1. 1.The primary difference between a salesperson and a broker is:
   AOnly brokers can negotiate on behalf of clients7%
   BOnly salespeople may work directly with clients2%
   COnly brokers can work for themselves89%
   DSalespeople can't work in commercial real estate2%
   Explanation: Only brokers can work for themselves, while salespeople must work for a broker.

2. 2.Who issues real estate licenses?
   AThe Board of Realtors15%
   BThe State Legislature11%
   CThe Board of Registration73%
   DThe Federal Government2%
   Explanation: The Board of Registration of Real Estate Brokers and Salespersons issues real estate licenses.

3. 3.The special agent in a real estate transaction is the:
   AClient2%
   BSalesperson12%
   CBroker86%
   DManager1%
   Explanation: The special agent is the broker, since they are the ones directly hired by the client, and who directly represent the client. Salespersons indirectly represent the client, but cannot be hired directly as special agents.

4. 4.To reinstate your real estate license you should:
   ATake the salesperson class again4%
   BSend a written request to the Board78%
   CRetake the real estate test17%
   DYou can't reinstate your real estate license2%
   Explanation: To reinstate your license you must send a written request to the Board. It is likely that you will have to complete continuing education as well.

5. 5.Damien, a salesperson at Luxury Homes Unlimited, receives an offer deposit check on his newest listing. What are his next steps?
   ADeposit the check immediately2%
   BTell the buyer he's not authorized to receive any checks4%
   CWait at least three days to cash the check0%
   DGive the check to his broker94%
   Explanation: As a salesperson, Damien is not allowed to handle client money or the escrow account. He must give it to his broker, who will cash it.

Your score: 100%

1. 1.Riparian rights are MOST likely to be followed in:
   AStates where water is scarce23%
   BThe original thirteen colonies62%
   CWestern states15%
   DStates founded after 19380%
   Explanation: Riparian rights are used in the original 13 colonies; most other states use the doctrine of prior appropriation.

2. 2.Real estate is conveyed via a(n):
   ABill of sale4%
   BPurchase and sale agreement6%
   COffer0%
   DDeed90%
   Explanation: Real estate is conveyed (transferred) using a deed.

3. 3.An example of an emblement is:
   AAn apple tree5%
   BA jewelry display case7%
   CCorn82%
   DSolar panels5%
   Explanation: Emblements are annual or semi-annual crops that do not grow back after being planted. An example of this sort of crop is corn.

4. 4.Tamara finds out that there’s oil under her property. If she lives in a state that governs liquid mineral rights by utlization pooling, does Tamara own the oil?
   AYes, she does own a percentage, but it’s shared with her neighbors 78%
   BNo, but she does have a right to collect the oil8%
   CYes, but to harvest the oil she needs an implied easement11%
   DNo, she only has ownership over solid minerals 2%
   Explanation: Utilization pooling means that Tamara does own rights to the oil, however it is shared among the other properties that the oil runs under.

5. 5.Mark owns a home next to a small creek. His property line is most likely:
   AThe edge of the creek13%
   BThe middle of the creek74%
   CThe other side of the creek1%
   D100 rods from the edge of the creek12%
   Explanation: Since a small creek is most likely a non-navigable waterway, Mark's property line is likely the middle of the creek.

Your score: 100%

1. 1.Owners of cooperatives receive what for their individual unit?
   AUnit deeds20%
   BLeases70%
   CRights of First Refusals0%
   DEmblements10%
   Explanation: Cooperative owners do not own their individual unit, and instead receive a proprietary lease to occupy the unit.

2. 2.Condominiums are conveyed via:
   AMaster deeds0%
   BUnit deeds80%
   CProprietary deeds10%
   DHOA deeds10%
   Explanation: Condominium units are conveyed using unit deeds. Master deeds are used to create the condo building, but do not transfer interests in individual units.

3. 3.All of the following are inheritable, except?
   AA beach house owned fee simple0%
   BA condo held in joint tenancy80%
   CA ski chalet owned tenancy in common0%
   DA vacation timeshare20%
   Explanation: Any property owned fee simple, which includes timeshares, or as tenants in common is inheritable. Joint tenancy only allows for survivorship.

4. 4.A property owned in severalty has how many owners?
   A170%
   B2 or more30%
   CFewer than 100%
   DAt least 40%
   Explanation: Ownership in severalty is ownership by 1 person (ownership severed from other co-owners).

5. 5.A non-freehold interest is an interest that provides a right of:
   AOwnership10%
   BFirst refusal20%
   CHomestead0%
   DPossession70%
   Explanation: A non-freehold interest is a possessory interest that does not include ownership (most often a lease).

Your score: 100%

1. 1.Tom wants to build a neighborhood pharmacy in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store?
   AA non-conforming use10%
   BA zoning permit22%
   CA conditional use permit66%
   DA deed restriction2%
   Explanation: Conditional use permits are most often used to allow a use (e.g. running a pharmacy business) that would not otherwise be allowed under zoning.

2. 2.A deed restriction is applicable to:
   AThe current owner of the property10%
   BAll owners present and future80%
   CFuture owners of the property8%
   DThe seller of the property2%
   Explanation: Deed restrictions cover all property owners, present and future.

3. 3.Escheat occurs when:
   AA property owner dies without a will29%
   BThe government wants to build a highway6%
   CA property owner dies without heirs or a valid will65%
   DFarmland is sold0%
   Explanation: Escheat occurs when an owner dies without a will or heirs. Since there is no one legally entitled to the property, it will be owned by the state.

4. 4.If Veronica is planning to build a three car garage on her property, what rules would most impact her plans?
   AZoning47%
   BBuilding codes41%
   CCondemnation6%
   DSpecial assessments6%
   Explanation: Zoning regulates what a person can do with their property. These rules govern use, height, setbacks, lot sizes, buffer zones, etc. Many of these would impact the ability to build a garage.

5. 5.Emma wants to build a 3 story home on a vacant lot of land she recently purchased. Her town's zoning bylaws allow up to 2.5 story homes, and her housing development's CC and Rs allow for up to 3.5 story homes. How tall may Emma build?
   A2.5 stories83%
   B3 stories0%
   C3.5 stories17%
   DNot enough information to answer the question0%
   Explanation: The 2.5 story limit is the more restrictive, so Emma will be limited to 2.5 stories.

Your score: 100%

1. 1.Richard’s beach house is located behind Chandler’s. The path to the beach runs through Chandler’s yard. If Richard wants to take a swim in the Atlantic, and is the dominant tenement, what would he need to do to get to the ocean?
   AAsk Chandler’s permission0%
   BObtain a license from Chandler0%
   CTrespass onto Chandler’s property0%
   DNothing, he has the right to cross over Chandler’s property100%
   Explanation: The dominant tenement is the one with the right to cross over another’s adjacent property. In this case, Richard does not have to do anything. He can simply cross to the ocean.

2. 2.Aeolian soil is deposited by:
   AWind60%
   BWater0%
   CWind and water40%
   DTectonic plates0%
   Explanation: Aeolian soil is sandy soil deposited by the wind.

3. 3.A Federal tax lien is:
   AVoluntary and specific0%
   BVoluntary and general0%
   CInvoluntary and specific20%
   DInvoluntary and general80%
   Explanation: Federal tax liens are involuntary and general.

4. 4.Under an installment sales contract, the vendee holds:
   ALegal title20%
   BEquivalent title20%
   COstensible title20%
   DEquitable title40%
   Explanation: The vendee (buyer) under an installment sales contract holds equitable title to the property, while the vendor (seller) holds legal title.

5. 5.Molly has the permission to enter onto Ginnie's property for the purpose of fishing during the months of July and August. Ginnie may revoke the permission at any time. Molly has a(n):
   AEasement in gross0%
   BEasement appurtenant60%
   CEasement by prescription0%
   DLicense40%
   Explanation: Since Molly has a limited revocable right to use Ginnie's property for a specific purpose, she has a license.

Your score: 40%

1. 1.A consulting firm rents office space in a high-rise building. If they're required to pay a base rent, along with a percentage of the property taxes, insurance, and common area electricity, which lease do they likely have?
   AA single net lease0%
   BA percentage lease0%
   CA triple net lease0%
   A modified gross lease100%
   Explanation: In a triple net lease, the lessee (tenant) pays a base rent and a portion of all three of the building’s operating expenses.

2. 2.Two persons sharing a right to the same piece of real estate, that is together one legal interest, is called:
   ADoctrine of Laches0%
   BPrivity of Estate0%
   CInterest in Severalty0%
   Tenancy in Totality100%
   Explanation: Privity of Estate refers to a situation where two persons have a legal claim to the same piece of real estate.

3. 3.If the heat breaks in an apartment, creating freezing temperatures inside, the tenant may abandon the premises under:
   AConstructive eviction100%
   BEscheat0%
   CTenancy at sufferance0%
   DThe statute of frauds0%
   Explanation: Constructive eviction occurs when the leased premises become unsuitable for occupancy.

4. 4.Property managers represent:
   AThe tenant0%
   BThe realtor0%
   CThe town0%
   DThe landlord100%
   Explanation: Property managers are agents of the landlord, and represent the landlord.

5. 5.A tenant is considering a 1000 sqft office. The unit is 10% of the total building, which has common areas spanning 5000 sqft. The usable square footage of the office will be:
   A100 sqft0%
   B1000 sqft0%
   1500 sqft100%
   D6000 sqft0%
   Explanation: Usable square footage is the amount of space the tenant will actually occupy (as opposed to rentable square footage, which is all of the space the tenant will pay for). In this example, the usable square footage is 1000 sqft.

Your score: 100%

1. 1.A stylish five story office building without an elevator sold for less than its owner had expected, based on office building sales prices in the area. What might help explain the lower sales price?
   APhysical depreciation14%
   BEconomic obsolescence0%
   CFunctional obsolescence86%
   DImprovement value0%
   Explanation: Based on the information given in the question, the most likely reason for the lower than expected sales price is the lack of an elevator. This is functional obsolescence (a loss in value due to outdated or bad design).

2. 2.Real estate agents typically prepare:
   ACMAs86%
   BVMAs0%
   CAppraisal reports0%
   DAppraisal estimates14%
   Explanation: Real estate agents typically prepare CMAs (comparative market analyses).

3. 3.All of the following cause an increase in a property’s value, except:
   AA decrease in crime rate0%
   BFlexible town zoning laws that allow for in-law suites0%
   CA high-end grocery store coming to the neighborhood14%
   DRising interest rates86%
   Explanation: Rising interest rates would reduce buying power and negatively influence property values.

4. 4.A property sells for $700,000. This is the:
   AMarket value29%
   BMarket price57%
   CInvestment price14%
   DAssessed value0%
   Explanation: Market price is the total price paid on the market.

5. 5.An 8 bed 6 bath home is built in a neighborhood of nice 2-3 bedroom homes. When the home is sold, the sales price is lower than the owners had expected. This is most likely because of:
   AFunctional obsolescence14%
   BOver improvement57%
   CContribution14%
   DConsistent Use14%
   Explanation: This is an example of over improvement, where a property has been improved far beyond similar properties in the area, and receives a lower price than is expected due to decreasing returns on investment.

Your score: 100%

1. 1.Appraisers:
   ADetermine market value30%
   BDetermine sales prices0%
   CEstimate listing prices0%
   DEstimate market value70%
   Explanation: Appraisers estimate, but do not determine, market value (sales price).

2. 2.A licensed appraiser is required:
   AAlways30%
   BWhen a real estate agent is involved0%
   CWhen the transaction is federally related60%
   DNever10%
   Explanation: Nationally, licensed appraisers are required when a transaction is federally related. This requirement varies from state to state, but this is the correct answer for the exam.

3. 3.If an investor wants to calculate the cap rate on a specific property, they will need to take into account all of the following, except:
   AVacancies11%
   BWater bill for common laundry22%
   CGross income11%
   DCost to replace the roof56%
   Explanation: To calculate cap rate, the investor will need to know the net operating income (NOI). On the APOD sheet, the NOI includes the potential gross income less the vacancies, which gives us an effective gross income, and all operating expenses. However it does not include capital expenditures (big improvements) or loan payments.

4. 4.When creating an appraisal for a luxury condo in a building with plenty of past sales, all of the following would be considered to estimate value, except:
   ASize0%
   BAmenities20%
   CRental income20%
   DLand value60%
   Explanation: In this case, the appraiser would use the sales comparison approach. This approach compares similar sold properties to the subject property, weighing size, style, amenities, renovations, etc. The location of the property would influence its land value and therefore be an important factor. However, rental income would not be considered.

5. 5.An appraiser is evaluating the value of a church. Which appraisal method will they likely use?
   AIncome10%
   BCost80%
   CSales comparison10%
   DGross rent multiplier0%
   Explanation: A church is unlikely to have income or comparable sales, so the cost approach is likely to be the most appropriate appraisal method for an appraiser to use to evaluate the church's value.

Your score: 100%

1. 1.To be valid, every deed must:
   ABe recorded0%
   BBe signed by the grantee14%
   CHave a date0%
   DBe signed by the grantor86%
   Explanation: Deeds must be signed by the grantor, but they do not need to be recorded, have a date, or be signed by the grantee.

2. 2.The type of deed typically used in a tax foreclosures is a:
   AQuitclaim deed14%
   BBargain and sale deed57%
   CSpecial warranty deed0%
   DReconveyance deed29%
   Explanation: A bargain and sale deed offers no warranties. The grantor states they have the right to transfer the property, however they may not be the property owner.

3. 3.A survey reads: The north half of section 12, township 9 north of the 3rd parallel, range 5 west of the principal meridian. How big of an area is this?
   A40 acres0%
   B80 acres14%
   C160 acres0%
   D320 acres86%
   Explanation: A half section is 320 acres (1 mile by 1/2 mile). The north half of section 12 would therefore cover 320 acres.

4. 4.3 links equals (round up):
   A8 inches14%
   B16 inches0%
   C24 inches71%
   D48 inches14%
   Explanation: One link equals about 8 inches (7.92 to be exact). 3 x 8 = 24 inches.

5. 5.Under a quitclaim deed, the grantor is responsible for:
   ATitle defects they caused14%
   BAll title defects0%
   CUnknown title defects0%
   DNothing86%
   Explanation: The grantor is not responsible for anything under a quitclaim deed.

Your score: 100%

1. 1.Even with title insurance, owners of real estate will likely still suffer losses arising from:
   ADefects found in recorded public records80%
   BEncroachments10%
   CUnknown heirs0%
   DWild deeds10%
   Explanation: Title insurance does not usually cover known defects. Something in the public record will therefor not be covered, since it is considered to be known. The question did not indicate that the title insurance company agreed to any known defects, therefore we assume the property had marketable title when it was insured.

2. 2.A property sells for $502,150 in Suffolk County. The cost for recording stamps is:
   A$2289.800%
   B$2291.4070%
   C$2293.6830%
   D$3256.200%
   Explanation: $502,150 rounded to $502,500 / $500 = 1005 stamps x $2.28 per stamp = $2291.40.

3. 3.A title insurance policy providing for mortgagee protection would protect:
   AThe seller0%
   BThe buyer40%
   CThe lender60%
   DThe attorney0%
   Explanation: Mortgagee protection provides protection for the lender (the mortgagee).

4. 4.A nuncupative will is a will that was/is:
   AVerbal90%
   BInvalid0%
   CIncomplete10%
   DWitnessed0%
   Explanation: A nuncupative will is a verbal will. Nuncupative wills are typically unenforceable.

5. 5.Mark passes away testate and without heirs. His property will transfer by:
   AEscheat27%
   BDescent and Distribution18%
   CProbate55%
   DTorrens0%
   Explanation: Since Mark left a will (he was testate), his property will go through probate.

Your score: 100%

1. 1.A broker who is the seller's agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on this statement and makes an offer on a house in the neighborhood and enters into a purchase and sale agreement with the seller. Before closing, the buyer finds out that the taxes are actually among the highest in the area. The legal status of the purchase contract is:
   AVoid9%
   BVoidable82%
   CValid9%
   DUnenforceable0%
   Explanation: Since the agent misrepresented the taxes in the area, the contract is voidable at the option of the buyer.

2. 2.Edard, who is 17, signs a contract. The contract is:
   AVoid18%
   BVoidable64%
   CValid0%
   DUnenforceable18%
   Explanation: A minor's contract is voidable (and is not voided automatically).

3. 3.Which of the following is NOT a bilateral contract?
   AA purchase and sale contract0%
   BA lease9%
   CAn open listing82%
   DA subletting agreement9%
   Explanation: In an open listing, only one party is making a promise. Therefore it's a unilateral contract, not a bilateral contract.

4. 4.A voidable contract is:
   AUnenforceable9%
   BVoid0%
   CValid until voided64%
   DSubject to the doctrine of laches27%
   Explanation: Voidable contracts are valid until voided by a court.

5. 5.The Doctrine of Privity has to do with:
   AThe right to enter into a contract0%
   BThe right to void a contract0%
   CThe right to sue under a contract91%
   DThe right to demand payment for performance under a contract9%
   Explanation: The doctrine of privity has to do with who may be given rights and obligations under a contract (only those who are parties to the contract), and who therefore may be sued.

Your score: 100%

1. 1.A verbal listing contract is:
   AValid100%
   BVoid0%
   CVoidable0%
   DUnenforceable0%
   Explanation: The Statute of Frauds only applies to real estate contracts. A listing contract is a hiring agreement, and therefore a verbal listing contract is valid (though there is no exclusivity).

2. 2.Tom is selling his house. He accepts a verbal offer from Sarah to purchase the house for $417,000. What is the most important thing for Tom's agent to tell him about this situation?
   AThat he should get the P&S signed as soon as possible0%
   BThat the offer might be void under that Statute of Frauds0%
   CThat the offer might be unenforceable under that Statute of Frauds33%
   DThat the offer might be unenforceable under that Statute of Frauds and that he should speak with an attorney67%
   Explanation: This offer may be unenforceable under the Statute of Frauds since it is a verbal real estate contract. Since this is legal advice, you should have your client speak with an attorney about this before proceeding.

3. 3.As an agent, in order to accept an offer on behalf of your principal you must have a(n):
   AOpen listing0%
   BPower of attorney100%
   CExclusive agency0%
   DWritten listing0%
   Explanation: A written power of attorney is required to accept offers on behalf of your principal.

4. 4.Mary submits an offer to buy Bill's house for $840,000. Bill counters Mary's offer, asking for $850,000. Mary's original offer is:
   AValid0%
   BVoid67%
   CVoidable33%
   DUnenforceable0%
   Explanation: Counter offers void the original offer, so Mary's offer is void.

5. 5.Cindy grants the right to buy her home, 10 Marin Lane, in the next 6 months to Robert. In exchange, Robert pays her $2,500. Cindy is best described as the:
   AGrantor33%
   BGrantee0%
   COptionor67%
   DOptionee0%
   Explanation: Cindy is best described as the optionor, or the giver of an option. While grantor could also be used to describe Cindy, she is best described as the optionor in this scenario.

Your score: 100%

1. 1.Under the law of agency, licensees owe their clients all of the following duties EXCEPT:
   AObedience0%
   BReasonable care0%
   CIndemnification100%
   DLoyalty0%
   Explanation: Licensees do not owe their clients indemnification.

2. 2.An employing broker is a real estate salesperson's:
   AGeneral agent10%
   BSpecial agent30%
   CSubagent0%
   DPrincipal60%
   Explanation: A principal is anyone hiring an agent. Since the broker hires the salesperson to be their agent and represent the client on their behalf, the broker is the salesperson's principal.

3. 3.A property manager is most often considered a(n):
   AUniversal Agent20%
   BGeneral Agent80%
   CSpecial Agent0%
   DUnique Agent0%
   Explanation: Property managers are most often general agents.

4. 4.A written listing would most likely creates which type of agency?
   AExpress60%
   BImplied20%
   CExplicit10%
   DOpen10%
   Explanation: A written listing agreement would most likely create express agency (unless it was very badly written!).

5. 5.A real estate agent must disclose all of the following to prospective buyers EXCEPT:
   AA leaky roof0%
   BLead paint0%
   CA loud dog in the neighborhood90%
   DGroundwater contamination10%
   Explanation: A loud dog is not rooted in the land, and is therefore not a mandatory disclosure for agents.

Your score: 100%

1. 1.In order to be eligible for a commission, a broker must:
   AHave a written listing agreement17%
   BBe the exclusive agent of the seller8%
   CClose the sale in a timely manner0%
   DBe the procuring cause of sale75%
   Explanation: To earn a commission the broker must bring a ready willing and able buyer, the buyer must perform, and they must be the procuring cause of sale.

2. 2.Antitrust laws make it illegal for brokers to do any of the following EXCEPT:
   ATalk about commission arrangements36%
   BReceive compensation from both the buyer and seller36%
   CDivide a town between real estate offices9%
   DBoycott the local print shop to reduce business card prices18%
   Explanation: State licensing laws cover dual agency, not antitrust laws.

3. 3.Which of the following is not a true statement?
   ASocial media is a form of advertising.0%
   BSocial media posts are only subject to state laws.55%
   CSocial media posts must follow the same rules as a television advertisement.18%
   DFree personal social media accounts must follow all state and federal advertising laws.27%
   Explanation: Social media posts are only subject to state laws is not true. Social media posts are subject to state and federal laws.

4. 4.The maximum fine under Do Not Call is:
   A$10009%
   B$50,12055%
   C$55,42618%
   D$10,00018%
   Explanation: The maximum fine under Do Not Call is $50,120 per call.

5. 5.Under CAN-SPAM, you must include all of the following in your email marketing EXCEPT:
   AAn opt out30%
   BA business address10%
   CA reply to email60%
   DA sender name0%
   Explanation: A reply to email is not required under CAN-SPAM.

Your score: 100%

1. 1.Fair housing outlaws discrimination based on:
   AHome Locations0%
   BProtected Classes100%
   CHome Valuations0%
   DEconomic Classes0%
   Explanation: Fair housing law outlaws discrimination on the basis of certain protected classes (groups of people).

2. 2.Who of the following has to follow fair housing law?
   ASalespersons0%
   BSellers0%
   CLandlords0%
   DAll of the above100%
   Explanation: Anyone involved in a real estate transaction (including salespersons, sellers, and landlords) must follow fair housing law.

3. 3.Redlining is:
   ADiscriminating in housing0%
   BA property survey technique0%
   CDiscriminating in lending100%
   DA method of editing a contract0%
   Explanation: Redlining is a term that refers to unlawful discrimination in lending.

4. 4.The Fair Housing Act of 1988 Amendments added which protected classes?
   ADisability and marital status0%
   BFamilial status and disability100%
   CSex and marital status0%
   DReligion and familial status0%
   Explanation: The Fair Housing Act of 1988 Amendments added familial status and disability as protected classes.

5. 5.Real estate agents and lenders were no longer allowed to discriminate as of:
   A194850%
   B196850%
   C19780%
   D19880%
   Explanation: Real estate agents and lenders were outlawed from discriminating as of 1968.

Your score: 100%

1. 1.Three months into a one year lease, a tenant is diagnosed with muscular dystrophy, a condition that severely impacts their muscular strength. When a first floor unit opens up in the building, the tenant requests a change to the more accessible unit. What must the landlord do to abide by Fair Housing law?
   AAllow the tenant to change apartments100%
   BNothing, the tenant signed a 12 month lease0%
   CAllow the tenant to change apartments so long as they pay the $500 apartment change fee0%
   DNothing, the landlord needed to be notified of the disability before the tenant moved in0%
   Explanation: Changing to a first floor unit would be considered a reasonable accommodation per HUD guidelines. Reasonable accommodations must be permitted, no matter when during the lease term they are requested by the tenant.

2. 2.If a client arrives at an appointment to view apartments and brings their dog wearing a service animal vest with them, what should the real estate agent do?
   AAsk if it's a service animal0%
   BAsk if it's a support animal0%
   CDon't ask anything100%
   DTell them not to bring the animal inside0%
   Explanation: In order to avoid a fair housing violation, if someone brings a dog that is obviously a service animal, such as one wearing a service animal vest, you should never ask if it's a service animal.

3. 3.Katie is the owner of a 3 family property in Boston, MA that was built in 1930. She wants to rent out her first floor apartment and since she lives on the 3rd floor of her home, she would have the Fair Housing exception to do what?
   ARefuse to rent to someone with children under 6 yrs old0%
   BRefuse to rent to more than one person0%
   CRefuse to rent to someone with a support animal0%
   DNothing100%
   Explanation: The owner-occupied fair housing law exception only applies to 2 family properties in Massachusetts. Katie would not be able to utilize any of the exceptions if she owns a 3 family.

4. 4.Brian is a Massachusetts real estate agent at Village Rentals Realty. When he finds out that undergraduate student, Dara is using the Housing Choice Voucher Program (Section 8), he stops returning her calls. He texts her that he simply doesn’t have the time right now to take on any new clients. Has Brian violated Fair Housing law?
   AYes, because he discriminated against someone using public assistance 100%
   BNo, because he is allowed to work with whoever he wants0%
   CYes, because he discriminated against someone who is an undergraduate student0%
   DNo, because he is too busy to take on Dara as a client0%
   Explanation: While real estate agents are allowed to stop working with clients when they are too busy, they are NOT allowed to use that as an excuse or loophole to discriminate against those using public assistance in Massachusetts. In this case, when Brian realized Dara was using the Housing Choice Voucher Program (Section 8), that is when his actions drastically changed. This is an example of discrimination in the field.

5. 5.Who would be in direct violation of Fair Housing law?
   AA private seller advertising on social media that their house is perfect for a family 100%
   BA college student seeking a same-sex roommate0%
   CA landlord expecting all tenants to have at least a 700 credit score0%
   DA real estate agent only working with clients who can afford homes over $1M0%
   Explanation: Advertising is never exempt under Fair Housing Law. While the private seller may choose to sell their home to a family if they wish, they may never advertise it. Nor may they work with a real estate agent. Those seeking same-sex roommates are exempt. Credit scores and the amount of money someone can spend are not protected under Fair Housing law.

Your score: 100%

1. 1.Which of the following would likely get a real estate agent in trouble under Massachusetts Fair Housing law?
   ATargeting marketing based on a specific location14%
   BOnly working with people who are under 35 years old57%
   CRefusing to work with students29%
   DPreferring to work with people who are pre approved for financing0%
   Explanation: Age is a protected class under Massachusetts Fair Housing Law. Only working with people under 35 years old means that you are discriminating against those who fall in the 40+ age group, and this would be in violation of MA Fair Housing Law. Students and pre approval status wouldn't fall under any protected classes and marketing in specific locations would not be a violation either, so long as it is not based on any protected class.

2. 2.If the location of a property is its major selling feature, which of the following would be the most correct way to express this in marketing?
   ASteps to all of the best shops and restaurants0%
   BWalking distance to all of the best shops and restaurants0%
   CAll of the best shops and restaurants at your fingertips0%
   DClose to all of the best shops and restaurants100%
   Explanation: Close proximity to all of the best shops and restaurants is the most inclusive of all of the marketing descriptions listed here. The others could possibly suggest that persons with disabilities may not be welcome to view or buy the property, and would therefore not be the best choice of wording to market the property of the options presented here.

3. 3.A real estate developer encourages several homeowners to sell their properties very quickly because people of a certain protected class are moving into the neighborhood. The real estate developer is engaging in what illegal activity?
   ABlockbusting86%
   BRedlining0%
   CSteering14%
   DCommingling0%
   Explanation: Blockbusting is any solicitation of property for sale or lease on the basis of the perceived or prospective entry of a protected class into a neighborhood or area. This is an example of blockbusting.

4. 4.When meeting a client for the first time, it is best to avoid asking which of the following questions?
   AWhat do you do for work?0%
   BWhere are you from?71%
   CWhat is your budget?14%
   DWhere do you want to live?14%
   Explanation: National origin is one of the protected classes under fair housing law. To avoid making someone feel uncomfortable and to avoid a possible fair housing violation, it is a best practice to refrain from asking clients where they are from.

