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Real Estate Massachusetts Real Estate Salesperson Exam Sample Questions (Q94-Q99):

NEW QUESTION # 94
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. economic obsolescence.
B. functional obsolescence.
C. landlocked property.
D. regression.

Answer: A

Explanation:
Economic obsolescence (also known as external obsolescence) occurs when property value declines due to factors outside the property itself that the owner cannot control. In this case, rerouting of a county highway reduces customer access, negatively impacting business and property value. This is entirely external and beyond the motel owner's ability to correct.
By contrast:
Regression (B) refers to when a higher-value property loses value due to surrounding lower-value properties.
Functional obsolescence (C) is caused by design flaws or outdated features within the property itself.
Landlocked property (D) refers to a parcel with no legal access, which is not the case here.
Therefore, the correct answer is economic obsolescence.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Valuation and Market Analysis; Principles of Appraisal.

NEW QUESTION # 95
Which of the following is used in the cost approach when estimating the value of improvements?

A. The price per square foot of comparable properties.
B. Location, available financing, and depreciation.
C. The assessed value of the property including the land.
D. How much it would cost to build a similar building at today's cost.

Answer: D

Explanation:
The cost approach to value is based on the principle of substitution, which states that a buyer will not pay more for a property than the cost to build a comparable one. In this method, the appraiser estimates the current cost of constructing the improvements using either the replacement cost (cost to build a similar building with modern materials and methods) or the reproduction cost (exact duplicate of the original).
The appraiser then subtracts depreciation (physical deterioration, functional obsolescence, or economic obsolescence) and adds the land value (determined separately). This approach is most often used for special- purpose properties (schools, churches, government buildings) where comparable sales are limited.
The other options are incorrect:
Assessed value (A) is for taxation, not appraisal.
Price per square foot (C) is a sales comparison method.
Location/financing (D) are factors but not a direct step in the cost approach.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Appraisal Methods; USPAP Standards.

NEW QUESTION # 96
A prospective tenant wishes to rent an apartment and is told by the owner that the owner does not want to rent to anyone with children because of the lead paint. The prospective tenant, who has children ages four, six, and nine years old, is not concerned about lead paint and wants to rent the apartment for six months. The owner agrees to lease them the unit. Concerning the lead paint, the owner must

A. Wait to de-lead until the owner has sufficient funds.
B. Write into the lease that the tenant has agreed that de-leading is not necessary.
C. Not de-lead because this is only a six-month lease.
D. De-lead or make lead-safe whether the tenant requires it or not.

Answer: D

Explanation:
Under the Massachusetts Lead Law (M.G.L. c. 111, 189A-199B), the presence of lead paint in any residential property built before 1978 where children under six will be residing requires that the property be either deleaded or brought into interim control (made lead-safe). The law does not exempt short-term leases, and the landlord must comply regardless of the lease term (even for a six-month rental).
Since the tenant has children ages four, six, and nine, the landlord must take appropriate action to either de- lead or make the property lead-safe. The tenant's lack of concern does not exempt the owner from the obligation to comply with the law.
Reference: M.G.L. c. 111, 189A-199B; Massachusetts Lead Poisoning Prevention and Control Law.

NEW QUESTION # 97
The Massachusetts Consumer Protection Act (M.G.L. c. 93A)

A. Prohibits use of only deceptive practices in landlord-tenant law.
B. Protects tenants from personal property disputes.
C. Prohibits use of unfair and deceptive practices in business.
D. Protects homeowners who sell their homes without a broker.

Answer: C

Explanation:
The Massachusetts Consumer Protection Act (M.G.L. c. 93A) prohibits unfair and deceptive business practices. It applies to a broad range of commercial transactions, including real estate transactions. The law is designed to protect consumers from unethical practices and to ensure transparency and fairness in the marketplace.
This act does not specifically apply to homeowners selling without a broker, nor does it protect tenants from personal property disputes or only from deceptive practices in landlord-tenant law. It is a comprehensive law aimed at regulating the business practices of all commercial entities, including real estate professionals.
Reference: M.G.L. c. 93A; Massachusetts Real Estate Candidate Information Bulletin - Consumer Protection Law.

NEW QUESTION # 98
If a deed creating a tenancy in common does NOT state the fractional interest of each co-owner, it

A. is presumed each owner has an equal interest.
B. becomes a joint tenancy.
C. must be determined by a majority vote of the tenants.
D. is void.

Answer: A

Explanation:
In tenancy in common, two or more individuals hold title together, each with an undivided right to possess the property. The co-owners may hold unequal shares, but unless otherwise specified in the deed, the law presumes equal ownership interests.
For example, if three people take title as tenants in common without specifying percentages, Massachusetts law assumes they each own one-third. The deed is not void (A), fractional shares are not decided by "vote" (C), and tenancy in common does not convert into joint tenancy (D) unless explicitly stated with survivorship rights.
Thus, the correct answer is B: presumed equal interest.
Reference: Massachusetts Real Estate Salesperson Candidate Handbook - Forms of Ownership; M.G.L. c.
184.

NEW QUESTION # 99
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