Massachusetts Real Estate License Practice Test

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Study for the Massachusetts Real Estate License Test. Prepare with multiple choice questions and explanations. Ace your exam with comprehensive practice!

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What is the primary function of a Municipal Lien Certificate?

To document the title of a property
To provide a warranty on property conditions
To show all outstanding taxes and assessments against a property
To transfer ownership when sold

The correct answer is: To show all outstanding taxes and assessments against a property

The primary function of a Municipal Lien Certificate is to show all outstanding taxes and assessments against a property. This certificate is typically issued by a municipality and provides specific details about any liens or financial obligations related to the property, including unpaid property taxes, water and sewer charges, special assessments, and other municipal charges. This information is crucial for prospective buyers or lenders, as it ensures that they are fully informed about any debts tied to the property before making a transaction. By understanding these obligations, buyers can avoid unexpected financial responsibilities after a purchase. The other choices are not the primary function of the Municipal Lien Certificate; for example, while documenting the title of a property or providing warranties on property conditions are important aspects of real estate transactions, they fall under different processes and documentation. Transferring ownership is also a separate matter that involves deeds and title transfers, rather than liens or municipal obligations.