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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A buyer receives a seller's property condition disclosure in which the buyer's agent believes the seller has misrepresented the condition of the property. The buyer's agent should

A) recommend that the buyer withdraw from the transaction.
B) call the listing agent and express this concern.
C) remain silent as the agent does not know for certain that the seller has misrepresented the property.
D) point out this concern to the buyer and recommend further inspection or investigation before proceeding.

2. 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.

3. A buyer wants to purchase a home for $150,000 with a 30% down payment. The lender charges 1.75 points.
How much money does the buyer need up front to make the purchase?

A) $47,625
B) $45,000
C) $45,788
D) $46,838

4. The purpose of Regulation Z is to

A) inform the borrower of credit costs.
B) set maximum interest charges.
C) regulate interest charges.
D) control the use of credit.

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: