Massachusetts Real Estate Exam Prep

MA Salesperson Practice Exam

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Massachusetts License Requirements

Must be at least 18 years of age.
Must complete 24 classroom hours of approved real estate courses by an authorized real estate school. These 24 hours are waived if the applicant has successfully completed a course in real property while enrolled in an accredited law school. After completing the educational requirement, the applicant needs to successfully pass the real estate examination for a salesperson.

For more information on state requirements click here.

Massachusetts Sample Practice Real Estate Exam Questions and Answers

Massachusetts State Section

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Question 1

Which of the following is not part of a legally binding deed?

A	competent grantor
B	novation
C	legal description of the land
D	delivery and acceptance

Question 1 Explanation:

Essential elements of a valid deed: Competent grantor. Execution by the grantor. Identifiable grantee. Delivery to and acceptance by the grantee. Legal description of the land. Consideration. Words of conveyance. Novation is the substitution of a new contract in place of an old one and not considered an element of a deed.

Question 2

Who is responsible for maintaining a habitable property and for complying with local housing and building codes when renting property to the public?

A	Lessor (landlord)
B	Buyer
C	Agent (real estate licensee)
D	Lessee (tenant)

Question 2 Explanation:

Every tenant is entitled to a safe and habitable living environment throughout the entire tenancy. The Massachusetts State Sanitary Code protects the health, safety and well-being of tenants and the general public (105 CMR 410). The local Boards of Health enforce the Code. (Note: In Boston, it is the Housing Inspection Department.) Copies of the Code may be purchased from the State House Bookstore, State House, Room 116, Boston, MA 02133, (617) 727-2834. The following is a sampling of provisions outlined in the Code: Water: The landlord must provide the tenant with enough water, with adequate pressure, to meet ordinary needs. Under certain limited circumstances, the tenant can be charged for water costs so long as it is clearly noted in the written rental agreement and there is a separate meter for the unit. The landlord must also provide the facilities to heat the water at a temperature between 110º F and 130º F, however the written tenancy agreement or lease may require the tenant to pay for and provide the fuel to heat the water. Heat: The landlord must provide a heating system in good working order. The landlord must pay for the heat, unless the lease requires the tenant to pay for it. From September 16 to June 14, every room must be heated to at least 68º F between 7:00 AM and 11 PM, and at least 64º F at all other hours. During the heating season, the maximum heat allowable in the apartment is 78º F. Kitchens: The landlord must provide within the kitchen: a sink of sufficient size and capacity for washing dishes and kitchen utensils, a stove and oven in good repair (unless the written lease requires the tenant to provide his own), and space and proper facilities for the installation of a refrigerator. The landlord does not have to provide a refrigerator. If a refrigerator is provided, however, the landlord must keep it in working order. Cockroaches and Rodents: The landlord must maintain the unit free from rodents, cockroaches, and insect infestation, if there are two or more apartments in the building. Structural Elements: Every landlord must maintain the foundation, floors, walls, doors, windows, ceilings, roof, staircases, porches, chimneys, and other structural elements of the dwelling so that it excludes wind, rain, and snow; is rodent-proof, weathertight, watertight, and free from chronic dampness; in good repair, and in every way fit for its intended use. Snow Removal: Every exit used or intended for use by occupants of more than one dwelling unit or rooming unit shall be maintained free from obstruction. Practice Tip: Review the states rules for landlords before becoming a rental agent or landlord.

Question 3

How soon can a broker receive a commission check after a closing in Massachusetts?

A	Once the offer sheet is signed.
B	When the Buyer moves in.
C	After the transaction is completed and funded.
D	Once the seller agrees to the price.

Question 3 Explanation:

The closing process itself takes place at one table (either at the office of an attorney or title company), where buyers sign all documents related to their loan and the transaction itself. After all documents are signed and payments exchanged, buyers generally take possession of the keys unless a separate agreement has been reached to allow the seller to stay in the property for a period after closing. The detailed steps that make up closing are: 1. A title search is run just prior to closing to determine if there are any liens or assessments on the title. Provided the title is deemed 'clear,' the closing proceeds as planned. Note: buyers can ask for this title search in advance of closing (sometimes for an additional fee), and it may reveal material information regarding the property that may be good to know well before closing. 2. A buyer's attorney begins preparing the paperwork for changing the title / deed and will prepare title insurance, and a final closing date is scheduled on or around the date indicated in the contract. 3. A final cash figure for what a buyer needs to bring to the closing in the form of a cashier's check is calculated. This is based not only on a mortgage's closing costs but factors like property taxes and utilities paid in to date by the seller. 4. A final walkthrough will often be performed the day of or before closing to verify the property is in the same condition it was when the process began. 5. At the closing, or settlement, table, the buyer (and seller) sign all closing documents, including the HUD-1 (see a sample HUD-1 here), and the final loan documents. 6. The buyer pays the remaining funds in their down payment to an attorney or a representative of the title company (who is present at closing) via cashier's check. 7. The representative from the title company or the attorney will then record the transaction and deed with the appropriate municipality. 8. The buyer receives the keys and, unless indicated differently in the contract, officially takes possession of the property. Practice Tip: Try to control for any surprises that may come up at time of closing. Running a title search early may be appropriate. Advise your client that it is important that the buyer not materially change his employment or credit before closing. Making major purchases before the closing can affect the credit ratios and have the potential to sour the mortgage. That total compensation or real estate commission rate is then split between the listing agent and the agent or broker that brings the buyer to the transaction (sometimes referred to as the cooperating broker). The split between the two is at the discretion of the listing agent, and agreed upon in writing with a seller before a property hits the MLS. The property owner can influence how the compensation is split, but rarely does in practice. Check with your employing broker to ascertain their policies and procedures for disbursing commission fees to their agents. Commission fees are not paid directly to salespersons.

Question 4

Is Massachusetts a community property state?

A	No
B	Yes

Question 4 Explanation:

A few states recognize the concept of community property, in which most everything is jointly owned and equally split between the parties. Massachusetts, however, is not one of those states. Massachusetts law requires the division of property in a divorce to be equitable.

Question 5

Mortgage "discount" points only apply if which of the following conditions are met?

A	The interest rate on the mortgage loan has been lowered by 1% for each point charged
B	The loan does not close and the buyer owes the lender for services rendered
C	The seller has agreed to pay 1% of the closing costs
D	The interest rate on the mortgage loan has been lowered by 2% for each point charged

Question 5 Explanation:

Mortgage points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. This is also called “buying down the rate,” which can lower the monthly mortgage payments. One point costs 1 percent of your mortgage amount (or $1,000 for every $100,000). An important related topic on points is the subject of Qualified Mortgages as defined by the Consumer Financial Protection Bureau (CFPB). A Qualified Mortgage is a category of loans that have certain, more stable features that help make it more likely that your client will be able to afford a loan. Lenders are still able to make loans outside the CFPB rules, but caution is advised when using these products. Under the CFPB rules a lender must make a good-faith effort to determine that a buyer has the ability to repay a mortgage before it is taken out. This is known as the “ability-to-repay” rule. If a lender loans the buyer a Qualified Mortgage it means the lender met certain requirements and it’s assumed that the lender followed the ability-to-repay rule.

Question 6

What is a holographic will?

A	a will that displays in 3D
B	a standard boiler plate will.
C	a will and testament that has been entirely handwritten and signed by the testator.
D	a will that has been approved by each family member.

Question 6 Explanation:

A holographic will is a will and testament that has been entirely handwritten and signed by the testator.

Question 7

Which of the following is required for an applicant to receive a Real Estate License?

A	Must be 25 or older
B	Must have a Bachelors degree
C	Must have completed 60 hours of pre-licensure education
D	Must sit and pass the required exam

Question 7 Explanation:

Salespersons applicants must be at least 18 years of age. They must complete 40 hours of pre-licensure salesperson education. To sit for the salesperson exam, a Massachusetts Board of Real Estate Education Certificate form must be completed. Also, 3 complete candidate endorsements from individuals unrelated to the applicant must be obtained. Any questions can be directed to the Massachusetts Division of Professional Licensure Board at 1-617-727-2373

Question 8

Which type(s) of tenancy(ies) is/are most commonly held in Massachusetts?

