MA Real Estate Exam Study Guide
Questions with Correct Answers
Property Management - ANSWER-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 - ANSWER-These people provide clients with competent,
independent real estate advice without representing them as an agent.
Special Flood Hazard Area - ANSWER-Properties in this area are required by
federal law to have special insurance as part of any federally-backed mortgages.
Subdivision - ANSWER-The process of splitting a single property into smaller
parcels.
Residential - ANSWER-The type of properties that include single and multi-family
homes.
Industrial - ANSWER-The types of properties that include warehouses, factories,
power plants, and other manufacturing areas, even if the property has a storefront
attached.
Agricultural - ANSWER-The types of properties that include farmlands, timberlands,
orchards, and ranches.
Special Purpose - ANSWER-The types of properties that include churches, schools,
cemeteries, and government-held lands.
Real Estate Market - ANSWER-The setting where real property is bought and sold
and prices are established.
Submarket - ANSWER-A real estate market defined by property type and/or
geographic location.
National Association of Realtors - ANSWER-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 - ANSWER-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 - ANSWER-This characteristic of real property is important because a
parcel's value is impacted by surrounding land uses.
Demographics - ANSWER-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 - ANSWER-This term refers to both a physical article and the rights and
interests involved in its use of ownership.
Rights of Ownership - ANSWER-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 - ANSWER-Anything that is used with land for its benefits. Examples
include subsurface, air, and water rights, as well as gardens and certain easements.
Exclusion - ANSWER-The right to legally ban other people from entering your
property without your consent.
Air Rights - ANSWER-These rights are for the use of space above a piece of real
property. They can be transferred and subdivided.
Subsurface Rights - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-Another name for subsurface water.
Prior Appropriation - ANSWER-A law used in states where water is scarce. This law
limits homeowners' use of any domestic water found on or abutting their property.
Riparian Rights - ANSWER-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.
Water Table - ANSWER-The name for the level at which subsurface water is located
below ground.
,Real Property - ANSWER-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.
Nonhomogeneity - ANSWER-A characteristic that states no two parcels of real
property are exactly alike, and therefore, one cannot be legally swapped for another.
Township - ANSWER-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.
Legal Description - ANSWER-A formal or informal definition of a specific property
that unquestionably describes one property and cannot be applied to any other
property.
Formal Legal Description - ANSWER-A description of any property in one of the
following three methods: metes & bounds, rectangular survey, or plat plan.
Metes - ANSWER-A measure of distance and direction used in some formal legal
descriptions.
Bounds - ANSWER-A name for the landmarks and monuments used in some formal
legal descriptions.
Metes and Bounds - ANSWER-The oldest and most difficult method of formal legal
descriptions. This system is used in Massachusetts.
Benchmark - ANSWER-A permanent reference point, such as a street intersection,
used in a metes and bounds legal description.
Rectangular Survey - ANSWER-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.
Point of Beginning - ANSWER-The physical location at which a metes and bounds
legal description starts. To obtain closure, the description must also end at this
location.
Severance - ANSWER-The process of turning real property into personal property,
such as by cutting a tree down.
Trade fixture - ANSWER-An article of personal property attached to a rental space
by a tenet for use in conducting a business.
Accession - ANSWER-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.
, Fixture - ANSWER-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
*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)
Datum - ANSWER-A point, line, or surface from which elevation is measured.
Personal Property - ANSWER-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.
Escheat - ANSWER-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.
Freehold Estates - ANSWER-Properties that are held for an indefinite time, or that
exist for a lifetime or more.
Governmental Powers - ANSWER-A group of rights that supersede a property
owner's rights. These rights include police power, eminent domain, taxation, and
escheat (PETE).
Eminent Domain - ANSWER-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.
Emblements - ANSWER-Growing crops or flowers that are produced annually on a
property and are referred to as fructus industriales, meaning "fruits of industry."
Homestead - ANSWER-A tract of land that is owned and occupied as the family
home.
Fee Simple Absolute - ANSWER-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.
General Liens - ANSWER-Encumbrances that usually affect all of a debtor's non-
exempt property, both real and personal. Examples include judgement liens, debts,
federal taxes, etc.
Nonmoney Encumbrances - ANSWER-Encroachments, licenses, restrictions, and
easements that affect only the physical condition and use of a property.
