Free Massachusetts Real Estate Practice Test (2026) — LicenseIQ

Question 1

Which statement about entities and licenses is correct in Massachusetts?

Accepted Answer

Section 87UU allows entities to hold a broker license only through a designated individual broker, and states that no salesperson license shall be issued to a corporation, society, association or partnership.

Question 2

An owner lives in one unit of a four-family house and refuses to rent to a tenant with a housing voucher. Which statement is correct?

Accepted Answer

Massachusetts' owner-occupancy exemption reaches only two-family dwellings, and voucher status is protected under §4(10).

Question 3

Written consent to designated agency must be obtained no later than

Accepted Answer

254 CMR 3.00(13)(c) and the form require consent before the purchase and sale agreement is signed (ideally before a transaction is identified).

Question 4

Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

Accepted Answer

Survivorship operates outside the will; the deceased's interest goes to the surviving joint tenants.

Question 5

A buyer plans to build a garage within the riverfront area of a year-round river. Which local body reviews the work under the Wetlands Protection Act?

Accepted Answer

Conservation commissions regulate work in the riverfront area and other resource areas under c.131 §40 and 310 CMR 10.00, typically through a Notice of Intent.

Question 6

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 7

The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

Accepted Answer

Value requires Demand, Utility, Scarcity and Transferability.

Question 8

In the cost approach, the appraiser estimates value by:

Accepted Answer

Cost approach: replacement (or reproduction) cost new - depreciation + land value. Land is valued separately because it does not depreciate.

Question 9

A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

Accepted Answer

Loan = $300,000 - $60,000 = $240,000; $240,000 / $300,000 = 80% LTV. (20% is the down payment percentage.)

Question 10

A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

Accepted Answer

Gaps in the chain or unreleased liens are clouds that must be cleared (e.g., by quitclaim deed or quiet title action) before title is marketable.

Question 11

Radon is:

Accepted Answer

Radon is a colorless, odorless, naturally occurring radioactive gas that can enter homes through the foundation; it is the second leading cause of lung cancer.

Question 12

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 13

Which deed provides the GREATEST protection to the grantee?

Accepted Answer

A general warranty deed contains the fullest covenants, warranting title against all defects, including those arising before the grantor owned it.

Question 14

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 15

Under c.93 §114, which fact is NOT a material fact that must be disclosed in a Massachusetts real estate transaction?

Accepted Answer

Section 114 treats a property as psychologically impacted (site of a felony, suicide or homicide, alleged supernatural activity, or an occupant with HIV/AIDS) and not a material fact. Physical defects remain material.

Question 16

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 17

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 18

A modest home located among larger, more expensive homes tends to increase in value due to the principle of:

Accepted Answer

Progression: a lower-value property benefits from surrounding higher-value properties. Regression is the opposite effect on the most expensive home.

Question 19

A buyer never meets the licensee in person and wants to sign a buyer agency agreement electronically. When must the disclosure be provided?

Accepted Answer

The current Board form says that when there is no in-person meeting, the disclosure must be provided electronically or otherwise before the licensee enters a contract with the consumer.

Question 20

A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

Accepted Answer

Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).

Question 21

A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

Accepted Answer

A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.

Question 22

Under the Rivers Protection Act, the riverfront area generally extends how far from each side of a river?

Accepted Answer

The 1996 Rivers Protection Act created a 200-foot riverfront area measured from the mean annual high water line, reduced to 25 feet in certain densely developed municipalities.

Question 23

A closing attorney requests a statement of a condo unit's unpaid common expenses under c.183A §6(d). The association must furnish it within

Accepted Answer

Section 6(d) requires the organization of unit owners to furnish the statement within ten business days of a written request, for a reasonable fee.

Question 24

A $2,000 security deposit sits for one year in a Massachusetts bank account paying 5.5%. What interest is the tenant entitled to?

Accepted Answer

The statute sets 5% per year or a lesser amount received from the bank. Because the bank paid more than 5%, the tenant receives 5%: $2,000 x 0.05 = $100.00.

Question 25

A broker holds a $25,000 deposit in an interest-bearing escrow account. Which statement is correct?

Accepted Answer

254 CMR 3.00(10) allows interest-bearing or non-interest-bearing escrow and requires a proper accounting of interest; Board guidance says the parties should agree who receives it.

Massachusetts real estate practice test

1. Which statement about entities and licenses is correct in Massachusetts?

2. An owner lives in one unit of a four-family house and refuses to rent to a tenant with a housing voucher. Which statement is correct?

3. Written consent to designated agency must be obtained no later than

4. Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

5. A buyer plans to build a garage within the riverfront area of a year-round river. Which local body reviews the work under the Wetlands Protection Act?

6. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

7. The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

8. In the cost approach, the appraiser estimates value by:

9. A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

10. A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

11. Radon is:

12. In a lease, the tenant holds a estate and the landlord holds a .

13. Which deed provides the GREATEST protection to the grantee?

14. A contract that is missing an essential element, such as consideration, is:

15. Under c.93 §114, which fact is NOT a material fact that must be disclosed in a Massachusetts real estate transaction?

16. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

17. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

18. A modest home located among larger, more expensive homes tends to increase in value due to the principle of:

19. A buyer never meets the licensee in person and wants to sign a buyer agency agreement electronically. When must the disclosure be provided?

20. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

21. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

22. Under the Rivers Protection Act, the riverfront area generally extends how far from each side of a river?

23. A closing attorney requests a statement of a condo unit's unpaid common expenses under c.183A §6(d). The association must furnish it within

24. A $2,000 security deposit sits for one year in a Massachusetts bank account paying 5.5%. What interest is the tenant entitled to?

25. A broker holds a $25,000 deposit in an interest-bearing escrow account. Which statement is correct?

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