Broker Exam

Front 1

pur autre vie estate

Back 1

?

Front 2

appurtenant easement

Back 2

?

Front 3

Appurtenant easement

Back 3

An appurtenant easement is an easement that is intended to benefit aparticular piece of land (dominant estate/tenement) rather than a particularindividual. In this case, there is also a servient estate/tenement—the landover which the dominant estate has its easement rights.

a. Example: An easement is granted to a shopping mall parcel foraccess across the neighboring property owner’s private road inorder to allow shopping mall customers to get from the shoppingmall parking lot to the street. This is an easement appurtenant tothe shopping mall parcel, which is the dominant estate. Theneighbor who has granted the easement owns the servient estate.

Front 4

homestead exemption

Back 4

The homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner spouse. Laws are found in state statutes or constitutional provisions which exist in many states in the United States.

Front 5

easement in gross

Back 5

An easement in gross is intended to benefit a particular individualregardless of whether she owns any land. The land over which thisindividual has her easement rights is the servient estate/tenement. In thecase of an easement in gross, there may be no dominant estate/tenement.The intent is to benefit the holder of the easement right, but the holder’sright to use may well enhance the value of the property she uses inconnection with her exercise of an easement right.

a. EXAMPLE: Jim grants Sally an easement to fish in his pond,which is located on his privately owned property. As part of thiseasement right Sally is also granted an easement to enter ontoJim’s property to go to and from the pond. While Sally may livenext door, she may move miles away, and the easement followsher; NOT her property. This is an easement in gross; Sally is thedominant tenant; Jim is the servient tenant; Jim owns the servientestate (with the pond on it). There is NO dominant estate.

Front 6

How big is a section?

Back 6

1 Section = 640 Acre = 1 Square Mile

Front 7

How big is a township?

Back 7

1 township = 23040.1 Acre = 36.0001 Square Mile

Front 8

Inches in feet

Back 8

?

Front 9

The rights of ownership of real property include all of the following EXCEPT:

compatibility

disposition

exclusion

control

Back 9

compatibility

Front 10

The commission on the sale of a house is $9,410, and 30% goes to the broker who listed the property. Of the remainder, the broker whose sales associate completed the transaction gets 45%, and the sales associate receives the balance. How much does the sales associate who made the sale receive?

$4,389

$3,728

$3,622.85

$2,425

Back 10

$3,622.85

Front 11

The type of real estate ownership that is MOST all-inclusive is a:

life estate

fee simple estate

conditional fee estate

reversionary interest

Back 11

fee simple estte

Front 12

A father conveyed the family home to his daughter by will as a pur autre vie estate for the life of her mother. If the daughter should die before the mother, who gains possession of the property?

Back 12

Daughter's heir

Front 13

A man owned two acres of land. He sold one acre to a neighbor and reserved for himself an appurtenant easement over his neighbor’s land for ingress and egress. The man’s land:

is the servient tenement

can be cleared of the easement when the man sells the withheld acre to a third party

is the dominant tenement

is subject to an easement in gross

Back 13

is the dominant tenement

Front 14

A woman owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective lot purchaser?

Appurtenant easement

Easement in gross

Easement by necessity

License

Back 14

Appurtenant easement

Front 15

A homestead exemption protects against judgments:

of unsecured creditors

resulting from unpaid taxes

from foreclosure of a mortgage

that result from the costs of improvements

Back 15

of unsecured creditors

Front 16

In a limited partnership:

the number of investors is limited to 10

the general partners run the business

all the partners participate in running the business

investors may participate with only a small amount of capital but with unlimited liability.

Back 16

the general partners run the business

Front 17

Which of the following parcels of land is the smallest?

Two sections

Two square miles

1,280 acres

5% of a township

Back 17

5% of a township

Front 18

“Beginning at the SE corner of the NE¼ of the section, then due west 5,280 feet more or less to the SW corner of the NW¼, then north along the west line of the section 2,640 feet, more or less, to the NW corner of said NW¼, then in a straight line to the point of beginning.” How many acres does this parcel contain?

160

80

240

320

Back 18

160

Front 19

A home mortgage loan closed on July 1 for $765,000 at 5.5% interest amortized over 25 years at $4,697.77 per month. Using a 360-day year, what would the principal amount be after the monthly payment was made August 1?

Back 19

$763,808.48 DONT KNOW HOW!!

Front 20

An appraiser estimated the replacement cost new of a building at $560,000. The building has an estimated economic life of 40 years and an estimated remaining life of 30 years. What is the current value of the building?

Back 20

420,000 $

Front 21

Property purchased five years ago was assessed for tax purposes at 50% of market value. The tax rate was $4.90 per $100 of assessed valuation. Today, the taxes, imposed at the same tax and assessment rates, have increased by $637. How much has the market value of the property increased assuming straight-line appreciation?

Back 21

26,000 $

Front 22

According to a broker’s comparative market analysis (CMA), a property is worth $225,000. The homeowner bought the property for $190,000 and added $50,000 in improvements, for a total of $240,000. The property sold for $222,500. Which amount represents the property’s market value?

Back 22

225,000

Front 23

A suburban home with four bedrooms and only one bathroom suffers from what condition?

Back 23

Functional obsolescence

Front 24

A buyer bought a house for $125,000. The house, which had originally sold for $118,250, appraised for $122,500. Based on these facts, if the buyer applies for an 80% mortgage, what will be the amount of the loan?

Back 24

98000$

Front 25

In what way does a deed of trust differ from a mortgage?

Back 25

Number of parties involved in the loan

Front 26

A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called:

Back 26

a title insurance policy

Front 27

The type of title insurance that will protect the owner and heirs is called:

Back 27

an owner’s policy

Front 28

The clause in the deed that defines the ownership is the

Back 28

habendum clause

Front 29

A grantor does NOT wish to convey certain property rights. The grantor may note the exceptions in the:

Back 29

deed of conveyance

Front 30

In which of the following situations could a quitclaim deed NOT be used?

To convey title

To release a nominal real estate interest

To remove a cloud on title

To warrant that a title is valid

Back 30

To warrant that a title is valid

Front 31

Under the terms of a trust established by a will, the trustee is required to sell the real estate the trust holds. The deed that will be delivered at settlement of such a sale is a:

Back 31

deed of release

Front 32

An option is granted when an owner gives the potential purchaser the right to purchase the property:

at any time or price

at a fixed price within a certain period of time

without making any official record of the purchase

none of these

Back 32

without making any official record of the purchase

Front 33

The law that requires real estate contracts to be in writing to be enforceable is the:

Back 33

statute of frauds

Front 34

Which of the following is not generally exempt from paying real estate taxes?

for-profit senior living facility

municipal government

charitable hospital

private not-for-profit school

Back 34

for-profit senior living facility

Front 35

Taxes levied on a property owner to pay for installation of sidewalks or sewers are called

Back 35

special assessments

Front 36

General real estate taxes are also called:

Back 36

ad valorem taxes

Front 37

All of these are examples of government policies that can affect the real estate market EXCEPT:

Back 37

the Federal Reserve Board’s discount rate.

a shortage of skilled labor or building materials.

land-use controls, such as zoning.

federal environmental regulations

Front 38

Which of these is an example of an economic characteristic of land?

Back 38

Scarcity

Front 39

Another word for uniqueness is

Back 39

nonhomogeneity

Front 40

Which of these laws extended housing discrimination protections to families with children and persons with disabilities?

Back 40

Fair Housing Amendments Act of 1988

Front 41

The Fair Housing Act is administered by the:

Back 41

Department of Housing and Urban Development

Front 42

The Fair Housing Act does NOT prohibit discrimination on the basis of:

Back 42

sexual preference

Front 43

If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of:

Back 43

eminent domain

Front 44

Three brothers bought a farm together, and the deed listed only each of their names. What form of ownership are they presumed to have taken?

Back 44

Tenancy in common

Front 45

How many acres are contained in a parcel described as follows: The NE ¼ of the NW ¼; the N ½ of the NW ¼, NE ¼, of Section 10?

Back 45

60

Front 46

The grantor is conveying an interest that is less than fee simple absolute. This explanation of the extent of ownership will be found in the:

Back 46

habendum clause

Front 47

fee simple absolute

Back 47

In English law, a fee simple or fee simple absolute is an estate in land, a form of freehold ownership. It is the way that real estate is owned in common law countries, and is the highest ownership interest possible that can be had in real property

Front 48

A title insurance policy that protects the interests of a mortgagee is called:

Back 48

a lender’s policy

Front 49

In real estate, a sales associate is always:

Back 49

a licensee who performs real estate activities on behalf of a broker

Front 50

An individual who is authorized and consents to represent the interests of another person is:

Back 50

an agent

Front 51

specific performance

Back 51

?

Front 52

Which of these would permit a law enforcement officer to seize and sell a debtor’s property?

Back 52

Writ of execution

Front 53

Which of these is a general, statutory, and involuntary lien on both real and personal property?

Back 53

Federal tax lien

Front 54

A deed of trust involves all of these terms EXCEPT:

lender

borrower

trustee

mortgagor

Back 54

mortgagor

Front 55

In which approach to value are the square-foot method, the unit-in-place method, and the quantity-survey method used?

Back 55

Cost approach

Front 56

Rights or privileges that are connected with real property are:

Back 56

appurtenances

Front 57

Which of the following is NOT a test to identify a fixture?

Size of the item - Correct answerIntent of the partiesMethod of attachment of the itemAdaptation of the item to the real estate

Back 57

SIZE

Front 58

The process by which government can acquire ownership of private land for public use is

Back 58

condemnation

Front 59

A person wants to ensure that the ownership of real property can be willed to her children. Which form of ownership would the person want?

Back 59

Fee simple estate

Front 60

A tax lien on the property can hinder the sale of a property because it is

Back 60

an encumbrance

Front 61

Encumberance

Back 61

An encumbrance is a right to, interest in, or legal liability on real property that does not prohibit passing title to the property but that diminishes its value. Encumbrances can be classified in several ways. They may be financial (ex: liens) or non-financial (ex: easements, private restrictions).

Front 62

Which of the following is the BEST way to ensure that there are no encroachments and verify the boundaries of a parcel of land?

Back 62

Get a spot survey

Front 63

encroachment

Back 63

Encroachment is a term which implies "advance beyond proper limits," and may have different interpretations depending on the context. Encroachment may refer to one of

Front 64

A primary feature of property held in joint tenancy is that:

Back 64

there is always right of survivorship

Front 65

A trust that is established after the death of the owner is called a:

Back 65

testamentary trust

Front 66

A standard rectangular survey system section contains

Back 66

640 acres

Front 67

After real estate has been sold by the state or county to satisfy a delinquent tax lien, defaulted owners usually have a right to:

Back 67

redeem the property within the time specified by law

Front 68

A lien on real estate would be which of the following?

Back 68

Recorded mortgage

Front 69

The statute of frauds requires that real estate contracts to be

Back 69

in writing to be enforceable

Front 70

When a prospective buyer makes a written purchase offer that the seller accepts, then the

Back 70

buyer receives equitable title to the property

Front 71

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that:

Back 71

all of the seller's interest in the property, if any, belongs to the buyer

Front 72

Which of the following is a voluntary alienation of the property?

Back 72

Owner sale

Front 73

Which of the following is an involuntary alienation of property?

Back 73

Condemnation

The term "condemnation" is used to describe the formal act of the exercise of the power of eminent domain to transfer title to the propertyfrom its private owner to the government.

Front 74

A suit to quiet title refers to:

Back 74

the removal of a cloud on the title by court action

Front 75

When a mortgage loan has been paid in full, it is important for the borrower to be sure that:

Back 75

a satisfaction of mortgage is recorded.

Front 76

All the following clauses in a loan agreement enable the lender to demand the entire remaining debt be paid immediately EXCEPT:

Back 76

a defeasance clause

DEFINITION of 'Defeasance Clause' A mortgage provision indicating that the borrower will be given the title to the property once all mortgage terms are met. The defeasance clause is not required in states using property liens as collateral for a mortgage.

Front 77

1 yard = 3 feet

Back 77

x

Front 78

1 Square foot = 0.11111111

Back 78

x

Front 79

capitalization rate

Back 79

The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property was listed for $1,000,000 and generated an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%.J

Front 80

proration

Back 80

prorate definition. To divide or distribute a sum of money proportionately. For example, if one owned an automobile for only three months, an insurance company would prorate the annual premium by charging only one-quarter of it

Front 81

A proration of any prepaid utility charges is reflected on a settlement statement in which of the following ways?

Back 81

Debit to the buyer, credit to the seller

Front 82

Twenty years ago, a family purchased a vacant lot for $26,500. They made no improvements during the time they owned the property. Recently, they sold the lot for $62,275. What was their percentage of gross profit?

Back 82

235%

Front 83

A licensed real estate broker finds a ready, willing and able buyer for the Seller of a property. After the Seller initially signs and accepts the Buyer’s written offer, he later changes his mind and withdraws the acceptance of the offer. In this scenario, the broker:

Back 83

is still entitled to collect a commission.

Front 84

After the initial listing agreement between a seller and broker has expired, the seller lists the property with a different broker. If the original listing broker then finds a ready, willing and able buyer, the broker is:

Back 84

unable to disclose any offers the seller received while he was the listing broker for the property

Front 85

A potential buyer approaches a local real estate agent and expresses interest in purchasing a property in the vicinity. Before the agent and buyer enter into an agency relationship, the agent is able to provide all of the services to the buyer except:

Back 85

tell the buyer how much they should offer on a property

Front 86

In order for a buyer-­brokerage contract to be enforceable in the state of Massachusetts, the agreement must:

Back 86

be in writing

Front 87

The only time a broker can receive a commission from both the buyer and seller in a dual agency situation is if:

Back 87

both the buyer and seller agree to pay the dual compensation.

Front 88

A buyer drives by a property listed by Virtual Realty and is interested in going to see it but she does not want to enter into an agency relationship. An agent from Realty Works, a different real estate office, can show the buyer the property only if:

Back 88

Virtual Realty can obtain the seller’s written consent to subagency and then the buyer is given an Agency Disclosure form stating that Realty Works represents the seller.

Front 89

For a licensed broker to list a home for sale in Massachusetts, it is not required that they provide a Property Condition Statement. Therefore,

Back 89

if the seller does choose to provide a Property Condition Statement, they must disclose any and all facts and defects they know about the property

Front 90

The seller provides a Property Condition Disclosure when listing their home with a local real estate office. Although the seller is unaware of it, the plumbing system in the home is outdated, damaged, and in need of replacement. In regards to the property condition disclosure, what should the seller’s response be as to whether they have any knowledge of plumbing system problems?

Back 90

no

Front 91

Providing a Property Condition Disclosure in Massachusetts is optional.

Back 91

x

Front 92

When a seller met with her broker to discuss listing her home, she informed the broker that her roof tends to leak during heavy rainstorms. The broker told the seller that he would omit that fact when meeting with prospective buyers because it is an undesirable characteristic. Within two months of moving into the home, the new owner found that the roof leaked during every rainstorm. Since the buyer never asked specifically about the condition of the roof, he now can:

Back 92

When a seller met with her broker to discuss listing her home, she informed the broker that her roof tends to leak during heavy rainstorms. The broker told the seller that he would omit that fact when meeting with prospective buyers because it is an undesirable characteristic. Within two months of moving into the home, the new owner found that the roof leaked during every rainstorm. Since the buyer never asked specifically about the condition of the roof, he now can:

Front 93

In regards to the Massachusetts Home Inspection Law, a real estate salesperson must:

Back 93

provide a copy of the Home Inspector “Facts for the Consumer” brochure.

Front 94

Which Massachusetts General Law protects buyers and sellers from “fraudulent misrepresentation and unscrupulous behavior” of real estate agents and brokers?

Back 94

Chapter 93A

Front 95

Which of the following entities oversees the real estate license law in Massachusetts?

Back 95

Board of Registration of Real Estate Brokers and Salesperson

Front 96

Which of the following penalties would an unlicensed person face who engages in activities which require a real estate license in the state of Massachusetts?

Back 96

$500

Front 97

The inspection report for an out of state property development would be prepared by

Back 97

the Board of Registration.

Front 98

Which of the following activities must a real estate office manager hold a real estate license in order to perform?

Back 98

Explain simple contract documents to prospective buyers or sellers.

Front 99

A broker’s unlicensed office assistant helped broker a deal for a sale listing by working overtime to market the listing extensively. She also made a large number of phone calls to find leads, personally reached out to previous investor clients­ one of whom eventually purchased the property. The broker wants to give the assistant a percentage of the sales commission for going above and beyond her normal duties. According to Massachusetts Law, the broker may:

Back 99

not pay a commission to the assistant.

Front 100

Get an escrow account!

Back 100

X

Front 101

If a broker establishes an account specifically for holding earnest money and other monies belonging to others involved in real estate transactions, then:

Back 101

a copy of checks deposited to and withdrawn from this account must be kept on file for a minimum of three years.

Front 102

If a salesperson is found to be in violation of the Massachusetts Fair Housing Law (MGL Chapter 151B), they are subject to action taken by the court in addition to the Board of Registration of Real Estate Brokers and Salespersons that must:

Back 102

suspend the license of the salesperson for sixty days

Front 103

What procedures must a salesperson follow when they terminate their affiliation with their employing broker?

Back 103

Give written notice to both the broker and the Board of Registration of Real Estate Brokers and Salespersons

Front 104

A month after closing a deal on a sale, a salesperson receives a bonus check from the seller as a thank­you for his hard work and prompt sale of the property. The salesperson cashes the check because it was a personal check written out to him. The salesperson in this case:

Back 104

was in violation of Massachusetts Real Estate License Law and Regulations.

Front 105

A taxi driver told a broker who he was driving that his sister was in the market for a new house. They exchange contact information and the sister eventually buys a house through said broker. After the closing, the broker offers the taxi driver a referral fee of 10% of the total commission. The following statement is true regarding this situation:

Back 105

The broker can only give the taxi driver a referral fee if he holds a valid real estate license.

Front 106

Massachusetts Real Estate License Law states that a pre­printed offer to purchase must include which of the following headings?

Back 106

Real Estate Sale Contract

Front 107

A couple in Massachusetts suspects their new home has lead paint because it was built prior to 1978. A lead test in the home confirms their suspicions. They then have their young son tested for elevated blood lead levels but the test is negative. Which of the following are true?

Back 107

They must abate all defective lead paint in the home.

Front 108

According to Massachusetts Real Estate License Law, when real estate is transferred by deed, the deed must be:

Back 108

filed at the Registry of Deeds.

Front 109

The purpose of the “anti­-snob” law s to:

Back 109

prevent local zoning ordinances from barring low and moderate income housing.

Front 110

A grandson was witness to his grandfather’s will. After his grandfather’s passing, the grandson learns that he was a devisee of the will. Which of the following is true of this situation?

Back 110

A witness cannot also be a devisee of the will so the devise is void.

Front 111

Which of the following is true regarding the Homestead Right in Massachusetts?

Back 111

The homeowners, surviving spouse, and minor children have a life estate.

Front 112

Which of the following legal descriptions are NOT used in Massachusetts regarding real estate?

Government rectangular survey system Metes and bounds Property address Recorded plats

Back 112

Government rectangular survey system

Front 113

If a minor enters into a real estate contract in Massachusetts, what is the statute of limitations within which he/she may legally void the contract?

Back 113

There is no statutory period.

Front 114

Neighbor X has an easement through Neighbor Z’s forested lot in order to walk to the river bank. Neighbor X widens the path from 10 feet to 14 feet so that he can launch his boat. This expansion is against Neighbor Z’s wishes. Which of the following is true?

Back 114

The new use is hostile and if not stopped within 20 years, it could become an “easement by prescription”.

Front 115

Neighbor X has an easement through Neighbor Z’s forested lot in order to walk to the river bank. Neighbor X widens the path from 10 feet to 14 feet so that he can launch his boat. This expansion is against Neighbor Z’s wishes. Which of the following is true?