Questions with Correct Answers
Property Management - ANSWER-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 - ANSWER-These people provide clients with competent,
independent real estate advice without representing them as an agent.
Special Flood Hazard Area - ANSWER-Properties in this area are required by
federal law to have special insurance as part of any federally-backed mortgages.
Subdivision - ANSWER-The process of splitting a single property into smaller
parcels.
Residential - ANSWER-The type of properties that include single and multi-family
homes.
Industrial - ANSWER-The types of properties that include warehouses, factories,
power plants, and other manufacturing areas, even if the property has a storefront
attached.
Agricultural - ANSWER-The types of properties that include farmlands, timberlands,
orchards, and ranches.
Special Purpose - ANSWER-The types of properties that include churches, schools,
cemeteries, and government-held lands.
Real Estate Market - ANSWER-The setting where real property is bought and sold
and prices are established.
Submarket - ANSWER-A real estate market defined by property type and/or
geographic location.
National Association of Realtors - ANSWER-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 - ANSWER-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 - ANSWER-This characteristic of real property is important because a
parcel's value is impacted by surrounding land uses.
Demographics - ANSWER-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 - ANSWER-This term refers to both a physical article and the rights and
interests involved in its use of ownership.
Rights of Ownership - ANSWER-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 - ANSWER-Anything that is used with land for its benefits. Examples
include subsurface, air, and water rights, as well as gardens and certain easements.
Exclusion - ANSWER-The right to legally ban other people from entering your
property without your consent.
Air Rights - ANSWER-These rights are for the use of space above a piece of real
property. They can be transferred and subdivided.
Subsurface Rights - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-Another name for subsurface water.
Prior Appropriation - ANSWER-A law used in states where water is scarce. This law
limits homeowners' use of any domestic water found on or abutting their property.
Riparian Rights - ANSWER-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.
Water Table - ANSWER-The name for the level at which subsurface water is located
below ground.
,Real Property - ANSWER-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.
Nonhomogeneity - ANSWER-A characteristic that states no two parcels of real
property are exactly alike, and therefore, one cannot be legally swapped for another.
Township - ANSWER-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.
Legal Description - ANSWER-A formal or informal definition of a specific property
that unquestionably describes one property and cannot be applied to any other
property.
Formal Legal Description - ANSWER-A description of any property in one of the
following three methods: metes & bounds, rectangular survey, or plat plan.
Metes - ANSWER-A measure of distance and direction used in some formal legal
descriptions.
Bounds - ANSWER-A name for the landmarks and monuments used in some formal
legal descriptions.
Metes and Bounds - ANSWER-The oldest and most difficult method of formal legal
descriptions. This system is used in Massachusetts.
Benchmark - ANSWER-A permanent reference point, such as a street intersection,
used in a metes and bounds legal description.
Rectangular Survey - ANSWER-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.
Point of Beginning - ANSWER-The physical location at which a metes and bounds
legal description starts. To obtain closure, the description must also end at this
location.
Severance - ANSWER-The process of turning real property into personal property,
such as by cutting a tree down.
Trade fixture - ANSWER-An article of personal property attached to a rental space
by a tenet for use in conducting a business.
Accession - ANSWER-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.
, Fixture - ANSWER-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
*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)
Datum - ANSWER-A point, line, or surface from which elevation is measured.
Personal Property - ANSWER-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.
Escheat - ANSWER-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.
Freehold Estates - ANSWER-Properties that are held for an indefinite time, or that
exist for a lifetime or more.
Governmental Powers - ANSWER-A group of rights that supersede a property
owner's rights. These rights include police power, eminent domain, taxation, and
escheat (PETE).
Eminent Domain - ANSWER-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.
Emblements - ANSWER-Growing crops or flowers that are produced annually on a
property and are referred to as fructus industriales, meaning "fruits of industry."
Homestead - ANSWER-A tract of land that is owned and occupied as the family
home.
Fee Simple Absolute - ANSWER-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.
General Liens - ANSWER-Encumbrances that usually affect all of a debtor's non-
exempt property, both real and personal. Examples include judgement liens, debts,
federal taxes, etc.
Nonmoney Encumbrances - ANSWER-Encroachments, licenses, restrictions, and
easements that affect only the physical condition and use of a property.
