MRES Massachusetts Real Estate Salesperson Exam - Set 3 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: In a typical home sale, the buyer promises to pay the price and the seller promises to deliver the deed, so each party exchanges a promise for a promise. What kind of contract is this?

A unilateral contract

A bilateral contract

A void contract

An implied contract

Question 2: A property owner posts a public reward, promising to pay anyone who finds and returns a lost survey marker. Acceptance happens only when someone actually performs the act. What kind of contract is this?

A bilateral contract

A voidable contract

An executed contract

A unilateral contract

Question 3: An instructor lists what every enforceable contract must contain: an offer and acceptance, consideration, legally competent parties, and a lawful objective. These items are collectively known as what?

The essential elements of a contract

The covenants of a deed

The fiduciary duties of an agent

The four unities of title

Question 4: An instructor describes a contract that is valid and enforceable until a protected party chooses to cancel it. Which term names this kind of agreement?

Void

Executed

Voidable

Express

Question 5: A seventeen-year-old signs a contract to buy land. Because of the buyer's age, the law lets the minor cancel while the adult seller stays bound. The contract is best described as what?

Voidable by the minor

Void from the start

Fully enforceable against both

An implied contract

Question 6: Two neighbors make an oral agreement to sell a parcel of land, and neither signs anything. One later refuses to proceed, and a court will not enforce the sale. The agreement is best described as what?

Void from the beginning

Fully enforceable

A voidable contract

Unenforceable for lack of a writing

Question 7: A law requires that contracts for the sale of land be in writing and signed by the party to be charged in order to be enforced in court. Which legal doctrine imposes this requirement?

The parol evidence rule

The doctrine of laches

The Statute of Frauds

The doctrine of merger

Question 8: A seller responds to a buyer's offer by changing the price and the closing date and sending it back. In contract law, what is the legal effect of the seller's response on the buyer's original offer?

It accepts the original offer

It rejects and replaces the offer

It has no legal effect

It forms a binding option

Question 9: A buyer makes an offer, and before the seller responds, the buyer changes his mind and withdraws it. The seller had not yet accepted. What is the buyer's withdrawal of the offer called?

Revocation

Rescission

Novation

Acceptance

Question 10: For a fee, a seller gives a prospective buyer the exclusive right to purchase a property at a set price within sixty days, but the buyer is not obligated to buy. Which arrangement is this?

A net listing

A right of first refusal

An installment contract

An option contract

Question 11: When a buyer signs an offer on a home, the buyer typically includes a sum of money to show good faith and serious intent to proceed. What is this money commonly called?

A commission

A point

Earnest money

A betterment

Question 12: A seller refuses to convey a unique property after signing a binding agreement, and the buyer asks a court to compel the actual transfer rather than just award money. Which remedy is the buyer seeking?

Specific performance

Liquidated damages

Rescission

A novation

Question 13: A purchase agreement states that if the buyer defaults, the seller may keep the deposit as the agreed measure of damages. What is this pre-agreed amount called?

Specific performance

A commission

Consideration

Liquidated damages

Question 14: After discovering the seller committed fraud, a buyer asks a court to cancel the contract and return both parties to the positions they held before signing. Which remedy is the buyer seeking?

Specific performance

Rescission

Liquidated damages

Assignment

Question 15: A purchase contract states that every deadline must be met exactly, with no grace period, and that missing a date is a breach. Which contract phrase produces this strict effect?

Subject to financing

As is, where is

Time is of the essence

Without recourse

Question 16: In Massachusetts a buyer signs an Offer to Purchase stating all material terms and showing the parties intend to be bound, though a later purchase and sale agreement is planned. What is the offer's status?

It can itself be a binding contract

Not binding until the later agreement

It is automatically void

It is only a nonbinding letter

Question 17: A Massachusetts deal is typically documented in two steps: first a shorter document a licensee may fill in, then a longer one usually finalized with attorneys. The two documents are which?

A deed and a mortgage

A listing and a buyer agreement

A note and a title policy

An Offer to Purchase and a P&S

Question 18: A buyer's purchase contract lets the buyer cancel and recover the deposit if a written loan commitment is not obtained by a stated date. Which type of contract provision is this?

A liquidated damages clause

An option

A financing contingency

A subordination clause

Question 19: A purchase agreement allows the buyer to hire a professional to examine the home's condition and to renegotiate or withdraw based on the findings. Which type of provision is this?

A financing contingency

A home inspection contingency

A liquidated damages clause

An alienation clause

Question 20: Massachusetts generally gives an electronic signature on a real estate contract the same legal effect as a handwritten one when the parties agreed to transact electronically. What does this mean for the signature?

It is generally valid and enforceable

It is never legally effective

It must always be notarized

It voids the contract

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