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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q118-Q123):

NEW QUESTION # 118
What is the difference between a license to use property and an easement?

A. There must be consideration paid for a license.
B. There must be consideration paid for an easement.
C. A license can be cancelled by the issuer.
D. An easement can be cancelled by the issuer.

Answer: C

Explanation:
A license is a personal, revocable privilege to enter or use another person's land for a specific purpose (e.g., a ticket to a sporting event). A license does not create an interest in land and may be revoked at any time by the issuer.
An easement, however, is a non-possessory interest in land that grants a legal right to use the property of another (e.g., a right-of-way). Easements are generally permanent, run with the land, and cannot simply be canceled by the property owner at will.
Massachusetts law distinguishes between the two: easements are formal property interests that usually require a written grant and may only be terminated by agreement, expiration, or court action, while licenses are informal, temporary, and revocable.
Thus, the correct answer is A: A license can be cancelled by the issuer.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Property Interests and Rights; M.G.
L. c. 183.

NEW QUESTION # 119
Inactive salespersons are permitted to perform which of the following activities?

A. Refer potential listings to an active broker in exchange for a fee from the active broker.
B. Affiliate with inactive brokers.
C. List homes by telephone.
D. Refer potential buyers to an active salesperson in exchange for a fee from the salesperson.

Answer: A

Explanation:
An inactive salesperson in Massachusetts holds a license that is not active for brokerage activities (buying, selling, leasing). They may not list homes, show property, or handle transactions.
However, under M.G.L. c. 112, an inactive licensee may receive a referral fee from an active broker for referring potential business. This is because the inactive license keeps the person legally affiliated with the licensing system, even though they cannot directly engage in brokerage.
They may not be paid directly by other salespersons, nor may they affiliate with inactive brokers. Referrals and fee-sharing must always flow through an active broker.
Reference: M.G.L. c. 112, 87RR, 87SS; 254 CMR 2.00.

NEW QUESTION # 120
The common area of a condominium development is owned by

A. all owners as tenants in common.
B. those owners who were original owners of the units.
C. any individuals who pay a prorated share of the taxes and maintenance.
D. its duly elected Board of Directors.

Answer: A

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
In a condominium, each unit owner holds fee simple title to their individual unit, plus an undivided interest in the common areas (hallways, lobbies, grounds, recreational facilities). This interest is shared as tenants in common with all other owners, meaning no single owner can claim exclusive rights to any portion of the common elements.
A: The Board of Directors manages the property but does not own the common areas.
B: Original ownership does not confer unique rights; ownership passes with each sale.
C: Paying a prorated share of expenses is required, but ownership is based on deeded rights, not payment.
Therefore, the correct answer is D: all owners as tenants in common.
Reference: Massachusetts Condominium Act (M.G.L. c.183A); Massachusetts Real Estate Salesperson Candidate Handbook - Property Ownership.

NEW QUESTION # 121
An appraisal made by a certified appraiser is required

A. before real property can transfer from one owner to another.
B. when the buyer is using an FHA loan to purchase.
C. when heirs receive property.
D. before any property settlement in a divorce.

Answer: B

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Federal law (FIRREA, 1989) and HUD regulations require that FHA and VA loans be supported by an appraisal from a state-licensed or certified appraiser. The purpose is to determine whether the property meets minimum standards and supports the loan amount.
A: Appraisals are not required for all property transfers, only certain financed ones.
B: Inheritances may require valuations for estate tax purposes, but not necessarily certified appraisals.
D: Divorce settlements may require appraisals for division of assets, but this is not federally mandated.
Thus, the correct answer is C.
Reference: HUD Handbook 4000.1; Massachusetts Real Estate Salesperson Candidate Handbook - Appraisal
/Financing.

NEW QUESTION # 122
Deposit money received by a salesperson must be turned over to the salesperson's broker

A. At the signing of the purchase and sale agreement.
B. Immediately.
C. Within three days.
D. At the date specified in the offer to purchase.

Answer: B

Explanation:
Under 254 CMR 3.10, all deposit money received by a salesperson must be immediately turned over to the salesperson's broker for deposit into the escrow account. It is the broker's responsibility to ensure that the funds are properly held and protected, not the salesperson's.
The rule is clear that the funds should be handed over immediately. Any delay in submitting the funds to the broker could violate escrow rules and could result in disciplinary action.
Reference: 254 CMR 3.10 - Handling of Client Funds; Massachusetts Real Estate Candidate Information Bulletin - Escrow Procedures.

NEW QUESTION # 123
......

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