Massachusetts Real Estate Exam Questions With Correct Answers

harmed by them not following through Encroachment - Answer illegal intrusion or trespass into or over the property of another. such as a wall or fence Nuisance - Answer Interferes with quiet enjoyment and is an encroachment. Private nuisance= small area and can take court action Public Nuisance = large area and takes city action Rectangular Survey System - Answer system of rectangles to locate and specify the boundaries for land parcels. Baselines run EAST and WEST. Meridians run NORTH and SOUTH. this unit of land approx 24mi sq. is divided into areas 6 miles sq. called townships. Townships are divided into 36 sections. Primary Mortgage - Answer lenders who originate funds to borrowers. the lenders retain mortgage investments for themselves or sell them to investors Secondary Mortgage - Answer firms/agencies who buy mortgages from those lenders who originate them (FNMA-Fannie Mae). Net Listing - Answer illegal - get me $ and everything else is yours Open Listing - Answer listing with several brokers in which any of them can sell. a seller may sell home himself without paying a commission Exclusive Listing - Answer 1 broker can list and show the property. usually given for a period of time during which the seller reserves right to sell house himself without paying a commission. Exclusive Right to Sell - Answer a listing that gives the broker the right to collect a commission no matter who sells the property during the listing period Disclosing Agency - Answer first meet in person to discuss a specific property Financing Procedure - Answer After P&S= Mortgage Application Bank Approval steps: appraisal, ability to pay, credit check, p&s financing clause Mortgage Contingency Clause - Answer allows the buyer to secure financing, and if the buyer cannot do so, the agreement of sale terminates. Truth in Lending - Answer The name given to the federal statutes and regulations (Regulation Z) which are designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction. Air Rights - Answer The rights to use the air above the land. Subsurface Mineral Rights - Answer Rights beneath the actual surface of land, including rights to the minerals found there. Real Property - Answer land and anything attached to it corporeal- land and physical items affixed to it wall to wall carpeting Personal Property - Answer Portable Tangible - physical Intangible - rights /trademarks Fixture - Answer Personal property, which has been converted to real property by method of attachment, character and adaptation or contractual intent of the parties Bundle of Rights - Answer included in ownership of realty control/posession/enjoyment/disposition limitations: eminent domain police power taxation escheat Investment Calculations - Answer PART divided by WHOLE= rate Riparian Rights - Answer rights of an owner of land bordering on a flowing stream or river Littoral Land - Answer land abutting standing bodies of water. surface water of lakes and great ponds 10 acres or more are under control of the STATE unless fully contained within 1 owners property. ownership is usually to the shore Radon - Answer a colorless, odorless, radioactive gas. found in soil and gas can seep into house. Private Sewage Disposal - Answer adequate distance required between septic and well. life span 15-25 years. title5 requires inspection within 2 years before the sale of a home or title transfer or when a home is being worked on. Smoke/Carbon Dioxide Detection - Answer located on the ceiling at the base of each stairway and outside each sleeping area. fire chief must inspect An owner of a waterfront property owns to - Answer the mean low water line Interest Rate - Answer risk=profitability lower risk=lower interest amount figured by computing the total yearly interest based on the balance of the loan divided by payments per year Appraisal - Answer supported estimate of defined value from physical, economic, social and political influences affecting it. 4 elements of value - Answer utility, scarcity, demand, transfer-ability. why get appraisals? - Answer transfer of ownership financing/credit issues compensation in condemnation proceedings establishes a basis for taxes Condominium - Answer community living with absolute ownership and access to facilities. purchaser arranges his own fiancing, receives a deed to his unit when he takes title and makes mortgage/tax payments. owns from studs in Condo Fee - Answer monthly to cover insurance/repair/maintenance Condo Master Deed - Answer floorplans, description of each unit, name of trust/association personal property not insured under master deed. Fee Simple Absolute - Answer Absolute ownership. The greatest interest that one can have in real property. An estate that is without restriction, of indefinite duration, freely transferable and inheritable. Fee Upon Condition - Answer this is the conveyance by the grantor to be the grantee in fee simple on the condition , for example say the the property is ever used for the sale of liquor, the grantor of these heirs may enter and terminate the fee. this is an optional right and until it is exercised , the fee continues. this fee and fee simple determinable are the two categories which comprise a fee simple defeasible