A	Tenant in Common
B	All of the above
C	Joint Tenants
D	Tenancy by the entirety

Question 8 Explanation:

The three most common ways two or more persons may hold title to real estate are: TENANTS IN COMMON, JOINT TENANTS or as TENANTS BY THE ENTIRETY (tenants by the entirety is only available for married couples.) When title is held as Tenants in Common, it is necessary to probate the estate of the deceased before the real estate may be sold or mortgaged. There is no right of survivorship and so the deceased person’s interest in the property passes to his or her heirs and not to the other owner(s). When the title is held a Joint Tenants or as Tenants by the Entirety, the title automatically passes to the surviving owner(s) without the necessity to probate the estate of the deceased. In any case of death of an owner of real estate, whether Tenants in Common, Joint Tenants or Tenants by the Entirety, it may be necessary to procure a release of the estate tax or taxes which may, by statute, become a lien on the property. It's important to understand the variances in the types of tenancy so that your clients understand their legal standing.

Question 9

What is homestead protection?

A	Gradual subsidence of waters, leaving dry land
B	The estimated value that an asset will have at then end of it's useful life
C	The status provided to a home owner's principal residence that protects the home against judgement up to a specified amount.
D	Net cash remaining to investor after sale of investment property

Question 9 Explanation:

On March 16, 2011, a new Massachusetts Homestead law went into effect. It completely revised and modernized Massachusetts General Laws Chapter 188, sections 1-10. Here are some of the important highlights: • The Homestead law allows Massachusetts homeowners who reside in the home to protect their principal residence from certain creditors, up to a certain amount • Existing homesteads recorded prior to March 16, 2011 remain valid • All homesteads are subject to valid mortgages • Homeowners get an automatic $125,000 homestead; no recordation of a homestead declaration is needed for this protection • Homeowners can protect up to $500,000 in equity in their homes by recording a homestead declaration; all owners must sign to gain full protection • All owners must occupy or intend to occupy the home as principal residence • All owners who are elderly or disabled should record a homestead under section 2 of the new law to gain maximum protection; they must attach a disability award letter or a Massachusetts physician’s letter to their homestead declaration • Both spouses can record a homestead under the new law • Property held in a trust can be homesteaded • Mobile homes and manufactured housing can be homesteaded • Every homeowner who has refinanced his/her mortgage in the last several years should consider recording a new homestead declaration since many refinancing mortgages contained a waiver of homestead rights • Homeowners may benefit from recording a new homestead early since homesteads recorded under the new law are senior to liens recorded after the homestead is recorded • The children and surviving spouse of a person who has recorded a new homestead gain special protections. Section 14. In all mortgage transactions, the closing attorney or settlement agent shall provide the mortgagor with notice of the right to declare homestead protection pursuant to this chapter, receipt of which shall be acknowledged in writing by the mortgagor. The notice shall include, but not be limited to, a summary of the differences between the automatic homestead protection and the enhanced benefits acquired by making a declaration of homestead.

Question 10

An intital salesperson license fee, due to the state, costs how much?

A	$100-$150
B	$103-$150
C	$107-$180
D	$90-$110

Question 10 Explanation:

Salesperson first license fees due to the state are between $103-$150, and brokers fees are between $142-$200. Massachusetts license renewal fees for a two-year period are $142 for a broker license, $142 for an associate broker, and $103 for a salesperson. There is a $57 late renewal fee in addition to the regular fee. All fees must be paid at the license center. The cost to sit for the salesperson exam is $85. PSI is the testing vendor and their phone number is 1-800-733-9267.

Question 11

Does Massachusetts participate in real estate license reciprocity with other states?

A	Yes
B	No

Question 11 Explanation:

