I85PREP
⌘ K
MA RE Broker study materials
MA RE Broker study resources

MA RE Broker practice questions

One question at a time. Build your MA RE Broker understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Massachusetts real estate licensing law and Board regulations

Under Massachusetts licensing law, a real estate broker license is issued by which entity?

  1. The Secretary of the Commonwealth
  2. The Division of Banks
  3. The Massachusetts Association of Realtors
  4. The Board of Registration of Real Estate Brokers and Salespersons Correct answer.

Explanation

Massachusetts licenses brokers and salespersons through the Board of Registration of Real Estate Brokers and Salespersons, which operates within the Division of Professional Licensure. The Board writes regulations, administers exams, and disciplines licensees. Private trade associations and other agencies have no licensing authority.

Question 2Massachusetts real estate licensing law and Board regulations

A candidate applies for a Massachusetts broker license. Which requirement applies to the broker examination?

  1. The candidate may substitute the salesperson exam score for the broker exam
  2. The candidate must pass the broker exam before completing the experience requirement
  3. The candidate must pass the broker exam only if licensed in another state
  4. The candidate must pass the broker exam, which covers brokerage, appraisal concepts, and Massachusetts law Correct answer.

Explanation

Massachusetts requires candidates to pass a broker examination that tests general brokerage practice, valuation principles, and state-specific law and regulations. Passing the salesperson exam does not satisfy the broker exam requirement. Experience and education requirements are separate from the exam.

Question 3Massachusetts real estate licensing law and Board regulations

A licensed salesperson wants to become a broker. Which statement best describes the experience requirement in Massachusetts?

  1. Three years of experience as a licensed salesperson is generally required, with defined full-time equivalency Correct answer.
  2. No experience is required if the applicant holds a college degree
  3. One year of full-time salesperson experience is sufficient
  4. Experience may be satisfied entirely by property management work without a license

Explanation

Massachusetts generally requires three years of experience as a licensed salesperson, measured on a full-time equivalency basis defined in Board regulations. Part-time work is converted to its full-time equivalent. A degree alone does not waive the experience requirement.

Question 4Massachusetts real estate licensing law and Board regulations

An applicant for a Massachusetts broker license must complete which pre-licensing education?

  1. Only the salesperson pre-licensing course
  2. No coursework if the applicant has five years of salesperson experience
  3. A 40-hour broker course plus a separate real estate law course Correct answer.
  4. A 12-hour continuing education package

Explanation

Massachusetts broker applicants must complete a Board-approved broker pre-licensing course and additional real estate law coursework. Holding a salesperson license does not exempt an applicant from the broker-level education requirement. Continuing education is a separate post-licensing obligation.

Question 5Massachusetts real estate licensing law and Board regulations

A broker's license is issued to an individual. Which statement describes a Massachusetts corporation that wishes to act as a real estate broker?

  1. The corporation must be licensed as a real estate brokerage entity with a designated broker of record Correct answer.
  2. Any officer may act as broker of record without holding a license
  3. Corporations may not engage in real estate brokerage in Massachusetts
  4. The corporation itself receives a separate corporate broker license issued by the Board

Explanation

Massachusetts requires a brokerage entity to be licensed and to designate a licensed individual broker as broker of record responsible for the entity's brokerage activity. The individual broker license is held by a natural person. Unlicensed officers cannot serve as broker of record.

Question 6Massachusetts real estate licensing law and Board regulations

A broker maintains an office in Worcester and opens a second office in Springfield. What must the broker do regarding the Springfield office?

  1. Obtain a separate branch office license for the Springfield location Correct answer.
  2. Operate the second office under the Worcester license for up to one year
  3. Notify only the local board of Realtors
  4. Nothing, because the broker's license already covers the entire state

Explanation

Massachusetts requires each branch office location to be separately licensed and to display the license. A broker license is personal and does not automatically authorize unlicensed branch locations. The Board must be notified and a branch license obtained.

Question 7Massachusetts real estate licensing law and Board regulations

Where must a Massachusetts real estate broker display the office license?

  1. Only in the firm's advertising materials
  2. In a locked file kept by the broker of record
  3. Conspicuously in the office where the public can see it Correct answer.
  4. At the broker's residence only

Explanation

Board regulations require the license to be displayed conspicuously at the licensed office so the public can verify licensure. Keeping it in a private file or advertising alone does not satisfy the display rule. Display is part of the office licensing requirement.

