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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. Under an option to buy, the ownership of land will change when the

A) optionee exercises the option.
B) optionor does not fulfill the obligation.
C) specified time has expired.
D) option is signed by the parties.

2. A subordination agreement is used to

A) change the priority of mortgages.
B) assign rents to the lender in case of borrower default.
C) pledge property for a loan without giving up possession.
D) initiate foreclosure proceedings.

3. Which of the following are potential remedies for violating Massachusetts General Laws Chapter 93A?

A) Fine of not more than $11,000
B) 1 year probation
C) Imprisonment
D) Double or triple damages, attorney's fees and court costs

4. A couple enters into a purchase contract to buy a house, and their parents are providing a $5,000 earnest money check. The check is deposited in the listing broker's escrow account. The buyers are unable to get financing, and the contract provides for return of the earnest money to the buyers. The buyers and seller agree in writing to the release of the earnest money. The listing broker should

A) return the earnest money check, minus expenses, to the parents.
B) issue a $5,000 check to the parents.
C) return the earnest money check, minus expenses, to the buyers.
D) issue a $5,000 check to the buyers.

5. A person acquires an option to purchase a parcel of another person's land. Which of the following statements is correct?

A) The consideration for the option right, plus interest, will be automatically applied to the purchase price if the option is exercised.
B) The terms and conditions of the sale must be stated if the option is to be a valid contract.
C) An option is a promise by the optionee to enter into a contract in the future.
D) The potential buyer is the optionor and the seller is the optionee.

Solutions: