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Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam
Massachusetts Real Estate Salesperson (Page 3 )

Updated On: 7-Feb-2026
Page 3 of 28
PDF with 135 Questions

The need to protect the public's health and safety against poor construction practices has resulted in the enactment of

  1. zoning ordinances.
  2. restrictive deed conditions.
  3. building codes.
  4. zoning committees.

Answer(s): C

Explanation:

Building codes establish minimum standards for construction and materials to protect public health and safety. These codes regulate structural integrity, electrical systems, plumbing, mechanical installations, and fire prevention requirements.

In Massachusetts, the State Building Code (780 CMR) governs these practices and is enforced by local building inspectors. Building codes ensure that properties meet safe construction standards and prevent hazardous conditions.

Zoning ordinances (A) regulate land use (e.g., residential vs. commercial), restrictive deed conditions (B) are private limitations placed in deeds, and zoning committees (D) are administrative, not regulatory. Therefore, only building codes directly address the protection of health and safety from poor construction practices.


Reference:

Massachusetts State Building Code (780 CMR); Massachusetts Real Estate Salesperson Candidate Handbook ­ Land Use Controls.



Which of the following is true of a quitclaim deed?

  1. It cannot be used to transfer a title held in fee simple.
  2. It has warranties similar to a special warranty deed.
  3. It can be used to remove a cloud on a title.
  4. It cannot be recorded.

Answer(s): C

Explanation:

A quitclaim deed is commonly used in Massachusetts to transfer whatever interest the grantor may have in the property, without any warranties of title. The grantor does not guarantee that they own the property or that the title is clear; they are simply releasing ("quitting") any claim they might have.

This makes quitclaim deeds useful for curing defects or removing a cloud on title, such as correcting a name, releasing an interest, or resolving minor disputes.
While Massachusetts typically uses quitclaim deeds even in regular sales transactions (where other states may prefer warranty deeds), their primary legal function is still to transfer without guarantees.

The other options are incorrect:

A: It can transfer fee simple interest.

B: It provides no warranties, unlike a special warranty deed.

D: It can be recorded.


Reference:

Massachusetts Real Estate Salesperson Candidate Handbook ­ Transfer of Title; M.G.L.
Chapter 183 (Conveyances of Land).



The purpose of Regulation Z is to

  1. control the use of credit.
  2. regulate interest charges.
  3. set maximum interest charges.
  4. inform the borrower of credit costs.

Answer(s): D

Explanation:

Regulation Z, part of the Truth in Lending Act (TILA), was enacted to ensure that consumers are fully informed of the true cost of borrowing. It requires lenders to disclose credit terms, including the annual percentage rate (APR), finance charges, payment schedule, and total repayment amount.

The purpose is not to control or limit credit (A), regulate or set interest rates (B or C), but to provide transparency. This allows borrowers to compare loan offers on equal terms.

In Massachusetts, lenders must comply with both federal TILA (Regulation Z) and state consumer protection laws (M.G.L. Chapter 140D ­ Massachusetts Truth in Lending). Borrowers receive a Loan Estimate and Closing Disclosure summarizing credit costs, ensuring informed financial decisions.


Reference:

Federal Truth in Lending Act (TILA) ­ Regulation Z; Massachusetts General Laws Chapter 140D; Massachusetts Real Estate Salesperson Candidate Handbook ­ Financing.



Two top licensees in a small town have agreed not to show listings of a new real estate firm charging a low commission rate to sellers. This behavior is a violation of the

  1. Equal Credit Opportunity Act.
  2. Blue-Sky laws.
  3. Sherman Antitrust Act.
  4. federal fair housing laws.

Answer(s): C

Explanation:

The Sherman Antitrust Act is a federal law that prohibits any contract, combination, or conspiracy that restrains trade or creates monopolies. In the context of real estate, antitrust violations include price fixing, market allocation, group boycotts, and tie-in arrangements.

The situation described -- where two licensees agree not to show listings from a competing brokerage charging lower commissions -- is a classic example of a group boycott. By conspiring to cut out competition, they are restraining trade and harming both consumers and the new brokerage.

The Equal Credit Opportunity Act (A) deals with lending discrimination, Blue-Sky laws (B) regulate securities, and federal fair housing laws (D) prohibit housing discrimination. Only the Sherman Antitrust Act applies here.

Massachusetts licensees are specifically tested on recognizing antitrust violations. The penalties for Sherman Act violations are severe, including fines, loss of license, and even imprisonment.


Reference:

Massachusetts Real Estate Salesperson Candidate Handbook ­ Real Estate Practice & Antitrust Laws; Sherman Antitrust Act, 15 U.S.C. §§1­7.



A motel is the subject of an appraisal and it is determined that a rerouting of a county highway has limited customer access to the motel. This is an example of

  1. economic obsolescence.
  2. regression.
  3. functional obsolescence.
  4. landlocked property.

Answer(s): A

Explanation:

Economic obsolescence (also known as external obsolescence) occurs when property value declines due to factors outside the property itself that the owner cannot control. In this case, rerouting of a county highway reduces customer access, negatively impacting business and property value. This is entirely external and beyond the motel owner's ability to correct.

By contrast:

Regression (B) refers to when a higher-value property loses value due to surrounding lower-value properties.

Functional obsolescence (C) is caused by design flaws or outdated features within the property itself.

Landlocked property (D) refers to a parcel with no legal access, which is not the case here.

Therefore, the correct answer is economic obsolescence.


Reference:

Massachusetts Real Estate Salesperson Candidate Handbook ­ Valuation and Market Analysis; Principles of Appraisal.



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