MA Real Estate Exam Study Guide Exam Questions and Answers, Exams of Nursing

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Answers (Latest Update 2023) (400Qs-Verified Answers)

An estimation of a property's value, usually prepared by a professional who is licensed in this field. - Correct Answers ✅Appraisal The business of bringing people together in a real estate transaction. - Correct Answers ✅Brokerage The types of properties that include office spaces, shopping centers, stores, theaters, hotels, parking facilities, etc. - Correct Answers ✅Commerical The term for the construction of improvements upon the land. - Correct Answers ✅Development Insurance agents are required to obtain one of these on any property before issuing quotes for flood insurance. - Correct Answers ✅Elevation Certificate The pledging of real property and collateral for the repayment of a loan through a mortgage or deed of trust. - Correct Answers ✅Financing

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This agency can fine and withdraw its insurance from lenders that do not carry flood insurance on required mortgages. - Correct Answers ✅Federal Deposit Insurance Corporation This type of homeowner's insurance policy covers "rising water" problems such as a burst water main, overloaded drains, and melting snow. It is usually an optional add-on policy that becomes effective 30 days after purchase, unless the property is in a specific area and is collateral for a federal loan, in which case it is a mandatory policy and effective immediately. - Correct Answers ✅Flood Insurance This is the basic form of a homeowner's hazard insurance policy, and the default policy when a property has been empty for any length of time. It covers fire, lightning, hail, and other perils. - Correct Answers ✅HO This form of a homeowner's hazard insurance policy covers more than the basic form, but not as much as the special form. It is often available for second homes. - Correct Answers ✅HO This special form homeowner's hazard insurance policy offers the most coverage for the most reasonable price, and is the preferred policy on

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primary residences. It covers both real and personal property. - Correct Answers ✅HO This form of a hazard insurance policy is designed for condominiums and can be customized to comply with the condo association's bylaws. - Correct Answers ✅HO This renter's insurance policy is similar to the homeowner's insurance policy carried on primary residences, but doesn't include coverage on real property owned by someone else. - Correct Answers ✅HO Additions to property that increase its value or enhance its appearance. It can include buildings, fixtures, and landscaping. - Correct Answers ✅Improvements This insurance policy is the reverse of a renter's policy and covers only the real property. - Correct Answers ✅Landlord's policy

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A broad term for a person or company hired to maintain and manage a property on behalf of its owners, and who are to maximize the owner's returns. - Correct Answers ✅Property Management These people provide clients with competent, independent real estate advice without representing them as an agent. - Correct Answers ✅Real Estate Counsellors Properties in this area are required by federal law to have special insurance as part of any federally-backed mortgages. - Correct Answers ✅Special Flood Hazard Area The process of splitting a single property into smaller parcels. - Correct Answers ✅Subdivision The type of properties that include single and multi-family homes. - Correct Answers ✅Residential

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The types of properties that include warehouses, factories, power plants, and other manufacturing areas, even if the property has a storefront attached. - Correct Answers ✅Industrial The types of properties that include farmlands, timberlands, orchards, and ranches. - Correct Answers ✅Agricultural The types of properties that include churches, schools, cemeteries, and government-held lands. - Correct Answers ✅Special Purpose The setting where real property is bought and sold and prices are established. - Correct Answers ✅Real Estate Market A real estate market defined by property type and/or geographic location. - Correct Answers ✅Submarket A professional real estate organization that requires members to uphold a specific set of ethics and pay dues. In turn, the members can call themselves Realtors. - Correct Answers ✅National Association of Realtors

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The situation where demand for real property is greater than the supply, which causes sale prices to rise and builders to become more motivated to build. - Correct Answers ✅Seller's Market This characteristic of real property is important because a parcel's value is impacted by surrounding land uses. - Correct Answers ✅Location This factor determines the quantity and type of housing in demand in a particular area. It evaluates family sizes, ratio of adults to children, number of senior citizens, family incomes, lifestyles, etc. - Correct Answers ✅Demographics This term refers to both a physical article and the rights and interests involved in its use of ownership. - Correct Answers ✅Property A "bundle" of legal rights associated with owned property. These rights include possession, control of the property (within legal bounds), enjoyment of the property, exclusion, and disposition. - Correct Answers ✅Rights of Ownership

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Anything that is used with land for its benefits. Examples include subsurface, air, and water rights, as well as gardens and certain easements. - Correct Answers ✅Appurtenance The right to legally ban other people from entering your property without your consent. - Correct Answers ✅Exclusion These rights are for the use of space above a piece of real property. They can be transferred and subdivided. - Correct Answers ✅Air Rights These rights are for the use of anything found beneath a piece of real property, such as oil, coal, or gas. These rights can be transferred separately from the property itself, and include an implied easement that allows the owner access to the property so that they can exercise their rights. - Correct Answers ✅Subsurface Rights The earth's surface down to the center of the earth and upwards to infinity ("heaven to hell"), including all things attached by nature. Also known by the term real estate. - Correct Answers ✅Land

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The rights granted to owners of land that are adjacent to large, navigable, non-flowing lakes and oceans. These rights state the owner may make use of the water for legal purposes, but they only own the land down to the average high water mark. - Correct Answers ✅Littoral Rights Another name for subsurface water. - Correct Answers ✅Percolating Water A law used in states where water is scarce. This law limits homeowners' use of any domestic water found on or abutting their property. - Correct Answers ✅Prior Appropriation The rights granted to owners of land that are adjacent to flowing waters and/or land that has subsurface water. These rights state the owner can use the water in any legal way as long as it doesn't interfere with the same rights of owners downstream. - Correct Answers ✅Riparian Rights The name for the level at which subsurface water is located below ground. - Correct Answers ✅Water Table

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A term that encompasses the earth's surface, all things attached to that property by nature, all permanently attached improvements made by man, and the interests, rights, and benefits inherit in the ownership of the above named items. - Correct Answers ✅Real Property A characteristic that states no two parcels of real property are exactly alike, and therefore, one cannot be legally swapped for another. - Correct Answers ✅Nonhomogeneity A 36 square mile area of a rectangular survey that is bounded by base and range lines. Each is 6 miles wide by 6 miles long. Each one contains 36 1-acre sections. - Correct Answers ✅Township A formal or informal definition of a specific property that unquestionably describes one property and cannot be applied to any other property. - Correct Answers ✅Legal Description A description of any property in one of the following three methods: metes & bounds, rectangular survey, or plat plan. - Correct Answers ✅Formal Legal Description

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A measure of distance and direction used in some formal legal descriptions. - Correct Answers ✅Metes A name for the landmarks and monuments used in some formal legal descriptions. - Correct Answers ✅Bounds The oldest and most difficult method of formal legal descriptions. This system is used in Massachusetts. - Correct Answers ✅Metes and Bounds A permanent reference point, such as a street intersection, used in a metes and bounds legal description. - Correct Answers ✅Benchmark A method of formal legal descriptions that involves the use of principal meridians and base lines that can all be located by a specific longitude or latitude. It was established by Congress in 1785. - Correct Answers ✅Rectangular Survey

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The physical location at which a metes and bounds legal description starts. To obtain closure, the description must also end at this location. - Correct Answers ✅Point of Beginning The process of turning real property into personal property, such as by cutting a tree down. - Correct Answers ✅Severance An article of personal property attached to a rental space by a tenet for use in conducting a business. - Correct Answers ✅Trade fixture The process of personal property or accretion of alluvial deposits becoming additions to real property. Ex: installing a new HVAC system, planting a tree, or sand washed up naturally on the edge of a steam. Also referred to as annexation. - Correct Answers ✅Accession An item that was once personal property but is now affixed to the real estate in such as a way as to become real property. Courts use the following tests if an item is being disputed: M - Method of attachment (i.e. permanence) A - Agreement between the parties

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R - Relationship of the parties (landlord/tenet, buyer/seller, etc.) I - Intention of the parties at the time the article was attached A - Adaptation of the article (i.e. custom-made for the house) - Correct Answers ✅Fixture A point, line, or surface from which elevation is measured. - Correct Answers ✅Datum Possessions such as money, furniture, stocks and bonds, trade fixtures, and growing crops that are easily moved from one property to another. Also known as chattel. - Correct Answers ✅Personal Property The process by which ownership of a property reverts or transfers to the state or county of location when the property's owner dies intestate and no heirs can be identified. - Correct Answers ✅Escheat Properties that are held for an indefinite time, or that exist for a lifetime or more. - Correct Answers ✅Freehold Estates

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A group of rights that supersede a property owner's rights. These rights include police power, eminent domain, taxation, and escheat (PETE). - Correct Answers ✅Governmental Powers The right of the government to acquire private land for public use through a process called condemnation. To occur, a court must declare the proposed land use to be beneficial to the public, and fair compensation must be paid to the owner. - Correct Answers ✅Eminent Domain Growing crops or flowers that are produced annually on a property and are referred to as fructus industriales, meaning "fruits of industry." - Correct Answers ✅Emblements A tract of land that is owned and occupied as the family home. - Correct Answers ✅Homestead A type of freehold estate in which the holder of the property is entitled to all rights of property ownership, and which passes to the holder's heirs upon their death. There are no restrictions on its use or its transfer. - Correct Answers ✅Fee Simple Absolute

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Encumbrances that usually affect all of a debtor's non-exempt property, both real and personal. Examples include judgement liens, debts, federal taxes, etc. - Correct Answers ✅General Liens Encroachments, licenses, restrictions, and easements that affect only the physical condition and use of a property. - Correct Answers ✅Nonmoney Encumbrances Term that describes when a portion of a building, fence, driveway, or other item extends past its owner's property and onto the land of a neighbor or into an alley or street. - Correct Answers ✅Encroachment Something given by a grantee in exchange for property. It can be a specific dollar amount, personal property, or even "love and affection". - Correct Answers ✅Consideration These deeds contain no real warranty against unnamed encumbrances, and only imply that the grantor has the right to convey the property. *This type

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of deed is not used in Massachusetts.* - Correct Answers ✅Bargain and Sale Deeds The accumulation of soil, rock, and other materials on the edge of a property that are deposited by the movement of water. - Correct Answers ✅Alluvion The gradual, permanent withdrawal of water from the shore line, which uncovers more land and therefore increases the size of a specific property. - Correct Answers ✅Reliction A term used to describe one that has died without a will. - Correct Answers ✅Intestate The gradual wearing away of land through natural forces. - Correct Answers ✅Erosion Occurs when a transfer of title is done without an owner's consent by operations of law (i.e. escheat, eminent domain, or adverse possession), court order, or natural forces. - Correct Answers ✅Involuntary Alienation

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This process divides co-tenets interests in real property when the parties cannot all agree to voluntarily terminate the co-ownership. - Correct Answers ✅Partition Suit Type of ownership where property is owned by a single person or company. - Correct Answers ✅Severalty Person who makes a will. - Correct Answers ✅Testator A gift of real property delivered through a will. - Correct Answers ✅Devise A gift of personal property delivered through a will. - Correct Answers ✅Bequest The recipient of personal property delivered through a will. - Correct Answers ✅Legatee A will that is handwritten. - Correct Answers ✅Holographic Will

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A group of people responsible for the management of a corporation. - Correct Answers ✅Board of Directors A federal index of consumers that have requested telemarketers not be allowed to call them by telephone. - Correct Answers ✅National Do Not Call Registry An illegal practice that occurs when brokers conspire to set prices for the services they perform, rather than letting competition in the open market establish pricing naturally. - Correct Answers ✅Price Fixing A voluntary agreement between legally competent parties to perform (or refrain from performing) a legal act. - Correct Answers ✅Contract Substitution of a new contract with an old one with the intent of extinguishing the old contract. It can occur between the same parties or a new one. - Correct Answers ✅Novation A violation of an agreement's terms without legal consent of both parties. - Correct Answers ✅Breach of Contract

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A shorter version of a sales agreement, which upon the seller's acceptance, will be given to an attorney to create a more formal agreement. Also known as an "offer to purchase". - Correct Answers ✅Binder Conditions that must be met before a contract is binding. The most common conditions are the buyer's ability to obtain suitable financing, a satisfactory property inspection, and the ability to obtain adequate insurance on the property. - Correct Answers ✅Contingencies An organization of member brokers that agree to share information about their listings to procure a ready, willing, and able buyer more quickly. Members also agree to split commissions between the listing and selling brokers upon sale of the property. - Correct Answers ✅Multiple Listing Service Items that excuse a landlord for any negligence in maintaining a leased property. These items are illegal in Massachusetts. - Correct Answers ✅Exculpatory Clauses

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A law that states tenets can remain in a property that has been foreclosed upon for the remainder of their lease or 90 days, whichever is longer. - Correct Answers ✅Foreclosure Act of 2009 Occurs when a tenet terminates their lease because a landlord's neglect has made the property uninhabitable. In order to be enforceable, the tenet must vacate the premises in order to prove uninhabitability. - Correct Answers ✅Constructive Eviction A law that states any buildings that provide public goods or services must be free of architectural barriers that would impede access to disabled persons. - Correct Answers ✅Americans with Disabilities Act Forces outside of a property that affect its value. These forces can be physical, political, economic, or social in nature. - Correct Answers ✅Externalities The worth of an asset after it has been depreciated. - Correct Answers ✅Salvage Value

