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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A client makes an offer on a residential property and provides a check for $2,000 as earnest money. The client instructs his buyer agent to hold the check for five days so it will clear the bank. What should the agent do with the check?

A) Provide the check to his broker immediately with the client's instruction to hold it for five days before depositing it in the escrow account.
B) Refuse to present the offer to the seller's agent until the earnest money can be deposited.
C) Inform the client that the offer will be presented without any earnest money since the agent is required to submit all offers.
D) Hold it for five days before submitting the check to his broker for deposit in the escrow account.

2. A buyer makes an offer on a property and asks the Seller's broker to recommend a good home inspector. The Seller's broker may

A) Provide business cards of local home inspectors.
B) Provide a list of no fewer than 20 licensed home inspectors in the county where the property is located.
C) Recommend a specific home inspector.
D) Provide the complete list of home inspectors prepared by the Commonwealth of Massachusetts.

3. A broker maintains a trust or escrow account. A $10,000 earnest money deposit is received from a buyer and deposited in the account. Several weeks later and prior to closing, the broker withdraws $7,000 from the account and puts it in an operating account. This transaction is

A) a violation of federal banking regulations.
B) an instance of illegal conversion of funds.
C) permissible as long as the broker is entitled to at least $7,000 in commission.
D) permissible if the seller was informed about the transfer of funds.

4. In a jurisdiction where a seller's property condition disclosure is required, the licensee is responsible for

A) completing the property condition disclosure.
B) ensuring that the seller complete the property condition disclosure before closing.
C) ensuring that the buyer receives the property disclosure before the contract is finalized.
D) checking the disclosure for accuracy and ensuring that the buyer receives it before closing.

5. When performing its duties, the Board of Registration protects and safeguards the interests of the

A) State legislature.
B) General public.
C) Governor's office.
D) Licensees.

Solutions: