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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. To avoid triggering full disclosure under TILA when advertising financing availability on a listed property, which of the following statements must a real estate licensee avoid using?

A) buy for less than $650 per month
B) owner willing to finance
C) FHA and VA financing available
D) assumable loan

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

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

3. A broker received a birthday check from a client. The broker decided to put it in the escrow account because it was from a client. This is

A) conversion.
B) commingling.
C) acceptable if the client has had a transaction within the last 18 months.
D) acceptable if the check was written on the client's business account.

4. A seller wants $120,000 for a home and still owes $20,000 of the original loan at 7% interest. The current interest rate is 12%. A buyer can pay $60,000 down and wants to carry a mortgage that includes the seller's
$20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of 10%. What kind of mortgage loan is this?

A) buydown
B) equity
C) blanket
D) wraparound

5. An advertisement emphasizes information meant to appeal to a particular ethnic or national group in an effort to maintain the character of the neighborhood. From the viewpoint of the federal Fair Housing Act, this could constitute a violation known as

A) redlining.
B) steering.
C) blockbusting.
D) panic selling.

Solutions: