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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q95-Q100):

NEW QUESTION # 95
Which of the following assurances is provided to home buyers who purchase a $75,000 property with an FHA- insured mortgage?

A. The property has been appraised for value.
B. A down payment is not required.
C. The neighborhood values will increase.
D. The property is not subject to eminent domain.

Answer: A

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
An FHA-insured mortgage ensures the lender against loss from borrower default but does not guarantee property values or eliminate government powers like eminent domain. FHA requires an FHA appraisal to confirm the property meets minimum standards of safety, soundness, and security, and to establish a value for loan purposes.
The FHA makes clear that the appraisal is for lender protection, not a guarantee to the buyer of condition or future value. A down payment (C) is still required (typically 3.5% minimum). Eminent domain (A) always remains a government power, and no program guarantees increasing neighborhood values (B).
Thus, the correct assurance FHA provides is that the property has been appraised for value.
Reference: HUD/FHA Handbook 4000.1; Massachusetts Real Estate Salesperson Candidate Handbook - Financing/FHA Loans.

NEW QUESTION # 96
Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser?

A. a broker's price opinion
B. a reconciliation report for an FHA loan
C. a value analysis for a non-residential property valued below $250,000
D. a comparative market analysis

Answer: B

Explanation:
Under federal law (FIRREA - Financial Institutions Reform, Recovery, and Enforcement Act of 1989), any appraisal used in connection with a federally related transaction (such as FHA-insured or VA-guaranteed loans) must be prepared by a state-licensed or state-certified appraiser.
While brokers and salespersons in Massachusetts may prepare broker price opinions (BPOs) and comparative market analyses (CMAs), these are considered marketing tools and cannot substitute for a certified appraisal in federally related transactions. Likewise, although smaller non-residential properties under $250,000 may sometimes qualify for alternative valuation methods, FHA loan underwriting requires a formal appraisal with reconciliation prepared by a licensed appraiser.
Thus, the correct answer is C: reconciliation report for an FHA loan.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Appraisal; FIRREA (12 U.S.C.
3331-3351).

NEW QUESTION # 97
The city wishes to purchase a parcel of property to be used as a cloverleaf for access to the nearby interstate.
The landowner refuses to sell. To acquire title to the property, the city will initiate a process of

A. negotiation.
B. escheat.
C. condemnation.
D. accession.

Answer: C

Explanation:
Government entities have the power of eminent domain, the right to acquire private property for public use, provided that just compensation is paid to the owner. When an owner refuses to sell, the legal process used to exercise this power is called condemnation.
Accession (A): acquiring land through natural forces (e.g., accretion).
Negotiation (B): voluntary agreement, not forced.
Escheat (D): reversion of property to the state when someone dies without heirs or a will.
Because the city is taking land for a highway project, the correct answer is C: condemnation.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Government Powers; M.G.L. c.79 (Eminent Domain).

NEW QUESTION # 98
While inspecting a tenant-occupied property, the buyer was told by the seller that the microwave oven would be included in the sale price. Upon possession, the buyer learned that the microwave oven belonged to the tenant and not the seller. Is the buyer entitled to the microwave oven?

A. No, because the seller did not have the right to include the microwave in the sale.
B. Yes, because the buyer's offer to purchase included all real property.
C. Yes, because all oral contracts for the sale of real property are enforceable.
D. No, because the microwave was the real property of the tenant.

Answer: A

Explanation:
Comprehensive and Detailed Explanation (150-250 words):
In a real estate sale, the seller can only transfer property they own. Personal property belonging to a tenant is not part of the seller's estate and cannot be conveyed, regardless of oral promises.
A: Incorrect - microwave ovens are personal property, not automatically real property.
B: Oral contracts are generally unenforceable under the Statute of Frauds.
C: Incorrect because the microwave is personal property, not real property of the tenant.
D: Correct - the seller had no ownership interest and therefore no authority to include it in the sale.
Thus, the buyer is not entitled to the microwave.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Property Ownership (Fixtures vs.
Personal Property); Statute of Frauds.

NEW QUESTION # 99
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. At the date specified in the offer to purchase.
D. Within three days.

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 # 100
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Exam Questions for the Real Estate Massachusetts-Real-Estate-Salesperson - Master Your Certification Journey

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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q95-Q100):

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