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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q120-Q125):

NEW QUESTION # 120
The listing broker has been presented with multiple offers. The seller would accept only a cash offer on the home, so the broker will present

• A. only cash offers to the seller.
• B. the highest cash offer to the seller.
• C. the highest offer to the seller.
• D. all offers to the seller.

Answer: D

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Under license law and the broker's fiduciary duty of obedience and disclosure, the listing broker must present all offers to the seller promptly, regardless of terms, unless the seller gives prior written instructions to the contrary. The broker does not have discretion to screen offers or present only those that match the seller's preferences.
It is the seller's decision whether to reject, accept, or counter offers (including non-cash offers). By law, withholding offers could constitute a violation of fiduciary duty and possibly discrimination if done selectively.
Thus, the correct answer is D: all offers to the seller.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Duties; 254 CMR 3.00.

NEW QUESTION # 121
A salesperson's client is the lessee. Who does the salesperson represent?

• A. lender
• B. landlord
• C. tenant
• D. lien holder

Answer: C

Explanation:
In a leasing transaction, the lessee is the tenant - the party obtaining the right to occupy and use the property.
The lessor is the landlord, who owns the property and grants possession through the lease.
Therefore, when a salesperson's client is the lessee, the salesperson represents the tenant in the transaction.
The role is similar to representing a buyer in a purchase transaction - the agent owes fiduciary duties such as loyalty, confidentiality, and disclosure to the tenant client.
The other options do not apply:
Lender (A) provides financing, not leasing services.
Landlord (C) would be the lessor, not the lessee.
Lien holder (D) is a creditor with a security interest in property, unrelated to this relationship.
Thus, the correct answer is B: tenant.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Law; M.G.L. c.112,87AAA-112.

NEW QUESTION # 122
Which of the following is used in the cost approach when estimating the value of improvements?

• A. Location, available financing, and depreciation.
• B. How much it would cost to build a similar building at today's cost.
• C. The price per square foot of comparable properties.
• D. The assessed value of the property including the land.

Answer: B

Explanation:
The cost approach to value is based on the principle of substitution, which states that a buyer will not pay more for a property than the cost to build a comparable one. In this method, the appraiser estimates the current cost of constructing the improvements using either the replacement cost (cost to build a similar building with modern materials and methods) or the reproduction cost (exact duplicate of the original).
The appraiser then subtracts depreciation (physical deterioration, functional obsolescence, or economic obsolescence) and adds the land value (determined separately). This approach is most often used for special- purpose properties (schools, churches, government buildings) where comparable sales are limited.
The other options are incorrect:
Assessed value (A) is for taxation, not appraisal.
Price per square foot (C) is a sales comparison method.
Location/financing (D) are factors but not a direct step in the cost approach.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Appraisal Methods; USPAP Standards.

NEW QUESTION # 123
A buyer and a seller have a purchase agreement that contains a home inspection contingency. The buyer has applied for a VA mortgage. After the home inspection is completed, the buyer writes an addendum requesting that the seller pay to repair several items found by the home inspector. The seller counters the addendum by requiring that the buyer agree that the repairs will be made, but that no further expenses will be incurred by the seller. The VA appraisal inspection has not been conducted. Under these circumstances, which of the following is correct?

• A. The licensee should encourage the seller to place the home back on the market.
• B. The original contract is still in effect.
• C. The VA inspection is not necessary because the buyer's home inspection report will be sent to the mortgage company.
• D. There is no longer a valid contract.

Answer: B

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
In this scenario, the parties have entered into a binding purchase agreement with a home inspection contingency. The buyer submitted an addendum requesting seller repairs, but the seller countered. Since the buyer has not yet accepted, the counter is not binding - therefore, the original contract remains in effect until both parties agree to a modification.
Additionally, because the financing is a VA loan, the VA still requires a VA appraisal (separate from the buyer's home inspection) to determine value and minimum property requirements. The VA inspection cannot be waived by substituting the home inspector's report.
Thus, the correct answer is B: the original contract is still in effect.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; VA Loan Program Guidelines.

NEW QUESTION # 124
Under Housing and Urban Development guidelines, when an advertisement includes the phrase "walk to bus- stop," the advertisement is

• A. Not discriminatory against disabled individuals.
• B. Discriminatory against individuals with disabilities.
• C. Only discriminatory if the statement is false.
• D. Only discriminatory against disabled individuals in some cases.

Answer: A

Explanation:
HUD guidelines on advertising under the Fair Housing Act (42 U.S.C. §§ 3601-3619) prohibit language that expresses limitations, preferences, or discrimination based on a protected class (race, color, religion, sex, disability, familial status, or national origin). However, phrases describing the property's location or proximity to amenities (such as "walk to bus-stop" or "near shopping center") are not considered discriminatory under HUD's advertising rules.
HUD distinguishes between "steering language" and neutral descriptors. References to nearby services are acceptable because they do not discourage or exclude individuals with disabilities; they simply describe a geographic fact. HUD specifically lists "walk to transportation" as non-discriminatory advertising language in its Fair Housing Advertising Guidelines.
Reference: HUD Fair Housing Advertising Guidelines; Fair Housing Act (42 U.S.C. § 3604(c)).

NEW QUESTION # 125
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