Study sets, textbooks, questions
Upgrade to remove ads
MA Real Estate Salesperson
Terms in this set (87)
Aka real property or realty, is land and certain items attached to the land. The owner of real property has certain rights of ownership: ability transfer ownership, administer, loan against and lease. Most importantly an owner enjoys: possession, control, quiet enjoyment and disposition. As a general rule: items permanently affixed to real estate (land or building) are real estate.
Are moveable items like furniture, the bright line of difference is the nature by which an item is attached to the land, with exceptions noted below. Aka personalty or chattel may also be sold by a receipt or bill of sale. Real estate is sold by deed.
Crops or Emblements
Can be removed by the seller and are considered personal property. The harvest of the crops can also occur after the close of a real estate transaction.
Trade Equipment or Fixtures
The classic example are the chairs, sinks and cabinets of a barber shop.
Real Property Right: Surface Rights
Right to build and plant crops. Also the right not to have an abutting property destabilized the subject property.
Real Property Right: Air Rights
To use the vertical airspace, subject to local, state and federal regulation.
Real Property Right: Appurtenances Rights
Rights of access (beach rights)
Real Property Right: Mineral Rights
If minerals are vertically removed they become personal property (Law of Capture). Mineral rights may be severed and transferred from ownership of the land surface.
Real Property Right: Riparian Rights
Use of water by a lake, river or similar body of water for recreation and agriculture. On navigable water the rights extend to the water's edge. On non-navigable water rights extend to mid-point of water.
Real Property Right: Littoral Rights
Similar but in this case the body of water would be very large, like the Atlantic Ocean or the Great Lakes. Rights end at the mean high water mark.
Real Estate Measurements: Metes and Bounds
Metes are measured in feet from a known point, like a rock. Bounds is the compass direction. Measurement returns to the point of beginning aka POB.
Real Estate Measurements: Lots and Blocks
Recorded plat plan of a subdivision. Street grid creates blocks, the divided by lots.
How Real Estate is Owned: Allodial System
In the US land is owned by individuals in this format. Pure allodial land is not subject to government authority of any kind, as such, no such pure allodial land exists in the US.
How Real Estate is Owned: Feudal Land System
In the United Kingdom, especially England and Wales all land is held by the Crown. France disposed of this land system as a result of the French Revolution in the 1790's.
How Real Estate is Owned: Interest in an Estate
Defines the rights and limits of the ownership.
Ownership of an estate.
Possession of an estate.
Freehold Estate: Fee, fee simple, fee simple absolute
The type of estate interest that theoretically is not subject to restrictions, hence it is the best form of ownership that can be granted from the grantor to the grantee. The law assumes all estates are Fee unless otherwise noted.
Freehold Estate: Life Estate
a) In reversion. A grants to B, when B dies, estate reverts back to A.
b) In remainder. A grants to B, when B dies estate goes to X. X is the
remainderman. X is always named by A at the establishment of the life estate.
c) Pur autre vie (for the life of another). A grants to B, when Y passes, estate goes
to X. X is the remainderman, originally named by A. The life tenant B is prohibited from laying waste to the property and must keep real estate taxes current.
Freehold Estate: Fee simple subject to condition subsequent
Title transferred upon condition a certain activity does not occur in future.
Freehold Estate: Fee simple determinable
Title transferred upon condition a certain activity continues.
Action for Forfeiture
An original property owner can file this if a new owner violates the condition subsequent or fee simple determinable.
Non-Freehold Estate: Leasehold or Lease
Renting for a fixed term. A leased fee, is a property held in fee which has been leased.
Non-Freehold Estate: Tenancy at will or tenant at will
Renting month to month.
Non-Freehold Estate: Tenancy at sufferance.
Remaining in a rental unit beyond a lease term.
OR or EE
A blankOR gives something. A blankEE receives something. Grantor gives title, grantee receives it.
Title held by an individual or single corporation.
Title owned by two or more individuals.
Multi-Party Ownership: Tenancy by the Entirety
Reserved for married people. The interest cannot be divided during the term of the marriage. Upon divorce parties become tenants in common. Upon death of a spouse, the surviving spouse takes title as a fee simple estate aka survivorship.
Multi-Party Ownership: Tenancy in Common
Each owns the property in a separate but undivided interest, no survivorship. In other words, if party A dies, party B does not inherit the interest of party A. The interest of party A is granted to the heirs of party A.
Multi-Party Ownership: Joint Tenancy
Equal interests, equal possession, acquired at the same time, by the same deed. Upon death of owning party, the remaining parties acquire the interest equally, not the heirs.
Multi-Party Ownership: Syndication
Commonly referred to as a Real Estate Investment Trust or REIT. This is basically owning stock in a real estate holding company.
Multi-Party Ownership: Condominium
From the Latin con "together with" and dominium "right of ownership". The unit deed is recorded at the time of sale of a single unit. The master deed defines the entire condo complex and governance. Single unit ownership with a joint undivided interest and responsibility in the defined common areas. A buyer receives a 6D certificate from the condo association stating that the condo unit is current with all condo fees.
Multi-Party Ownership: Cooperative
A corporate entity which owns the entire real estate, one deed, one mortgage, only. Each "owner" is granted stock in the corporation and a lease for the particular co-op unit.
Written intent to transfer ownership. Evidence of title.
"To have and hold" defines the estate granted.
Purchase and Sale
The common real estate transaction often involving but not requiring real estate agents and brokers.
Voluntary gift of land to the government.
The taking of land by government through a process called condemnation, the government must prove that the land is needed for a public purpose. Not as common today, but heavily used to construct the Interstate Highway system and to redevelop neighborhoods - see the West End of Boston.
The forced sale of an asset to satisfy a private debt.
The forced sale of an asset to satisfy a tax debt or back taxes. Aka a Sheriff's sale.
When in the absence of heirs property ownership reverts to the state
Loss of ownership due to lack of funds: taxes, court judgements, bankruptcy, suit for partition.
Acquiring the land of another by open, continuous, and uninterrupted use that is hostile and adverse to the owner. Private land will often be blocked off from public access once a year to interrupt access. By use of a method called tacking claimants can defeat the interruption efforts of the owner.
Bequeath and devise real estate. Bequest and leave as a legacy personal property. The person making the will is known as the testator, a will must be witnessed by two individuals not named in the will. If an individual passes without a will the person is said to be intestate. The Probate court will administer the property and distribute the property via the common law rules of descent. Dower rights apply to the surviving spouse, male or female.
The addition of net real estate by mother nature - wind and water.
Additional land due to accretion.
Subtraction of net real estate by mother nature
General Warranty Deed
Protects buyer against any prior claim of title that occurred during or before the seller's term of ownership
Special Warranty Deed
Protects buyer against any prior claim of title that occurred during the seller's term of ownership.
The most common for basic real estate transactions, transfers grantor's ownership interest in a property such as it existed at the time of closing. Provides grantee little protection - hence the need to investigate the chain of title and secure title insurance, which in Massachusetts must be handled by an attorney. Title insurance is needed even though under the covenant of seisin the seller is asserting that they have not promised the property to any other party.
Is typically paid for by the seller. Recording a deed at the Registry is not required for it to be valid however doing so serves as constructive notice to all parties with or without actual notice of the transaction and protects grantees against claims of title.
Is an type of insurance that protects against a possible defect or cloud on title
Efforts to remove defects or cloud on title is called action to:
Color of Title
A term used to describe ownership of title.
Registration of Land
In the Commonwealth is a different form of title which with the blessing of the Land Court connotes indefeasible title. Registration of land provides the same or higher level of grantee protection as does title insurance. Registration of land is often used to quiet title.
Although you hold the color of title other parties may still file claims against your ownership.
A type of encumbrance representing a debt secured by an ownership stake in the property
Financial Encumbrances: Voluntary Lien
A mortgage. While the mortgage lien is in place the mortgagor is said to have equitable title, until the mortgage lien is released at which time legal title is obtained.
Financial Encumbrances: Involuntary Lien
Property taxes are factored by the value of the property (ad valorem) and collected quarterly in most towns. A tax lien holds priority over any other lien. If a property is sold by the town for non-payment of taxes, the prior owner has six months to repay the taxes plus interest under the right of redemption.
Financial Encumbrances: Special Assessments
Is a charge paid over time for the targeted expenditure of public funds, the most common is for the improvement of roads and sewer. The improvement is known as a betterment.
Financial Encumbrances: Mechanics Lien
Protection for contractors and material suppliers.
Financial Encumbrances: Attachments
Legal seizure of a defendant's property to prevent asset transfer or hiding of assets. Lis pendens from the Latin, pending action, is not a lien itself but notice of pending legal action and hence it is a cloud on the title.
Financial Encumbrances: Judgements
Final determination by a court of a debt. Failure to pay a judgement may result is the sale of the asset.
Financial Encumbrances: Super Lien
Applies to unpaid condo fees and holds a position superior to any mortgage, can force the sale for unpaid condo fees.
Non-Financial Encumbrances: Easement
An irrevocable right "running with the land" which survives sale of the property. "A right held by one property owner to make use of the land of another for a limited purpose."
a) Easement appurtenant. From the French ease of tenant and also the most common type of easement is access to travel over the property to access another property when the lots of property are adjoining. The dominant tenement is the
10 party with the right and receives the benefit aka an appurtenance. The subservient tenement is the property which grants the easement/encumbrance.
b) Easement in Gross. Is a personal written right to granted to a non-abutter to
access land, for instance for hunting and fishing.
Non-Financial Encumbrances: License
A personal, non-transferable, revocable permission to use the land of another.
Non-Financial Encumbrances: Encroachments
The unapproved use of land by another. For instance, Mary"accidentally" widens her driveway by paving over part of Bob's land. Often resolved or discovered by survey.
Non-Financial Encumbrances: Covenants
Private agreements, usually in a neighborhood, to uphold certain visual or value standards: each home shall have at least a garage or front porch. "Racially-based restrictive covenants are not, on their face, invalid under the Fourteenth Amendment," under the 1948 US Supreme Court Case Shelley v Kraemer case.
Massachusetts Board of
Registration of Real Estate Brokers and Salespersons
The practice of real estate in Massachusetts is overseen by this group. Established in 1960 , the five member board serves without compensation and promulgates and enforces real estate law that has been enacted by the legislature.
May work independently of an agency as a sole proprietor.
Broker of Record
Anyone, licensed or unlicensed may own an agency, but they must
Technically, an agent has no clients, all clients are connected to the agency only. The broker of
record is held liable for acts committed by agents affiliated with his agency under the concept of:
Massachusetts Board of
Registration of Real Estate Brokers and Salespersons: Board Membership
a. One of the five members shall be a chairperson appointed by Governor.
b. Three members are licensed brokers with a minimum of seven years of experience, as
c. Two members of the general public .
Massachusetts Board of
Registration of Real Estate Brokers and Salespersons: Board Members
Serve five years , each year one member's term expires. They convene at least
four times in a calendar year, a three member quorum is required.
Issued for two years, however the first license runs from the date of passing the exam until the third birthday on a prorated basis . An individual may hold only one license at a time and such license must be posted in a public place at your place of business.
Licensees who have an inactive license must contact the board to seek reinstatement.
Obliged to constrain their practice of real estate to transactions and listings for which they have a reasonable proficiency.
Up to $500
Board penalty for acting as an unlicensed real estate agent. Acting: for a another, for a fee.
Procuring cause of the sale
No commission is due, unless and until the transaction closes, according the 1975 SJC decision, Tristram's Landing Inc. v Wait. Buyer's broker shall only be due commission, if they are determined to be the:
A salesperson license does not allow a broker to arrange the purchase of real estate in an:
Errors and Omissions
Liability insurance that all agencies must carry.
A broker who wishes to engage salespersons to work for them must also acquire an:
No broker or agent should be engaged in the unlicensed practice of law. Whenever a client asks
if they should seek legal counsel, the answer should always be:
Death, disability or severance of the broker of record
In the event of _________________________ the brokerage may continue for one year while it secures a new broker of record. In the event of a sole proprietorship, the Board may grant a temporary license (to an attorney) for one year.
Salesperson License Requirements
a. 40 hour salesperson class.
b. Pass the salesperson's exam.
c. At least 18 years of age.
d. Good moral character. The student handbook requires three upstanding citizens to verify
a candidate's good moral character. DO NOT ask classmates or people at the test
center to sign the handbook on your behalf.
e. If previously licensed, an individual must activate and resolve any issues with the
previous license and may not simply begin the process again.
f. A resident agent must maintain a legal address in the Commonwealth .
Non-residents may be agents if they empower the Board to receive legal summons on
Broker License Requirements
a. 40 hour broker class.
b. Be actively affiliated as a salesperson with a broker(s) for three years.
c. Pass the broker exam.
d. Post a $5000 surety bond.
e. Good moral character (see above).
a. Attorneys may become brokers but are not required to take class or exam and may upon posting a $5000 surety bond, letter of good standing from the Board of Bar Overseers and licensing fee become a licensed broker.
b. Licensed brokers and salesperson from states that have reciprocal licensing agreements
with Massachusetts, subject to the licensing fee.
c. No license is needed to sell your own property, salaried property managers, auctioneer,
attorney on behalf of a client, individual acting under a legal power of attorney and the
executor of an estate.
Sets found in the same folder
Real Estate - MA Salesperson
MA Real Estate Vocabulary
Massachusetts Real Estate Exam
Real Estate - MA Salesperson
Sets with similar terms
REAL 1010 Midterm
California Real Estate Principles Real Estate Expr…
Modern Real Estate Practice in Texas 16th Edition…
Ohio Real Estate Terms
Other Quizlet sets
Gene Activity/Expression: Synthesis of B-gal in E.…
Psych Final Chapter 11