Massachusetts Real Estate Exam
Questions and Answers
Real Estate Definition - ANSWER-is defined as land at, above, and below the earth's
surface, plus all things permanently attached to it, whether natural or artificial. Land
is defined as the the earth's surface, down to the center of the earth and upward to
infinity, including natural objects.
Used to transfer only real property is: - ANSWER-Deed
Personal property is transferred by a: - ANSWER-Bill of Sale
Elements of Personal Property - ANSWER-Also known as Chattels - personal
property is any property that is not real property. Personal property is considered
moveable.
Tangible Property Examples - ANSWER-Chairs, tables, etc
Intangible Property Examples - ANSWER-Money, trademarks, etc
Mobile homes on wheels - ANSWER-Are considered personal property
Fructus Naturales - ANSWER-Natural growing plants, perennial crops, and trees are
considered real property. Orchards/Vineyards
Fructus Industriales - ANSWER-Also known as Emblements - Cultivated annual
crops are considered personal property. The former owner or tenant is entitled to
harvest the fruits of his labor at harvest time.
Real Property Elements - ANSWER-Includes land and the improvements, rights and
benefits that transfer or go with the land, such as buildings, fences, trees, water
rights, surface, sub surface, air rights, mineral rights, and easements. These benefits
are known as Appurtenances. Mobile homes on permanent foundations, regarded as
real property.
Real Property Characteristics - ANSWER-7 basic characteristics of land that define
its nature and affect its use:
Economic: Scarcity, improvements, permanence of investment, area preference
(location, location, location)
Physical: Immobility, indestructibility, uniqueness
Bundle of Rights - ANSWER-The beneficial right to use, exclude others, lease,
encumber, transfer, and inherit.
Right of possession
Right to control within framework of law
Right to enjoy (legally)
Right of exclusion
, Right of disposition
Real property can become personal property and personal property can become real
property - ANSWER-Examples:
A dishwasher in the box is personal until it becomes installed when it becomes real.
This is known as Annexation.
A growing tree is real property, but when it is cut down for fire wood it becomes
personal. This is known as Severance.
Test of Fixture - ANSWER-Courts require that at least one of the following four tests
be met to determine an item is a fixture:
Intent: did owner intend to make it permanently part of the structure
Attachment: is it permanently attached by nails, bolts, pipes or can it easily be
removed without causing damage
Adaptability: is it custom built to fit a particular space of a custom match
Agreement: have the parties agreed on whether the item is real or personal property
in an offer to purchase
Trade Fixtures - ANSWER-attached and used in the ordinary course of business
considered personal property. By written agreement (lease) in advance the tenant
shall remove trade fixtures at the expiration of lease.
-or - ANSWER-give, convey, sell
-ee - ANSWER-Receive, purchase, acquire
There are three methods of describing real property - ANSWER-Lot, block, and tract
Metes and Bounds
Government (Rectangular) Survey
Lot, block, and tract - ANSWER-State and/or local subdivision law requires recording
of a subdivision map or plat map. This legal description uses the parcel's designation
on the recorded map as well as recording information. Example: Lot 12 Block 1 of
Pacific Heights recorded in the Middlesex Registry of Deeds Book 39 pages 888 to
901
Metes and Bounds - ANSWER-This is the oldest method of describing land. Metes
means to measure, and bounds means linear directions.
Government Rectangular Survey - ANSWER-Massachusetts does not use this
method. You just need to be aware of this method.
Estates in Real Property - ANSWER-An estate is the degree or nature of the
ownership interest a person has in real property. The words estates, interest, and
tenancies are interchangeable. They refer to amount and duration of an individual's
rights in a parcel of real estate. These estates are divided into two groups: Freehold
(ownership) and Non-freehold (possession)
Freehold Estates - ANSWER-Are considered real property with ownership interest
and are transferred using a deed
Questions and Answers
Real Estate Definition - ANSWER-is defined as land at, above, and below the earth's
surface, plus all things permanently attached to it, whether natural or artificial. Land
is defined as the the earth's surface, down to the center of the earth and upward to
infinity, including natural objects.
Used to transfer only real property is: - ANSWER-Deed
Personal property is transferred by a: - ANSWER-Bill of Sale
Elements of Personal Property - ANSWER-Also known as Chattels - personal
property is any property that is not real property. Personal property is considered
moveable.
Tangible Property Examples - ANSWER-Chairs, tables, etc
Intangible Property Examples - ANSWER-Money, trademarks, etc
Mobile homes on wheels - ANSWER-Are considered personal property
Fructus Naturales - ANSWER-Natural growing plants, perennial crops, and trees are
considered real property. Orchards/Vineyards
Fructus Industriales - ANSWER-Also known as Emblements - Cultivated annual
crops are considered personal property. The former owner or tenant is entitled to
harvest the fruits of his labor at harvest time.
Real Property Elements - ANSWER-Includes land and the improvements, rights and
benefits that transfer or go with the land, such as buildings, fences, trees, water
rights, surface, sub surface, air rights, mineral rights, and easements. These benefits
are known as Appurtenances. Mobile homes on permanent foundations, regarded as
real property.
Real Property Characteristics - ANSWER-7 basic characteristics of land that define
its nature and affect its use:
Economic: Scarcity, improvements, permanence of investment, area preference
(location, location, location)
Physical: Immobility, indestructibility, uniqueness
Bundle of Rights - ANSWER-The beneficial right to use, exclude others, lease,
encumber, transfer, and inherit.
Right of possession
Right to control within framework of law
Right to enjoy (legally)
Right of exclusion
, Right of disposition
Real property can become personal property and personal property can become real
property - ANSWER-Examples:
A dishwasher in the box is personal until it becomes installed when it becomes real.
This is known as Annexation.
A growing tree is real property, but when it is cut down for fire wood it becomes
personal. This is known as Severance.
Test of Fixture - ANSWER-Courts require that at least one of the following four tests
be met to determine an item is a fixture:
Intent: did owner intend to make it permanently part of the structure
Attachment: is it permanently attached by nails, bolts, pipes or can it easily be
removed without causing damage
Adaptability: is it custom built to fit a particular space of a custom match
Agreement: have the parties agreed on whether the item is real or personal property
in an offer to purchase
Trade Fixtures - ANSWER-attached and used in the ordinary course of business
considered personal property. By written agreement (lease) in advance the tenant
shall remove trade fixtures at the expiration of lease.
-or - ANSWER-give, convey, sell
-ee - ANSWER-Receive, purchase, acquire
There are three methods of describing real property - ANSWER-Lot, block, and tract
Metes and Bounds
Government (Rectangular) Survey
Lot, block, and tract - ANSWER-State and/or local subdivision law requires recording
of a subdivision map or plat map. This legal description uses the parcel's designation
on the recorded map as well as recording information. Example: Lot 12 Block 1 of
Pacific Heights recorded in the Middlesex Registry of Deeds Book 39 pages 888 to
901
Metes and Bounds - ANSWER-This is the oldest method of describing land. Metes
means to measure, and bounds means linear directions.
Government Rectangular Survey - ANSWER-Massachusetts does not use this
method. You just need to be aware of this method.
Estates in Real Property - ANSWER-An estate is the degree or nature of the
ownership interest a person has in real property. The words estates, interest, and
tenancies are interchangeable. They refer to amount and duration of an individual's
rights in a parcel of real estate. These estates are divided into two groups: Freehold
(ownership) and Non-freehold (possession)
Freehold Estates - ANSWER-Are considered real property with ownership interest
and are transferred using a deed
