Free Massachusetts Real Estate Practice Exam

Q1.A landlord in Massachusetts collects a security deposit of $2,000 from a new tenant on June 1. Under M.G.L. c. 186 § 15B, by what deadline must the landlord provide the tenant with a written receipt and the name and location of the bank where the deposit is held?

• A.Within 30 days of receiving the deposit
• B.Within 10 days of receiving the deposit
• C.At the time of signing the lease only
• D.Within 7 days of receiving the deposit

Q2.Under the Fair Housing Act, what is the maximum amount of punitive damages that can be awarded in a federal court action for a first-time violation?

• A.$37,500
• B.$65,000
• C.$16,000
• D.$150,000

Q3.Which type of encumbrance is a non-financial restriction on how property may be used?

• A.A mortgage or deed of trust
• B.A deed restriction or CC&R (covenant, condition, and restriction)
• C.A mechanic's lien filed by a contractor
• D.An IRS federal tax lien

Q4.A seller is transferring a single-family home in Massachusetts that is served by an on-site septic system. The system was inspected and issued a passing Title V inspection report 18 months ago when the seller refinanced the property. Under 310 CMR 15.000, must a new Title V inspection be performed before the sale closes?

• A.Yes, a new inspection is always required within 6 months before any transfer of title for a property with a private septic system.
• B.No, a passing Title V inspection report is valid for two years from the date of inspection, so the 18-month-old passing report may be used for the current transfer without a new inspection.
• C.No, a passing Title V inspection is valid for three years from the date of inspection when the system was inspected during a refinance, making the 18-month-old report still acceptable.
• D.Yes, a new inspection is required because Title V reports obtained for refinancing purposes are not transferable to a property sale transaction.

Q5.A newly licensed Massachusetts real estate salesperson wishes to begin practicing immediately after receiving her license. Under Massachusetts law, which of the following statements BEST describes her affiliation requirement?

• A.She may operate independently for up to 90 days while she searches for a sponsoring broker
• B.She must affiliate with a licensed Massachusetts real estate broker before she may perform any licensed real estate activities
• C.She may affiliate with either a licensed broker or another licensed salesperson who has been licensed for at least two years
• D.She must affiliate with a broker but may choose any broker licensed in any state that has a reciprocal agreement with Massachusetts

Q6.Under Massachusetts law, before a licensee may show a property to a prospective buyer, the licensee must provide the buyer with which of the following documents?

• A.A copy of the purchase and sale agreement
• B.The Massachusetts Mandatory Licensee-Consumer Relationship Disclosure form
• C.A signed buyer agency agreement
• D.A copy of the listing agreement

Q7.A seller intentionally conceals a known plumbing defect by making cosmetic repairs before listing. After closing, the buyer discovers the underlying problem. Which claim provides the buyer's strongest legal theory?

• A.Breach of contract — the purchase contract is a warranty of property condition
• B.Strict liability — Arizona sellers are absolutely liable for all defects
• C.Negligence — the seller should have known the repair was inadequate
• D.Fraudulent concealment — the seller actively hid a known defect

Q8.Massachusetts 254 CMR 3.00 requires that a broker's license certificate be displayed in a specific manner. Which of the following best describes this requirement as it applies to a broker supervising a branch office?

• A.The principal broker's license must be displayed at the main office, and a branch office license must be prominently displayed at each branch location where real estate business is conducted.
• B.The principal broker's license displayed at the main office is sufficient to cover all branch offices, and no separate branch office license is required.
• C.Each affiliated salesperson's license must be physically posted at the branch office, but the supervising broker's license need not be present at the branch.
• D.Branch offices are only required to display the license of the on-site supervising salesperson, provided the principal broker's license is available digitally.

Q9.The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending based on which of the following?

• A.Credit score only
• B.Race, sex, marital status, and other protected characteristics
• C.Income level only
• D.Property type only

Q10.A Massachusetts real estate salesperson wants to advertise a listed property on their personal social media page. Under 254 CMR 3.00, which of the following is required for that advertisement to be compliant?

• A.The advertisement must include the salesperson's individual license number and home address.
• B.The advertisement must clearly identify the name of the licensed real estate brokerage under which the salesperson is affiliated.
• C.The advertisement need only display the salesperson's name, since the public can look up the broker affiliation on the state registry.
• D.The advertisement is permissible without any brokerage identification as long as it does not quote a specific price.

Q11.A deed contains a covenant restricting the lot to single-family residential use. A buyer wants to operate a daycare from the property. This restriction is best described as:

• A.A financial encumbrance, like a mortgage
• B.An easement granting access rights to neighboring properties
• C.A non-financial encumbrance — a restrictive covenant in the deed that limits the permitted use of the property
• D.A zoning variance that can be modified through a city planning process

Q12.Under M.G.L. c. 112, the Board of Registration of Real Estate Brokers and Salespersons is appointed by which authority, and to which executive department does it report?

• A.The Governor appoints Board members, and the Board operates under the Division of Occupational Licensure within the Executive Office of Labor and Workforce Development.
• B.The Attorney General appoints Board members, and the Board operates independently with no departmental oversight.
• C.The Secretary of State appoints Board members, and the Board reports to the Department of Revenue.
• D.The Legislature confirms Board members, and the Board reports directly to the Supreme Judicial Court.

Q13.A broker is the listing agent for a commercial property that was formerly a dry-cleaning operation. During due diligence, the buyer's environmental consultant discovers soil contamination with perchloroethylene (PCE), a hazardous substance under CERCLA. The seller disclosed only that the business was 'a dry cleaner' but said nothing about contamination. The broker knew from a prior failed sale that an environmental report had identified PCE levels exceeding EPA action levels. The buyer closes without further testing and later discovers the extent of contamination. Under CERCLA and general agency principles, which statement BEST describes the broker's exposure?

• A.The broker faces potential liability because knowing of the prior environmental report created an affirmative duty to disclose the material fact of contamination, and failure to do so may constitute fraudulent concealment or misrepresentation regardless of the seller's instruction to stay silent.
• B.The broker has no liability because CERCLA imposes cleanup liability only on owners, operators, transporters, and arrangers—not on real estate licensees.
• C.The broker is protected from liability because the buyer hired an independent environmental consultant, which constitutes an assumption of the risk of discovering contamination.
• D.The broker's only obligation was to recommend that the buyer obtain an environmental inspection, and having done so in writing, all liability is extinguished.

Q14.An appraiser is valuing a 15-unit apartment building using the income approach. The building generates $180,000 in annual gross income with operating expenses of $54,000. If the capitalization rate for similar properties is 8%, what is the indicated value using this approach?

• A.$1,800,000
• B.$2,250,000
• C.$2,700,000
• D.$1,575,000

Q15.A real estate salesperson consistently shows African American buyers homes only in neighborhoods that are predominantly non-white, while showing white buyers comparable homes in a broader range of neighborhoods. This practice is best described under Massachusetts fair housing law as:

• A.Blockbusting, which is prohibited under M.G.L. c. 151B.
• B.Steering, which is prohibited under M.G.L. c. 151B.
• C.Redlining, which is regulated exclusively by the federal Community Reinvestment Act.
• D.Channeling, which is permissible if the salesperson is matching buyers to their stated preferences.