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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. Which of the following types of agreements applies when the seller retains the right to sell?

A) Net Listing
B) Exclusive Agency Listing
C) Exclusive Right to Sell Listing
D) MLS Listing

2. A tenant in a building that is being converted to condominiums is required to receive an opportunity to purchase the unit the tenant occupies at terms

A) At a monthly payment equal to the tenant's current monthly rent.
B) Equal to or better than that offered to the general public.
C) 20% less than that offered to the general public.
D) 15% less than that offered to the general public.

3. A seller wants $120,000 for a home and still owes $20,000 of the original loan at 7% interest. The current interest rate is 12%. A buyer can pay $60,000 down and wants to carry a mortgage that includes the seller's
$20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of 10%. What kind of mortgage loan is this?

A) blanket
B) buydown
C) wraparound
D) equity

4. A veteran has applied for a VA loan to purchase a house with a sale price of $90,000. The Department of Veterans Affairs (VA) appraised the house at $85,000. In this situation, the veteran

A) may buy the property with the VA loan only if the price is reduced to $85,000.
B) may buy the property with the VA loan only if the seller agrees to take back a second mortgage for
$5,000.
C) may use the VA loan to buy the house after making a down payment of $5,000.
D) cannot secure a VA loan because such loans are limited to a maximum of $75,000.

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

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

Solutions: