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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. Which of the following is true about mortgage assumptions?

A) The seller may or may not be released from liability.
B) The mortgagee automatically releases the seller upon receipt of a warranty deed.
C) The buyer is relieved of personal liability.
D) The buyer is required to sign a new mortgage note.

2. A seller wants $120,000 for a home and still owes $20,000 of the original loan at 7% interest. The current interest rate is 12%. A buyer can pay $60,000 down and wants to carry a mortgage that includes the seller's
$20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of 10%. What kind of mortgage loan is this?

A) buydown
B) blanket
C) wraparound
D) equity

3. Which of the following is among the typical responsibilities of a residential property manager?

A) negotiating leases between the property owner and potential tenants
B) selecting tenants to provide a diverse environment
C) making decisions about structural changes that will enhance the property value
D) requesting that the tenant's employer withhold the past due rent from wages

4. An offer of $569,000 is verbally accepted by a seller. Two hours later an offer of $589,000 is presented to the seller, which the seller accepts in writing. Based on the above situation the first buyer is

A) Not entitled to the status as a backup offer.
B) Entitled to an additional offer.
C) Not entitled to purchase the property.
D) Entitled to purchase the property.

5. 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

A) landlocked property.
B) functional obsolescence.
C) regression.
D) economic obsolescence.

Solutions: