MA Real Estate Exam Study Guide
Appraisal ANS: An estimation of a property's value, usually prepared by a professional who is licensed in
this field.
Brokerage ANS: The business of bringing people together in a real estate transaction.
Commerical ANS: The types of properties that include office spaces, shopping centers, stores, theaters,
hotels, parking facilities, etc.
Development ANS: The term for the construction of improvements upon the land.
Elevation Certificate ANS: Insurance agents are required to obtain one of these on any property before
issuing quotes for flood insurance.
Financing ANS: The pledging of real property and collateral for the repayment of a loan through a
mortgage or deed of trust.
Federal Deposit Insurance Corporation ANS: This agency can fine and withdraw its insurance from
lenders that do not carry flood insurance on required mortgages.
Flood Insurance ANS: 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.
HO1 ANS: 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.
,HO2 ANS: 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.
HO3 ANS: This special form homeowner's hazard insurance policy offers the most coverage for the most
reasonable price, and is the preferred policy on primary residences. It covers both real and personal
property.
HO6 ANS: This form of a hazard insurance policy is designed for condominiums and can be customized
to comply with the condo association's bylaws.
HO4 ANS: 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.
Improvements ANS: Additions to property that increase its value or enhance its appearance. It can
include buildings, fixtures, and landscaping.
Landlord's policy ANS: This insurance policy is the reverse of a renter's policy and covers only the real
property.
Property Management ANS: 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.
Real Estate Counsellors ANS: These people provide clients with competent, independent real estate
advice without representing them as an agent.
Special Flood Hazard Area ANS: Properties in this area are required by federal law to have special
insurance as part of any federally-backed mortgages.
Subdivision ANS: The process of splitting a single property into smaller parcels.
,Residential ANS: The type of properties that include single and multi-family homes.
Industrial ANS: The types of properties that include warehouses, factories, power plants, and other
manufacturing areas, even if the property has a storefront attached.
Agricultural ANS: The types of properties that include farmlands, timberlands, orchards, and ranches.
Special Purpose ANS: The types of properties that include churches, schools, cemeteries, and
government-held lands.
Real Estate Market ANS: The setting where real property is bought and sold and prices are established.
Submarket ANS: A real estate market defined by property type and/or geographic location.
National Association of Realtors ANS: 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.
Seller's Market ANS: 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.
Location ANS: This characteristic of real property is important because a parcel's value is impacted by
surrounding land uses.
Demographics ANS: 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.
, Property ANS: This term refers to both a physical article and the rights and interests involved in its use
of ownership.
Rights of Ownership ANS: 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.
Appurtenance ANS: Anything that is used with land for its benefits. Examples include subsurface, air,
and water rights, as well as gardens and certain easements.
Exclusion ANS: The right to legally ban other people from entering your property without your consent.
Air Rights ANS: These rights are for the use of space above a piece of real property. They can be
transferred and subdivided.
Subsurface Rights ANS: 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.
Land ANS: 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.
Littoral Rights ANS: 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.
Percolating Water ANS: Another name for subsurface water.
Prior Appropriation ANS: A law used in states where water is scarce. This law limits homeowners' use of
any domestic water found on or abutting their property.
Appraisal ANS: An estimation of a property's value, usually prepared by a professional who is licensed in
this field.
Brokerage ANS: The business of bringing people together in a real estate transaction.
Commerical ANS: The types of properties that include office spaces, shopping centers, stores, theaters,
hotels, parking facilities, etc.
Development ANS: The term for the construction of improvements upon the land.
Elevation Certificate ANS: Insurance agents are required to obtain one of these on any property before
issuing quotes for flood insurance.
Financing ANS: The pledging of real property and collateral for the repayment of a loan through a
mortgage or deed of trust.
Federal Deposit Insurance Corporation ANS: This agency can fine and withdraw its insurance from
lenders that do not carry flood insurance on required mortgages.
Flood Insurance ANS: 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.
HO1 ANS: 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.
,HO2 ANS: 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.
HO3 ANS: This special form homeowner's hazard insurance policy offers the most coverage for the most
reasonable price, and is the preferred policy on primary residences. It covers both real and personal
property.
HO6 ANS: This form of a hazard insurance policy is designed for condominiums and can be customized
to comply with the condo association's bylaws.
HO4 ANS: 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.
Improvements ANS: Additions to property that increase its value or enhance its appearance. It can
include buildings, fixtures, and landscaping.
Landlord's policy ANS: This insurance policy is the reverse of a renter's policy and covers only the real
property.
Property Management ANS: 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.
Real Estate Counsellors ANS: These people provide clients with competent, independent real estate
advice without representing them as an agent.
Special Flood Hazard Area ANS: Properties in this area are required by federal law to have special
insurance as part of any federally-backed mortgages.
Subdivision ANS: The process of splitting a single property into smaller parcels.
,Residential ANS: The type of properties that include single and multi-family homes.
Industrial ANS: The types of properties that include warehouses, factories, power plants, and other
manufacturing areas, even if the property has a storefront attached.
Agricultural ANS: The types of properties that include farmlands, timberlands, orchards, and ranches.
Special Purpose ANS: The types of properties that include churches, schools, cemeteries, and
government-held lands.
Real Estate Market ANS: The setting where real property is bought and sold and prices are established.
Submarket ANS: A real estate market defined by property type and/or geographic location.
National Association of Realtors ANS: 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.
Seller's Market ANS: 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.
Location ANS: This characteristic of real property is important because a parcel's value is impacted by
surrounding land uses.
Demographics ANS: 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.
, Property ANS: This term refers to both a physical article and the rights and interests involved in its use
of ownership.
Rights of Ownership ANS: 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.
Appurtenance ANS: Anything that is used with land for its benefits. Examples include subsurface, air,
and water rights, as well as gardens and certain easements.
Exclusion ANS: The right to legally ban other people from entering your property without your consent.
Air Rights ANS: These rights are for the use of space above a piece of real property. They can be
transferred and subdivided.
Subsurface Rights ANS: 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.
Land ANS: 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.
Littoral Rights ANS: 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.
Percolating Water ANS: Another name for subsurface water.
Prior Appropriation ANS: A law used in states where water is scarce. This law limits homeowners' use of
any domestic water found on or abutting their property.