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The process of merging adjacent parcels into a single, larger parcel. - Correct Answers ✅Assemblage This results when depreciation of property is the result of outdated function or poor design. If easily remedied, then it is considered curable. If design constraints prevent remedy, then it is incurable. Ex: not enough bathrooms, lack of a laundry area, inadequate electrical system, etc. - Correct Answers ✅Functional Obsolescence Any condition that negatively affects the value of an improvement or personal property. There are three classes: physical deterioration, functional obsolescence, and external (economic) obsolescence. - Correct Answers ✅Depreciation A financial indicator upon which the interest rate of a mortgage loan or note is based. - Correct Answers ✅Index Fixed objects that are used to establish real estate boundaries, typically in a metes and bounds formal legal description. They may be natural (trees, lakes, etc.) or artificial (fences, posts, etc.). - Correct Answers ✅Monuments

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Taxes that are based upon the value of the specific property being taxed. - Correct Answers ✅Ad Valorem Taxes A property owner's right to prevent a foreclosure or tax sale on their property by bringing the delinquent balances current, including any interest and fees. - Correct Answers ✅Equitable Right of Redemption A period of time after a tax sale in which the defaulted owner may reclaim the property by paying the purchaser of the property the full amount paid, along with any interest and fees. In Massachusetts, this time period is six months from the date of sale. - Correct Answers ✅Statutory Right of Redemption A type of property tax applied to properties within a limited and determinable area, to offset the cost of providing those same properties with an advantage or betterment. Ex: taxing a neighborhood for sidewalk improvements done in their area. Also known as an improvement tax. - Correct Answers ✅Special Assessments

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If the sale property is a condominium, this document states the amount the seller owes in condominium fees and is used to establish if the unit is free of association fee liens. In Massachusetts, this document is required at the time of closing. - Correct Answers ✅6D Certificate An inspection of private, on-site sewage disposal systems, often required in title transfers. Correction of a defective septic system may be required prior to a property being eligible for some mortgages. - Correct Answers ✅Title 5 A listing agent is considered to have performed this act if they have invested neither time nor money to market a property. - Correct Answers ✅Abandonment Before a title transfer can become effective, the deed must be delivered by the grantor, and the grantee must perform this act either actually or by implication. - Correct Answers ✅Acceptance A condensed history of a property's title, including the original grant and any subsequent conveyances and encumbrances affecting the property and certification by the preparer that the history is complete and accurate. - Correct Answers ✅Abstract of Title

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The loss of land to another person that has taken possession and used it without the owner's permission for an extended period of time as defined by state law (20 years in MA). This is a form of involuntary alienation. - Correct Answers ✅Adverse Possession A transfer of title ordered by a court to transfer property to a buyer as promised in a previous contract. It may be done to satisfy a debt. - Correct Answers ✅Special Performance Suit A legal process in which a court determines who will inherit a decedent's property and what the estate's assets are. - Correct Answers ✅Probate A set of laws that determine inheritance for a person that dies intestate. - Correct Answers ✅Statute of Descent and Distribution A type of deed that implies that the grantor has the right to convey the property and that the grantor has not encumbered the property except as noted in the deed document. This form is not in use in Massachusetts. - Correct Answers ✅Grant Deed

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A type of deed that provides the least protection to the grantee and may only convey a grantor's interests (not property). It is frequently used to resolve a cloud on the title or correct misspellings of names. In Massachusetts, it is considered a special warranty deed due to the title search process that accompanies it. - Correct Answers ✅Quitclaim Deed A type of deed that only guarantees the property was not encumbered during the time the title was held by the grantor, except as otherwise noted. This deed can also be called a statutory warranty deed, and is often used by fiduciaries or for titles acquired at tax sales. - Correct Answers ✅Special Warranty Deed A person trusted to handle the money of another, including trustees, executors, and corporations. - Correct Answers ✅Fiduciary This type of deed proves the greatest protection to the grantee because it binds the grantor by the following warranties: covenant of seisin, covenant against encumbrances, covenant of quiet enjoyment, covenant of further assurance, and the covenant of warranty forever. - Correct Answers ✅General Warranty Deed

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This warranty states that the grantor is the owner of the property being conveyed and that they have the right to convey the title. It is included in a general warranty deed. - Correct Answers ✅Covenant of Seisin This warranty states that the grantor of a property guarantees the property is free from liens and encumbrances that are not specifically included in the deed. It is included in a general warranty deed. - Correct Answers ✅Covenant Against Encumbrances A grantor's guarantee that if the title to the property being conveyed ever fails, they will compensate the grantee. This warranty is included in a general warranty deed. - Correct Answers ✅Covenant of Warranty Forever A grantor's promise to obtain and deliver any instrument necessary to make a title good. This warranty is included in a general warranty deed. - Correct Answers ✅Covenant of Further Assurance