A non-resident may be licensed as a broker and a non-resident individual may be licensed as a salesman upon conforming to all pertinent provisions of sections eighty-seven PP to eighty-seven DDD, inclusive; provided, that the board may exempt from the written examination prescribed in section eighty-seven SS a broker or salesman duly licensed in any other state of the United States under the laws of which a similar exemption is extended to licensed brokers and salesmen of the commonwealth. Such non-resident licensee shall not be required to maintain a usual place of business within the commonwealth; provided, that such non-resident broker shall maintain a usual place of business within such other state in which he is so licensed. Section 87WW Reciprocity is not absolute, and requirements vary from state to state. Some states have complete reciprocity with Massachusetts, while others will require licensed real estate salespersons or brokers to have worked in the field for a number of years before a reciprocal real estate license is recognized. Other states offer no formal reciprocity whatsoever; Florida real estate license reciprocity with Massachusetts, for example, extends only so far as to offer an educational waiver under certain conditions, which means that real estate agents moving between Florida and Massachusetts must take the real estate license test in both states. A real estate salesperson therefore can't formally transfer their real estate license to or from a state like Florida directly, though they may be exempt from certain aspects of the licensing process due to their prior licensure. The following states offers reciprocity with Massachusetts: Connecticut, Rhode Island, West Virginia, Nebraska, Iowa, Tennessee, Mississippi, Colorado, Georgia, Pennsylvania, and New Mexico, Oklahoma, New York, New Hampshire, Nevada and Maine. The reciprocity states and rules are subject to change. Always consult the Massachusetts Board of Real Estate before attempting to obtain a license in a reciprocal state. Their number is 617-727-2373.

Question 12

Which term means "going to the state?"

A	police power
B	taxation
C	escheat
D	eminent domain

Question 12 Explanation:

escheat definition: a : the reversion of lands in English feudal law to the lord of the fee when there are no heirs capable of inheriting under the original grant b : the reversion of property to the crown in England or to the state in the U.S. when there are no legal heirs Plainly put, if an individual dies without any living heirs, and no directives, the land reverts to the state.

Question 13

Does Massachusetts have homestead laws?

A	Yes
B	No

Question 13 Explanation:

The Massachusetts Homestead Act is a law under which a homeowner is protected by an Estate of Homestead. A homestead estate provides limited protection of the value of the home, up to $500,000, against unsecured creditor claims. The Homestead Act is Massachusetts General Laws (MGL) Chapter 188. Homestead - family home or residence. The deed or the conveyance by which the homestead is acquired may designate the property as a homestead; or, by a writing duly signed, sealed, acknowledged, and recorded the property may be so designated. Massachusetts law allows for automatic homestead so there does not have to be a designation. A homestead cannot be conveyed during the lifetime of husband and wife without their joint conveyance, but may be waived. Massachusetts law states that the homestead is subordinate to a mortgage executed by all of the title holders, so is it not necessary to have the non-titled spouse sign on a mortgage but it is on a conveyance.

Question 14

After getting a license, how often must you take Continuing Education classes?

A	every 2 years
B	every year
C	every 3 years
D	every 4 years

Question 14 Explanation:

