Massachusetts Real Estate Salesperson Exam — All Questions

A Massachusetts broker decides he would like to buy a property his own firm has listed. Under 254 CMR 3.00 he must first:

• a.Disclose his interest in writing to all parties✓
• b.Resign the listing before submitting any offer of his own
• c.Pay the seller the full commission at the closing
• d.Have the seller's own attorney approve the purchase price

254 CMR 3.00(11)(a) bars a broker or salesperson from buying, selling, renting or acquiring an interest in real property in which the licensee or his kin has a personal financial interest unless he fully discloses the nature of that interest in writing to all parties to the transaction and the parties give written acknowledgment of the disclosure. 254 CMR 3.00(11)(b) applies a parallel rule to taking an option. Cite: 254 CMR 3.00(11).

Under 254 CMR 3.00, a Massachusetts salesperson who wants to advertise one of the firm's listings:

• a.May advertise in her own name if she pays for the ad
• b.May advertise only in publications the Board approves
• c.May not advertise real property under her own name✓
• d.May advertise in her own name with the seller's consent

254 CMR 3.00(9)(b) provides that salespeople are prohibited from advertising the purchase, sale, rental or exchange of any real property under their own name. Advertising is the broker's function, and 254 CMR 3.00(9)(a) requires every advertisement to carry the name of the real estate broker. Cite: 254 CMR 3.00(9).

254 CMR 3.00 forbids a Massachusetts broker to run a property advertisement that:

• a.Omits the year in which the dwelling was first constructed
• b.States an asking price without the property's square footage
• c.Gives only a box number or phone number and no broker name✓
• d.Runs in a publication circulated outside the commonwealth

254 CMR 3.00(9)(a) bars a broker from advertising real property unless he affirmatively discloses that he is a real estate broker, bars insertions where only a post office box, telephone, facsimile, electronic mail number or street address appears, and requires all advertisements to include the name of the real estate broker. The other three facts are not required in an advertisement. Cite: 254 CMR 3.00(9)(a).

A Massachusetts buyer asks her salesperson whether she really needs a lawyer for a straightforward closing. Under 254 CMR 3.00 the salesperson:

• a.May not advise against the use of an attorney✓
• b.May say a lawyer is unnecessary in a routine sale
• c.Must recommend an attorney from the Board's own list
• d.Must decline to discuss the closing

254 CMR 3.00(12) states that no broker or salesperson shall advise against the use of an attorney in any real property transaction. The rule forbids steering the consumer away from counsel; it does not require the licensee to name a particular lawyer, and the Board publishes no list of attorneys. Cite: 254 CMR 3.00(12).

A Massachusetts listing broker receives an offer he considers insultingly low. Under 254 CMR 3.00 he must:

• a.Advise the buyer to withdraw it before presenting it
• b.Present it only if the buyer agrees to raise the price
• c.Hold it until a stronger offer arrives for comparison
• d.Convey the offer to the property owner forthwith✓

254 CMR 3.00(11)(d) requires that all offers submitted to brokers or salespeople to purchase or rent real property they have a right to sell or rent be conveyed forthwith to the owner. The owner, not the licensee, decides what an offer is worth. Cite: 254 CMR 3.00(11)(d).

At the signing of the first written contract to purchase a Massachusetts home, the licensee must give the buyer:

• a.A list of mortgage lenders approved by the Board
• b.A completed seller property condition report
• c.A written estimate of the buyer's closing costs
• d.A brochure explaining the home inspection process✓

M.G.L. c. 112, Section 87YY1/2 requires brokers and salespersons — or the seller where no licensee is involved — to distribute at the signing of the first written contract to purchase a home inspection brochure published by the Office of Consumer Affairs and Business Regulation. Massachusetts requires no statewide seller condition report. Cite: M.G.L. c. 112, Section 87YY1/2.

A Massachusetts buyer asks his salesperson which home inspector to hire. Generally the salesperson may:

• a.Provide the Board's complete list of licensed inspectors✓
• b.Name the inspector the firm has used most often
• c.Name any inspector who carries liability insurance
• d.Name three inspectors and let the buyer compare their fees

M.G.L. c. 112, Section 87YY1/2 bars a licensee from directly recommending a specific home inspection company or inspector, but permits providing, on request, the complete list of licensed home inspectors prepared by the board. The prohibition does not apply where a written agreement or written agency disclosure establishes that the licensee acts exclusively as the buyer's broker. Cite: M.G.L. c. 112, Section 87YY1/2.

