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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A veteran has applied for a VA loan to purchase a house with a sale price of $90,000. The Department of Veterans Affairs (VA) appraised the house at $85,000. In this situation, the veteran

A) may use the VA loan to buy the house after making a down payment of $5,000.
B) cannot secure a VA loan because such loans are limited to a maximum of $75,000.
C) may buy the property with the VA loan only if the price is reduced to $85,000.
D) may buy the property with the VA loan only if the seller agrees to take back a second mortgage for
$5,000.

2. Based on the common law of agency, which of the following would always be an agent's duty?

A) analyzing the preliminary title report and advising the buyer regarding exceptions listed
B) placing the interests of the principal above all others, including the agent's own interests
C) hiring a contractor to repair a listing with a leaky roof
D) disclosing that the reason a client is selling is an impending divorce

3. The broker has a single agency relationship with the seller. The broker will show the property to a buyer who is a customer. The broker must disclose that the

A) home has a lake view.
B) home has a leaky roof in heavy rains.
C) seller needs to move soon.
D) seller does not like the next door neighbor.

4. A broker has listed a property for $225,000. An offer of $210,000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205,000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spend $5,000 in repairs before going through with the purchase. The seller may do any of the following EXCEPT

A) agree to do the needed repairs and consummate the transaction with the first offeror.
B) ignore the demand and sell the property to the second offeror.
C) terminate the first agreement in writing and sell to the second offeror.
D) refuse to do the repairs and still proceed with the sale in as-is condition.

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

A) Joint tenancy.
B) Tenancy by the entirety.
C) Tenancy in common.
D) Tenancy in severalty.

Solutions: