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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. The heir to a large estate will be of legal age within 30 days. The heir lists for sale with a broker one of the properties held by the estate. The broker knows of a buyer for the property and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are

A) fulfilled.
B) executory.
C) voidable.
D) executed.

2. Which of the following activities may result in a fine from the Massachusetts Commission Against Discrimination (MCAD) against a licensee?

A) Acting in the dual capacity of broker and undisclosed principal in the same transaction
B) Blockbusting
C) Knowingly making any substantial misrepresentation
D) Failing to give both the buyer and the seller a copy of the purchase and sales agreement

3. A broker maintains a trust or escrow account. A $10,000 earnest money deposit is received from a buyer and deposited in the account. Several weeks later and prior to closing, the broker withdraws $7,000 from the account and puts it in an operating account. This transaction is

A) permissible as long as the broker is entitled to at least $7,000 in commission.
B) a violation of federal banking regulations.
C) permissible if the seller was informed about the transfer of funds.
D) an instance of illegal conversion of funds.

4. A broker may withdraw money from the broker's escrow account

A) When the transaction has been consummated.
B) To pay for advertising expenses related to the sale.
C) To cover the broker's commission.
D) When ordered by the seller's attorney.

5. A salesperson's client is the lessee. Who does the salesperson represent?

A) tenant
B) lender
C) lien holder
D) landlord

Solutions: