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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. 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?

A) dual agency
B) no agency relationship; in this situation the broker becomes a facilitator only
C) seller agency, no agency relationship with buyer
D) seller agency, buyer sub-agency

2. Prospective buyers for a house want to operate a recycling center in their backyard. Local zoning laws do not allow this. What do they need to do first?

A) Obtain a building permit.
B) File an appeal with the local court.
C) Obtain a variance or special exception.
D) Obtain a modification to the local master plan.

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

A) representing an owner who wants to sell raw land to a developer.
B) representing a first time home buyer.
C) acting as the seller's agent in selling an oceanfront lot to a retiree.
D) listing commercial income property.

4. Based on the common law of agency, which of the following would always be an agent's duty?

A) disclosing that the reason a client is selling is an impending divorce
B) hiring a contractor to repair a listing with a leaky roof
C) placing the interests of the principal above all others, including the agent's own interests
D) analyzing the preliminary title report and advising the buyer regarding exceptions listed

5. What is the function of a promissory note or bond when used in conjunction with a mortgage?

A) It furnishes a complete legal description of the property.
B) It makes the borrower personally obligated to pay the debt.
C) In case of default, it limits the lender's rights to interest only.
D) It provides the elements necessary to make the mortgage valid.

Solutions: