New Release Massachusetts-Real-Estate-Salesperson Massachusetts Real Estate Questions

In Massachusetts, when a broker represents the seller, the buyer is treated as a customer (not a client). While the broker owes fiduciary duties to the seller, they also have a duty of honest dealing and disclosure of material defects to customers.

A leaky roof in heavy rains is a material defect that affects the property’s value and safety. The broker must disclose it regardless of agency relationship.

The seller’s urgency to move (A) and dislike of a neighbor (D) are not material facts.

A positive feature like a lake view (B) may be marketed but is not a required disclosure.

Thus, the correct answer is C: leaky roof.

A license is a personal, revocable privilege to enter or use another person’s land for a specific purpose (e.g., a ticket to a sporting event). A license does not create an interest in land and may be revoked at any time by the issuer.

An easement, however, is a non-possessory interest in land that grants a legal right to use the property of another (e.g., a right-of-way). Easements are generally permanent, run with the land, and cannot simply be canceled by the property owner at will.

Massachusetts law distinguishes between the two: easements are formal property interests that usually require a written grant and may only be terminated by agreement, expiration, or court action, while licenses are informal, temporary, and revocable.

Thus, the correct answer is A: A license can be cancelled by the issuer.

In Massachusetts, the seller is legally responsible for completing the property condition disclosure form. The listing broker or agent may provide the form and ensure it is delivered to prospective buyers, but they do not complete it on behalf of the seller.

The rationale is that the seller is the party with direct knowledge of the property’s condition. Licensees must never fill out the disclosure themselves, as this could expose them to liability for inaccuracies. The broker’s duty is limited to ensuring the disclosure is provided in accordance with Massachusetts law (M.G.L. c.93, §114) but not to make representations or complete the document.

Thus, the correct answer is A: seller.

The correct answer is B. VA does not categorically prohibit discount points on VA-guaranteed loans. VA ' s lender guidance states that veterans may pay reasonable discount points, with the amount generally determined by agreement between borrower and lender.

There are separate rules concerning whether those points can be financed into the new loan. For an Interest Rate Reduction Refinance Loan, VA guidance provides that up to two discount points may generally be rolled into the loan subject to requirements; additional points would ordinarily need to be paid in cash.

VA currently continues to offer the IRRRL program to eligible borrowers refinancing existing VA-backed mortgages.

Therefore, the older source-bank conclusion that the veteran may proceed despite 3.5 points remains broadly correct, but it should not be interpreted to mean that all 3.5 points can automatically be financed.

Study Guide Reference: Financing — VA Loans, Refinancing and Discount Points.