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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q18-Q23):

NEW QUESTION # 18
A buyer and a seller have a purchase agreement that contains a home inspection contingency. The buyer has applied for a VA mortgage. After the home inspection is completed, the buyer writes an addendum requesting that the seller pay to repair several items found by the home inspector. The seller counters the addendum by requiring that the buyer agree that the repairs will be made, but that no further expenses will be incurred by the seller. The VA appraisal inspection has not been conducted. Under these circumstances, which of the following is correct?

A. The licensee should encourage the seller to place the home back on the market.
B. There is no longer a valid contract.
C. The original contract is still in effect.
D. The VA inspection is not necessary because the buyer's home inspection report will be sent to the mortgage company.

Answer: C

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
In this scenario, the parties have entered into a binding purchase agreement with a home inspection contingency. The buyer submitted an addendum requesting seller repairs, but the seller countered. Since the buyer has not yet accepted, the counter is not binding - therefore, the original contract remains in effect until both parties agree to a modification.
Additionally, because the financing is a VA loan, the VA still requires a VA appraisal (separate from the buyer's home inspection) to determine value and minimum property requirements. The VA inspection cannot be waived by substituting the home inspector's report.
Thus, the correct answer is B: the original contract is still in effect.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; VA Loan Program Guidelines.

NEW QUESTION # 19
A property manager has successfully negotiated the lease of a home built in 1965 to tenants who have no children. Regarding disclosure of lead-based paint, the property manager should

A. give the tenants 10 days to test the home and provide them with the required booklet.
B. do nothing, as regulations only apply when children are present.
C. have all the lead-based paint covered or removed by licensed mitigators.
D. have the tenants sign the disclosure form and provide them with the required booklet.

Answer: D

Explanation:
The Residential Lead-Based Paint Hazard Reduction Act (Title X, 1992) requires that landlords and sellers of housing built before 1978 disclose any known lead-based paint hazards to prospective tenants or buyers.
Massachusetts enforces this rule strictly due to its older housing stock.
The law applies regardless of whether children are present. Tenants must receive:
An EPA-approved lead hazard information booklet.
A disclosure form confirming acknowledgment.
Tenants must be informed of their right to test for lead, but in a lease situation they do not automatically get a
10-day inspection period (that applies to sales, not rentals). Covering or removing lead paint (B) is only required if a child under six will occupy the property in Massachusetts, under the Lead Law (M.G.L. c.111
§197).
Thus, the correct answer is D.
Reference: EPA Lead-Based Paint Disclosure Rule; Massachusetts Lead Law; Massachusetts Real Estate Salesperson Candidate Handbook - Environmental Issues.

NEW QUESTION # 20
The Massachusetts Consumer Protection Act requires that

A. The buyer be informed of all offers.
B. The seller's information be kept confidential.
C. The broker disclose known material defects.
D. The seller disclose all offers received.

Answer: C

Explanation:
The Massachusetts Consumer Protection Act (M.G.L. c. 93A) prohibits unfair or deceptive practices in trade or commerce. In real estate, this means that a broker must disclose known material defects to prospective buyers. Failing to do so constitutes a deceptive act and can subject the broker to liability, including double or treble damages, attorney's fees, and court costs.
While sellers and buyers have their own disclosure obligations, the statute specifically imposes consumer protection responsibilities on businesses, including real estate brokers. Confidentiality of client information is a fiduciary duty under agency law, not a requirement of Chapter 93A. Offers themselves must always be presented to clients, but Chapter 93A focuses primarily on material misrepresentation and nondisclosure.
Reference: M.G.L. c. 93A; 254 CMR 3.00; Massachusetts Real Estate Candidate Information Bulletin - Consumer Protection Law.

NEW QUESTION # 21
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. Approval from the State Sanitary Commission.
B. A certificate of compliance.
C. A letter of interim control.
D. Approval from the local conservation commission.

Answer: D

Explanation:
If a property abuts a pond, the potential construction of any addition, especially near water, may require approval from the local conservation commission. This is because Massachusetts law, under the Massachusetts Wetlands Protection Act (M.G.L. c. 131, § 40), regulates activities near water bodies, wetlands, and other protected areas to preserve the environment and control construction near these sensitive areas.
The local conservation commission is responsible for approving construction projects that could affect the pond or surrounding wetlands. If the buyer intends to build near the pond, especially on land that may fall under these regulations, they must seek the approval of the local conservation commission before proceeding with construction.
Reference: M.G.L. c. 131, § 40 - Wetlands Protection Act; Massachusetts Real Estate Candidate Information Bulletin - Environmental Issues.

NEW QUESTION # 22
Inactive salespersons are permitted to perform which of the following activities?

A. Refer potential buyers to an active salesperson in exchange for a fee from the salesperson.
B. Affiliate with inactive brokers.
C. List homes by telephone.
D. Refer potential listings to an active broker in exchange for a fee from the active broker.

Answer: D

Explanation:
An inactive salesperson in Massachusetts holds a license that is not active for brokerage activities (buying, selling, leasing). They may not list homes, show property, or handle transactions.
However, under M.G.L. c. 112, an inactive licensee may receive a referral fee from an active broker for referring potential business. This is because the inactive license keeps the person legally affiliated with the licensing system, even though they cannot directly engage in brokerage.
They may not be paid directly by other salespersons, nor may they affiliate with inactive brokers. Referrals and fee-sharing must always flow through an active broker.
Reference: M.G.L. c. 112, 87RR, 87SS; 254 CMR 2.00.

NEW QUESTION # 23
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