Massachusetts Real Estate
Salesperson Exam Questions with
Complete Solutions
Who is a subagent? - ANSWER-a salespersons who works under a special agent
such as the broker
General liability insurance? - ANSWER-this is for your personal coverage or property
damage that might occur at the office/on showings. Tends to be covered by broker
Professional Liability Insurance? - ANSWER-Errors and omissions or E and O. This
insurance is covered by the agent. This protects against mistakes made by
broker/salesperson during a transaction. (Money wise)
The primary difference between a salesperson and a broker? - ANSWER-Only
brokers can work for themselves
Who issues real estate licenses? - ANSWER-The Board
The special agent in a real estate transaction is? - ANSWER-The broker
To renew your RE license you should? - ANSWER-Send a written request to the
board
The offer directly leads to the creation of? - ANSWER-The purchase and sale
agreement
What is property? - ANSWER-Property is anything subject to ownership
Real Property? - ANSWER-is one major type of property and it is land and
everything (attached) with it (House, land, chandelier, oven, inground pool etc.) land
+ attachments + rights
Personal property? - ANSWER-One of the major types of property and it is anything
not associated (attached) with land (Computer, car, TV, boat, cellphone, table, RV
etc.)
Synonyms= personality, chattel, moveable property
How do you transfer ownership? - ANSWER-With a deed
What is a deed? - ANSWER-a deed is a receipt for real estate. A receipt conveys
legal title or otherwise prove ownership of the property
*conveying or conveys means to transfer*
,*title or legal title means a concept of ownership*
If the deed is being transferred who are the two parties invovled? - ANSWER-There
is a grantor and grantee
Grantor? - ANSWER-the person giving the deed "giver or seller"
Grantee? - ANSWER-the person receiving the deed "Receiver or Buyer"
What are the bundle of rights you are entitled to when you purchase a property? -
ANSWER-Right to possession (Own it)
Right to control (Use it)
Right to enjoyment (Use it any legal way, example renovation on a house)
Right to exclusion (Limit access to who is allowed to enter your home)
Right to disposition (rent, sell, will giving someone else an access the bundle of
rights)
What are air rights? - ANSWER-Air rights extend 80 to 500 ft into the air also known
as vertical interests
What are mineral rights? - ANSWER-Mineral rights extend to the earth's core. Also
known as subsurface rights can be subdivided
They include solid minerals (gold), silver, iron, things you can touch and hold
And they include liquid minerals that are free flowing such as oil and gas.
Doctrine of capture is one of the laws of liquid minerals and it means? - ANSWER-
the owner of land doesn't own their mineral rights, they have a right to capture their
minerals. The first to capture is the first to get them.
Utilization Pooling is another law of liquid minerals and it means? - ANSWER-means
you have to share among the neighbors
Riparian rights? - ANSWER-Are the rights associated with running water bodies
(streams, brooks, rivers, etc)
Riparian rights are only used in the 13 colonies (Massachusetts, RI, new york,
connecticut, North east part of the USA)
Non-Navigable - ANSWER-is no boats can fit down it, swimming only allowed,
shallow water
(Non-navigable properties only own to the middle of the body of water another words
the Mid-point)
Navigable - ANSWER-is where boats can fit
(Nagivable properties are owned to the accretion line or water line)
Doctrine of Prior Application? - ANSWER-is how you handle running water rights
(rivers, streams, etc.) in the Western States, it is "first come, first serve"
Littoral Rights - ANSWER-are large bodies of water (lakes, oceans, and ponds)
For almost all states you own to the accretion line "high tide"
,Massachusetts you own from mean high tide water line to mean low water line or
100 rods whichever is less.
The public has an easement over the land between high and low water lines (tidal
flats)
What are the 4 essential question when considering if it is a real or personal
property? - ANSWER-1. Attachment- is the property permanently attached to the
land? ( by Nails, roots, or indirectly or directly attached)
2. Adaptability- was it custom built to fit the space? (or does it fit anywhere)
3. Intention- what was the intention or purpose of who installed the property? (was
the intent real or personal)
4. Agreement- the buyer and seller agree to treat a piece of property as real or
personal regardless of what it actually is. (This overrides all the other questions and
tests) Must be written out for statute of frauds
Annexation - ANSWER-when you change personal property into real property, An
example is if you were to buy a tree and then essentially plant that tree into the
property
Severance - ANSWER-is when you change a real property into a personal property,
An example is if you remove a tree from that property and take it with you
Riparian rights are most likely to be followed in? - ANSWER-The original thirteen
colonies
Real estate is conveyed via? - ANSWER-Through a deed
An example of an emblement? - ANSWER-Corn
The grantee under the deed is the? - ANSWER-Buyer
Mark owns a home next to a small creek. His property line is most likely: - ANSWER-
The middle of the creek
Emblements - ANSWER-Refers to crops which require annual or semi annual
planting. It is being pulled from the land which is considered personal property
Trade Fixtures - ANSWER-is business property mainly for commerical tenants, an
example is a jewelry display cases they are attached to the land the intention of that
is personal property it was installed for specific business use
Fee Simple Absolute? - ANSWER-Default form of ownership, this means that you
own property absolutely. There's nothing that can happen to you lose your property.
Life Estates - ANSWER-Life estates are freehold interests that only exist as long as
the owner of the property (the "life tenant") is alive. The life tenant's deed will state
who receives the life estate (usually a "remainderman") upon their death in a
habendum clause.
, Fee Simple Defeasible - ANSWER-is ownership in an interest in real estate that is
limited in some way, and can be lost if some limitation is violated or a condition is
triggered.
Fee Simple Determinable - ANSWER-which is automatically lost when a limitation is
violated.
Fee Simple Subject to Condition Subsequent - ANSWER-which is lost when legal
action is brought pursuant to the violation of the limitation and returns the property to
the original grantor.
Fee Simple Subject to an Executory Limitation - ANSWER-which is basically the
same as fee simple subject to a condition subsequent except the property would be
transferred to third party named by the grantor, rather than back to the original
grantor themselves.
Severalty Ownership - ANSWER-A freehold interest (ownership) held by only one
person. Its root is "severed"; ownership in severalty is the ownership of real estate
severed from any co-owners.
Freehold interest? - ANSWER-Confer ownership
Co-Ownership (or concurrent ownership or co-tenancy) - ANSWER-is any freehold
interest (ownership) shared by two or more persons, including corporations.
Tenancy in Common - ANSWER-is the default form of ownership. Co-owners who
purchase property without specifying a type of ownership own in common.
Ownership interests may be equal or unequal, but all co-owners have an interest in
the entire property that cannot be compromised. This type of co-ownership is
inheritable. Tenancy in common is the same as estate in common.
Joint Tenancy - ANSWER-co-ownership that must be chosen by all co-owners, at
the same time and be specified in the deed. A joint tenancy is therefore not
inheritable. If one of the joint tenants sells their portion of the property, that portion of
the property is removed from the joint tenancy. A joint tenancy can be completely
terminated by agreement (voluntary partition), court action (partition action), or the
death of all joint tenants. If all joint tenants die except for one, the joint tenancy also
ends, and the surviving owner owns in severalty.
Tenancy by the Entirety - ANSWER-Tenancy by the Entirety is joint tenancy for
married couples. includes creditor protections: a limitation on forced sale of the
property to satisfy the debts of one spouse only (debts must be in the couple's name
for the home to be sold), and an automatic homestead protection for $125,000, and
the ability to file for $500,000 of protection, in Massachusetts. If the couple divorces,
it defaults back to a tenancy in common, unless the couple chooses otherwise.
Condominiums - ANSWER-are a way to subdivide a building into separate units,
creating fee simple ownership of the individual units, and shared ownership of the
common areas (hallways, elevators, a roof deck, etc.) as tenants in common.
