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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. Time is of the essence means

A) every act under the contract must be performed on the exact date specified.
B) time limits set forth in the contract must be carefully observed.
C) time limits stated in the contract may not be modified, even by mutual agreement of the parties.
D) the closing must occur as soon as possible.

2. A broker lists a property abutting a pond. A potential buyer is interested in the property but plans to build an addition onto a boathouse. The buyer will need

A) A letter of interim control.
B) A certificate of compliance.
C) Approval from the State Sanitary Commission.
D) Approval from the local conservation commission.

3. A couple enters into a purchase contract to buy a house, and their parents are providing a $5,000 earnest money check. The check is deposited in the listing broker's escrow account. The buyers are unable to get financing, and the contract provides for return of the earnest money to the buyers. The buyers and seller agree in writing to the release of the earnest money. The listing broker should

A) issue a $5,000 check to the buyers.
B) issue a $5,000 check to the parents.
C) return the earnest money check, minus expenses, to the buyers.
D) return the earnest money check, minus expenses, to the parents.

4. A buyer is considering a property in one of the subdivisions of a Planned Unit Development (PUD). The buyer noticed nearby properties having detached garages and workshops. The buyer mentions to their agent that they want to build a detached building on the back of the lot for a home business. There is an HOA for this subdivision. Additionally, there are overarching covenants, conditions, and restrictions (CC&Rs) for the PUD. What actions, if any, should be taken by the broker to assure the buyer can use the property as they wish?

A) Take no action because other properties have detached buildings.
B) Recommend the buyer obtain the current CC&Rs and all current HOA documents.
C) Determine if home business use is allowed in the subdivision.
D) Recommend the buyer determine if architectural review requirements exist for the subdivision.

5. When lending standards are tightened, lenders typically require

A) a balloon payment after 5 years.
B) a higher loan-to-value ratio.
C) a waiver of the Equal Credit Opportunity Act.
D) a lower loan-to-value ratio.

Solutions: