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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A buyer is purchasing a $625,000 property. The lender requires a 20% down payment to avoid mortgage insurance. The buyer provided $5,000 in earnest money. The buyer closing costs are $13,000. What is the amount the buyer must bring to settlement to close the transaction?

A) $120,000
B) $138,000
C) $143,000
D) $133,000

2. A contract is delivered to the listing broker by a cooperating broker. The listing broker makes an appointment with the owner to present the offer at 7 p.m. of that day. Before 7 p.m., two more offers arrive on the same property. Which offer should be presented to the owner at the 7 p.m. appointment?

A) The offer most favorable to the seller, including price and all terms
B) All three of the offers
C) The offer with the highest sale price
D) The first offer received

3. A broker may withdraw money from the broker's escrow account

A) When ordered by the seller's attorney.
B) To pay for advertising expenses related to the sale.
C) When the transaction has been consummated.
D) To cover the broker's commission.

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

5. The Massachusetts Consumer Protection Act (M.G.L. c. 93A) does NOT apply to which of the following persons?

A) Salespersons since they are obligated to their employing brokers only
B) Owners who sell their homes privately
C) Listing brokers who receive only a percentage of commissions
D) Builders who sell fewer than ten homes a year

Solutions: