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Massachusetts-Real-Estate-Salesperson Test Dumps.zip - Detailed Massachusetts-Real-Estate-Salesperson Study Plan

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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q108-Q113):

NEW QUESTION # 108
A subordination agreement is used to

A. pledge property for a loan without giving up possession.
B. assign rents to the lender in case of borrower default.
C. change the priority of mortgages.
D. initiate foreclosure proceedings.

Answer: C

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
Lien priority generally follows the rule of "first in time, first in right," meaning liens are paid in the order they are recorded. A subordination agreement is a legal document where a lienholder agrees to give up its normal priority position in favor of another lienholder. This often occurs when refinancing: a first mortgage lender will only agree to refinance if its lien remains in first position, so the holder of a second mortgage (or other lien) must sign a subordination agreement to remain subordinate.
This agreement does not initiate foreclosure (B), does not pledge property for collateral (C-that's the function of the mortgage itself), and does not assign rents (D-that would be an "assignment of rents" clause).
Massachusetts exam content emphasizes lien priority and the use of subordination agreements as key in refinancing scenarios. Thus, the correct answer is A.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Financing Instruments; M.G.L. c.
183 (Mortgages).

NEW QUESTION # 109
Which of the following activities may result in a fine from the Massachusetts Commission Against Discrimination (MCAD) against a licensee?

A. Acting in the dual capacity of broker and undisclosed principal in the same transaction
B. Blockbusting
C. Failing to give both the buyer and the seller a copy of the purchase and sales agreement
D. Knowingly making any substantial misrepresentation

Answer: B

Explanation:
The Massachusetts Commission Against Discrimination (MCAD) is the state agency responsible for enforcing the Massachusetts Fair Housing Law (M.G.L. c. 151B). Blockbusting is the illegal practice of inducing homeowners to sell by suggesting that protected classes of people (such as minorities, families with children, or people receiving public assistance) are moving into the neighborhood, often suggesting declining property values.
This practice is explicitly prohibited under both federal law (Fair Housing Act) and Massachusetts General Law. MCAD has the authority to investigate complaints of housing discrimination and levy fines against licensees found guilty of such violations.
While misrepresentation or undisclosed dual capacity may lead to disciplinary action by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons, only violations of fair housing law, such as blockbusting, steering, or refusing to deal with members of protected classes, fall under the jurisdiction of MCAD.
Reference: Massachusetts General Laws c. 151B; MCAD Fair Housing Guidelines; 254 CMR 3.00.

NEW QUESTION # 110
In a firm whose business model is designated agency, who represents the client named in the consumer licensee disclosure form?

A. Only the individual agent(s) named on the consumer licensee disclosure form
B. All the licensees
C. All other designated seller agents
D. All other designated buyer agents

Answer: A

Explanation:
In a designated agency model, a brokerage allows for agents within the firm to represent different parties in the same transaction, provided they are designated to do so. The client is represented by only the agent(s) named on the consumer licensee disclosure form.
This model ensures that the interests of both the buyer and seller are separately represented by agents who have been specifically appointed by the broker to represent each party. Other agents in the firm do not have fiduciary duties to the client unless explicitly designated.
The designated agency structure allows for more specialized attention and reduces conflicts of interest, as only the designated agent represents the client.
Reference: 254 CMR 3.00 - Agency Relationships; Massachusetts Real Estate Candidate Information Bulletin.

NEW QUESTION # 111
A person acquires an option to purchase a parcel of another person's land. Which of the following statements is correct?

A. The terms and conditions of the sale must be stated if the option is to be a valid contract.
B. The consideration for the option right, plus interest, will be automatically applied to the purchase price if the option is exercised.
C. An option is a promise by the optionee to enter into a contract in the future.
D. The potential buyer is the optionor and the seller is the optionee.

Answer: A

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
An option contract is a unilateral contract in which the seller (optionor) grants the buyer (optionee) the exclusive right to purchase property at a specified price within a set time. For the option to be valid, the terms and conditions of the future sale must be clearly stated (price, property description, and time period).
Consideration (option money) must also be given.
A: Incorrect because only the optionor (seller) is obligated; the optionee (buyer) is not required to purchase.
C: Option consideration is not automatically applied unless the contract specifically states it.
D: Reverses the roles; the seller is the optionor, the buyer is the optionee.
Thus, the correct answer is B.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Contracts; Options in Real Estate.

NEW QUESTION # 112
A salesperson's client is the lessee. Who does the salesperson represent?

A. lien holder
B. tenant
C. lender
D. landlord

Answer: B

Explanation:
In a leasing transaction, the lessee is the tenant - the party obtaining the right to occupy and use the property.
The lessor is the landlord, who owns the property and grants possession through the lease.
Therefore, when a salesperson's client is the lessee, the salesperson represents the tenant in the transaction.
The role is similar to representing a buyer in a purchase transaction - the agent owes fiduciary duties such as loyalty, confidentiality, and disclosure to the tenant client.
The other options do not apply:
Lender (A) provides financing, not leasing services.
Landlord (C) would be the lessor, not the lessee.
Lien holder (D) is a creditor with a security interest in property, unrelated to this relationship.
Thus, the correct answer is B: tenant.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Agency Law; M.G.L. c.112,87AAA-112.

NEW QUESTION # 113
......

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