Question 8Massachusetts real estate licensing law and Board regulations

A salesperson licensed with Broker A wishes to move to Broker B. Which procedure is correct in Massachusetts?

  1. The salesperson must wait until the license expires and apply for a new one
  2. Broker A must consent in writing before the Board will process any transfer
  3. The salesperson files a new application with the Board and the license is transferred upon approval Correct answer.
  4. The salesperson simply begins work for Broker B and informs the Board at renewal

Explanation

A salesperson license is held through a specific broker, so moving to a new broker requires filing for the change with the Board and obtaining approval. The salesperson cannot lawfully practice under the new broker until the transfer is effective. Waiting for expiration is unnecessary.

Question 9Massachusetts real estate licensing law and Board regulations

A Massachusetts broker license expires. Which statement about continuing education is accurate for renewal?

  1. Continuing education is required only for salespersons
  2. Licensees must complete Board-approved continuing education credits during each renewal cycle Correct answer.
  3. Continuing education is voluntary and has no effect on renewal
  4. Continuing education is required only after a disciplinary action

Explanation

Massachusetts requires licensees to complete Board-approved continuing education during each renewal cycle as a condition of renewal. The requirement applies to brokers as well as salespersons. Failure to complete credits can block renewal.

Question 10Massachusetts real estate licensing law and Board regulations

A broker receives a commission from a transaction and wants to share part of it with an unlicensed assistant who helped with paperwork. What does Massachusetts law permit?

  1. The broker may pay the assistant a share of the commission for clerical help
  2. The broker may pay the assistant only if the amount is under $500
  3. The broker may not share commissions with an unlicensed person for brokerage activity Correct answer.
  4. The broker may pay the assistant if the client agrees in writing

Explanation

Massachusetts prohibits paying commissions or other compensation for brokerage services to unlicensed persons. Clerical staff may be paid a salary or hourly wage but may not share in transaction commissions. Client consent cannot cure the licensing violation.

Question 11Massachusetts real estate licensing law and Board regulations

A salesperson's license is placed on inactive status. What is the effect in Massachusetts?

  1. The salesperson may not engage in brokerage activity while inactive Correct answer.
  2. The salesperson may continue to negotiate transactions but not collect commissions
  3. The license is permanently revoked
  4. The salesperson may practice under any broker without a transfer

Explanation

An inactive license means the licensee may not perform brokerage activity until the license is reactivated. Reactivation requires the proper Board process, including any required fees or education. Inactive status is not a revocation.

Question 12Massachusetts real estate licensing law and Board regulations

A broker advertises a listing and wants to include the firm name. Which practice complies with Massachusetts advertising rules?

  1. Advertising under a fictitious name without disclosing the licensed firm name
  2. Letting an unlicensed assistant sign advertisements as the broker
  3. Using a name that implies a government agency affiliation
  4. Advertising with the licensed firm name and the broker's licensed status accurately represented Correct answer.

Explanation

Massachusetts advertising rules require that advertisements identify the licensed firm and avoid misleading representations about licensure. Fictitious names must be registered and cannot obscure the licensed entity. Implying government affiliation is deceptive.

Question 13Massachusetts real estate licensing law and Board regulations

A buyer gives a broker a $5,000 deposit check for a purchase offer. What must the broker do with the funds under Massachusetts rules?

  1. Deposit the funds into the broker's general operating account
  2. Return the funds to the buyer until closing
  3. Apply the funds to the broker's commission immediately
  4. Hold the funds in a separate escrow or trust account and account for them properly Correct answer.

Explanation

Massachusetts requires brokers to hold client funds such as deposits in a separate escrow or trust account and to keep accurate records. Commingling with operating funds is prohibited. The funds must be disbursed only as authorized.

Question 14Massachusetts real estate licensing law and Board regulations

A broker is the subject of a complaint filed with the Board alleging misrepresentation. What is the Board's authority?

  1. The Board may only refer the matter to criminal court
  2. The Board may discipline only salespersons, not brokers
  3. The Board may investigate and impose discipline such as suspension, revocation, or fines Correct answer.
  4. The Board must obtain the local association's approval before acting

Explanation

The Board has authority to investigate complaints against licensees and to impose discipline, including suspension, revocation, and civil penalties. Discipline is separate from any criminal referral. The Board does not need trade association approval.

Question 15Massachusetts real estate licensing law and Board regulations

A licensee is convicted of a crime involving fraud. What must the licensee do regarding the Board?

  1. Report the conviction to the Board as required by regulation Correct answer.
  2. Report the conviction only at the next renewal
  3. Nothing, because criminal matters are outside the Board's jurisdiction
  4. Resign from the association

Explanation

Massachusetts regulations require licensees to report certain criminal convictions to the Board. A conviction involving fraud bears directly on honesty and fitness to practice. Failure to report can itself be grounds for discipline.

Question 16Massachusetts real estate licensing law and Board regulations

A broker wants to act as a dual agent in a transaction where both buyer and seller are represented by the same firm. What does Massachusetts require?

  1. Both parties must give informed written consent to the dual agency Correct answer.
  2. The broker must reduce the commission to avoid a conflict
  3. Only the seller must consent to the dual agency
  4. Dual agency is prohibited in all Massachusetts transactions

Explanation

Massachusetts requires informed written consent from both parties before a firm may act as a dual agent. The consent must disclose the nature of the conflict and the broker's duties. Commission reduction is not the regulatory remedy.

Question 17Massachusetts real estate licensing law and Board regulations

A buyer client asks a broker to keep an offer price confidential from the seller. How should the broker respond under Massachusetts agency rules?

  1. The broker may disclose the price only if the seller asks directly
  2. The broker must withdraw from the transaction immediately
  3. The broker may keep the client's confidential information confidential while still disclosing material facts about the property Correct answer.
  4. The broker must disclose the offer price because all material facts must be shared

Explanation

Massachusetts agency law requires licensees to protect client confidences while still disclosing material facts about the property that affect value. A buyer's willingness to pay more is confidential client information, not a property defect. Disclosure obligations do not require revealing the client's negotiating position.

Question 18Massachusetts real estate licensing law and Board regulations

A salesperson licensed under Broker X performs a transaction entirely on their own and wants to keep the commission without involving Broker X. What does Massachusetts law require?

  1. The salesperson may keep the commission if the client pays in cash
  2. The salesperson may keep the commission because they did the work
  3. The commission must be paid to and through the supervising broker Correct answer.
  4. The salesperson may keep the commission after notifying the Board

Explanation

Massachusetts law requires that commissions for brokerage services be paid to the licensed broker, who then compensates the salesperson under their arrangement. A salesperson cannot independently contract for or receive a commission. Cash payment does not create an exception.

Question 19Massachusetts real estate licensing law and Board regulations

An out-of-state broker licensed in Connecticut wants to handle a single Massachusetts transaction. What is required?

  1. Only disclosure to the Massachusetts client
  2. Nothing, because interstate commerce exempts the transaction
  3. Massachusetts licensure or a recognized cooperative arrangement before performing brokerage services Correct answer.
  4. Only a letter from the Connecticut board

Explanation

Massachusetts requires a person performing brokerage services for a Massachusetts transaction to hold a Massachusetts license unless a recognized cooperative or referral arrangement applies. Out-of-state licensure alone does not authorize brokerage in Massachusetts. A disclosure letter is insufficient.

Question 20Massachusetts real estate licensing law and Board regulations

Which activity requires a Massachusetts real estate license?

  1. Renting an apartment in the owner's own four-unit building without advertising services
  2. Appraising property for a federally regulated lender
  3. Preparing a comparative market analysis for a fee as part of brokerage services Correct answer.
  4. Providing general information about neighborhoods without compensation

Explanation

Preparing a comparative market analysis for compensation in connection with brokerage services requires licensure. Owners managing their own property and uncompensated general information do not require a license. Federally related appraisals fall under appraiser licensing, a separate regime.

Question 21Massachusetts real estate licensing law and Board regulations

A broker places a listing on a multiple listing service. Which statement about the listing agreement is correct under Massachusetts rules?

  1. A written listing agreement signed by the parties is required, with defined termination terms Correct answer.
  2. An oral listing agreement is sufficient for any duration
  3. The listing agreement automatically renews forever unless canceled
  4. The listing agreement may not include an exclusive agency provision

Explanation

Massachusetts requires written listing agreements signed by the parties and containing defined terms, including duration and termination. Oral listings are unenforceable for commissions. Automatic perpetual renewal and prohibitions on exclusive agency are not part of the rule.

Question 22Massachusetts real estate licensing law and Board regulations

A licensee is asked to provide a broker price opinion for a fee to a client considering a short sale. What is the licensee's position in Massachusetts?