Salesperson Exam Questions with
Complete Solutions
Who is a subagent? - ANSWER-a salespersons who works under a special agent
such as the broker
General liability insurance? - ANSWER-this is for your personal coverage or property
damage that might occur at the office/on showings. Tends to be covered by broker
Professional Liability Insurance? - ANSWER-Errors and omissions or E and O. This
insurance is covered by the agent. This protects against mistakes made by
broker/salesperson during a transaction. (Money wise)
The primary difference between a salesperson and a broker? - ANSWER-Only
brokers can work for themselves
Who issues real estate licenses? - ANSWER-The Board
The special agent in a real estate transaction is? - ANSWER-The broker
To renew your RE license you should? - ANSWER-Send a written request to the
board
The offer directly leads to the creation of? - ANSWER-The purchase and sale
agreement
What is property? - ANSWER-Property is anything subject to ownership
Real Property? - ANSWER-is one major type of property and it is land and
everything (attached) with it (House, land, chandelier, oven, inground pool etc.) land
+ attachments + rights
Personal property? - ANSWER-One of the major types of property and it is anything
not associated (attached) with land (Computer, car, TV, boat, cellphone, table, RV
etc.)
Synonyms= personality, chattel, moveable property
How do you transfer ownership? - ANSWER-With a deed
What is a deed? - ANSWER-a deed is a receipt for real estate. A receipt conveys
legal title or otherwise prove ownership of the property
*conveying or conveys means to transfer*
,*title or legal title means a concept of ownership*
If the deed is being transferred who are the two parties invovled? - ANSWER-There
is a grantor and grantee
Grantor? - ANSWER-the person giving the deed "giver or seller"
Grantee? - ANSWER-the person receiving the deed "Receiver or Buyer"
What are the bundle of rights you are entitled to when you purchase a property? -
ANSWER-Right to possession (Own it)
Right to control (Use it)
Right to enjoyment (Use it any legal way, example renovation on a house)
Right to exclusion (Limit access to who is allowed to enter your home)
Right to disposition (rent, sell, will giving someone else an access the bundle of
rights)
What are air rights? - ANSWER-Air rights extend 80 to 500 ft into the air also known
as vertical interests
What are mineral rights? - ANSWER-Mineral rights extend to the earth's core. Also
known as subsurface rights can be subdivided
They include solid minerals (gold), silver, iron, things you can touch and hold
And they include liquid minerals that are free flowing such as oil and gas.
Doctrine of capture is one of the laws of liquid minerals and it means? - ANSWER-
the owner of land doesn't own their mineral rights, they have a right to capture their
minerals. The first to capture is the first to get them.
Utilization Pooling is another law of liquid minerals and it means? - ANSWER-means
you have to share among the neighbors
Riparian rights? - ANSWER-Are the rights associated with running water bodies
(streams, brooks, rivers, etc)
Riparian rights are only used in the 13 colonies (Massachusetts, RI, new york,
connecticut, North east part of the USA)
Non-Navigable - ANSWER-is no boats can fit down it, swimming only allowed,
shallow water
(Non-navigable properties only own to the middle of the body of water another words
the Mid-point)
Navigable - ANSWER-is where boats can fit
(Nagivable properties are owned to the accretion line or water line)
Doctrine of Prior Application? - ANSWER-is how you handle running water rights
(rivers, streams, etc.) in the Western States, it is "first come, first serve"
Littoral Rights - ANSWER-are large bodies of water (lakes, oceans, and ponds)
For almost all states you own to the accretion line "high tide"
,Massachusetts you own from mean high tide water line to mean low water line or
100 rods whichever is less.
