Massachusetts Real Estate Exam Study
Guide 2025/2026 | Verified Q&A |
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The National Do Not Call Registry is a federal database where consumers can opt out of receiving
telemarketing calls. What does this registry represent?
A government-managed list where individuals request that telemarketers no longer contact them
via phone.
Price fixing refers to which of the following unethical business practices?
The illegal act where brokers collaborate to set service prices instead of allowing market
competition to establish those prices naturally.
What is a contract, and what does it entail?
A legally binding agreement between parties that are legally competent to engage, where they
agree to do or refrain from doing a specified act.
In what context is novation used, and what does it achieve?
It involves replacing an old contract with a new one, extinguishing the old agreement, and can
involve either the same parties or new ones.
How is a breach of contract defined?
When one party violates the terms of an agreement without the mutual consent of the other
party.
What is a binder in real estate transactions, and what is its role?
It’s a preliminary, simplified version of a sales agreement, which becomes formal after the seller's
acceptance and is typically passed to an attorney to draft a more detailed contract.
What are contingencies in real estate contracts, and why are they important?
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, Conditions set in a contract that must be fulfilled for the agreement to be enforceable, such as
securing financing, passing a property inspection, or obtaining adequate insurance.
What does the Multiple Listing Service (MLS) do in the real estate market?
It is a network of brokers who agree to share property listing information, expediting the sale
process and splitting commissions when a sale is made.
How are exculpatory clauses viewed in the state of Massachusetts?
They are provisions that exempt a landlord from negligence claims regarding property
maintenance and are considered illegal in Massachusetts.
Under the Foreclosure Act of 2009, what rights do tenants have in a foreclosed property?
Tenants may remain in the foreclosed property for the duration of their lease or 90 days,
whichever period is longer.
What is constructive eviction, and under what circumstances does it apply?
When a tenant is forced to vacate due to the landlord’s failure to maintain the property, making it
uninhabitable, with the tenant’s vacating being necessary to claim this violation.
What does the Americans with Disabilities Act (ADA) require from public buildings?
It mandates that buildings offering public services must be accessible to people with disabilities,
eliminating architectural barriers that impede their entry.
What are externalities in real estate, and how do they affect property value?
External factors, such as physical, political, economic, or social elements, that can influence the
value of a property.
What is salvage value in the context of depreciated assets?
The estimated residual worth of an asset after it has been depreciated, often used in financial
calculations.
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,What is the process of assemblage in real estate?
It refers to the combining of neighboring parcels of land to form a larger, unified tract.
How is functional obsolescence described in property valuation?
A form of depreciation due to outdated or poorly designed property features, where fixable issues
are considered curable, and those requiring structural redesign are incurable (e.g., insufficient
bathrooms or electrical system).
How is depreciation in real estate defined, and what are its causes?
The reduction in value of a property due to factors like physical wear, outdated design, or external
economic pressures, categorized into three types: physical deterioration, functional obsolescence, and
economic obsolescence.
What is an index in mortgage lending, and what is its role?
A financial metric used to adjust the interest rate of a mortgage loan based on changes in the
market.
What are monuments in real estate, and what role do they serve?
Fixed landmarks, either natural or artificial, used to establish the boundaries of real estate in legal
descriptions, particularly in metes and bounds surveys.
How are Ad Valorem taxes calculated, and what do they depend on?
These taxes are based on the assessed value of the property being taxed and are commonly used
to fund local government services.
What is the equitable right of redemption, and how does it apply to property owners facing foreclosure?
It allows a property owner to prevent a foreclosure by paying off delinquent balances, including
any associated fees or interest.
What does the statutory right of redemption entail, and how is it implemented in Massachusetts?
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, After a tax sale, the defaulted property owner has a set period (in Massachusetts, six months) to
reclaim the property by repaying the purchaser the full price, along with any accrued fees or interest.
What are special assessments in real estate, and how are they applied?
Property taxes levied on properties within a specific area to cover improvements or benefits, like
upgrading sidewalks or infrastructure in the neighborhood.
What is the purpose of a 6D Certificate in Massachusetts when selling a condominium?
This document confirms the outstanding condominium fees owed by the seller and ensures the
unit is clear of any association fee liens before closing.
What does Title 5 inspection refer to in real estate transactions?
An evaluation of a private sewage disposal system, which may be required during title transfers,
often necessitating repairs before some mortgages are approved.
How is abandonment defined in real estate agency practice?
An act of neglect by a listing agent who fails to invest time or resources into marketing a property.
What does acceptance mean in the context of a title transfer?
The formal acknowledgment by the grantee that they accept the deed, making the title transfer
valid.
What is an abstract of title, and why is it important?
A summarized history of a property’s title, outlining past ownership and encumbrances, which
serves to verify the current ownership status.
What is adverse possession, and how does it affect land ownership?
The process by which someone gains legal title to land by occupying it without the owner’s
permission for a prescribed duration (20 years in Massachusetts), resulting in the involuntary transfer of
ownership.
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