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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. The commission rate included in a listing contract is determined by

A) local custom.
B) national trade organizations.
C) state statute.
D) negotiation.

2. An escrow or trust account is often held by a lender to pay

A) mortgage payments.
B) property taxes and insurance payments.
C) the bank's outstanding invoices.
D) interest on a loan.

3. Before it was recognized as a health hazard, asbestos was commonly used as insulation in residential and commercial construction because it is

A) fire resistant.
B) an air purifier.
C) water resistant.
D) repellent to common pests.

4. Rules for Truth in Lending and RESPA call for disclosure documents to borrowers. How can a managing broker best prepare associated licensees to manage these disclosures?

A) The buyer's broker can provide samples so that when the licensee and the borrower prepare the forms they are following a good example.
B) Because the listing broker will be primarily responsible for completing the Loan Estimate to send to the lender, the broker should train associated licensees to collect all the necessary information in a timely fashion.
C) Because the lender has primary responsibility to provide these forms, the broker and licensees should be aware of the items required for the lender to comply.
D) The managing broker should train licensees to advise borrowers to accept the Loan Estimate right away.

5. Which of the following is among the typical responsibilities of a residential property manager?

A) requesting that the tenant's employer withhold the past due rent from wages
B) negotiating leases between the property owner and potential tenants
C) making decisions about structural changes that will enhance the property value
D) selecting tenants to provide a diverse environment

Solutions: