Freedom Trail Realty Real Estate Exam Flashcards

Freedom Trail Realty (Real Estate Exam) Flashcards What does the title search look for?Ownership, certain types of ownerships.Where are Riparian Rights implemented?Original 13 colonies.Real vs. Personal: AttachmentIs the property permanently attached to the land?By nails or roots (directly/indirectly).If yes, then it is Real Property.

Real vs. Personal: What are the four main differences

between Real and Personal Property?Attachment, Adaptability, Intention, and Agreement.Questions to ask buyers/buyer's agents... Are you pre-approved?What's your timeframe?When are you available to see the property?How is the client going to pay for the property?Who usually pays for advertisements?The agent or brokerage.What consist of Air Rights (Air Lots)?Vertical interest, 80ft - 500 ft above the highest appurtenance.Once an agreement is signed, how long before the listing must go on MLS?24 hours.What are the two main types of insurance? General Liability Insurance and Professional Liability Insurance.What is property?Anything subject to ownership.What are chattel?Moveable personal property.What do littoral rights relate to?Large bodies of water.Ex: Lakes, oceans, and ponds.Bodies that are affected by tides and currents and do not run through the land itself.What are the three parties involved in a real estate transaction?Principal, Special Agent, and Subagent.What role does the mortgage have in a promissory notes?It is security for the note.It is also the pledging of property as collateral for the debt.What are the two parties involved in a financing arrangement?The mortgagor and the mortgagee.Riparian Rights: What is considered Non-navigable water?No boats, is it safe enough for a craft of some kind? If it's swimming only then it is non-navigable.What does a 1099 Independent Contractor title mean?That someone is self-employed. They have their own schedule, can turn down work, use their own methods. The brokerage is only there for branding and liability.What is a deed?Receipt for real estate.Who pays the Salesperson?The brokerage.What are emblements?Annual or semi-annual crops, property of tenant. They are plants that are planted with the expectation of being harvested or pulled from the land.What Supreme Court case that established Vertical Interests?US v. Causby.What are Direct Improvements?Makes direct contact to the ground (fixtures).Example: House, shed, flagpole, pool, curtain mounts, or blinds.

What is a promissory note?It states, "I owe you", it is evidence of the debt.It outlines the terms of the loan.What does CTG stand for?Under contract. It declares when there is an accepted offer, but you're waiting on something before the contract is signed.What does the Bill of Sale show?Receipt for personal property.What is the Right to DispositionRent, sell, and will.Can air rights be sold or leased?Yes, they can also be subdivided.What are the implications of working under a 1099?There are quarterly tax payments and there is no health insurance or 401k.What does Utilization Pooling mean?If there are several properties that share the land where minerals are found, then you must share it between the neighbors.

Riparian Rights: For properties that border non-navigable

water - to what point do they own?The mid-point.What does "prep the listing" refer to?Staging, decluttering, renovation, photography/videography.Real vs. Personal: AdaptabilityWas it custom built to fit? or does it fit anywhere?If yes, then Real Property.What do Extended Land Rights establish?How far down, how high, or how wide a property is.What does the Doctrine of Capture state? That even if the owner of the land doesn't own their minerals, they still have the right to capture them.No one owns the minerals, but the owner of the property owner has the right to go get it.Who pays for what when the listing is being prepped?Seller pays for decluttering, renovation.Agent pays for staging, photography, videography (unless brokerage does).What is financing?Receiving or providing money for the purposes of buying real estate.What does an implied easement allow?For an owner who purchases mineral rights separately from the land itself to harvest those minerals automatically, (can sometimes depend on the state).What is the Right to ExclusionTo limit access to.How far do Mineral Rights (subsurface rights) extend?To the Earth's core, can be subdivided.

Riparian Rights: What is considered to be Navigable

water?Used by boats, safe enough for a craft of some kind.In MA, what do littoral rights establish? That rights extend from mean high tide water to low water line or 10 rods (whichever is less).The public has an easement over the land between high and low water lines, this is the area that the public can use for fishing, swimming, navigation, etc.Rights are not to the water, but to the land underneath.What is the main difference between a Broker and Salesperson?Brokers will handle client money (escrow account). Only brokers can work independently while salespeople must work for a broker.

What are the two types of Improvements?Direct and Indirect Improvements.What does P & S stand for?Purchase and Sale agreement.What is MLS (Multiple Listing Service)?Database of listings that are available in Massachusetts.In order to reinstate your real estate license, you should...Send a written request to the board and you will likely have to take a course as well.What happens during a closing?The sale goes on record, the brokerage gets paid money, and the brokerage pays salesperson.

