Massachusetts Real Estate Exam
Questions with Complete Answers
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.
Questions with Complete Answers
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.
