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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. Which of the following is true about mortgage assumptions?

A) The mortgagee automatically releases the seller upon receipt of a warranty deed.
B) The buyer is required to sign a new mortgage note.
C) The seller may or may not be released from liability.
D) The buyer is relieved of personal liability.

2. If a seller defaults in performance of a contract, any of the following actions would be likely to help the buyer recover any losses EXCEPT

A) filing a complaint with the Real Estate Commission.
B) suing the seller for specific performance.
C) canceling the contract and recovering the earnest money.
D) bringing an action against the seller for payment of compensatory damages.

3. Active licensees renewing a real estate license must have completed how many hours of continuing education during the two years prior to the scheduled renewal?

A) Twelve
B) Six
C) Four
D) Sixteen

4. The purpose of Regulation Z is to

A) set maximum interest charges.
B) inform the borrower of credit costs.
C) regulate interest charges.
D) control the use of credit.

5. A broker maintains a trust or escrow account. A $10,000 earnest money deposit is received from a buyer and deposited in the account. Several weeks later and prior to closing, the broker withdraws $7,000 from the account and puts it in an operating account. This transaction is

A) permissible as long as the broker is entitled to at least $7,000 in commission.
B) a violation of federal banking regulations.
C) an instance of illegal conversion of funds.
D) permissible if the seller was informed about the transfer of funds.

Solutions: