Free Massachusetts Real Estate Practice Exam

Q1.A same-sex married couple applies for a mortgage loan to purchase a home. The lender's underwriter, citing personal religious beliefs, recommends denial and includes a note in the file referencing the couple's 'non-traditional household.' Under the Equal Credit Opportunity Act (ECOA) and applicable federal law, which of the following is most accurate?

• A.The lender may have violated ECOA because marital status is a protected class, and 'marital status' has been interpreted to prohibit discrimination against married couples including same-sex couples; additionally, the reference to household composition may constitute sex discrimination.
• B.ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, and age, but sexual orientation is not a protected class under ECOA, so no federal violation occurs.
• C.No federal law is violated because the final credit decision was made by a supervisor, not the underwriter, insulating the lender from liability.
• D.The couple's only remedy is under state law; federal lending laws do not address household composition or marital status in mortgage lending.

Q2.What is the key difference between a mortgage pre-qualification and a mortgage pre-approval?

• A.Pre-qualification involves a hard credit pull; pre-approval uses only a soft inquiry
• B.Pre-qualification guarantees the loan amount; pre-approval is only an estimate
• C.Pre-qualification is required by Arizona law; pre-approval is optional
• D.Pre-qualification is an informal estimate based on self-reported data; pre-approval involves verified income, assets, and credit

Q3.A Massachusetts listing broker instructs an affiliated salesperson to advertise a property on a public website using only the salesperson's personal name and cell phone number, with no reference to the brokerage. The salesperson complies. Under 254 CMR 3.00, which party has MOST LIKELY violated Massachusetts professional standards?

• A.Only the salesperson, because the salesperson physically placed the advertisement without the brokerage name.
• B.Only the broker, because the broker is solely responsible for all advertising content under Massachusetts law.
• C.Both the broker and the salesperson, because 254 CMR 3.00 requires all advertising by a licensee to clearly identify the licensed brokerage, and the broker's instruction does not relieve the salesperson of independent compliance obligations.
• D.Neither party, because salespersons are permitted to advertise independently using personal contact information as long as the listing agreement authorizes advertising.

Q4.A borrower discovers a $1,200 error on their Closing Disclosure three days before the scheduled closing. Under RESPA's TRID rule, what is the lender's obligation regarding the closing timeline?

• A.The closing may proceed as scheduled since the error is less than $2,000
• B.The lender has 30 days after closing to provide a corrected Closing Disclosure
• C.The borrower may waive the waiting period if they sign a written waiver
• D.The lender must provide a corrected Closing Disclosure and wait an additional three business days before closing

Q5.Under the Equal Credit Opportunity Act (ECOA), a mortgage lender must notify a loan applicant of a credit decision — whether an approval, counteroffer, or denial — within how many days of receiving a completed application?

• A.15 days
• B.30 days
• C.45 days
• D.60 days

Q6.An agent who continues to act on behalf of a client after the listing agreement has expired, without a new agreement in place, may have created which type of agency?

• A.Express agency
• B.Implied agency
• C.Ostensible agency
• D.Designated agency

Q7.Under RESPA (Real Estate Settlement Procedures Act), what is the maximum time frame a lender has to respond to a qualified written request (QWR) from a borrower regarding their loan servicing?

• A.15 business days
• B.20 business days
• C.30 business days
• D.45 business days

Q8.Under M.G.L. Chapter 112, Section 87SS, what is the maximum penalty the Massachusetts Board can impose for a first violation of real estate licensing laws?

• A.$1,000 fine
• B.$2,500 fine
• C.$5,000 fine
• D.$10,000 fine

Q9.A licensee uses Facebook ad targeting that excludes the audience over age 35 from seeing a rental listing. The licensee did not know about the FHA implications. Which is true?

• A.No violation — algorithmic targeting is protected by Section 230
• B.Violation only if a complaint is filed
• C.Violation — § 3604(c) prohibits advertising that indicates preference based on familial status (excluding older audiences); HUD has specifically held platform-based ad targeting violates the FHA (HUD v. Facebook, 2019)
• D.Only the platform is liable, never the licensee

Q10.A Massachusetts buyer's agent receives a $10,000 earnest money deposit by check made payable to the salesperson personally. The salesperson deposits the check into the salesperson's personal checking account, intending to transfer it to the broker's escrow account the following business day. Under Massachusetts law and 254 CMR 3.00, which violation has MOST clearly occurred?

• A.Conversion only, because the funds were used for personal expenses.
• B.Commingling only, because the funds were deposited in a non-escrow account but were not used personally.
• C.Both commingling and an unauthorized receipt of trust funds, because a salesperson may not receive escrow funds payable to the salesperson personally, and depositing client funds in a personal account constitutes commingling regardless of intent.
• D.No violation has occurred because the salesperson intended to transfer the funds within one business day, which satisfies the promptness requirement under 254 CMR 3.00.

Q11.Which federal law requires lenders to provide a Good Faith Estimate of closing costs to borrowers?

• A.Fair Housing Act
• B.Real Estate Settlement Procedures Act (RESPA)
• C.Truth in Lending Act
• D.Equal Credit Opportunity Act

Q12.In Massachusetts residential real estate practice, the Offer to Purchase is best described as which of the following?

• A.A legally binding contract that transfers equitable title to the buyer upon acceptance
• B.A preliminary agreement that, once accepted, creates a binding obligation but is typically superseded by the Purchase and Sale Agreement
• C.A non-binding letter of intent that neither party is required to honor
• D.The final closing document signed at the Registry of Deeds

Q13.A broker is listing a property built in 1977. The seller discloses that there may be deteriorating paint on the windowsills. Which federal statute requires the broker to ensure that buyers receive an EPA-approved lead-based paint hazard information pamphlet and a completed disclosure form before the buyer is obligated under the contract, and what is the consequence if the broker fails to comply?

• A.CERCLA; the broker faces Superfund cleanup liability for failure to disclose environmental hazards.
• B.The Residential Lead-Based Paint Hazard Reduction Act (Title X), enforced by HUD and EPA; a non-compliant broker may face civil penalties up to $11,000 per violation and the buyer may have the right to void the contract.
• C.RESPA; failure to provide the pamphlet is treated as an undisclosed settlement service fee and triggers a $100-per-day fine.
• D.The Toxic Substances Control Act (TSCA) only applies to contractors performing renovation work, not to real estate brokers involved in sales transactions.

Q14.Under TILA's right of rescission, a borrower who refinances their primary residence with a new lender has how many business days to cancel the transaction after signing?

• A.1 business day
• B.3 business days
• C.5 business days
• D.10 business days

Q15.Under the Fair Housing Act, which of the following lease provisions would be considered a discriminatory practice when applied selectively to tenants based on familial status?

• A.Requiring all tenants to maintain renter's insurance
• B.Requiring families with children to pay an additional security deposit while not requiring the same from tenants without children
• C.Prohibiting children under 12 from using the swimming pool without adult supervision
• D.Limiting occupancy to two persons per bedroom for all units