Test 13: Transaction-Related Issues

1. In McCarthy v. Tobin, the Massachusetts Supreme Judicial Court held that an offer to purchase which was signed by both parties, but was “subject to a purchase and sale agreement satisfactory to Buyer and Seller,”

could NOT constitute a binding agreement without the purchase and sale agreement.

COULD constitute a binding agreement without the purchase and sale agreement.

could NOT constitute a binding agreement unless it was signed by the respective brokers.

was merely an unenforceable agreement to agree.

2. Property can be redeemed for how long after a tax sale?

One week

One month

Six months

One year

3. The tax rate for real property in Massachusetts

depends on where the property is located.

is 1.3%.

is 2.5%.

is 3%.

4. By how much may real property taxes increase each year?

1.0%

1.5%

2.0%

2.5%

5. The property taxes owed by a current property owner can be determined by a

municipal lien certificate issued by the Board.

municipal lien certificate issued by the Secretary of State.

municipal lien certificate issued by the town’s tax collector.

taxes-owed statement signed by the owner.

6. The tax charged on the sale of a home, called tax stamps, is typically paid by the

seller

buyer

seller and buyer evenly

real estate broker

7. A mortgage discharge document must be recorded within how many days of the final mortgage payment?

10 days

15 days

30 days

45 days

8. A lien recorded against a condominium unit for unpaid fees has priority over a previously recorded first mortgage. This is referred to as a(n)

super-lien.

accelerated lien.

priority lien

preference lien.

9. When a rental apartment building is converted to condominiums the tenants must be given proper notice and a

voucher equal to one month’s rent that can be applied toward rent elsewhere.

right to select the buyer of their unit.

letter of recommendation from the landlord.

right of first refusal to buy their unit.

10. The Massachusetts automatic homestead exemption protects equity in the amount of ___________ and the declared homestead exemption protects equity in the amount of ______________.

$125,000/$250,000

$125,000/$500,000

$250,000/$500,000

$500,000/$1,000,000

11. Under the Massachusetts Uniform Electronic Transactions Act, a Superior Court has held that an email signature block

can constitute a valid electronic signature to create a binding agreement.

is not sufficient to constitute a valid electronic signature.

can constitute a valid electronic signature if it is confirmed by a telephone call.

must be subsequently affirmed by a signed hard copy of the agreements.

12. When property is foreclosed upon and bought by the foreclosing party, it becomes known as

reverted property.

the amount of money left by the decedent.

real estate owned (REO) property.

none of the above.

13. Which of the following is exempt from property taxation in Massachusetts?

Property owned by the federal government

Property subject to a recorded declaration of homestead

Residential property owned by active military personnel

Residential property with a value of less than $50,000

14. Real property in Massachusetts is assessed at

25% of its market value.

50% of its market value.

75% of its market value.

100% of its market value.