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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. The provisions of the Real Estate License Law apply to which of the following individuals?

A) A regular employee of a property owner who conducts lease transactions on the property
B) A licensed person who for a fee receives a referral from a licensed broker
C) Salespersons who sell their primary residences
D) A property manager who handles the sale of units within a managed condominium complex

2. Licensee A and Licensee B work for a principal broker for ABC Realty. For Licensee A, the principal broker supervises the work as a listing/buyer's agent, collects commissions, and pays out based on their commission split agreement. Licensee A works from home and attends training meetings at the office. Licensee B works 8 a.m. to 4 p.m. in the ABC Realty office for relocations, showing local properties to relocating clients.
Licensee B is licensed to show homes and submits offers for purchase from individuals who are relocating but is paid by salary based on hours worked, with a bonus for production. What are Licensee A and B's relationships with ABC Realty?

A) Licensee A and Licensee B are both employees.
B) Licensee A is a contractor and Licensee B is an employee.
C) Licensee A is an employee and Licensee B is a contractor.
D) Licensee A and Licensee B are both contractors.

3. A person acquires an option to purchase a parcel of another person's land. Which of the following statements is correct?

A) The consideration for the option right, plus interest, will be automatically applied to the purchase price if the option is exercised.
B) The terms and conditions of the sale must be stated if the option is to be a valid contract.
C) The potential buyer is the optionor and the seller is the optionee.
D) An option is a promise by the optionee to enter into a contract in the future.

4. Which of the following assurances is provided to home buyers who purchase a $75,000 property with an FHA- insured mortgage?

A) A down payment is not required.
B) The property is not subject to eminent domain.
C) The neighborhood values will increase.
D) The property has been appraised for value.

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

Solutions: