Complete package for exam prep for
MA Real Estate questions & answers
What is the main purpose of a real estate license
☑️☑️ To legally allow an individual to represent clients in property transactions
What is a brokerage in real estate
☑️☑️ A firm that employs licensed agents to facilitate buying and selling of property
What is the difference between a real estate agent and a broker
☑️☑️ A broker can operate independently while an agent works under a broker
What does fiduciary duty mean in real estate
☑️☑️ The obligation to act in the best interest of the client
What is dual agency
☑️☑️ When one agent represents both buyer and seller in the same transaction
What is a listing agreement
☑️☑️ A contract between a property owner and a broker to market and sell the property
What is an exclusive right-to-sell listing
☑️☑️ A listing where the broker earns commission regardless of who finds the buyer
What is fair market value
☑️☑️ The price a property would sell for under normal conditions
What is a comparative market analysis
☑️☑️ An estimate of a property's value based on similar recent sales
What is earnest money
☑️☑️ A deposit showing a buyer’s serious intent to purchase
What is escrow
☑️☑️ A neutral third-party holding funds or documents until conditions are met
What is a deed
☑️☑️ A legal document transferring ownership of property
What is title
☑️☑️ The legal right to own and use a property
1
,What is a lien
☑️☑️ A legal claim against a property for unpaid debt
What is a mortgage
☑️☑️ A loan used to purchase real estate secured by the property itself
What is foreclosure
☑️☑️ The legal process where a lender takes possession due to unpaid mortgage
What is an appraisal
☑️☑️ A professional estimate of a property's value
What is zoning
☑️☑️ Government regulations controlling how land can be used
What is eminent domain
☑️☑️ The government’s right to take private property for public use with compensation
What is a lease
☑️☑️ A contract allowing use of property for a specified time in exchange for rent
What is a tenant at will
☑️☑️ A tenant who occupies property without a fixed lease term
What is depreciation
☑️☑️ The loss in property value over time due to wear or obsolescence
What is appreciation
☑️☑️ The increase in property value over time
What is a closing
☑️☑️ The final step where ownership is transferred and documents are signed
What is a contingency
☑️☑️ A condition that must be met for a contract to be valid
What is a purchase agreement
☑️☑️ A legally binding contract between buyer and seller
What is a seller disclosure
☑️☑️ A document revealing known defects in a property
What is agency relationship
☑️☑️ A legal relationship where one party represents another
2
,What is a buyer’s agent
☑️☑️ An agent who represents the interests of the buyer
What is a seller’s agent
☑️☑️ An agent who represents the interests of the seller
What is blockbusting
☑️☑️ Illegal practice of inducing sales by creating fear of demographic changes
What is redlining
☑️☑️ Illegal denial of services based on neighborhood characteristics
What is steering
☑️☑️ Guiding buyers toward or away from certain areas based on discrimination
What is the Fair Housing Act
☑️☑️ A law that prohibits discrimination in housing
What is a property tax
☑️☑️ A tax based on the value of real estate
What is assessed value
☑️☑️ The value assigned to property for taxation
What is a cap rate
☑️☑️ A measure of return on investment for income property
What is gross rent multiplier
☑️☑️ A ratio used to estimate property value based on rental income
What is a net listing
☑️☑️ A listing where the seller sets a minimum and the broker keeps the excess
What is a quitclaim deed
☑️☑️ A deed transferring whatever interest the grantor has without guarantees
What is a warranty deed
☑️☑️ A deed guaranteeing clear title to the buyer
What is title insurance
☑️☑️ Protection against losses from title defects
What is a survey
☑️☑️ A measurement of land boundaries
3
, What is encroachment
☑️☑️ When a structure extends onto another property
What is easement
☑️☑️ The right to use another’s land for a specific purpose
What is a fixture
☑️☑️ Personal property that becomes part of real estate
What is personal property
☑️☑️ Movable items not attached to land
What is a balloon payment
☑️☑️ A large payment due at the end of a loan term
What is amortization
☑️☑️ Gradual repayment of a loan through installments
What is interest rate
☑️☑️ The cost of borrowing money expressed as a percentage
What is principal
☑️☑️ The original loan amount
What is prepayment penalty
☑️☑️ A fee for paying off a loan early
What is a short sale
☑️☑️ Sale of property for less than the mortgage owed
What is REO property
☑️☑️ Real estate owned by a lender after foreclosure
What is a property manager
☑️☑️ A person who oversees rental properties on behalf of owners
What is vacancy rate
☑️☑️ The percentage of unoccupied rental units
What is landlord
☑️☑️ The owner who rents property to tenants
What is security deposit
☑️☑️ Money held to cover damages or unpaid rent