  1. A licensee may provide a broker price opinion within the scope of brokerage services Correct answer.
  2. A licensee may never express any opinion about value
  3. A licensee may provide a price opinion only for litigation
  4. A licensee must obtain an appraiser license for every valuation opinion

Explanation

Massachusetts allows licensees to prepare broker price opinions as part of brokerage services, while formal appraisals for federally related transactions require an appraiser credential. A licensee may express value opinions within brokerage practice. Litigation is not the only permitted use.

Question 23Massachusetts real estate licensing law and Board regulations

A broker learns that a seller client's property has a known structural defect. What must the broker do?

  1. Disclose the defect only after an offer is accepted
  2. Resign the listing without explanation
  3. Disclose the material defect to prospective buyers Correct answer.
  4. Keep the information confidential because the seller is the client

Explanation

Massachusetts requires disclosure of material facts about a property's condition that affect value, even when the seller is the client. Confidentiality does not extend to concealing known material defects from buyers. Resigning the listing does not cure the disclosure duty.

Question 24Massachusetts real estate licensing law and Board regulations

How often must a Massachusetts real estate license be renewed?

  1. Every two years Correct answer.
  2. Every year
  3. Every five years
  4. Every four years

Explanation

Massachusetts real estate licenses are renewed on a two-year cycle, and licensees must satisfy continuing education requirements for each renewal. The renewal cycle applies to brokers and salespersons. Other intervals do not match the Board's schedule.

Question 25Massachusetts real estate licensing law and Board regulations

A broker's license lapses for failure to renew. What is the status of brokerage activity during the lapse?

  1. The broker may practice only for existing clients
  2. The broker must cease brokerage activity until the license is reinstated Correct answer.
  3. The broker may practice but may not advertise
  4. The broker may continue practicing until the Board sends notice

Explanation

Practicing brokerage without a current license is prohibited, so a lapsed broker must stop until reinstated. The Board's notice timing does not extend authority. Existing client relationships do not create an exception.

Question 26Massachusetts real estate licensing law and Board regulations

Under Massachusetts Board regulations, within what period must a licensee notify the Board of a change in the licensee's business address?

  1. Within 30 days of the change
  2. Within 10 days of the change Correct answer.
  3. Immediately, before the next transaction closes
  4. Only at the next scheduled license renewal

Explanation

Massachusetts licensing regulations require a licensee to notify the Board of a change of business address within 10 days. Prompt notice keeps the Board's records accurate so that official correspondence and service of process reach the licensee. Waiting until renewal is too late and can lead to discipline.

Question 27Massachusetts real estate licensing law and Board regulations

A Massachusetts real estate broker is required to maintain a separate escrow (non-interest-bearing or interest-bearing) account for client funds. Which statement describes the required handling of that account?

  1. Client funds must be kept separate from the broker's personal and business funds Correct answer.
  2. The account may be used for the broker's own funds as long as the balance never drops below client obligations
  3. Client funds may be held in the broker's general operating account if tracked separately
  4. Commingling is permitted if the broker keeps a running ledger

Explanation

Massachusetts law requires that funds held on behalf of clients, such as deposits, be kept in a separate escrow account and not commingled with the broker's own money. Keeping client money apart protects consumers if the brokerage fails and makes audits possible. Commingling is itself a licensing violation.

Question 28Massachusetts real estate licensing law and Board regulations

A Massachusetts salesperson wants to place her license on inactive status while she takes a year off from selling. Which statement best describes the effect of inactive status?

  1. She may continue to receive referral fees for transactions she originated
  2. Her license is automatically cancelled and she must retake the exam
  3. She may not engage in activities requiring a license but may keep the license current Correct answer.
  4. She may continue to list property under her former broker's supervision

Explanation

An inactive license remains on record but the holder may not perform licensed brokerage activity. The licensee can reactivate later, usually by satisfying renewal and education requirements, without retaking the examination. Referral fees and listings are licensed activity and are prohibited while inactive.

Question 29Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is preparing a written agency disclosure for a prospective buyer. Which element must the disclosure contain to comply with Board requirements?

  1. A statement of the types of agency relationships the brokerage offers and who represents whom Correct answer.
  2. The broker's opinion of the property's likely selling price
  3. A list of every listing the brokerage currently holds
  4. The commission split between the broker and any cooperating broker

Explanation

Massachusetts requires licensees to present a written agency disclosure explaining the types of representation available and which party the licensee represents. This lets consumers make an informed choice about the level of service they want. Price opinions, commission splits, and listing inventories are not required elements of the disclosure.

