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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q14-Q19):

NEW QUESTION # 14
A licensee must provide disclosure of licensed status when acting as a principal if

A. the licensee has any economic interest in the property.
B. any relative of the licensee has ever lived in the residence.
C. the licensee does not have errors and omission insurance.
D. the agent of the other party asks about this specifically.

Answer: A

Explanation:
Under Massachusetts license law (254 CMR 3.00), a real estate licensee who acts as a principal in a transaction (buyer, seller, lessor, or lessee) must disclose in writing that they are a licensed broker or salesperson if they hold any direct or indirect ownership or economic interest in the property.
This rule is intended to protect the public from potential conflicts of interest and ensure transparency. The disclosure must be made in writing before entering into any binding contract.
Simply being asked (A) is not enough; disclosure is mandatory regardless.
Insurance coverage (B) is irrelevant.
Family members (D) may trigger disclosure if the licensee has an ownership/economic interest, but not merely because they lived there.
Correct answer: C.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - License Law & Disclosure; 254 CMR 3.00.

NEW QUESTION # 15
In a firm whose business model is designated agency, who represents the client named in the consumer licensee disclosure form?

A. All the licensees
B. All other designated buyer agents
C. All other designated seller agents
D. Only the individual agent(s) named on the consumer licensee disclosure form

Answer: D

Explanation:
In a designated agency model, a brokerage allows for agents within the firm to represent different parties in the same transaction, provided they are designated to do so. The client is represented by only the agent(s) named on the consumer licensee disclosure form.
This model ensures that the interests of both the buyer and seller are separately represented by agents who have been specifically appointed by the broker to represent each party. Other agents in the firm do not have fiduciary duties to the client unless explicitly designated.
The designated agency structure allows for more specialized attention and reduces conflicts of interest, as only the designated agent represents the client.
Reference: 254 CMR 3.00 - Agency Relationships; Massachusetts Real Estate Candidate Information Bulletin.

NEW QUESTION # 16
A broker lists a property for ninety days. A buyer stops at the owner's residence and makes an offer for the property, which the owner accepts. The broker has no knowledge of the sales agreement between the buyer and the owner. The broker is entitled to a commission from the sale if the agreement the broker had with the owner was a(n)

A. Net listing.
B. Open listing.
C. Exclusive right-to-sell listing.
D. Exclusive agency listing.

Answer: C

Explanation:
An exclusive right-to-sell listing guarantees that the broker will receive a commission no matter who finds the buyer - even if the owner sells the property themselves. If the broker had an exclusive right-to-sell listing with the owner, the broker is entitled to a commission if the property sells during the listing period, regardless of whether the broker was involved in the sale or not.
Exclusive agency listing only entitles the broker to a commission if they or another agent find the buyer; if the owner sells the property themselves, they do not owe the broker a commission.
Open listing allows the owner to sell the property themselves without owing the broker a commission unless the broker finds the buyer.
Net listing is illegal in Massachusetts as it could encourage brokers to manipulate the sale price for their own benefit.
Thus, the broker is entitled to a commission if the listing was an exclusive right-to-sell.
Reference: Massachusetts Real Estate License Law, M.G.L. c. 112, §§ 87PP-87DDD; 254 CMR 2.00 - Listings.

NEW QUESTION # 17
What kind of lease would require the lessee to pay the taxes, insurance, repairs, and other operating expenses of the premises in addition to the regular rental payment?

A. percentage lease
B. gross lease
C. graduated lease
D. net lease

Answer: D

Explanation:
In a net lease, the tenant (lessee) is responsible not only for the base rent but also for additional property expenses such as real estate taxes, insurance, maintenance, and sometimes repairs. This is common in commercial leasing, particularly for office buildings and retail space.
A gross lease (B) means the landlord pays all expenses, while the tenant pays only rent. A percentage lease (A) bases rent partly on tenant sales (common in retail malls). A graduated lease (C) allows rent increases at set intervals.
Because the question describes a tenant paying rent plus taxes, insurance, and operating expenses, this is a net lease.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Leasing & Property Management; Commercial Leasing Practices.

NEW QUESTION # 18
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 # 19
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