4
MA Real Estate questions & answers
What is the main purpose of a real estate license
☑️☑️ To legally allow an individual to represent clients in property transactions
What is a brokerage in real estate
☑️☑️ A firm that employs licensed agents to facilitate buying and selling of property
What is the difference between a real estate agent and a broker
☑️☑️ A broker can operate independently while an agent works under a broker
What does fiduciary duty mean in real estate
☑️☑️ The obligation to act in the best interest of the client
What is dual agency
☑️☑️ When one agent represents both buyer and seller in the same transaction
What is a listing agreement
☑️☑️ A contract between a property owner and a broker to market and sell the property
What is an exclusive right-to-sell listing
☑️☑️ A listing where the broker earns commission regardless of who finds the buyer
What is fair market value
☑️☑️ The price a property would sell for under normal conditions
What is a comparative market analysis
☑️☑️ An estimate of a property's value based on similar recent sales
What is earnest money
☑️☑️ A deposit showing a buyer’s serious intent to purchase
What is escrow
☑️☑️ A neutral third-party holding funds or documents until conditions are met
What is a deed
☑️☑️ A legal document transferring ownership of property
What is title
☑️☑️ The legal right to own and use a property
1
,What is a lien
☑️☑️ A legal claim against a property for unpaid debt
What is a mortgage
☑️☑️ A loan used to purchase real estate secured by the property itself
What is foreclosure
☑️☑️ The legal process where a lender takes possession due to unpaid mortgage
What is an appraisal
☑️☑️ A professional estimate of a property's value
What is zoning
☑️☑️ Government regulations controlling how land can be used
What is eminent domain
☑️☑️ The government’s right to take private property for public use with compensation
What is a lease
☑️☑️ A contract allowing use of property for a specified time in exchange for rent
What is a tenant at will
☑️☑️ A tenant who occupies property without a fixed lease term
What is depreciation
☑️☑️ The loss in property value over time due to wear or obsolescence
What is appreciation
☑️☑️ The increase in property value over time
What is a closing
☑️☑️ The final step where ownership is transferred and documents are signed
What is a contingency
☑️☑️ A condition that must be met for a contract to be valid
What is a purchase agreement
☑️☑️ A legally binding contract between buyer and seller
What is a seller disclosure
☑️☑️ A document revealing known defects in a property
What is agency relationship
☑️☑️ A legal relationship where one party represents another
2
,What is a buyer’s agent
☑️☑️ An agent who represents the interests of the buyer
What is a seller’s agent
☑️☑️ An agent who represents the interests of the seller
What is blockbusting
☑️☑️ Illegal practice of inducing sales by creating fear of demographic changes
What is redlining
☑️☑️ Illegal denial of services based on neighborhood characteristics
What is steering
☑️☑️ Guiding buyers toward or away from certain areas based on discrimination
What is the Fair Housing Act
☑️☑️ A law that prohibits discrimination in housing
What is a property tax
☑️☑️ A tax based on the value of real estate
What is assessed value
☑️☑️ The value assigned to property for taxation
What is a cap rate
☑️☑️ A measure of return on investment for income property
What is gross rent multiplier
☑️☑️ A ratio used to estimate property value based on rental income
What is a net listing
☑️☑️ A listing where the seller sets a minimum and the broker keeps the excess
What is a quitclaim deed
☑️☑️ A deed transferring whatever interest the grantor has without guarantees
What is a warranty deed
☑️☑️ A deed guaranteeing clear title to the buyer
What is title insurance
☑️☑️ Protection against losses from title defects
What is a survey
☑️☑️ A measurement of land boundaries
3
, What is encroachment
☑️☑️ When a structure extends onto another property
What is easement
☑️☑️ The right to use another’s land for a specific purpose
What is a fixture
☑️☑️ Personal property that becomes part of real estate
What is personal property
☑️☑️ Movable items not attached to land
What is a balloon payment
☑️☑️ A large payment due at the end of a loan term
What is amortization
☑️☑️ Gradual repayment of a loan through installments
What is interest rate
☑️☑️ The cost of borrowing money expressed as a percentage
What is principal
☑️☑️ The original loan amount
What is prepayment penalty
☑️☑️ A fee for paying off a loan early
What is a short sale
☑️☑️ Sale of property for less than the mortgage owed
What is REO property
☑️☑️ Real estate owned by a lender after foreclosure
What is a property manager
☑️☑️ A person who oversees rental properties on behalf of owners
What is vacancy rate
☑️☑️ The percentage of unoccupied rental units
What is landlord
☑️☑️ The owner who rents property to tenants
What is security deposit
☑️☑️ Money held to cover damages or unpaid rent
4