Question 30Massachusetts real estate licensing law and Board regulations

A Massachusetts broker signs a listing agreement and later learns the seller wants to cancel before the term ends. Which statement about the listing agreement is accurate under Board regulations?

  1. Oral listing agreements are valid if confirmed by email within three days
  2. The agreement is unenforceable unless filed with the Board
  3. The listing agreement must be in writing and signed by the parties to be enforceable Correct answer.
  4. A listing agreement automatically renews for one year if not cancelled

Explanation

Massachusetts requires listing agreements to be in writing and signed by the parties. A written contract protects both the seller and the broker and defines the term, commission, and duties. Oral listings are not enforceable, and no filing with the Board is required.

Question 31Massachusetts real estate licensing law and Board regulations

A Massachusetts licensee is asked by a client to prepare a comparative market analysis for a residential property. Which statement is correct about this activity?

  1. A comparative market analysis requires Board pre-approval
  2. Only a certified appraiser may prepare any written price estimate
  3. A licensee may prepare one only after obtaining a broker price opinion license
  4. A comparative market analysis may be prepared by a licensee as part of brokerage services Correct answer.

Explanation

Massachusetts licensees may prepare a comparative market analysis as an opinion of value in the course of brokerage services. It is distinguished from an appraisal, which must follow appraisal standards and be performed by a licensed appraiser. No Board pre-approval or separate license is needed for a CMA.

Question 32Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is accused of violating a Board regulation. Which body holds the authority to conduct a hearing and impose discipline such as suspension or revocation?

  1. The Division of Banks
  2. The Massachusetts Association of Realtors
  3. The local district court
  4. The Board of Registration of Real Estate Brokers and Salespersons Correct answer.

Explanation

The Board of Registration of Real Estate Brokers and Salespersons has authority to investigate complaints, hold hearings, and impose discipline including suspension, revocation, and fines. Courts hear civil or criminal claims but do not administer the license. Trade associations and banking regulators have no licensing authority over brokers.

Question 33Massachusetts real estate licensing law and Board regulations

A Massachusetts salesperson is employed by a broker and receives a commission check directly from the seller at closing. Which statement is correct under Massachusetts law?

  1. The salesperson may keep the commission because it came from the seller
  2. The salesperson must deposit the commission into the Board's recovery fund
  3. The salesperson may keep half and remit half to the broker
  4. The salesperson must remit the commission to the broker, who then pays the salesperson Correct answer.

Explanation

In Massachusetts commissions are earned by and paid to the brokerage, not to the salesperson individually. A salesperson who receives a commission must turn it over to the employing broker, who then compensates the salesperson under their agreement. Retaining a commission directly is a licensing violation.

Question 34Massachusetts real estate licensing law and Board regulations

A Massachusetts broker wishes to hire an unlicensed assistant. Which task may the assistant lawfully perform?

  1. Negotiate the terms of a purchase and sale agreement
  2. Answer the phone and schedule appointments for the broker Correct answer.
  3. Show a listed property to prospective buyers and discuss its features
  4. Solicit new listings at an open house

Explanation

Unlicensed assistants may perform clerical and administrative tasks such as answering phones and scheduling appointments. Activities that require a license include negotiating, showing property for compensation, and soliciting listings. Allowing an unlicensed person to perform licensed activity exposes the broker to discipline.

Question 35Massachusetts real estate licensing law and Board regulations

A Massachusetts broker wants to use a team name in advertising. Which practice complies with Board advertising rules?

  1. Using the team name in a way that implies it is a separate brokerage
  2. Omitting the brokerage name because the team name is registered
  3. Advertising the brokerage name as required, with the team name clearly secondary Correct answer.
  4. Advertising under the team name only, without the brokerage name

Explanation

Massachusetts advertising rules require that advertisements identify the licensed brokerage. A team name may be used if the brokerage name is also shown so consumers are not misled about who holds the license. Advertising under a team name alone can suggest a separate unlicensed brokerage.

Question 36Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is approached by a seller who wants to limit the brokerage's duty to disclose known material defects to buyers. Which statement is correct?

