Free Massachusetts Property Practice Test — LicenseIQ

Question 1

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 2

A homeowner's septic system fails a Title 5 inspection. Unless the Board of Health or MassDEP sets another schedule, the system must be upgraded within

Accepted Answer

MassDEP guidance requires upgrade of a failed system within two years unless the board of health or MassDEP approves a different schedule, whether or not the property is sold.

Question 3

The 'bundle of rights' in real property includes all of the following EXCEPT:

Accepted Answer

The bundle includes possession, control, enjoyment, exclusion and disposition - never a guaranteed profit.

Question 4

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 5

A deed that conveys only whatever interest the grantor has, with no warranties, is a:

Accepted Answer

A quitclaim deed conveys the grantor's interest, if any, with no warranties - often used to clear clouds on title.

Question 6

Which is required for a deed to be valid?

Accepted Answer

A valid deed needs a writing, competent grantor who signs, identifiable grantee, consideration, granting and habendum clauses, legal description, delivery and acceptance. The grantee does not sign; recording is not required for validity.

Question 7

Recording a deed in the county records primarily serves to:

Accepted Answer

Recording provides public (constructive) notice, protecting the owner's interest against later claims.

Question 8

A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

Accepted Answer

Taxes = $6,000 / 12 = $500; insurance = $1,200 / 12 = $100. PITI = $1,193.54 + $500 + $100 = $1,793.54.

Question 9

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 10

Which statement about a Massachusetts licensee's disclosure duty is correct?

Accepted Answer

The Mandatory Disclosure form and 254 CMR 3.00(13) state that every licensee, regardless of relationship, must present property honestly and disclose known material defects.

Question 11

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 12

A neighbor's new garage extends two feet over the property line. This is an:

Accepted Answer

An encroachment is an improvement that intrudes onto another's land; a survey establishes the boundary.

Question 13

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

Question 14

A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

Accepted Answer

In a gross lease the tenant pays flat rent and the landlord covers taxes, insurance and maintenance; in a net lease the tenant pays some or all of those expenses.

Question 15

A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

Accepted Answer

Fair housing law requires reasonable accommodations for persons with disabilities, including service animals despite no-pet rules.

Question 16

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Question 17

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 18

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 19

A Barnstable County deed is subject to a different base deed excise rate under c.64D. What is that base rate?

Accepted Answer

Chapter 64D §1 sets a Barnstable County base rate of $1.50 per $500 or fractional part, compared with the statewide base of $2.00 per $500.

Question 20

A buyer directly asks the listing agent, "Has anyone died violently in this house?" A homicide occurred there. Which response is consistent with Massachusetts law?

Accepted Answer

Section 114 removes the duty to disclose psychologically impacted facts but expressly does not authorize misrepresentation or false statements.

Question 21

A septic system was inspected 30 months before closing and has been pumped every year with records. Is a new Title 5 inspection required?

Accepted Answer

With annual pumping and records, an inspection remains valid for three years; 30 months is within that window. Without pumping records it would have expired at 24 months.

Question 22

Which transfer is exempt from the Title 5 inspection requirement?

Accepted Answer

MassDEP exempts transfers between spouses, parents and children, and full siblings, among others. Cousins and unrelated buyers are not exempt.

Question 23

A home sells for $612,300. Using a combined deed excise rate of $2.28 per $500 or fractional part, what is the excise?

Accepted Answer

The tax is charged per $500 or fractional part. $612,300 / $500 = 1,224.6, rounded up to 1,225 units. 1,225 x $2.28 = $2,793.00. $2,792.09 skips the rounding; $2,790.72 rounds down to 1,224 units.

Question 24

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 25

According to the Board, a cooperative interest is within its jurisdiction as an interest in real estate when

Accepted Answer

Board guidance says a co-op is an interest in real property if recorded in the purchaser's name; an unrecordable share interest falls outside the Board's jurisdiction.

Massachusetts real estate property practice test

1. In a mortgage, the borrower who pledges the property as security is the:

2. A homeowner's septic system fails a Title 5 inspection. Unless the Board of Health or MassDEP sets another schedule, the system must be upgraded within

3. The 'bundle of rights' in real property includes all of the following EXCEPT:

4. Which action may a life tenant take WITHOUT the remainderman's consent?

5. A deed that conveys only whatever interest the grantor has, with no warranties, is a:

6. Which is required for a deed to be valid?

7. Recording a deed in the county records primarily serves to:

8. A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

9. Private restrictions placed in a deed by a developer are called:

10. Which statement about a Massachusetts licensee's disclosure duty is correct?

11. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

12. A neighbor's new garage extends two feet over the property line. This is an:

13. The government's power to take private property for public use with just compensation is:

14. A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

15. A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

16. A buyer of a unit in a cooperative receives:

17. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

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

19. A Barnstable County deed is subject to a different base deed excise rate under c.64D. What is that base rate?

20. A buyer directly asks the listing agent, "Has anyone died violently in this house?" A homicide occurred there. Which response is consistent with Massachusetts law?

21. A septic system was inspected 30 months before closing and has been pumped every year with records. Is a new Title 5 inspection required?

22. Which transfer is exempt from the Title 5 inspection requirement?

23. A home sells for $612,300. Using a combined deed excise rate of $2.28 per $500 or fractional part, what is the excise?

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

25. According to the Board, a cooperative interest is within its jurisdiction as an interest in real estate when

Sources