Massachusetts Real Estate Exam Flashcards

Massachusetts Real Estate Exam Flashcards Life Estateduration is limited to the life of the person holding it Reproduction CostsQuantity Survey Method- detailed estimates of amounts of raw materials, costs, and costs of installationunit in place - installed on a square of cubic foot basiscomparitive=cost per sq ft or cubic ft for building construction in a particular region Littoral Landland 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 Personal PropertyPortableTangible - physicalIntangible - rights /trademarks Condo Feemonthly to cover insurance/repair/maintenance Condo Master Deedfloorplans, description of each unit, name of trust/associationpersonal property not insured under master deed.Mortgage Covenants1) seized in fee simple of property, 2) free from encumbrances, 3) right to sell and convey, 4) will warrant and defend against claims of others, 5) will execute and deliver upon sale Fee Simple DeterminableAn estate which has been created to exist only until the occurrence or nonoccurrence of a particular event. Returns automatically.Mortgage Contingency Clauseallows the buyer to secure financing, and if the buyer cannot do so, the agreement ofsale terminates.Primary Mortgagelenders who originate funds to borrowers. the lenders retain mortgage investments for themselves or sell them to investors First Right of Refusalseller is in control - first in line to buy a property (no money changing) - conditional on seller wanting to sell Elements of Contracts1. offer and acceptance =agreement2.consideration=money value to parties3. legality4.compentency5. consent Tenancy in Partnership2+ co-owners to conduct a business for a profit ServientAnother's property appurtenancesright to use the property to which it is connected and intended to be a permanent accession to the property and which will pass with the title to a new owner Open Listinglisting with several brokers in which any of them can sell. a seller may sell home himself without paying a commission DominantOwner's property = DOM is owner

Real Estate Contractslisting = owner hires brokerpurchase and sale = buyer agrees to buylease=owner gives u right to occupydeed-coveys ownershipmortgage note=promise to paymortgage deed-sign deed over to bankoption=agreement to keep open in offer to sell or lease property Investment CalculationsPART divided by WHOLE= rate FixturePersonal property, which has been converted to real property by method of attachment, character and adaptation or contractual intent of the parties Community Properymarried couple acquiring property = partners Tenancy at WillAn occupation of space for an indefinite period which can be terminated by either the lessor or lessee at any time.Easement by Prescriptionright of way openly, continuously for a mininum of 20years.aka adverse possession.Transfer of EstatesDeed- document conveys title from grantor to granteewill or inheritenceadverse possession = 20 yearseminent domainescheatforeclosure Net Listingillegal - get me $ and everything else is yours Subleasetransfer for a portion of the balance of the term.Dower and CurtesyA legal life estate that provides the nonowning wife (dower) or husband (curtesy) a lifetime right to one-half or one-third interest in the real estate of the owning spouse even if the owning spouse wills the estate to others. Replaced by Uniform Probate Code in most states.Truth in LendingThe 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.Depreciationphysical deterioration, lack of desirability, loss of value from economic obsolence Negative Easementrestricted access affirmitive Easementallows access Encroachmentillegal intrusion or trespass into or over the property of another. such as a wall or fence Real Propertyland and anything attached to itcorporeal- land and physical items affixed to itwall to wall carpeting Fee Simple AbsoluteAbsolute ownership. The greatest interest that one can have in real property. An estate that is without restriction, of indefinite duration, freely transferable and inheritable.Descent and Distributionwhen there is no valid will, law governing distribution to heirs Timesharingvacation property for desired time frametrade time for other locations2 weeks per year down for maintenance

An owner of a waterfront property owns to the mean low water line EstateAmount of rights a person has in connection with realty and the duration of these rights Assignmenttransfer for the entire balance of the term of the lease of the whole or a part of the leased premises cooperativescorporations which hold title to the land and buildingsbuyer becomes a stockholdermortgage=corporation=blanket mortgage creating 1 lien on entirerent=expenses of mortgage principal/interest/taxes/maintenance/operating costs shared by stockholders in form of monthly assessments Tenancy in CommonA form of ownership where owners have full rights of possession, but each owner can have a different percent of ownership. Upon the death of one, that interest goes to the heirs.adjustable rate mortgageallows for periodic adjustment of the interest rate according to a pre-selected index. start lower than current fixed rates.Non-Freehold Estateslimited duration (lease) Interest Raterisk=profitabilitylower risk=lower interestamount figured by computing the total yearly interest based on the balance of the loan divided by payments per year Tenancy at SufferanceThe lease has expired and the lessee is now possessing the property illegally, having been given proper notice to vacate. It is similar to trespassing except that the lessee, at one time, held a legal ease.Estoppelone promises to do something and another relies on that promise and is harmed by them not following through Rectangular Survey Systemsystem of rectangles to locate and specify the boundaries for land parcels.Baselines run EAST and WEST.Meridians run NORTH and SOUTH.this unit of land approx 24mi sq.is divided into areas 6 miles sq. called townships.Townships are divided into 36 sections.Radona colorless, odorless, radioactive gas. found in soil and gas can seep into house.Municipal Lien Certificaterequired at time of conveyance. obtained at local tax collectors office. shows all outstanding taxes, assessments, water/sewer charges against property by the town which must be paid before the title is cleared Wraparound Mortgagelender assumes payment of an existing mortgage and gives a new and larger mortgage at a higher rate seller closing statementsdrawing of the deed or certificate of title to buyermortgage discharge and payofflegal feesmass tax stampsunpaid taxes/chargesprorated adj of collected rentsrent for sellers occupancy after closingbroker commissionprepayment penaltypointstermite/pest treatmenthazardous wastes

certificates Alienationthe transfer of title and right to possession Joint TenancyCo-ownership of real estate; when one of the owners dies, that interest goes to the remaining owners (right of survivorship)