Riparian Rights: For properties that border navigable water

• to what point do they own.

To the accretion line (up to the bank/waterline).What is the Right to EnjoymentUse it any legal way; make it bigger, make it multifamily.What authority determines air rights?The Federal Aviation Authority established navigable air space in relation to local plane routes. This is also determines by local laws.What happens during a seller consultation? Listing agreement, sit down with seller, ask them questions about what they need from the sale, timeline, price, marketing, what they want the sale to look like.What does a 6D Certificate verify?Verifies that the condo fees or special assessments have been paid up to date by the seller.Who is a buyer's agent?Someone representing a buyer.What happens if someone else has the mineral rights to your land?Then you only own the surface rights which extend 30ft below surface, therefore you would be unable to dig to the core.What is collateral in real estate terms? When the borrower hypothecates (pledges) the property as collateral for the loan.What are Riparian Rights associated with? Running water bodies, ex: rivers, streams, or brooks.What happened with US v. Causby?A farmer had chickens that were disturbed by airplanes.Farmer argued that his ownership went to heavens.What is an Appurtenance?An extension outside the bounds of property itself.Example: Mailbox, chimney, driveway, or pathway.What does The Board do?Reinstates the licenses, enforce law, issue license, suspension and revocation.What is the Right to ControlTo use it.When would air rights be sold or leased? Where there are cell towers.What does Professional Liability Insurance cover? Protects people against other people. Protects against mistakes made by broker/salesperson during a transaction.Covers a lost offer deposit.Where is the Doctrine of Prior Appropriation used?Used for water rights in the Western States.How is financing defined?The cost of borrowing money is interest.What is considered Real Property?Land and everything attached to it.Real estate, realty, immoveable property, and fixtures.(May be indirectly attached a.k.a mounted = attached). Bought items are personal, but become real when installed.What are liquid minerals?Oil, or gas, has to be (free flowing).What is the difference between a deed and a title?A Deed is a tangible thing and the title is the theory or idea that goes along with it.

What are Improvements?Permanently attached either directly or indirectly.Which questions not to ask buyers...Marital status, kids, etc. Keep the questions to the property and the qualifications to buy.What does the Statute of Frauds require? That Real Estate contracts be in writing.Who is responsible for the Salesperson's mistakes?The brokerage.When does a 1099 worker get paid and how much is taken out in taxes?Only paid when sale occurs (commission only), and no taxes are taken out.When does "Annexation" refer to?When personal Property becomes real property.Who is the SubagentAn agent that works on behalf of another agent.Benefits of joining REALTORs...Discounts for MLS, discounts on insurance, rental cars, and netowrking.What is included in the bundle of rights? Right to...possession, control, enjoyment, exclusion, and disposition.In order to obtain a Broker's license... You must have 3yrs experience as a salesperson, work 25hr/week, take 40hr course, be bonded for $5,000.What are Indirect Improvements?Attached to the property but does not attach to the land directly.How is The Board created?Appointed by governorThis keeps everything fair and non-biased. Checks and balances.The seats are volunteer positions, unpaid, meet four times a year minimum, must have at least three members present for a decision, serves five-year terms.How do listings end up on other real estate websites?MLS syndicates (sends out) to other websites.What is the Right to PossessionTo own it.What does General Liability Insurance cover? Protects property against people.Coverage for personal property damage that might occur at the office or at showings (repair, fair housing fine, consumer protection lawsuit, broken heirloom of client).What are solid minerals?Gold (has to be tangible), diamonds, turquoise, or clay.How far down do land rights/surface rights go? 30ft below the land itself.Examples: Pool, geothermal energy, septic system, basement, well, farming, garden, bunker, landscape, fire pit, or fence.What is conveyed in a deed?Legal title or ownership.Who is a seller's (listing) agent?Someone representing a seller.What consists of Personal Property?Anything not associated or not attached with land.This includes personal, chattel, moveable property.

Real vs. Personal: IntentionWhat was the intent of the person who installed the

property? Was it intended to be Real or Personal?What does The Board a.k.a the Division of Professional Licensure (DPL) consist of?Two unlicensed persons, three brokers of seven plus years' experience, one is a chairperson.What is the bundle of rights?All rights can be bundled, or you can choose to not hand over certain rights when making an agreement.Who is the Prinicpal?A person who hires an agent to represent them. This can be a seller, buyer, landlord, broker, or tenant.