted an offer to purchase from a prospective buyer. The offer price was $300,000. An hour later, Salesperson R submitted an offer of $296,000. However, Broker N held the second offer until the seller rejected the first offer. Broker N’s conduct in this situation is

Permissible as long as both salespeople knew of Broker N’s action.

Permissible as long as both salespeople share a commission on either of the offers accepted by the seller.

Not permissible because a broker must inform all potential buyers of existing offers.

Not permissible because a broker must present all offers to the principal forthwith.

Massachusetts law and professional practice require that all offers must be presented to the seller forthwith (immediately). A broker may not withhold or delay offers, regardless of their order of arrival, price, or terms.
In this scenario, Broker N violated fiduciary duty to the seller by withholding the second $296,000 offer until the first was rejected. The seller is entitled to see all offers promptly in order to make an informed decision.
The broker has no authority to filter, delay, or prioritize offers.
The law does not require informing other buyers about competing offers (that would be a separate issue of disclosure), but the broker’s obligation is always to the client-the seller-to present all offers immediately.
Reference: 254 CMR 3.00 – Duties of Licensees; NAR Code of Ethics, Article 1.

QUESTION 26
In Massachusetts, which of the following statements about smoke detectors prior to closing is always correct?

All single-family residences must have hard-wired smoke detectors.

A three-family residence can have either battery-operated or hard-wired smoke detectors.

Smoke detectors are optional in single-family houses.

A smoke detector certificate must be obtained from the local fire department.

In Massachusetts, all single-family homes, multifamily properties, and condominiums must comply with smoke detector requirements prior to closing. Massachusetts law mandates that smoke detectors must be installed in residential properties, and a smoke detector certificate must be obtained from the local fire department as part of the closing process.
The certificate ensures that the smoke detectors are properly installed and functioning according to state and local regulations. This certificate is required to transfer ownership of the property.
While hard-wired smoke detectors are required in some cases, they are not mandatory for all single-family residences. The rule applies more strictly to multifamily dwellings or properties built after a specific year. The correct answer is that a smoke detector certificate must be obtained from the local fire department.
Reference: 527 CMR 1.00 – Massachusetts Fire Code; M.G.L. c. 148, 26.

QUESTION 27
Which of the following is true about a competitive market analysis?

It is employed for insurance purposes.

It is used to establish depreciable value.

It is usually based on local tax assessment.

It is useful to the buyer as well as to the seller.

Comprehensive and Detailed Explanation (150-250 words):
A competitive market analysis (CMA) is a tool prepared by real estate licensees to help sellers establish a listing price and to help buyers determine an appropriate offer. It compares recent sales of similar properties, active listings, and expired listings to estimate a property’s fair market value.
A: Insurance companies use replacement cost appraisals, not CMAs.
B: Depreciable value is for tax accounting and appraisals, not CMAs.
C: Local tax assessments do not typically reflect current market value and are not the basis of a CMA.
Because it helps both sellers and buyers understand market value, the correct answer is D.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Valuation and Market Analysis.

QUESTION 28
Two top licensees in a small town have agreed not to show listings of a new real estate firm charging a low commission rate to sellers. This behavior is a violation of the

Equal Credit Opportunity Act.

Blue-Sky laws.

Sherman Antitrust Act.

federal fair housing laws.

The Sherman Antitrust Act is a federal law that prohibits any contract, combination, or conspiracy that restrains trade or creates monopolies. In the context of real estate, antitrust violations include price fixing, market allocation, group boycotts, and tie-in arrangements.
The situation described – where two licensees agree not to show listings from a competing brokerage charging lower commissions – is a classic example of a group boycott. By conspiring to cut out competition, they are restraining trade and harming both consumers and the new brokerage.
The Equal Credit Opportunity Act (A) deals with lending discrimination, Blue-Sky laws (B) regulate securities, and federal fair housing laws (D) prohibit housing discrimination. Only the Sherman Antitrust Act applies here.
Massachusetts licensees are specifically tested on recognizing antitrust violations. The penalties for Sherman Act violations are severe, including fines, loss of license, and even imprisonment.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook – Real Estate Practice & Antitrust Laws; Sherman Antitrust Act, 15 U.S.C.1-7.

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