Massachusetts Real Estate Exam CORRECT
100%
In which type of financing agreement could an original mortgager become a mortgagee? - ANSWER
Purchase Money Mortgage
The major difference between a license and an easement in gross is that: - ANSWER a license is
revocable
A developer of a 10 home subdivision would likely benefit most from which of the following mortgage
clauses? - ANSWER Partial Release Clause
What would a partial release clause allow? - ANSWER A partial release clause would allow the developer
to pay off part of the mortgage whenever an individual home was sold
If the grantor retains a right, written in the deed, to make use of a dock on the grantee's property, it is
a(an): - ANSWER Easement in gross
Frank and Joanne are dating. They buy a home and want to ensure that the living partner owns the
home outright if the other partner dies. What should you, as an agent, recommend to them? - ANSWER
That they should own as joint tenants, but speak with an attorney
Are real estate agents permitted to give legal advice? - ANSWER No, recommend they find an attorney
You are the seller's agent. After you sell the property, the buyer finds out that the seller was HIV positive.
The buyer sues you for failing to disclose this information to them. Who would be liable in this situation?
- ANSWER No one would be held liable in this situation. HIV/Aids is a disability protected by the FHA.
FHA stands for - ANSWER Fair Housing Act
,Principal Meridians are most similar to - ANSWER Lines of Longitude, running from the north to south
poles
Rory lists her home for $489,000. She receives a purchase offer from Todd for $475,000. Rory counters
his offer at $487,000. Eventually they agree on a price of $485,000. The market price of Rory's home is -
ANSWER $485,000
What is the market price? - ANSWER The actual price that a buyer paid for a piece of property
An easement granted in writing to someone who does not own an adjacent property, and that
automatically expires upon that individuals passing is a(n): - ANSWER Easement in gross
An easement for an individual is an easement in gross. It can't be passed on, and unlike some
easements, the right does not pass with ownership of the land. It is instead granted to the individual
A property sized by 400 feet by 300 feet sold for $210,000. What was the price per square foot of the
property? - ANSWER $1.75
First determine the total square footage of the property, and then divide the sales price by the total
square feet to calculate the price per square foot. So, 400 feet x 300 feet = 120,000 total square feet.
$210,000 sales price / 120,000 total square feet = $1.75 per square foot
Dorothy divorces her husband David. Their home, which they own together, will be split unequally
during the divorce settlement. How will Dorothy and David's co-ownership change? - ANSWER It will
change from tenancy by the entirety to tenancy in common
Randy, a broker, is given a gift certificate to his favorite restaurant as thanks for sending his client to his
friend, a real estate attorney, to deal with the purchase and sale agreement for the home his client was
selling. Has he risked his license? - ANSWER Yes, it is a potential conflict of interest
A buyer is assuming a mortgage on the property, which has an interest charge of $350. The seller made
their payment due on April 1st. What is the adjustment made at closing if the date of closing is April
15th? - ANSWER debit seller $175, credit buyer $175
, unpaid expenses are - ANSWER a debit to the seller and a credit to the buyer
Jerry buys a house and does so with the help of a loan from the Bank of North America. Jerry moves into
his new house and starts making payments on the loan. After a few months, Jerry receives a notice in the
mail that his loan has been transferred and that he will need to make payments to a new servicer,
Socwen. Jerry is somewhat surprised by the notice because his loan was not initially with Socwen. What
should Jerry do at this point? - ANSWER Make payments to Socwen
When a lake dries up, this is an example of - ANSWER reliction
Reliction is - ANSWER the addition of land by the sudden retreat of water. When a lake dries up, the
water retreats, which adds much more land to the beach
The right of government to enact zoning ordinances stems from its: - ANSWER police power
Police Power is - ANSWER the right of government to enact laws regulating private activities for the
public good
When meeting a client for the first time, it is best to avoid asking which of the following questions?
Do you have any pets?; What do you do for work?; Where are you from?; What is your budget? -
ANSWER Where are you from?
National origin is protected under federal fair housing law.
The Doctrine of Laches states that: - ANSWER Rights may be lost due to inaction; "use it or lose it"
A right of ingress is - ANSWER a right of entrance
What sort of amortization does a graduated payment mortgage result in? - ANSWER Negative
, What are graduated payment mortgages? - ANSWER Mortgages whose payments are adjusted down at
the outset of the loan to make them affordable to the borrower
A bank will loan up to 65% LTV for a home loan. The property is under agreement for $1,500,000, and
the banks appraiser has appraised the property at $1,600,000. The bank will loan at most: - ANSWER
$1,007,500 in this instance
The bank will loan up to 65% of the sales price or appraised value for a home loan. 1,500,000 x 0.65 =
$1,007,500
A quitclaim deed states - ANSWER The grantor conveys only whatever interest the grantor has at the
time of conveyance. No warranties are made, meaning that the grantor is not liable for any claims made
against title
With respect to the wetlands, what is the buffer required before alterations are permitted to the
property? - ANSWER 100 feet
Which is legally permissible in Massachusetts?
selling a property with radon; accepting a net listing; accepting undisclosed referral fees; limiting a client
search based on demographics - ANSWER selling a property with radon
any known environmental hazards (such as presence of radon) must be disclosed by the agent as
defects, but they do not prohibit the sale of real estate
Ben wants to buy a home that costs $250,000. He has a 5% down payment and the lender charges 1
point to originate the loan. How much money will Ben need up front? - ANSWER $14,875
Points are typically 1% of the loan amount, not the purchase price. First we need to find out what the
loan amount will be. 5% of $250,000 is $12,500 and our down payment amount. $250,000-
$12,500=$237,500 and is our loan amount. Therefore, the total amount needed up front $12,500+
$2,375=$14,875