  1. The broker may agree because the seller is the client
  2. The broker may remain silent if the defect is not visible from the street
  3. The broker must still disclose known material defects regardless of the seller's instruction Correct answer.
  4. The broker may withhold disclosure if the buyer does not ask

Explanation

Massachusetts licensees owe a duty of honesty and may not conceal known material defects to induce a transaction, even at a client's request. A seller's instruction cannot override this obligation. Concealment can lead to discipline and civil liability.

Question 37Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is reviewing the brokerage's recordkeeping. Board regulations require the broker to retain transaction records for a minimum period. Which period applies?

  1. One year from the closing date
  2. Five years from the listing date
  3. Seven years from the date of licensure
  4. Three years from the date the transaction is completed Correct answer.

Explanation

Massachusetts regulations require brokers to keep records of transactions, including listings, offers, and closing documents, for at least three years. Retaining records supports Board audits and complaint investigations. Shorter or longer periods listed here do not match the regulation.

Question 38Massachusetts real estate licensing law and Board regulations

A Massachusetts salesperson applicant has completed the required pre-licensing course. Which statement describes the examination requirement?

  1. The applicant is exempt from the exam because the course was completed
  2. The applicant may be licensed provisionally without any exam
  3. The applicant must pass the state licensing examination before a license is issued Correct answer.
  4. The applicant may practice for 90 days while awaiting exam results

Explanation

Massachusetts requires applicants to pass the state licensing examination as a condition of licensure. Completing the pre-licensing course qualifies the applicant to sit for the exam but does not replace it. No provisional practice period without an exam exists in this context.

Question 39Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is the designated broker for a firm and wishes to also hold an active salesperson license with another firm. Which statement is correct?

  1. A broker may do so only for commercial transactions
  2. A broker may not simultaneously hold an active salesperson license with another firm Correct answer.
  3. A broker may hold an active salesperson license with a second firm
  4. A broker may do so if both firms consent in writing

Explanation

Massachusetts does not permit a person to hold an active broker license and an active salesperson license with a different firm at the same time. Dual active status would create confusion about supervision and responsibility. Consent of the firms does not cure the conflict.

Question 40Massachusetts real estate licensing law and Board regulations

A Massachusetts broker wants to charge a consumer a fee for providing a list of available rental units. Under Board rules, which statement is accurate?

  1. The broker may charge the fee without a license because no sale is involved
  2. Rental brokerage activity requires a license and must follow licensing rules Correct answer.
  3. The fee is permitted only if the tenant signs a lease first
  4. Only attorneys may charge rental listing fees

Explanation

Massachusetts licensing law covers rental brokerage as well as sales, so a person who, for a fee, offers rental listing services must be licensed and comply with Board rules. The absence of a sale does not remove the licensing requirement. Attorneys and lease timing do not change this.

Question 41Massachusetts real estate licensing law and Board regulations

A Massachusetts licensee is disciplined by the Board for a licensing violation. Which statement describes a possible consequence?

  1. The Board must refer all matters to criminal prosecutors
  2. The licensee automatically loses the right to ever reapply
  3. The licensee may be required to complete additional education as a condition of continued licensure Correct answer.
  4. The Board may only issue a warning

Explanation

The Board may impose a range of sanctions, including requiring remedial education, fines, suspension, or revocation. Remedial education allows the licensee to correct deficiencies while continuing in the profession. Permanent disqualification and warnings-only outcomes are not accurate descriptions of the Board's authority.

Question 42Massachusetts real estate licensing law and Board regulations

A Massachusetts broker accepts a deposit from a buyer and the transaction falls through. Which statement describes the proper handling of the deposit?

  1. The broker must return the deposit to the buyer in every case
  2. The broker must disburse the deposit according to the parties' written agreement or a court order Correct answer.
  3. The broker may keep the deposit as compensation for time spent
  4. The broker must send the deposit to the Board for safekeeping

Explanation

When a transaction fails, the broker holds the deposit in escrow until the parties agree in writing on its disposition or a court orders disbursement. The broker may not decide unilaterally or keep the funds. Sending deposits to the Board is not part of the process.

Question 43Massachusetts real estate licensing law and Board regulations

A Massachusetts broker wants to use a lottery or contest to generate buyer leads. Which statement reflects Board advertising rules?

  1. The broker may use any promotion if it is disclosed at closing
  2. Contests are prohibited in all forms of real estate advertising
  3. Advertising must not be false, misleading, or deceptive, and contests must comply with applicable law Correct answer.
  4. Lotteries are permitted if the prize is under $500

Explanation

Massachusetts advertising rules prohibit false, misleading, or deceptive advertising, and promotions such as contests must also satisfy other applicable laws. A broker should ensure any promotion is truthful and lawful. There is no blanket ban or dollar threshold in the licensing rules.

