What Do You Know About Massachusetts Real Estate License Law? Trivia Quiz
What Do You Know About Massachusetts Real Estate License Law? There are different aspects that make a house easy to sell, and safety is one of the most important aspects. Do you think you can sell any house In Massachusetts and know the rules regarding the real estate profession? The quiz below is perfect for seeing how true that is. Take it up as many times as you need.
- 1.
Each state has license laws to:
- A.
Raise revenue
- B.
Control ethical conduct
- C.
Protect the public
- D.
Regulate realty selling
Correct Answer
C. Protect the publicExplanation
The correct answer is "Protect the public" because license laws are put in place by states to ensure that individuals engaging in certain professions, such as real estate selling, meet certain standards and qualifications. These laws aim to safeguard the public from unqualified or unethical practitioners who may engage in fraudulent or harmful practices. By regulating these professions and requiring licenses, the state can ensure that professionals are competent, trustworthy, and accountable, ultimately protecting the public's interests and well-being.Rate this question:
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- 2.
Which is true about smoke detector:
- A.
A smoke detector certificate from the fire department is needed
- B.
A 3 family home has a choice between hardwired or battery
- C.
A single family home must have hardwired
- D.
A single family has a choice about having detectors
Correct Answer
A. A smoke detector certificate from the fire department is needed -
- 3.
Realty license laws are enacted by:
- A.
Realty trade associations
- B.
Board of Registration
- C.
State Legislature
- D.
Office of Consumer Affairs
Correct Answer
C. State LegislatureExplanation
The correct answer is State Legislature. Realty license laws are enacted by the State Legislature. This is because the State Legislature has the authority to create and pass laws that govern the real estate industry, including licensing requirements for real estate professionals. These laws are put in place to protect consumers and ensure that individuals practicing real estate have the necessary qualifications and adhere to ethical standards. Realty trade associations, the Board of Registration, and the Office of Consumer Affairs may play a role in enforcing and regulating these laws, but they do not have the authority to enact them.Rate this question:
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- 4.
Real estate license laws are promulgated and administered by:
- A.
Board of Registration
- B.
National Association of Realtors
- C.
State Legislature
- D.
Department of Education
Correct Answer
A. Board of RegistrationExplanation
Real estate license laws are promulgated and administered by the Board of Registration. This board is responsible for setting the standards and regulations for obtaining and maintaining a real estate license. They oversee the licensing process, including the education and examination requirements, as well as any disciplinary actions for licensees who violate the laws and regulations. The Board of Registration ensures that real estate professionals adhere to the legal and ethical standards set forth in the industry, protecting both consumers and the integrity of the real estate profession.Rate this question:
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- 5.
The boiler in a home is lined with asbestos. The broker knows this. What must the broker do?
- A.
Have the seller remove the asbestos before the sale
- B.
Do not tell the buyer because it would break fiduciary duties with the seller
- C.
Tell the seller that the asbestos has to be removed before the property can be marketed
- D.
Disclose it to buyer
Correct Answer
D. Disclose it to buyerExplanation
The broker must disclose the presence of asbestos to the buyer because it is a material fact that could potentially affect the buyer's decision to purchase the property. Failing to disclose this information would be a breach of the broker's duty to act in the best interest of the buyer and could lead to legal consequences.Rate this question:
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- 6.
Upon adoption, license laws:
- A.
Remain in effect for one year
- B.
Become part of state constitution for 5 years
- C.
Become permanent law
- D.
May be amended by the Board
Correct Answer
C. Become permanent lawExplanation
Upon adoption, license laws become permanent law. This means that once the license laws are adopted, they remain in effect indefinitely and do not have an expiration date. They become a permanent part of the legal framework and can only be changed or repealed through the legislative process. The other options mentioned in the question, such as remaining in effect for one year or becoming part of the state constitution for 5 years, do not accurately describe the status of license laws upon adoption.Rate this question:
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- 7.
All are true about escrow EXCEPT:
- A.
It may be interest-bearing
- B.
A separate escrow account is required for each transaction
- C.
It benefits buyer and seller
- D.
Accounts are subject to inspection by the Board or its agents
Correct Answer
B. A separate escrow account is required for each transactionExplanation
Escrow is a financial arrangement where a third party holds and regulates the payment of funds during the completion of a transaction between two parties. It is commonly used in real estate transactions. While all the other statements are true about escrow, the statement "A separate escrow account is required for each transaction" is not true. In fact, multiple transactions can be handled through a single escrow account, which makes it more convenient and efficient for both parties involved.Rate this question:
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- 8.
You are a buyer's broker and your client asks for a recommendation for a roofer. As thanks for the referral, the roofer gives you a free vacation at her summer home. Have you risked your license?
- A.
Yes, because you must give at least three references to the buyer
- B.
Yes, because there is a conflict of interest
- C.
No, because the roofer did not pay you any money
- D.
No, because as a buyer's broker you are free to make recommendations
Correct Answer
B. Yes, because there is a conflict of interestExplanation
Yes, because there is a conflict of interest. As a buyer's broker, it is your duty to act in the best interest of your client and provide unbiased recommendations. Accepting a free vacation from the roofer creates a conflict of interest as it may influence your recommendation and compromise your integrity as a broker. This action could be seen as a breach of professional ethics and may result in the risk of losing your license.Rate this question:
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- 9.
Concerning the state of Board of Registration, all are true EXCEPT:
- A.
Chairperson is selected annually
- B.
All members are appointed by the governor
- C.
Board consists of five members
- D.
All revenues received by the Board go to the state treasury
Correct Answer
A. Chairperson is selected annuallyExplanation
All the statements given about the state of Board of Registration are true except for the statement that the Chairperson is selected annually. This implies that the Chairperson is not selected on an annual basis.Rate this question:
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- 10.
A licensee may lose his or her license for all of the following EXCEPT:
- A.
Charging less than 5% commission on a sale
- B.
Failing to account for funds belonging to others
- C.
Discouraging a party from using an attorney
- D.
Giving legal advice
Correct Answer
A. Charging less than 5% commission on a saleExplanation
A licensee may lose his or her license for failing to account for funds belonging to others, discouraging a party from using an attorney, and giving legal advice. However, charging less than 5% commission on a sale would not be a reason for the licensee to lose their license.Rate this question:
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- 11.
Broker B has been notified by the Board of a complaint against him. Which if the following is NOT true?
- A.
He must be given at least 10 days written notice before a hearing
- B.
He is entitled to an attorney
- C.
In event of revocation of license, he has 20 days to appeal
- D.
His records may be subpoenaed
Correct Answer
B. He is entitled to an attorneyExplanation
The statement "He is entitled to an attorney" is not true. While a broker has the right to legal representation, they are not automatically entitled to an attorney. They have the option to hire an attorney at their own expense if they choose to do so.Rate this question:
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- 12.
All of the following may result in loss of broker license EXCEPT?
- A.
Expiration of broker bond
- B.
Paying finder fee to an unlicensed person
- C.
Accepting commission from buyer and seller without the permission of both parties
- D.
Negotiating the commission
Correct Answer
D. Negotiating the commissionExplanation
Negotiating the commission does not result in the loss of a broker license. However, the other options mentioned can lead to such consequences. The expiration of a broker bond, paying a finder fee to an unlicensed person, and accepting commission from both the buyer and seller without their permission are all actions that violate regulations and can result in the loss of a broker license.Rate this question:
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- 13.
Broker B, a sole proprietor, dies. All of the following are true EXCEPT:
- A.
Temporary license is issued and is valid for one year from date of death
- B.
Party to whom license is issued must comply with state bonding requirements
- C.
The temporary license is non-renewable
- D.
All pending commissions are void
Correct Answer
D. All pending commissions are voidExplanation
When a sole proprietor broker dies, all of the following are true except that all pending commissions are void. This means that any commissions that were earned but not yet paid out at the time of the broker's death will still be valid and owed to the appropriate parties. The other statements are true: a temporary license is issued, which is valid for one year from the date of death; the party to whom the license is issued must comply with state bonding requirements; and the temporary license is non-renewable.Rate this question:
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- 14.
Broker Jane advertised property listed with her. She is required to:
- A.
Disclose the agency's name in ad
- B.
Indicate address of listed property
- C.
Indicate the sales price
- D.
Place sign on property
Correct Answer
A. Disclose the agency's name in adExplanation
In order to comply with the requirements, Broker Jane needs to disclose the agency's name in the advertisement. This is important for transparency and ensuring that potential buyers or clients are aware of the agency representing the property. By including the agency's name in the ad, it allows interested parties to easily identify and contact the agency for further information or inquiries about the listed property.Rate this question:
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- 15.
In the death of sole proprietor, all are false EXCEPT:
- A.
Temporary license may be anyone approved by the Board
- B.
Temporary licensee must be related to deceased party
- C.
Temporary licensee must pass state exam within 60 days
- D.
Temporary licensee must have some prior realty experience
Correct Answer
A. Temporary license may be anyone approved by the BoardExplanation
In the death of a sole proprietor, the temporary license may be granted to anyone approved by the Board. This means that the temporary licensee does not necessarily have to be related to the deceased party, pass the state exam within 60 days, or have prior realty experience. The only requirement is that the Board approves the temporary licensee.Rate this question:
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- 16.
Within how many days must an agent return his license after an unfavorable Board decision?
- A.
1
- B.
3
- C.
7
- D.
10
Correct Answer
C. 7Explanation
After an unfavorable Board decision, an agent must return his license within 7 days. This implies that the agent is required to surrender his license promptly, ensuring that he complies with the Board's decision. Failing to do so may result in further consequences or penalties.Rate this question:
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- 17.
Broker B was in a complicated realty transaction involving a number of people. He may share his commission with whom?
- A.
An attorney
- B.
A friend who referred the listing
- C.
The appraiser in the sale
- D.
A cooperating office
Correct Answer
D. A cooperating officeExplanation
In a complicated realty transaction, Broker B may share his commission with a cooperating office. A cooperating office is another real estate agency or broker that works together with Broker B to close the transaction. By sharing the commission with the cooperating office, Broker B incentivizes them to collaborate and assist in the successful completion of the deal. This can help ensure a smoother transaction process and a mutually beneficial outcome for both parties involved.Rate this question:
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- 18.
How many days notice must the Board give to an agent named in a complaint?
- A.
10
- B.
20
- C.
30
- D.
40
Correct Answer
A. 10Explanation
The Board must give 10 days notice to an agent named in a complaint. This notice period allows the agent to prepare their defense and gather any necessary evidence or witnesses. It also ensures that the agent has sufficient time to respond to the allegations and present their side of the story. Giving a shorter notice period may be considered unfair and not provide the agent with a reasonable opportunity to address the complaint.Rate this question:
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- 19.
A licensed salesperson may receive compensation from a sale from:
- A.
Clients successfully represented
- B.
Attorney settling an estate
- C.
Builder of a subdivision
- D.
Employing broker only
Correct Answer
D. Employing broker onlyExplanation
A licensed salesperson may receive compensation from a sale only from their employing broker. This means that they can only receive payment for their services through the broker they work for, and not directly from clients, attorneys settling an estate, or builders of a subdivision. The employing broker is responsible for distributing the commission to the salesperson based on their agreed-upon arrangement or commission split.Rate this question:
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- 20.
How many years must a broker retain signed agency disclosure statements?
- A.
1
- B.
3
- C.
7
- D.
10
Correct Answer
B. 3Explanation
A broker must retain signed agency disclosure statements for three years. This is important because these documents serve as proof that the broker has disclosed their agency relationship to clients, which is required by law. Retaining these statements for a specified period allows for record-keeping and potential reference in case of any legal disputes or audits.Rate this question:
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