Free Massachusetts State Real Estate Laws and Real Estate Board Rules — Broker Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Massachusetts State Real Estate Laws and Real Estate Board Rules — Broker practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Besides the required escrow records, which funds may the Massachusetts Board inspect during a broker audit?

   1. A. Funds held in the broker's escrow account
   2. B. Funds in the broker's personal investment account
   3. C. Funds in a lender's mortgage-reserve account
   4. D. Funds in a salesperson's personal checking account

   Answer: A

   Explanation: The controlling rule says, "All such funds and records shall be subject to inspection by the Board or its agents." Escrow, investment, mortgage-reserve, and checking funds are real account categories, but this audit authority concerns the funds held under the broker's escrow duties.

   Reference: 254 CMR 3 — 254 CMR 3.00

2. 2A person negotiates a Massachusetts property purchase for another and expects future compensation, although no fee has yet been paid or promised. Does the broker definition reach that activity?

   1. A. Yes, an intention or expectation of compensation is sufficient
   2. B. No, a written compensation promise must exist first
   3. C. No, compensation must actually be received before negotiation
   4. D. Yes, but only if the person also prepares the deed

   Answer: A

   Explanation: The Massachusetts definition reaches the activity when performed "with the intention or in the expectation or upon the promise of receiving or collecting a fee". An expectation is independently sufficient; actual payment, a written promise, and deed preparation are not added conditions.

   Reference: General Law - Part I, Title XVI, Chapter 112, Section 87PP — M.G.L. c. 112, § 87PP, definition of real estate broker

3. 3A licensed salesperson wants to open an independent Massachusetts brokerage. What rule prevents this?

   1. A. A salesperson may operate alone only in commercial brokerage
   2. B. A salesperson must work through a licensed broker
   3. C. A salesperson may operate alone after one license year
   4. D. A salesperson may operate alone with a local business certificate

   Answer: B

   Explanation: 254 CMR 3.00(6) says, "A licensed salesperson must be engaged by a licensed broker" and may not conduct an independent real-estate business. A local business filing is not a substitute.

   Reference: 254 CMR 3 — 254 CMR 3.00

4. 4Where may a Massachusetts buyer give consent to designated agency?

   1. A. In the recorded deed or mortgage instrument
   2. B. In a buyer agreement or qualifying consent form
   3. C. In an oral statement made during the closing
   4. D. In an affidavit filed directly with the Board

   Answer: B

   Explanation: The rule allows consent "by a purchaser in a buyer representation agreement" or a qualifying designated-agency consent form. A deed, oral closing statement, or Board affidavit is not the prescribed vehicle.

   Reference: 254 CMR 3 — 254 CMR 3.00(13)(c), consent paragraph

5. 5How does M.G.L. c. 93, § 114 classify the fact that Massachusetts real property was the site of a felony or suicide?

   1. A. A physical defect requiring remediation
   2. B. A title defect requiring curative action
   3. C. A psychological impact not deemed material
   4. D. An environmental condition requiring testing

   Answer: C

   Explanation: Section 114 includes the fact "that the real property was the site of a felony, suicide or homicide" within psychological impacts not deemed material facts. Physical, title, and environmental conditions are real disclosure or transaction categories, but they do not describe this statutory classification.

   Reference: General Law - Part I, Title XV, Chapter 93, Section 114 — M.G.L. c. 93, § 114(b)

6. 6For a Massachusetts home built before 1978, when must the seller or seller's agent provide the state lead notification package to a prospective purchaser?

   1. A. Before the purchaser signs the purchase-and-sale agreement
   2. B. At the closing before the conveyance deed is signed
   3. C. Within ten days after the offer is accepted
   4. D. Within thirty days after the transaction closes

   Answer: A

   Explanation: The current DPH package says, "Sellers and real estate agents must provide this whole document before signing a purchase and sale agreement". Closing, post-offer, and post-closing milestones are too late.

   Reference: Childhood Lead Poisoning Prevention Program (CLPPP) Property Transfer Lead Paint Notification — Property Transfer Lead Paint Notification, page 1

7. 7A Massachusetts landlord rejects an otherwise qualified applicant solely because the applicant is married. How does chapter 151B treat that decision?

   1. A. Prohibited because marital status is protected
   2. B. Permitted if every married applicant is rejected
   3. C. Permitted unless the spouse will occupy the unit
   4. D. Prohibited only in publicly assisted housing

   Answer: A

   Explanation: The Massachusetts housing provision expressly includes "marital status" among protected characteristics. A uniform policy against married applicants, spouse occupancy, or the absence of public assistance does not remove that state protection.

   Reference: General Law - Part I, Title XXI, Chapter 151B, Section 4 — M.G.L. c. 151B, § 4(6)-(7)

8. 8What is the maximum security deposit a Massachusetts landlord may collect at the start of a residential tenancy?

   1. A. One-half month's rent
   2. B. One month's rent
   3. C. Two months' rent
   4. D. Three months' rent

   Answer: B

   Explanation: Section 15B permits "a security deposit equal to the first month's rent". Thus the maximum is one month's rent, not one-half, two, or three months.

   Reference: General Law - Part II, Title I, Chapter 186, Section 15B — M.G.L. c. 186, § 15B(1)(b)(iii)

9. 9A Massachusetts deed conveys land to two people without words creating survivorship or another specified form. How do they generally hold title?

   1. A. As tenants in common
   2. B. As joint tenants with survivorship
   3. C. As tenants by the entirety
   4. D. As holders of successive life estates

   Answer: A

   Explanation: Section 7 says such a conveyance "shall create an estate in common and not in joint tenancy" unless the instrument expresses another qualifying intent. The silent deed therefore creates a tenancy in common.

   Reference: General Law - Part II, Title I, Chapter 184, Section 7 — M.G.L. c. 184, § 7

10. 10The Board asks a broker to produce a consumer relationship notice from a meeting two years ago. What is the broker's duty?

    1. A. Produce it because the retention period is three years
    2. B. Decline because notices are retained for one year
    3. C. Produce it only if the prospect signed it
    4. D. Decline unless the transaction closed

    Answer: A

    Explanation: The rule requires the licensee to "maintain a copy with their records for a period of three years from the date on the notice." A two-year-old notice remains within that period even if unsigned or no sale occurred.

    Reference: 254 CMR 3 — 254 CMR 3.00