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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. A broker may withdraw money from the broker's escrow account

A) When the transaction has been consummated.
B) When ordered by the seller's attorney.
C) To cover the broker's commission.
D) To pay for advertising expenses related to the sale.

2. A broker maintains a trust or escrow account. A $10,000 earnest money deposit is received from a buyer and deposited in the account. Several weeks later and prior to closing, the broker withdraws $7,000 from the account and puts it in an operating account. This transaction is

A) permissible as long as the broker is entitled to at least $7,000 in commission.
B) a violation of federal banking regulations.
C) an instance of illegal conversion of funds.
D) permissible if the seller was informed about the transfer of funds.

3. Which of the following statements concerning a security deposit is correct?

A) It may be maintained in the landlord's regular business account as long as it is interest-bearing.
B) It may not exceed the first month's rent.
C) It must be transferred to the tenant when the building is sold.
D) It must be returned to the tenant within twenty-one days of termination of occupancy.

4. Broker N has five affiliated salespersons. On Monday at 10:00 a.m., Salesperson J submitted an offer to purchase from a prospective buyer. The offer price was $300,000. An hour later, Salesperson R submitted an offer of $296,000. However, Broker N held the second offer until the seller rejected the first offer. Broker N's conduct in this situation is

A) Permissible as long as both salespeople knew of Broker N's action.
B) Not permissible because a broker must present all offers to the principal forthwith.
C) Not permissible because a broker must inform all potential buyers of existing offers.
D) Permissible as long as both salespeople share a commission on either of the offers accepted by the seller.

5. When lending standards are tightened, lenders typically require

A) a waiver of the Equal Credit Opportunity Act.
B) a lower loan-to-value ratio.
C) a higher loan-to-value ratio.
D) a balloon payment after 5 years.

Solutions: