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Real Estate Massachusetts Real Estate Salesperson Sample Questions:

1. What is the function of a promissory note or bond when used in conjunction with a mortgage?

A) It makes the borrower personally obligated to pay the debt.
B) It provides the elements necessary to make the mortgage valid.
C) It furnishes a complete legal description of the property.
D) In case of default, it limits the lender's rights to interest only.

2. A building was purchased for $350,000 with a 20% down payment. If the lender charged the buyer three discount points, how much will the buyer need to close?

A) $78,400
B) $80,500
C) $360,500
D) $61,600

3. Under an option to buy, the ownership of land will change when the

A) optionee exercises the option.
B) option is signed by the parties.
C) optionor does not fulfill the obligation.
D) specified time has expired.

4. A salesperson's client is the lessee. Who does the salesperson represent?

A) landlord
B) lender
C) lien holder
D) tenant

5. The commission rate included in a listing contract is determined by

A) state statute.
B) negotiation.
C) local custom.
D) national trade organizations.

Solutions: