Free Massachusetts Agency Practice Test — LicenseIQ

Question 1

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 2

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 3

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 4

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 5

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 6

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 7

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 8

A seller instructs the listing agent not to mention that the basement floods. The agent should

Accepted Answer

Agents owe obedience only to lawful instructions, and every licensee must disclose known material defects. Concealment also risks c.93A liability.

Question 9

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 10

A seller instructs the listing agent not to present offers below $700,000. Under Board guidance, the agent

Accepted Answer

Board guidance says sellers may set parameters for which offers are presented, and the Board recommends getting the instructions in writing. Without instructions, all offers are presented.

Question 11

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 12

In designated agency, when the appointing broker designates one affiliated agent for the seller and another for the buyer in the same transaction, the appointing broker becomes

Accepted Answer

254 CMR 3.00(13)(c) and the disclosure form state that when designated agents represent both sides, the appointing broker becomes a neutral dual agent.

Question 13

A buyer working with the listing firm as a customer asks the listing agent to recommend a home inspector. The agent

Accepted Answer

Section 87YY½ bars brokers and salespersons from directly recommending a specific home inspection company or inspector, unless they are exclusive buyer's brokers under a written agreement or disclosure.

Question 14

Dual agency on a Massachusetts residential sale requires

Accepted Answer

254 CMR 3.00(13)(b) and §87AAA require consent of all parties; the Board's rule requires informed written consent of both on the dual agency consent form.

Question 15

If a buyer asks a seller's agent for help finding a home inspector, the agent may provide

Accepted Answer

Section 87YY½ allows a licensee, on request, to provide the complete Board list of licensed inspectors, but not a selective recommendation.

Question 16

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 17

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 18

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 19

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 20

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 21

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 22

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 23

A listing agent receives a second offer an hour after presenting the first. The seller has given no special instructions. The agent must

Accepted Answer

254 CMR 3.00(11) requires offers to be conveyed forthwith to the owner. The agent may not decide on her own which offers to present.

Question 24

Before entering into a subagency arrangement, a licensee must give the client written notice of

Accepted Answer

254 CMR 3.00(13)(d) requires notice of potential vicarious liability and the client's signed consent before subagency.

Question 25

A designated seller's agent knows the basement floods. The designated buyer's agent in the same firm asks about water problems. The seller's agent

Accepted Answer

Designated agents may not share confidential information that harms their client, but known material defects must be disclosed (254 CMR 3.00(13)(c)).

Massachusetts real estate agency practice test

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

2. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

3. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

4. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

5. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

6. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

7. An agent authorized to perform a single specific act for a principal is a:

8. A seller instructs the listing agent not to mention that the basement floods. The agent should

9. Which fiduciary duty continues even after the agency relationship has ended?

10. A seller instructs the listing agent not to present offers below $700,000. Under Board guidance, the agent

11. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

12. In designated agency, when the appointing broker designates one affiliated agent for the seller and another for the buyer in the same transaction, the appointing broker becomes

13. A buyer working with the listing firm as a customer asks the listing agent to recommend a home inspector. The agent

14. Dual agency on a Massachusetts residential sale requires

15. If a buyer asks a seller's agent for help finding a home inspector, the agent may provide

16. The best way to create an agency relationship is a(n):

17. Which of the following is a fiduciary duty an agent owes the principal?

18. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

19. Which statement about dual agency is correct?

20. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

21. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

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

23. A listing agent receives a second offer an hour after presenting the first. The seller has given no special instructions. The agent must

24. Before entering into a subagency arrangement, a licensee must give the client written notice of

25. A designated seller's agent knows the basement floods. The designated buyer's agent in the same firm asks about water problems. The seller's agent

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