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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q15-Q20):

NEW QUESTION # 15
A buyer files a complaint against a licensee with the Massachusetts Commission Against Discrimination (MCAD). MCAD denies the complaint because the buyer filed it too long after the discriminatory incident occurred. Within how many days after the alleged incident must a complaint be filed to be considered?

Answer: C

Explanation:
The Massachusetts Commission Against Discrimination (MCAD) enforces the state's Fair Housing Law (M.
G.L. c. 151B). A person who believes they have experienced housing discrimination must file a written complaint with MCAD within 300 days of the alleged discriminatory act.
Complaints filed after 300 days will be dismissed as untimely. This timeframe aligns with federal Equal Employment Opportunity Commission (EEOC) procedures but is tailored for housing discrimination enforcement at the state level.
Thus, the deadline is 300 days.
Reference: M.G.L. c. 151B, 5; MCAD Complaint Procedures.


NEW QUESTION # 16
Which of the following acts does NOT require notifying the Board of Registration?

Answer: A

Explanation:
Massachusetts real estate law requires licensees to notify the Board of Registration of Real Estate Brokers and Salespersons of any changes that affect their license status or operations. This includes:
Change of mailing address (M.G.L. c. 112, 87YY).
Change of broker affiliation for salespersons.
Operating under a trade name (which requires Board approval and proper business certificates).
However, a broker who conducts business under their own legal name does not need to notify the Board separately of this fact. The license is already issued in the broker's name, so no additional approval is required unless a trade or business name is used.
Reference: 254 CMR 2.00; M.G.L. c. 112, 87YY.


NEW QUESTION # 17
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

Answer: C

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 # 18
A married couple owns property as tenants by the entirety. If they were to divorce, their ownership would be

Answer: D

Explanation:
Tenancy by the entirety is a special form of ownership available only to married couples in Massachusetts. It provides rights of survivorship and protection from individual creditors of one spouse.
Upon divorce, the law automatically converts a tenancy by the entirety into a tenancy in common, unless otherwise stated in the divorce decree. In tenancy in common, each former spouse owns an undivided share of the property without survivorship rights, and they are free to transfer or sell their interest independently.
It does not convert into joint tenancy or tenancy in severalty unless agreed to or ordered by the court.
Reference: M.G.L. c. 209, 1; Massachusetts Real Estate Candidate Information Bulletin - Forms of Ownership.


NEW QUESTION # 19
An escrow or trust account is often held by a lender to pay

Answer: B

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Lenders often require borrowers to establish an escrow (or impound) account as part of their monthly mortgage payment. The lender collects a portion of property taxes and hazard insurance premiums along with principal and interest each month. When taxes or insurance are due, the lender pays them from the escrow account.
This protects the lender by ensuring the property remains insured and free of unpaid tax liens, both of which could threaten the lender's collateral.
A (mortgage payments): Paid directly as P&I, not through escrow.
B (interest): Already part of monthly mortgage payments, not escrow.
C (bank invoices): Escrow is never used for the bank's expenses.
Thus, the correct answer is D: property taxes and insurance payments.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Financing; RESPA Escrow Rules.


NEW QUESTION # 20
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