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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q91-Q96):

NEW QUESTION # 91
An owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that the owner would NOT sell the property. A lawsuit filed by the buyers would be for

A. specific performance.
B. a deficiency judgment.
C. quiet title action.
D. lis pendens.

Answer: A

Explanation:
In real estate contract law, when a seller refuses to close after entering into a valid purchase and sale agreement, the buyer can sue for specific performance. This legal remedy compels the seller to perform the exact terms of the contract, meaning they must proceed with the sale.
A lis pendens (B) is merely a recorded notice that litigation is pending, not a lawsuit itself. A quiet title action (C) is used to resolve disputes over property ownership or defects in title, not to enforce a sales contract. A deficiency judgment (D) arises when a foreclosure sale does not produce enough funds to cover the outstanding loan, which is unrelated to this scenario.
Massachusetts recognizes specific performance as an equitable remedy available to real estate buyers because each parcel of real estate is unique. Courts often side with the buyer in such cases, ordering the seller to transfer title as originally agreed.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts Section; Massachusetts General Laws, Contract Remedies in Real Estate Transactions.

NEW QUESTION # 92
The Massachusetts State Sanitary Code requires

A. The property owner to provide a refrigerator in working order.
B. Separate meters for all heating and electric systems.
C. A stove in good repair in any rental unit.
D. Tenants to pay for their own water and/or sewer costs.

Answer: C

Explanation:
The Massachusetts State Sanitary Code (105 CMR 410) sets minimum standards for safe and habitable housing. One explicit requirement is that every rental unit must be equipped with a stove in good repair provided by the landlord.
Other items:
Refrigerators: Landlords are not required to provide them, but if they do, they must be in working order.
Separate meters: Not required for all systems.
Water/sewer: Landlords generally pay unless specific written agreements allow tenant billing (with proper metering).
Thus, the universal requirement is a stove in good repair.
Reference: Massachusetts Sanitary Code, 105 CMR 410.100.

NEW QUESTION # 93
Under an option to buy, the ownership of land will change when the

A. optionee exercises the option.
B. optionor does not fulfill the obligation.
C. option is signed by the parties.
D. specified time has expired.

Answer: A

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
An option to buy is a unilateral contract where the seller (optionor) gives the buyer (optionee) the exclusive right to purchase property within a set period at agreed terms. Ownership does not transfer when the option is signed - only when the optionee exercises the option and a purchase contract is completed.
A: The option itself does not transfer ownership.
B: Optionor has no further obligations beyond honoring the option.
D: Expiration ends the option with no transfer.
Thus, title passes only after the optionee exercises the option and proceeds with purchase.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; Options in Real Estate.

NEW QUESTION # 94
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. Inform the client that the offer will be presented without any earnest money since the agent is required to submit all offers.
B. Hold it for five days before submitting the check to his broker for deposit in the escrow account.
C. 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.
D. Refuse to present the offer to the seller's agent until the earnest money can be deposited.

Answer: C

Explanation:
Under 254 CMR 3.10 and Massachusetts escrow rules, all deposits must be turned over immediately to the broker for deposit into the escrow account. However, if the buyer gives written instructions that the check is to be held (for example, for a certain number of days), the broker must honor those instructions.
The correct procedure is to deliver the check to the broker right away, along with the buyer's instruction to hold it for five days before depositing. The agent may not personally hold the check, nor may the agent refuse to present the offer due to escrow timing. All offers must be submitted promptly regardless of deposit status.
Reference: 254 CMR 3.10 - Handling of Client Funds; Massachusetts Real Estate Candidate Information Bulletin - Escrow Rules.

NEW QUESTION # 95
A motel is the subject of an appraisal and it is determined that a rerouting of a county highway has limited customer access to the motel. This is an example of

A. functional obsolescence.
B. economic obsolescence.
C. regression.
D. landlocked property.

Answer: B

Explanation:
Economic obsolescence (also known as external obsolescence) occurs when property value declines due to factors outside the property itself that the owner cannot control. In this case, rerouting of a county highway reduces customer access, negatively impacting business and property value. This is entirely external and beyond the motel owner's ability to correct.
By contrast:
Regression (B) refers to when a higher-value property loses value due to surrounding lower-value properties.
Functional obsolescence (C) is caused by design flaws or outdated features within the property itself.
Landlocked property (D) refers to a parcel with no legal access, which is not the case here.
Therefore, the correct answer is economic obsolescence.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Valuation and Market Analysis; Principles of Appraisal.

NEW QUESTION # 96
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