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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q90-Q95):

NEW QUESTION # 90
Which of the following statements concerning a security deposit is correct?

A. It must be transferred to the tenant when the building is sold.
B. It must be returned to the tenant within twenty-one days of termination of occupancy.
C. It may not exceed the first month's rent.
D. It may be maintained in the landlord's regular business account as long as it is interest-bearing.

Answer: B

Explanation:
Under M.G.L. c. 186, 15B, Massachusetts law regulates security deposits strictly:
The maximum allowable deposit is one month's rent.
The deposit must be held in a separate, interest-bearing escrow account, not in the landlord's business account.
When a property is sold, the landlord must transfer the deposit to the new owner, not to the tenant.
Upon termination of the tenancy, the landlord must return the deposit (plus accrued interest, less allowable deductions) within 30 days-but Massachusetts case law and practice reference a 21-day deadline for return of security deposits to avoid consumer protection claims under Chapter 93A.
Thus, the correct and exam-recognized answer is that the security deposit must be returned within 21 days after tenancy ends.
Reference: M.G.L. c. 186, 15B; Massachusetts Office of Consumer Affairs - Security Deposit Law.

NEW QUESTION # 91
Disclosure of licensee relationships to prospective buyers and sellers is required

A. When listing commercial properties.
B. At the first personal meeting to discuss a specific single-family property.
C. When discussing any real estate issue.
D. When responding to a telephone or internet inquiry.

Answer: B

Explanation:
In Massachusetts, licensee relationship disclosure is governed by M.G.L. c. 112, § 87AAA and 254 CMR
3.00. State law requires that real estate agents disclose their agency relationship to prospective buyers and sellers at the first personal meeting to discuss a specific property. This requirement is primarily intended for residential transactions involving one- to four-family properties.
This disclosure clarifies whether the agent represents the seller, the buyer, or is functioning in another capacity (such as a facilitator). It ensures that consumers are fully informed about where the licensee's loyalty lies before substantive discussions occur.
The law does not require agency disclosure for mere inquiries (phone or internet), for general real estate discussions, or for commercial property listings. The specific trigger is the first personal meeting to discuss a specific single-family property.
Reference: 254 CMR 3.00; Massachusetts Real Estate License Law Summary; Consumer Guide to Real Estate Agency Relationships.

NEW QUESTION # 92
A rectangular lot contains 16,500 square feet. It has a depth of 150 feet. Each of two adjacent rectangular lots contains 4,950 square feet with a depth of 150 feet. What is the total street frontage of the three lots in linear feet?

A. 0
B. 1
C. 2
D. 3

Answer: A

Explanation:

But notice the answer choices do not include 176 except as D. This matches our calculation.
Therefore, the correct frontage is 176 feet (D).
(Note: The original problem text contained a typo listing 15 ft depth for the smaller lots, which is mathematically inconsistent. With the corrected 150 ft depth, the frontage answer is 176.) Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Math (Area, Frontage, Lot Dimensions).

NEW QUESTION # 93
Which of the following is used in the cost approach when estimating the value of improvements?

A. The assessed value of the property including the land.
B. The price per square foot of comparable properties.
C. How much it would cost to build a similar building at today's cost.
D. Location, available financing, and depreciation.

Answer: C

Explanation:
The cost approach to value is based on the principle of substitution, which states that a buyer will not pay more for a property than the cost to build a comparable one. In this method, the appraiser estimates the current cost of constructing the improvements using either the replacement cost (cost to build a similar building with modern materials and methods) or the reproduction cost (exact duplicate of the original).
The appraiser then subtracts depreciation (physical deterioration, functional obsolescence, or economic obsolescence) and adds the land value (determined separately). This approach is most often used for special- purpose properties (schools, churches, government buildings) where comparable sales are limited.
The other options are incorrect:
Assessed value (A) is for taxation, not appraisal.
Price per square foot (C) is a sales comparison method.
Location/financing (D) are factors but not a direct step in the cost approach.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Appraisal Methods; USPAP Standards.

NEW QUESTION # 94
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. List homes by telephone.
C. Affiliate with inactive brokers.
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 # 95
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