5. 5.Sasha tells her real estate agent, Jamie, that it's important for her to live in a neighborhood with lots of other families so that her daughter can make friends easily. She's looking to spend up to $600,000 for a renovated home that has at least 2 bedrooms, 2 bathrooms, and a level backyard. Jamie gives Sasha a list of 5 towns that would best meet her and her daughter's needs, and when Sasha narrows down the list of towns to just 3, Jamie sends her all of the available properties that meet her criteria. Has the real estate agent risked their license?
   AYes because the agent has engaged in steering71%
   BNo because the client asked for family friendly neighborhoods29%
   CYes because the agent provided all of the available properties0%
   DNo because the client told the agent she had a family0%
   Explanation: Steering is when a real estate agent or other housing professional pushes someone towards or away from a specific neighborhood based on a protected class. In this example, even though the client asked to be in a neighborhood with lots of other families, the real estate agent cannot direct the client to an area based on that request because familial status is a protected class.

Your score: 100%

1. 1.A borrower has defaulted on a mortgage which contains an acceleration clause. This permits the lender to:
   ASell the collateral for the loan0%
   BDemand immediate payment of the entire note88%
   CAbate the loan interest13%
   DCancel the loan0%
   Explanation: An acceleration clause lets the lender demand full payment of the note (accelerate its payment schedule).

2. 2.In MOST states, properties being foreclosed on are sold through:
   AMLS0%
   BAuction100%
   CBank service0%
   DPrivate sale0%
   Explanation: In most states foreclosed properties must be sold at public auction.

3. 3.A pre-approval is best received when?
   AWhen the consumer finds a house to buy13%
   BWhen the consumer gets the loan13%
   CWhen the consumer begins their home search75%
   DWhen the consumer closes on the property0%
   Explanation: It is best to get a pre-approval before starting a home search so that the buyer knows their budget, and can provide the proof of funds with any offers they submit.

4. 4.Who makes the loan?
   AMortgage brokers0%
   BMortgage bankers100%
   CMortgage contributors0%
   DMortgage packagers0%
   Explanation: Mortgage bankers work for the bank and actually make the loan.

5. 5.1 point is:
   A1% of the loan63%
   B1% of the sales price25%
   C1% of the equity13%
   D1% of the closing costs0%
   Explanation: 1 point is 1% of the total loan amount.

Your score: 100%

1. 1.Tom buys Sarah's house. As part of the sale, Sarah receives a note and a mortgage from Tom for part of the purchase price. This arrangement is a:
   APurchase money mortgage75%
   BReverse annuity mortgage0%
   CCarried interest mortgage0%
   DOpen end mortgage25%
   Explanation: Purchase money mortgage is another name for seller financing, which is what Sarah provided for Tom in this example.

2. 2.Who would receive a reverse annuity mortgage?
   AAn 18 year old student0%
   BA 30 year old attorney0%
   CA 50 year old veteran0%
   DA 64 year old retiree100%
   Explanation: Reverse annuity mortgages are restricted to borrowers 62 and older.

3. 3.A loan whose amortization period is longer than its payment period is a:
   AFully amortized loan50%
   BHome equity loan0%
   CBalloon loan50%
   DBridge loan0%
   Explanation: A balloon loan is a loan with an amortization period longer than its payment period, resulting in a balloon payment.

4. 4.Nick gets a loan where he pays only his 5% interest during the duration of the loan, and must pay off the principal in its entirety on his last payment. This is a:
   ABalloon loan25%
   BStraight loan50%
   CAmortized loan0%
   DBridge loan25%
   Explanation: In contrast to amortized loans (balloon loans are a type of amortized loan), straight loans are interest only loans where the balance is paid off in full on the final payment.

5. 5.Rachel sells her house to Thomas, subject to an existing loan. Thomas later defaults on the loan. Which is most correct?
   AOnly Thomas's credit will be impacted0%
   BOnly Rachel's credit will be impacted50%
   CBoth Rachel and Thomas's credit will be impacted50%
   DNo credit will be impacted0%
   Explanation: The loan is still in Rachel's name since the home was sold subject to her existing loan, so only Rachel's credit will be impacted.

Your score: 100%

1. 1.FHA loans are made by:
   AFannie Mae11%
   BThe FHA22%
   CQualified lenders67%
   DMortgage brokers0%
   Explanation: FHA loans are made by regular banks (so called qualified lenders), not the FHA. The FHA insures the loans, but does not make them.

2. 2.The maximum LTV allowed under FHA financing is:
   A3.5%0%
   B5%11%
   C95%0%
   D96.5%89%
   Explanation: The FHA allows for up to 96.5% LTV (a 3.5% down payment, and a 96.5% loan).

3. 3.MI is paid for by the:
   ALender22%
   BSeller0%
   CBuyer22%
   DGovernment56%
   Explanation: Mortgage insurance (MI) is paid for by the buyer (borrower).

4. 4.Which would likely qualify for USDA financing?
   AA condo in the city0%
   BA single family home in the suburbs11%
   CA multi-family investment property0%
   DA single family home in a rural area89%
   Explanation: USDA financing is primarily used for purchasing single family homes or farm land in rural areas.

5. 5.The minimum downpayment required by a VA loan is:
   A0%100%
   B3.5%0%
   C5%0%
   D20%0%
   Explanation: VA loans allow for no down payment (0%).

