Real Estate Licensing Massachusetts-Real-Estate-Salesperson Exam Dumps

The cost approach to value is based on the principle of substitution, which states that a buyer will not pay more for a property than the cost to build a comparable one. In this method, the appraiser estimates the current cost of constructing the improvements using either the replacement cost (cost to build a similar building with modern materials and methods) or the reproduction cost (exact duplicate of the original).

The appraiser then subtracts depreciation (physical deterioration, functional obsolescence, or economic obsolescence) and adds the land value (determined separately). This approach is most often used for special-purpose properties (schools, churches, government buildings) where comparable sales are limited.

The other options are incorrect:

Assessed value (A) is for taxation, not appraisal.

Price per square foot (C) is a sales comparison method.

Location/financing (D) are factors but not a direct step in the cost approach.

Carbon monoxide (CO) inspections are required in Massachusetts for properties that use fossil fuels for heating or other purposes (e.g., natural gas, oil). This is a part of the state's regulations to protect tenants and homeowners from dangerous levels of carbon monoxide exposure.

The inspection is typically done at the same time as the smoke detector inspection, and there is no additional fee if both inspections are conducted at once. However, the inspection must be completed by the local fire department, not a building inspector. This is because the fire department is authorized to ensure that carbon monoxide detectors are in place and functioning properly.

The carbon monoxide inspection is indeed a prerequisite for selling residential property that burns fossil fuel, but it does not need to be conducted by a building inspector.

Thus, the incorrect statement is that the inspection must be done by a building inspector.

In Massachusetts, tenancies at will are legally enforceable and governed by M.G.L. c. 186, 12. This type of tenancy exists without a fixed lease term and continues until terminated by proper notice (30 days or one full rental period, whichever is longer).

Other options are incorrect:

Security deposits (M.G.L. c. 186, 15B) accrue interest from the date received, not after one year.

Leases do not terminate when property is sold; the new owner assumes the landlord's obligations under the lease.

Death of the landlord does not terminate a lease; the landlord's estate or heirs become the landlord under Massachusetts law.

Therefore, the correct statement is that tenancies at will are enforceable under the law.

In a net lease, the tenant (lessee) is responsible not only for the base rent but also for additional property expenses such as real estate taxes, insurance, maintenance, and sometimes repairs. This is common in commercial leasing, particularly for office buildings and retail space.

A gross lease (B) means the landlord pays all expenses, while the tenant pays only rent. A percentage lease (A) bases rent partly on tenant sales (common in retail malls). A graduated lease (C) allows rent increases at set intervals.

Because the question describes a tenant paying rent plus taxes, insurance, and operating expenses, this is a net lease.

A prescriptive easement is established through open, notorious, continuous, and adverse use of another's land for a statutory period (in Massachusetts, typically 20 years).

To legally recognize and establish the easement, the claimant must usually bring a quiet title action in court. This court proceeding clarifies ownership rights and confirms the existence of the easement.

A (deed): not applicable since prescriptive easements arise without written agreements.

C (abstract): summarizes recorded documents but would not establish prescriptive rights.

D (title policy): insures title, does not prove an easement.

Thus, the correct answer is B: quiet title action.