All individuals licensed as real estate agents in the Commonwealth must demonstrate that they have completed the 12-hour continuing education requirement as a prerequisite to renewing their license as "active" (so they can work as agents). An "active" license entitles you to work. If you do not complete the 12-hour continuing education requirement by your scheduled license renewal date then the Board must, by law, renew your license as "inactive". You cannot work as an agent with an "inactive" license, though you may receive referral fees. Pre-licensure education cannot be used to satisfy continuing education. The new continuing education statute establishes one exemption from the new requirement. The exemption provides that Massachusetts attorneys who are currently licensed in good standing (not under any disciplinary action) and who are also real estate brokers are exempt from the continuing education requirement. Aside from this, a Massachusetts salesperson or broker who obtained his/her license in Massachusetts without examination based upon his/her licensure in another state (commonly referred to as reciprocity or reciprocal licensure) is exempt from the Massachusetts continuing education requirement, provided such agent completes his/her own state's continuing education requirement (regardless of how may hours the other state requirement contains). If such agent fails to complete their own states requirement or there is no such requirement then they must complete the Massachusetts continuing education requirement to renew their license as "active" in order to work as an agent. A corporate or partnership broker is not considered an individual and, therefore, there is no continuing education requirement for these entities. However, the continuing education requirement does apply to the individual real estate salespeople and brokers affiliated with corporate and partnership brokers unless one of the two exemption noted herein apply to the individual licensee. Lastly, if you were originally grandfathered into licensure in Massachusetts you still must complete the 12-hour continuing education requirement to renew your license as "active" (so you can work as an agent). If you obtained licensure as a salesperson or broker in Massachusetts without examination (usually referred to as reciprocity or reciprocal licensure) based upon your license in the other state and you complete the approved continuing education requirement of that other state (regardless of how many hours that state requires) then you have also satisfied the continuing education requirement in Massachusetts and will indicate as much, under the pains and penalties of perjury, on your Massachusetts license renewal application. Obviously, if you do not complete the other state's approved continuing education requirement, if the other state has no such requirement or you did not obtain your Massachusetts license without examination based upon your licensure in the other state you would then have to complete the continuing education requirement in Massachusetts. (You must complete the approved continuing education requirement in the other state -even if you are exempt- in order for it to satisfy the Massachusetts requirement). Whether or not your Massachusetts continuing education as a real estate agent can be used in part or totally in satisfaction of a continuing education requirement that you must fulfill for another type of license issued by Massachusetts or another state depends upon a determination which must be made by the licensing authority that issued your license in Massachusetts or another state. You should contact that licensing authority to determine whether they will accept all or part of the continuing education that you completed for your real estate agents license here in Massachusetts. The Board must renew your license as "inactive" (as opposed to "active"). "Inactive" means you cannot work as a real estate agent, though you may receive a referral fee from an "active broker" for those individuals you have referred to such broker who, in turn, ultimately sell or buy real property through such "active broker". If you wish to do more than just receive referral fees then you must complete the 12-hour continuing education requirement by the time you are scheduled to renew your license. It is important to also note that you must complete all twelve (12) hours by the time you are scheduled to renew your license. Doing part or most of the twelve (12) hours does not entitle you to an "active" license. You must complete all 12 hours. Brokers and/or a salespersons renewing license as "active" must complete twelve (12) hours of continuing education in different subjects that are contained in a curriculum developed by the licensing board. The continuing education MUST be completed BEFORE renewing your real estate license to active, current status (NO EXCEPTIONS). The twelve (12) hour requirement is for each license term (a license is good for two years). If you wish to renew your license as "active" so that you may work as a real estate agent you must demonstrate that you have completed the twelve (12) hour continuing education requirement anytime during the 24 months PRIOR to renewing your real estate license (license renewals are every two years on your scheduled renewal date). The license renewal application has been modified to obtain such data via a question concerning the completion of continuing education. You either answer "Yes" if you have completed the requirement or "NO" if you have not completed the requirement. If you fail to answer the question your license will be renewed as "inactive", as noted in the instructions that are mailed with the license renewal application. The answer to this question, along with all the other information that you provide on the renewal application, is done so under the pains and penalties of perjury. Providing untruthful information may result in the suspension or revocation of your license pursuant to relevant law. By regulation, the Board also requires the approved real estate schools offering the 12-hour continuing education curriculum to keep records for each individual licensee who attends such school. The 12-hour continuing education requirement consists of 12 hours of instruction in different subject matter areas (subjects) that were developed by the Board as a curriculum pursuant to the law on continuing education. The Board approved real estate schools (providers) agree to use this 12-hour subject matter curriculum to provide the information in such curriculum to licensees. Therefore the Board does not approve any courses. Rather, it has established a 12-hour subject matter curriculum to be used by the Board approved real estate schools. Please see the list of List Of Authorized Real Estate Schools on the Massachsetts web site which contains the school names, locations and telephone numbers. A number of schools have multiple locations and you should check with the school to see if there is a location close to you. You may not use correspondence courses via the mail to complete the 12-hour continuing education requirement. The Board does not approve such courses. Rather it has established a 12-hour subject matter curriculum pursuant to the continuing education statute. The Board approved schools (providers) agree to use that curriculum in covering the material in such curriculum for licensed real estate agents.

Question 15

Does Massachusetts have dower laws?

A	No
B	Yes

Question 15 Explanation:

The term "marital property" refers to all possessions and interests acquired by a couple during their marriage. Marital property becomes very important during divorce proceedings when spouses must divide the property and debt they own. A few states recognize the concept of community property, in which most everything is jointly owned and equally split between the parties. Massachusetts, however, is not one of those states. Massachusetts law requires the division of property in a divorce to be equitable. That means it must be fair though not necessarily equal. Couples who don’t manage to resolve property issues on their own will end up going to court to ask for a decision from an arbitrator or a judge. When dividing martial property a court may consider each spouse’s separate property. Separate property is property owned by a spouse prior to marriage or acquired during marriage through a gift or inheritance. Sometimes it can be difficult to identify separate property, particularly if it is combined with marital property in an account or used to buy or improve marital property. Dower - has been abolished and replaced by tenancy by dower; Either spouse, within 6 months after the date of probate bond, can file for an election in the probate court for 1/3 life estate in all lands owned by the deceased; Failure to make the election is waiver; Joinder is not required.

Question 16

Does Massachusetts allow Holographic wills?

A	No
B	Yes

Question 16 Explanation:

According to Massachusetts law, as long as the will is a written document, the writer is over the age of 18 and of sound mind when written and signed, and the writer had at least 2 witnesses who were also competent to sign the will, the will may be valid. It is said “may” and not “is” because there are a lot of other considerations beyond these basics. If you are involved with a property that is affected by a holographic will, the advice of an attorney is recommended. Practice Tip: Never attempt to give legal advice to a customer or client.

Question 17

Which of the following elements are necessary for a valid contract?

A	all of the above
B	legal object
C	acceptance
D	offer
E	consideration (usually monetary)

Question 17 Explanation:

II. What is a contract? A contract is a voluntary, legally enforceable promise between two competent to perform (or not to perform) parties some legal act in exchange for consideration. Elements of a Contract: The requisite elements that must be established to demonstrate the formation of a legally binding contract are (1) offer; (2) acceptance; (3) consideration; (4) mutuality of obligation; (5) competency and capacity; and, in certain circumstances, (6) a written instrument. In Massachsetts, the following areas pertain to contract law in a real estate transaction. 1. Voluntary agreement or promise 2. Parties to the Contract 3. Requirement of competency of parties a. Age of Majority b. Mentally competent or other disability limiting comprehension c. Influence of drugs or other 4. Must be for legal purposes 5. Consideration 6. Offer and Acceptance (required) 7. Executed vs. Executory 8. Equitable Title (Equitable Conversion) vs. Legal Title 9. Statute of Limitations 10. Laches

Question 18

Standing trees would be considered:

A	Emblements
B	Chattels
C	Personal Property
D	Real property

Question 18 Explanation:

Disputes between adjoining property owners, over the care of trees that straddle property lines are not an uncommon occurence. Massachusetts courts have addressed this problem and there are laws in place to address the issue. In hotly contested situations it may even be necessary to swear out a No Trespass Order until the matter can be resolved. The form is available here: https://www.leicesterma.org/sites/leicesterma/files/uploads/trespass.pdf A landowner who discovers that one or more trees have been unlawfully cut or cleared from his property is entitled to recover monetary damages as compensation for the loss. And, in many instances, the landowner may be entitled to treble (triple) damages resulting from the unauthorized cutting. The right to damages for unlawful tree cutting is governed by M.G.L. c. 242, § 7, which provides that “A person who without license willfully cuts down, carries away, girdles or otherwise destroys trees, timber, wood or underwood on the land of another shall be liable to the owner in tort for three times the amount of the damages assessed therefor; but if it is found that the defendant had good reason to believe that the land on which the trespass was committed was his own or that he was otherwise lawfully authorized to do the acts complained of, he shall be liable for single damages only.” Massachsetts Law: Section 11: Injury to trees of another person Section 11. Whoever wilfully, maliciously or wantonly cuts, destroys or injures a tree, shrub or growth which is not his own, standing for any useful purpose, shall be punished by imprisonment for not more than six months or by a fine of not more than five hundred dollars. Bassin v. Fairley, 22 LCR 251 (Land Court, 2014) Where a healthy tree straddles the property line, the property owners "each hold title to a portion of [the tree], and thus neither can take any action against their portion of [the tree] that would injure [the tree] as a whole." Practice Tip: Always take note of any trees that straddle property lines of any real property that you are involved with as an agent. Educate your client on the legalities of the situation by directing them to the Massachusetts State website at: https://www.mass.gov/info-details/massachusetts-law-about-neighbors-and-trees#massachusetts-laws- Always check with your broker in this situation first, before educating your client, to make sure that you are in complaince with your brokers expectations.

Question 19

The real estate license law is administered by:

A	Massachusetts Commission of Real Estate
B	Massachusetts Board of Registration of Real Estate Brokers and Salespersons
C	Massachusetts Department of Real Estate
D	Massachusetts Department of Consumer Affairs

Question 19 Explanation:

The Real Estate Board licenses only those candidates who meet the statutory and regulatory requirements for real estate brokers and salespersons. The Board regulates real estate schools and agent curriculum and contracts with a testing vendor to provide the agent examination. The Board also seeks to protect consumers by investigating and disciplining those real estate agents who violate licensing laws and regulations.

Question 20

In what circumstances, if any, can a broker in Massachusetts who is serving as a facilitator collect compensation from the buyer?

A	Only when the buyer gives informed consent to this arrangement
B	In most circumstances, except when the buyer and seller are related
C	Only when both buyer and seller have legal representation
D	None; the broker may only collect compensation from a party as a buyer's agent

Question 20 Explanation:

The Massachusetts agency disclosure form can be found at : https://www.mass.gov/files/documents/2016/07/vk/disclosure-form-agency-non-agency.pdf Your broker will offer access to all current forms and your membership in the Massachusetts Association of Realtors (if you choose to join) will offer current forms access. The Massacusetts disclosure wording for a facilitator is as follows: (NON-AGENT) FACILITATOR When a real estate licensee works as a facilitator that licensee assists the seller and/or buyer in reaching an agreement but does not represent either the seller or buyer in the transaction. The facilitator and the broker with whom the facilitator is affiliated, owe the seller and buyer a duty to present all real property honestly and accurately by disclosing known material defects and owe a duty to account for funds. Unless otherwise agreed, the facilitator has no duty to keep information received from a seller or buyer confidential. Should the seller and/or buyer expressly agree, a facilitator relationship can be changed to a seller or buyer client relationship with the written agreement of the person so represented. Practice Tip: Be certain to use the most current edition of all forms because subtle, yet substantive, changes can be made from year to year.

Question 21

Which of the following states does NOT participate in real estate license reciprocity with Massachusetts?

A	Vermont
B	New York
C	Connecticut
D	New Hampshire

Question 21 Explanation:

The following states offers reciprocity with Massachusetts: Connecticut, Rhode Island, West Virginia, Nebraska, Iowa, Tennessee, Mississippi, Colorado, Georgia, Pennsylvania, and New Mexico, Oklahoma, New York, New Hampshire, Nevada and Maine. Call the Massachusetts Board of Real Estate with any questions at 617-727-2373.

Question 22

Which of the following would not put a sales person in jeopardy of losing their license in Massachusetts?

A	Placing an ad claiming to be a broker when they are not.
B	Convicted of a felony
C	Depositing his/her clients escrow money into a personal account
D	Being authorized to accept an excessively large commission.

Question 22 Explanation:

There are a variety of things that can put your license in jeopardy: 1. Misrepresentation (knowingly). 2. Acting in dual capacity of broker and undisclosed principal in the same transaction. 3. Acting for more than one party in the same deal without both parties knowing it. 4. Failure to properly account for or return escrow funds such as deposit money. 5. Paying unlicensed persons. 6. Making a secret profit while acting as a broker. 7. Persuading someone to break a contract for personal gain. 8. Mixing of escrow funds with personal money. 9. Failure to give both buyer and seller a copy of the Purchase and Sale agreement. 10. Violation of any other provision of the law. 11. Discrimination. 12. Conviction of a criminal offense which the Board considers a reflection on a licensee's moral character. 13. Promotion and sale of out of state land within Massachusetts is subject to Board review. 14. Affirmative soliciting for sale, lease, or the listing for sale or lease of residential property, on the grounds of alleged change of value, due to the presence of the prospective entry into the neighborhood of a person or persons of another race, economic level, religion or ethnic origin or making statements intended to induce the owner of residential property to sell or lease due to such change in the neighborhood. Such acts are referred to as "Blockbusting." Any owner, lessee, or licensed real estate broker cannot discriminate against anyone because of race, religion, creed, color, national origin, sex, age, veteran of the armed forces, or because a person is blind. This does not apply to minors.

Question 23

Which of the following is a landlord's option for a tenant not paying the rent?