The public has an easement over the land between high and low water lines (tidal
flats)
What are the 4 essential question when considering if it is a real or personal
property? - ANSWER-1. Attachment- is the property permanently attached to the
land? ( by Nails, roots, or indirectly or directly attached)
2. Adaptability- was it custom built to fit the space? (or does it fit anywhere)
3. Intention- what was the intention or purpose of who installed the property? (was
the intent real or personal)
4. Agreement- the buyer and seller agree to treat a piece of property as real or
personal regardless of what it actually is. (This overrides all the other questions and
tests) Must be written out for statute of frauds
Annexation - ANSWER-when you change personal property into real property, An
example is if you were to buy a tree and then essentially plant that tree into the
property
Severance - ANSWER-is when you change a real property into a personal property,
An example is if you remove a tree from that property and take it with you
Riparian rights are most likely to be followed in? - ANSWER-The original thirteen
colonies
Real estate is conveyed via? - ANSWER-Through a deed
An example of an emblement? - ANSWER-Corn
The grantee under the deed is the? - ANSWER-Buyer
Mark owns a home next to a small creek. His property line is most likely: - ANSWER-
The middle of the creek
Emblements - ANSWER-Refers to crops which require annual or semi annual
planting. It is being pulled from the land which is considered personal property
Trade Fixtures - ANSWER-is business property mainly for commerical tenants, an
example is a jewelry display cases they are attached to the land the intention of that
is personal property it was installed for specific business use
Fee Simple Absolute? - ANSWER-Default form of ownership, this means that you
own property absolutely. There's nothing that can happen to you lose your property.
Life Estates - ANSWER-Life estates are freehold interests that only exist as long as
the owner of the property (the "life tenant") is alive. The life tenant's deed will state
who receives the life estate (usually a "remainderman") upon their death in a
habendum clause.
, Fee Simple Defeasible - ANSWER-is ownership in an interest in real estate that is
limited in some way, and can be lost if some limitation is violated or a condition is
triggered.
Fee Simple Determinable - ANSWER-which is automatically lost when a limitation is
violated.
Fee Simple Subject to Condition Subsequent - ANSWER-which is lost when legal
action is brought pursuant to the violation of the limitation and returns the property to
the original grantor.
Fee Simple Subject to an Executory Limitation - ANSWER-which is basically the
same as fee simple subject to a condition subsequent except the property would be
transferred to third party named by the grantor, rather than back to the original
grantor themselves.
Severalty Ownership - ANSWER-A freehold interest (ownership) held by only one
person. Its root is "severed"; ownership in severalty is the ownership of real estate
severed from any co-owners.
Freehold interest? - ANSWER-Confer ownership
Co-Ownership (or concurrent ownership or co-tenancy) - ANSWER-is any freehold
interest (ownership) shared by two or more persons, including corporations.
Tenancy in Common - ANSWER-is the default form of ownership. Co-owners who
purchase property without specifying a type of ownership own in common.
Ownership interests may be equal or unequal, but all co-owners have an interest in
the entire property that cannot be compromised. This type of co-ownership is
inheritable. Tenancy in common is the same as estate in common.
Joint Tenancy - ANSWER-co-ownership that must be chosen by all co-owners, at
the same time and be specified in the deed. A joint tenancy is therefore not
inheritable. If one of the joint tenants sells their portion of the property, that portion of
the property is removed from the joint tenancy. A joint tenancy can be completely
terminated by agreement (voluntary partition), court action (partition action), or the
death of all joint tenants. If all joint tenants die except for one, the joint tenancy also
ends, and the surviving owner owns in severalty.
Tenancy by the Entirety - ANSWER-Tenancy by the Entirety is joint tenancy for
married couples. includes creditor protections: a limitation on forced sale of the
property to satisfy the debts of one spouse only (debts must be in the couple's name
for the home to be sold), and an automatic homestead protection for $125,000, and
the ability to file for $500,000 of protection, in Massachusetts. If the couple divorces,
it defaults back to a tenancy in common, unless the couple chooses otherwise.
Condominiums - ANSWER-are a way to subdivide a building into separate units,
creating fee simple ownership of the individual units, and shared ownership of the
common areas (hallways, elevators, a roof deck, etc.) as tenants in common.
