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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

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

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

2. A broker has been engaged to locate a property for a buyer. The broker has determined that a suitable property for the buyer is for sale and is owned by the broker's cousin. The broker has not informed the buyer of the broker's relationship with the owner. If the buyer purchases the property under these circumstances, the broker is

A) Not violating the license law because the broker in this situation has no duty of disclosure.
B) Violating the license law because a relative's interest shall be made known to all parties.
C) Violating the license law because it is illegal to purchase family property for a principal.
D) Not violating the license law because a relative's interest is an exception to the fiduciary duty rule.

3. Broker N has five affiliated salespersons. On Monday at 10:00 a.m., Salesperson J submitted an offer to purchase from a prospective buyer. The offer price was $300,000. An hour later, Salesperson R submitted an offer of $296,000. However, Broker N held the second offer until the seller rejected the first offer. Broker N's conduct in this situation is

A) Not permissible because a broker must present all offers to the principal forthwith.
B) Permissible as long as both salespeople knew of Broker N's action.
C) Not permissible because a broker must inform all potential buyers of existing offers.
D) Permissible as long as both salespeople share a commission on either of the offers accepted by the seller.

4. Real estate taxes that are paid in advance are prorated on the closing statement as

A) a credit to buyer; a debit to seller.
B) no entry to buyer; a credit to seller.
C) no entry to buyer; a debit to seller.
D) a debit to buyer; a credit to seller.

5. A private integrated club refused to rent one of its condos to a minority family. The club explained that it did not rent the condos to the public since the condos were for members only. Is the club in violation of the federal Fair Housing Act, and if so, how?

A) Yes, because the club had minority members, and therefore was not eligible for exemptions from the federal Fair Housing Act.
B) No, because as an integrated club, they could discriminate on the basis of race in renting facilities.
C) Yes, because when race is involved, no exceptions to the federal Fair Housing Act exist.
D) No, because a private club may restrict the rental of its own lodgings to its members as long as the lodgings are not operated commercially.

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