A	notice to quit
B	shut off the power
C	lock the tennant out of the apartment
D	shut off the gas

Question 23 Explanation:

A landlord may give a Massachusetts tenant at will who has received a second notice to pay rent or quit within 12 months an unconditional quit notice that gives the tenant 14 days to move out before the landlord can file for eviction. Massachusetts Chapter 186 Section 12. ...Every notice to determine an estate at will for nonpayment of rent shall contain the following notification to the tenant: ''If you have not received a notice to quit for nonpayment of rent within the last twelve months, you have a right to prevent termination of your tenancy by paying or tendering to your landlord, your landlord's attorney or the person to whom you customarily pay your rent the full amount of rent due within ten days after your receipt of this notice.'' If any notice to determine an estate at will for nonpayment of rent shall fail to contain such notification, the time within which the tenant receiving the notice would be entitled to pay or tender rent pursuant to this section shall be extended to the day the answer is due in any action by the landlord to recover possession of the premises. Failure to include such notice shall not otherwise affect the validity of the said notice. ... All states allow landlords to use unconditional quit notices when a tenant has repeatedly violated a lease clause, has substantially damaged the rental unit, is dealing drugs, or for other specified reasons. EVICTION Notice to Quit: When you decide to start eviction by giving a tenant notice to quit, you may enter a minefield of delays and surprise costs. Talk to an attorney if you are not familiar with this process. Types of Forms: Which form you use depends on whether you have a lease or a tenancy-at-will. Leases have a fixed term. Tenancy-at-will is also known as “month to month”. If you don’t have a written agreement, you have a “tenant at sufferance” and should get an attorney (the rules may be simpler in some ways but they’re less commonly practiced). Notice to Quit with a Lease: When dealing with a lease, you have two choices: evict for non-payment or evict for any other reason (“cause”). To evict for non-payment of rent, you can use a 14-day notice to quit. This the shortest legal notice, even if your lease specifies a shorter period. Don’t use less than a 14-day notice for non-payment. If your lease specifies a longer period, you must use the longer period specified. To evict for cause, you cannot use the 14-day notice. You must go with what the lease says. The most common lease that follows common conventions calls for a 7-day notice. You must indicate which specific part of the lease has been breached. Collect your evidence. If your lease doesn’t say anything about the notice period, contact an attorney. Please note: courts have tended not to grant 7-day notice except in cases of illegal firearms, illegal use of firearms, or drugs. Notice to Quit with a Tenancy at Will: You can use a 14-day notice for non-payment of rent. For anything else, you must give what’s called the “30-day notice.” Really it’s 30 days or “one full rental period.” This has implications for the month of February: you have to give notice before January 28 if you want the tenant out by March 1. What if the Tenant Pays but you Still Want Them Out?: If the tenant pays you fully after you issue their first notice to quit, and it was notice for nonpayment, you’re both back in business together. You cannot refuse the money because the tenant has the right to cure. Be nice when you give notice because they might cure. Depending on the type of business you operate, anywhere from zero to 100 percent will cure. If you issue multiple notices to quit, the judge will have to determine which set of case law they want to follow. Suppose you issue one 30-day notice that you think was ignored, so you issue a second one. Well, the tenant might have seen both and can ask to have the later one reset the clock. The same goes if you issue a 14-day and a 30-day. The judge might decide to disallow the 14-day notice and go with 30 days. Or if the judge thinks you were trying to deceive the tenant out of their right to proper notice, the judge might decide to disallow both notices. Attorneys familiar with your courts can advise you about your specific jurisdiction. It is recommended to pick one notice, serve it properly, and stand behind it. What if the Tenant Neither Pays Nor Quits?: If the tenant ignores your notice and continues to occupy the premises on the 7th, 14th, or 30th day after the date of the notice, depending, you will have to seek to enforce the notice by filing for eviction in court. Make sure to count whole days. The day after the day you give notice is day one, not day two. Delivery: Once you’ve filled out the form, you must serve the notice to the tenant. You can attempt to do this in a variety of ways: • Hand deliver it • Hire a constable to hand deliver it You must prove that the tenant actually received the notice. For this reason, you cannot tape a notice to a door in Massachusetts (no proof of receipt). You can attempt to mail it, but if the tenant knew what was good for them, they would say they never got it. Even if you require a signature, the savvy tenant can refuse to sign for it. Even if you send it certified, that’s only proof of mailing and not proof of lawful delivery. The only option we can recommend is hand delivery, face-to-face. You can do it yourself or hire a constable or sheriff (typically around $50) to provide a third party witness.

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There are 23 questions to complete.