Your score: 100%

1. 1.When advertising specific terms for a consumer financing arrangement, Truth in Lending requires the disclosure of:
   APoints11%
   BClosing costs22%
   CMonthly fees0%
   DAPR67%
   Explanation: Truth in Lending requires the disclosure of the Annual Percentage Rate (APR).

2. 2.RESPA prevents real estate agents from:
   ATaking any fees for loans33%
   BGetting a mortgage broker license0%
   CTaking unearned fees for loans56%
   DCounseling their clients about loan arrangements11%
   Explanation: RESPA doesn't prevent agents from taking any fees for loans, but it does prevent them from taking unearned fees for loans.

3. 3.1031 like kind exchanges:
   AEliminate capital gains taxes11%
   BEliminate income taxes0%
   CDefer capital gains taxes89%
   DDefer income taxes0%
   Explanation: 1031 exchanges defer, but do not eliminate, capital gains taxes.

4. 4.Married persons selling their primary residence may shelter how much in profits from tax?
   A$1000000%
   B$25000022%
   C$50000078%
   D$10000000%
   Explanation: Married persons selling their primary residence may shelter up to $500,000 in profits from tax under the Taxpayer Relief Act of 1997.

5. 5.On January 1st, a seller pays $3,500 for six months of property taxes. The property is sold on May 1st, what does the buyer credit the seller? (The buyer owns the date of closing.)
   A$96613%
   B$116675%
   C$233313%
   D$35000%
   Explanation: Buyer owns May 1st and taxes are paid until July 1st = 2 months of prorated taxes to credit seller. $3,500 / 6 months = $583.33. $583.33 x 2 = $1,166.66

Your score: 100%

1. 1.What are the maximum damages under 93A?
   ADouble0%
   BDouble with attorney fees0%
   CTriple0%
   DTreble with attorney fees100%
   Explanation: The maximum damages under 93A are treble (a fancy word for triple) damages plus attorney fees.

2. 2.Properties built before what date MUST have a smoke detector certificate to be sold?
   A19600%
   B1975100%
   C19910%
   D20160%
   Explanation: Properties built before 1975 must have a smoke detector certificate to be sold.

3. 3.An agent is selling a house they know is contaminated by chlordane. Can the house be sold?
   ANo because it must be cleaned up0%
   BNo because the home will fail 21E certification20%
   CYes so long as it is disclosed60%
   DYes so long as the buyer signs a chlordane waiver20%
   Explanation: Known defects do not prevent the sale of a home, but they must be disclosed before the sale.

4. 4.A property owner adopts a 4 year old child. Their home, which they own, was built in 1963. What is their lead paint requirement?
   ANothing; it is their house and not a rental0%
   BThey must file a lead paint notice with the State within 60 days0%
   CThey must sell their house0%
   DThey must de-lead the house within 90 days100%
   Explanation: All properties with children under 6 must be deleaded within 90 days of the child taking occupancy, no exceptions.

5. 5.Martha is the listing agent for a multi-family property. A buyer, who submits an offer unrepresented, plans to have a home inspection. Can Martha recommend a home inspector?
   ANo60%
   BYes0%
   CYes, so long as Martha gives at least 3 recommendations0%
   DNot unless the buyer specifically asks40%
   Explanation: Listing agents may not recommend home inspectors.

Your score: 100%

1. 1.Doug is a licensed real estate agent who is searching for an investment property. He finds an apartment building that he wants to purchase and states in the offer that he is representing himself. Can he do this?
   AYes, because he disclosed he was the principal75%
   BNo, because he's buying for himself25%
   CYes, because he's licensed0%
   DNo, because it's an investment purchase0%
   Explanation: So long as an agent discloses that they are the principal in a transaction, they can represent themselves.

2. 2.How many days notice do you receive for a Board hearing?
   A7 days25%
   B10 days50%
   C30 days25%
   D60 days0%
   Explanation: You receive at least 10 days notice for a Board hearing.

3. 3.What is the maximum fine for practicing without a license?
   A$500%
   B$500100%
   C$50000%
   D$500000%
   Explanation: The maximum fine for practicing without a license is $500.

4. 4.When an agent collects commission from both seller and buyer, they must:
   AGet written consent75%
   BVerbally disclose0%
   CCash the checks immediately25%
   DBe sure that commission doesn't exceed a fixed percent0%
   Explanation: An agent can act as a dual agent and receive commission from both sides, so long as they disclose it in writing and the parties consent.

5. 5.An agent receives a restaurant gift certificate from their client's lawyer as thanks for referring the client to the lawyer. Have they risked their license?
   AYes because they can't recommend a lawyer33%
   BNo because they didn't receive cash0%
   CYes because of the undisclosed kickback33%
   DNo referrals are fine33%
   Explanation: While you can make referrals, you can't receive anything undisclosed in return for making them. This agent has risked their license by receiving the gift certificate.