Back 115

The new use is hostile and if not stopped within 20 years, it could become an “easement by prescription”.

Front 116

How long must a landlord wait before he/she can raise rents to reflect a substantial increase in property taxes?

Back 116

When the lease expires, unless provisions with the lease allow for the increase.

Front 117

If an owner defaults on his or her mortgage loan and the property is ordered to be sold as a foreclosure auction, the owner may redeem the property:

Back 117

prior to the sale, under the equitable right of redemption.

Front 118

How long must Massachusetts real estate taxes go unpaid before a property may be sold for the amount of the delinquent taxes?

Back 118

Two years.

Front 119

Transfer tax $4.56/$1,000

Back 119

xxx

Front 120

dower rights

Back 120

DEFINITION of 'Dower' A common law that entitles a widow to a portion of her husband's estate in absence of a will. The provision of dower allows the wife to provide for herself and any children born during the marriage. In most circumstances, the widow is granted up to one-third interest in her husband's assets.

Front 121

A woman buys a house prior to getting married. Once she marries her husband, they continue to live in the house together. If the wife were to die, the husband would come into a life state because of:

Back 121

dower rights.

Front 122

Unless other arrangements are previously laid out in the deed, ownership of a parcel of land by a married couple is assumed to be by:

Back 122

tenancy in common

Front 123

commingling

Back 123

earnest money in private account

Front 124

balloon payment

Back 124

xxx

Front 125

It's called Exclusive Buyer Representation Agreement

Back 125

xxxx

Front 126

What deed contains five covenants?

Back 126

general warranty deed

Front 127

Steering!

Back 127

Whaat?

Front 128

The states in which the owner gives up legal title of mortgaged real estate are called:

Back 128

title theory states

Front 129

Form of tenancy that expires on a specific date:

Back 129

tenancy for years

Front 130

home lacks from sufficient indoor plumbing

Back 130

functional obsolescence

Front 131

nonconforming use

Back 131

test

Front 132

Severalty (joint tenants)

Back 132

Sondereigentum

Front 133

1 acre = 43 560

Back 133

x

Front 134

novation

Back 134

changing terms of contract after it was signed

Front 135

face amount

Back 135

In life insurance, face amount is the sum paid on the policy's maturity date, on the death of the insured, or (if the policy terms permit) on his or her total disability.

borrowed amount without loan costs

Front 136

1 squarefoot = 0,1111111 square yard

Back 136

xxxx

Front 137

general & specific lien

Back 137

a general lien covers all of the debtors property

Front 138

progression

Back 138

xxx

Front 139

general and specific lien?

Back 139

xxx

Front 140

fee simple determinable estate

Back 140

"as long as not torn down"

Front 141

deficiency mortgage

Back 141

default

14k missing

lender can seek deficiency judgement

Front 142

Federal Fair Housing Act

Back 142

religion, nationality,

Front 143

deed of conveyance

"This property was not encumbered during the time the seller owned it except as noted in the deed"

Back 143

Special Warranty

Front 144

tenancy in common

Back 144

undivided interest

Front 145

Trustee's deed

Back 145

directed her woman dies

...

Front 146

term mortgage loan

Back 146

entire principal amount is due at the end of the term

Front 147

swimming pool in condo is owned by?

Back 147

unit owners in the form of of percentage undivided interests

Front 148

severance

Back 148

real property becomes personal property

Front 149

constructive eviction

Back 149

heating plant broke

landlord did not repair

tenant moved out

Front 150

Tenancy at will

Back 150

A tenancy at will is a property tenure that can be terminated at any time by either the tenant or the owner (landlord). It exists without a contract or lease, and is unspecific in duration or the exchange of payment.

Front 151

annexation

Back 151

fence becomes property

Front 152

front foot

Back 152

crazy

Front 153

township sections

Back 153

learn

Front 154

arrears

Back 154

x

Front 155

public record regarding title

Back 155

mechanics liens

Front 156

rescind

Back 156

stornieren

Front 157

1 yard = 3 feet

Back 157

x

Front 158

fee simple determinable

Back 158

gets it back if conditions sets in

Front 159

States takes land

Back 159

eminent domain