Question 44Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is reviewing whether a particular activity requires a license. Which activity clearly requires a Massachusetts real estate license?

  1. Preparing a property tax appeal for a fee
  2. Providing general information about mortgage rates
  3. Publishing a directory of rental properties without compensation from either party
  4. Negotiating the sale of real estate for another person for compensation Correct answer.

Explanation

Negotiating or facilitating the sale of real estate for another person in exchange for compensation requires a Massachusetts license. Activities such as tax appeals, general mortgage information, and uncompensated directories fall outside the licensing requirement. The key elements are compensation and acting for another in a real estate transaction.

Question 45Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is asked to represent a buyer in a transaction where the seller is unrepresented. Which statement describes the broker's obligation?

  1. The broker may disclose the buyer's confidential information to the seller if asked
  2. The broker owes fiduciary duties to the buyer client and must treat the seller honestly and fairly Correct answer.
  3. The broker owes the same fiduciary duties to both parties regardless of the agreement
  4. The broker owes no duties to the seller because the seller is unrepresented

Explanation

A broker representing a buyer owes fiduciary duties to that buyer while still owing honesty and fair dealing to the unrepresented seller. This dual obligation prevents misrepresentation without creating a fiduciary relationship with the seller. Confidential buyer information remains protected.

Question 46Massachusetts real estate licensing law and Board regulations

A Massachusetts salesperson wishes to change the name on her license after a legal name change. What is required?

  1. The salesperson must notify the Board and request a license amendment Correct answer.
  2. Nothing, because the license remains valid under the former name
  3. The salesperson must retake the licensing examination
  4. The salesperson must apply for an entirely new license and pay all original fees

Explanation

Massachusetts licensees must notify the Board of a legal name change and obtain an amended license so Board records match the licensee's identity. This is an administrative amendment rather than a new application. Re-examination and full reapplication are not required.

Question 47Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is considering whether a particular fee arrangement with a cooperating broker is permissible. Which principle governs commission-sharing under Board regulations?

  1. Commissions may be shared only if the Board approves the split in advance
  2. Commissions may be shared with a licensed broker but not with an unlicensed person Correct answer.
  3. Commissions may be shared with an unlicensed assistant as a bonus
  4. Commissions may be shared with any person who brought the buyer to the transaction

Explanation

Massachusetts permits a broker to share commissions with another licensed broker, but paying a commission to an unlicensed person for brokerage activity is prohibited. The rationale is that compensation for licensed activity should flow to licensees who are subject to regulation. Advance Board approval is not part of the process.

Question 48Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is served with a subpoena from the Board requesting transaction records. Which response is appropriate?

  1. The broker must produce the requested records as required by the Board's investigative authority Correct answer.
  2. The broker may ignore it because the records are private business information
  3. The broker may produce records only with the client's written consent
  4. The broker must destroy the records to avoid liability

Explanation

The Board has investigative authority and may subpoena records relevant to a complaint or audit. A broker must cooperate and produce the requested records. Ignoring a subpoena or destroying records can itself lead to discipline.

Question 49Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is reviewing continuing education requirements for the current renewal cycle. Which statement is accurate?

  1. Continuing education must be completed only after a complaint is filed
  2. Continuing education may be waived if the licensee has 20 years of experience
  3. Continuing education is required only for salespersons, not brokers
  4. Licensees must complete Board-approved continuing education as a condition of renewal Correct answer.

Explanation

Massachusetts requires licensees to complete Board-approved continuing education during each renewal cycle. The requirement applies to brokers as well as salespersons and is not waived for experience. Education is preventive and is not triggered by complaints.

Question 50Massachusetts real estate licensing law and Board regulations

A Massachusetts broker is asked by a seller to include a provision in the listing agreement that would allow the broker to purchase the seller's property. Which statement is correct?

  1. The broker may purchase it only through an unlicensed relative
  2. The broker is prohibited from ever purchasing a client's property
  3. The broker may purchase the property if the seller consents in writing after full disclosure Correct answer.
  4. The broker may purchase the property without disclosure because the seller proposed it

Explanation

A broker may purchase a client's property only after full written disclosure of the broker's interest and the client's informed consent. This addresses the conflict of interest inherent in self-dealing. Purchases through relatives to avoid disclosure are equally improper.