Massachusetts requires the lead hazard notification form and materials to reach a prospective purchaser:

• a.Before the purchase and sale agreement is signed✓
• b.Within ten days after the seller accepts the offer
• c.At the closing, with the deed and the payoff figures
• d.Only if the buyer asks about lead

M.G.L. c. 111, Section 197A(b) requires all persons selling premises to provide the standard notification form and materials to the prospective purchaser prior to the signing of a purchase and sale agreement, and requires the seller and any real estate agent involved to disclose known information about lead in the premises. Failure can cost damages plus a penalty up to $1,000. Cite: M.G.L. c. 111, Section 197A.

A Massachusetts home containing dangerous levels of lead paint changes hands, and a child under six will live there. The new owner has how long to abate or contain it?

• a.30 days
• b.90 days✓
• c.six months
• d.one year

M.G.L. c. 111, Section 197(a) gives the new owner 90 days from the change of ownership to contain or abate the lead paint, plaster or other accessible structural material so the premises comply with Sections 189A to 199B. The underlying duty attaches whenever a child under six resides in premises with dangerous levels of lead. Cite: M.G.L. c. 111, Section 197(a).

A Massachusetts landlord instructs his broker not to show the units to anyone paying with a housing voucher. That instruction is:

• a.Lawful where the building contains three dwelling units or fewer
• b.Unlawful discrimination against a rental subsidy recipient✓
• c.Lawful, since voucher holders are not a protected class
• d.Lawful until the landlord signs a listing agreement

M.G.L. c. 151B, Section 4(10) makes it unlawful for any person furnishing rental accommodations to discriminate against a recipient of federal, state or local public assistance or housing subsidies, including rental assistance, because of that status or because of any requirement of the subsidy program. This is a Massachusetts protected class with no counterpart in the federal Fair Housing Act. Cite: M.G.L. c. 151B, Section 4(10).

Outside Barnstable County, the Massachusetts deeds excise rate published by the Department of Revenue is:

• a.$1.14 per $500
• b.$2.28 per $500✓
• c.$3.42 per $500
• d.$4.56 per $500

The Department of Revenue's Massachusetts Tax Rates table lists the deeds excise at $2.28 per $500 of the sales price less any mortgage assumed, which works out to $4.56 per $1,000. M.G.L. c. 64D, Section 1 sets a lower rate of $1.50 per $500 for Barnstable County. Cite: mass.gov, Massachusetts Tax Rates; M.G.L. c. 64D, Section 1.

A Massachusetts salesperson applying for a broker's license must show three years of affiliation with a broker and, beyond the salesperson coursework, must also complete:

• a.Two years of property ownership in the commonwealth
• b.24 additional classroom hours of approved courses
• c.40 additional classroom hours of approved courses✓
• d.A passing score on a national broker examination

M.G.L. c. 112, Section 87SS requires a broker applicant to prove three years of active association with a broker as a salesman and completion of additional approved real estate courses totaling 40 classroom hours — on top of the 40 hours the salesperson license required. Cite: M.G.L. c. 112, Section 87SS; mass.gov, Frequently Asked Questions: Real Estate Brokers and Salespersons.

254 CMR 2.00 measures the three years of experience a Massachusetts broker applicant needs as affiliation with a licensed broker for a minimum of:

• a.15 hours per calendar week
• b.20 hours per calendar week
• c.25 hours per calendar week✓
• d.35 hours per calendar week

254 CMR 2.00(6)(b) requires the salesperson to be employed by or affiliated with the licensed broker for a minimum of 25 hours per calendar week under that broker's supervision. Subsection (6)(a) supplies the three-year period and (6)(c) the two-year window after the affiliation ends. Cite: 254 CMR 2.00(6).

A Massachusetts salesperson with four years of qualifying experience leaves her brokerage. Under 254 CMR 2.00 she must obtain her broker's license within:

• a.One year of the date the affiliation ended
• b.Two years of the date the affiliation ended✓
• c.Three years of the date the affiliation ended
• d.Five years of the date the affiliation ended

254 CMR 2.00(6)(c) requires a salesperson to obtain licensure as a broker within two years of the date the qualifying employment or affiliation terminates. Experience that goes stale beyond that window no longer supports the application. Cite: 254 CMR 2.00(6)(c).

Under 254 CMR 2.00 the certification that a Massachusetts applicant finished the required prelicensure education stays valid for:

• a.6 months
• b.12 months
• c.24 months✓
• d.36 months

254 CMR 2.00(3) provides that the education certification submitted before the examination 'shall be valid for a period not to exceed 24 months following the date on which the education was completed.' An applicant who lets that window close must repeat the coursework. Cite: 254 CMR 2.00(3).

A Massachusetts candidate passes the salesperson examination but never pays the license fee. Under 254 CMR 2.00, once 30 days have run the candidate:

• a.Must be re-examined and pay the examination fee again✓
• b.Is licensed anyway, with the fee due at first renewal
• c.Receives the license on inactive status until it is paid
• d.May pay a late charge any time in the following year

254 CMR 2.00(5) requires payment of the prescribed fee within 30 days of notification of passing; if it is not paid in that period the individual must be re-examined and pay the examination fee, though the Board may waive this on a showing of good cause. Cite: 254 CMR 2.00(5).

254 CMR 2.00 requires a Massachusetts license application to be accompanied by recommendations from:

• a.One notary public who has verified the applicant's identity
• b.Two licensed brokers who have supervised the applicant
• c.Three former clients who dealt with the applicant directly
• d.Three reputable citizens not related to the applicant✓

254 CMR 2.00(7) requires recommendations from three reputable citizens, not related to the applicant, who reside or have their place of business in the commonwealth, each certifying the applicant's reputation for honesty and fair dealing. It implements the good moral character requirement of M.G.L. c. 112, Section 87TT. Cite: 254 CMR 2.00(7).

Continuing education required of a Massachusetts licensee for each two-year license term totals:

• a.6 hours
• b.8 hours
• c.12 hours✓
• d.20 hours

254 CMR 5.00(3) requires the licensee to certify at each renewal completion of the 12 hours of continuing education in the Board's published curriculum. M.G.L. c. 112, Section 87XX1/2 sets the statutory band of no fewer than six and no more than twelve hours, and the Board has set it at twelve. Cite: 254 CMR 5.00(3); M.G.L. c. 112, Section 87XX1/2.

A Massachusetts licensee who misses the continuing education deadline is renewed on inactive status. While inactive the licensee may:

• a.Hold client deposits for the broker
• b.Receive referral fees for procuring prospects✓
• c.Finish transactions that were pending at renewal
• d.Show listed property under a broker's supervision

M.G.L. c. 112, Section 87XX1/2 provides that an inactive licensee may not act as a broker or salesman but 'may assist with or direct the procuring of prospects and may receive referral fees for such procurement activities,' and is otherwise treated as unlicensed for purposes of Section 87RR. 254 CMR 5.00(4) says the same. Cite: M.G.L. c. 112, Section 87XX1/2; 254 CMR 5.00(4).

Which Massachusetts applicant is excused from the real estate licensing examination?

• a.An appraiser with ten years of experience
• b.A licensed insurance producer
• c.A holder of a degree in real estate finance
• d.An attorney at law of the commonwealth✓

M.G.L. c. 112, Section 87SS provides that an applicant who is an attorney at law of the commonwealth need not take the examination, and a resident broker applicant who is such an attorney is also excused from the one-year principal-place-of-abode requirement. 254 CMR 2.00(3) repeats the exemption for attorneys in good standing. Cite: M.G.L. c. 112, Section 87SS; 254 CMR 2.00(3).

M.G.L. c. 112, Section 87XX makes an individual's first Massachusetts license run until:

• a.Exactly 24 months after the date the license issued
• b.The birthday next falling more than 24 months after issue✓
• c.December 31 of the second year after the license issued
• d.The anniversary of the date the examination was passed

Section 87XX sets a two-year term generally but adds that the license originally issued to an individual 'shall be valid until the anniversary of the licensee's date of birth next occurring more than twenty-four months after the date of issuance,' which is why a first license runs slightly longer than two years. Cite: M.G.L. c. 112, Section 87XX.