Massachusetts Real Estate License Exam Practice - KGO Flashcards

Massachusetts Real Estate License Exam Practice - KGO Flashcards Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000.What's the loan-to-value ratio?A. 0.72B. 0.75C. 0.82D. 0.96 B Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor?A. Whether another broker supervises the licenseeB. Whether the brokerage offers regular guidance and instruction to the licenseeC. Whether the firm provides the licensee with a copy of the brokerage's policies and procedures manualD. Whether the licensee receives benefits from the brokerage firm D A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400' deep. What was the price per front foot of the property?A. 1335.67B.

2000C. 363.64D. 598.95

A In order to be an effective property manager, a licensee must be familiar with a variety of ______.A. Agency disclosuresB. Employment contractsC. Independent contractor agreementsD. Lease agreements D Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?A. Joint tenancyB.Tenancy by the entiretyC. Tenancy in commonD. Tenancy in severalty A Buyer Daphne and seller Kurt signed a sales contract with a definite closing date of May 15. Daphne now finds that she needs to move the closing date to June 15. She'll accomplish this with an ________ to the sales contract.A.AddendumB. AmendmentC. AnnotationD. Appendix B A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?A. 150,000B. 300,000C. 315,789D.

450,000

C Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. What is the brokerage's commission rate?A. 0.023B. 0.038C. 0.065D. 0.076 C Drew and Hank were camping at Hank's riverfront cabin.Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank

for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?A. Drew didn't have the financial resources to make the offer.B.Real estate contracts must be in writing.C. There was no offer and acceptance.D. This wasn't a legal purpose.B Chelsea's mother owns several rental properties and intends to keep them to pass on to the family. Chelsea

holds a special power of attorney to manage the rental properties, including working with the property manager to place and evict tenants as necessary. Which of these would violate the POA?A. At the property manager's recommendation, Chelsea evicts a long-time tenant for failure to pay rent.B. Chelsea instructs the property manager to prepare the quarterly financial reports.C.Without consulting her mother, Chelsea decides to completely refurbish one of the properties.D. Without consulting her mother, Chelsea hires a plumber to fix a major plumbing problem in one of the properties.C

Which of the following statements about Massachusetts purchase offers is true?A. Licensees aren't required to present verbal offers to the seller.B. Licensees must present all purchase offers to the seller.C. Licensees should only present realistic offers to the seller.D.Licensees should use their own discretion to determine which offers to present to the seller.B A landlord has an available unit, but refuses to show it to several applicants. These applicants are all single women with children; the applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law?A. He is advertising the unit in a restrictive way that discriminates against those with children.B. He is discriminating against people based on sex and familial status by refusing to show available housing.C. He is discriminating by offering special terms for rental based on a protected class status.D. He is sexually harassing potential tenants.B Which of these questions can an agent in a dual agency transaction answer without breaching her duties to either client?A. Are you aware of any structural issues with the property?B. How much should my counter-offer to the buyer be?C. What repairs or concessions should I ask for from the home inspection?D. What should I agree to fix from this list the buyer sent?A Which of the following is a protected class in Massachusetts fair housing law, but isn't protected by federal fair housing law?A. DisabilityB. Gender identityC.RaceD. Religion B Leo's client is looking for a property with at least 2,500 finished square feet. He finds a 2,200-square-foot property with all the other features the client is looking for and purposely fails to mention the square footage. His client agrees to look at the property, falls in love with it, and wants to make an offer. Which of these statements accurately represents Leo's level of misrepresentation in this situation?A. Because Leo didn't state the square footage, he's not guilty of misrepresentation.B. It's the buyer's responsibility to ensure that the property has the proper square footage, so Leo's in the clear.C. Leo obviously knew about the square footage and intentionally didn't mention it. He's guilty of intentional misrepresentation.D. Leo omitted a material fact. This is considered unintentional misrepresentation.C