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MA Real Estate Exam Complete Study Guide
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MA Real Estate Exam Complete Study Guide
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MA Real Estate Exam Complete Study GuideAppraisal Correct Ans - An estimation of a property's value, usually
prepared by a professional who is licensed in this field.
Brokerage Correct Ans - The business of bringing people together in a
real estate transaction.
Commerical Correct Ans - The types of properties that include office
spaces, shopping centers, stores, theaters, hotels, parking facilities, etc.
Development Correct Ans - The term for the construction of
improvements upon the land.
Elevation Certificate Correct Ans - Insurance agents are required to
obtain one of these on any property before issuing quotes for flood insurance.
Financing Correct Ans - The pledging of real property and collateral
for the repayment of a loan through a mortgage or deed of trust.
Federal Deposit Insurance Corporation Correct Ans - This agency can
fine and withdraw its insurance from lenders that do not carry flood
insurance on required mortgages.
Flood Insurance Correct Ans - This type of homeowner's insurance
policy covers "rising water" problems such as a burst water main, overloaded
drains, and melting snow. It is usually an optional add-on policy that becomes
effective 30 days after purchase, unless the property is in a specific area and is
collateral for a federal loan, in which case it is a mandatory policy and
effective immediately.
HO1 Correct Ans - This is the basic form of a homeowner's hazard
insurance policy, and the default policy when a property has been empty for
any length of time. It covers fire, lightning, hail, and other perils.
HO2 Correct Ans - This form of a homeowner's hazard insurance
policy covers more than the basic form, but not as much as the special form. It
is often available for second homes.
,HO3 Correct Ans - This special form homeowner's hazard insurance
policy offers the most coverage for the most reasonable price, and is the
preferred policy on primary residences. It covers both real and personal
property.
HO6 Correct Ans - This form of a hazard insurance policy is designed
for condominiums and can be customized to comply with the condo
association's bylaws.
HO4 Correct Ans - This renter's insurance policy is similar to the
homeowner's insurance policy carried on primary residences, but doesn't
include coverage on real property owned by someone else.
Improvements Correct Ans - Additions to property that increase its
value or enhance its appearance. It can include buildings, fixtures, and
landscaping.
Landlord's policy Correct Ans - This insurance policy is the reverse of
a renter's policy and covers only the real property.
Property Management Correct Ans - A broad term for a person or
company hired to maintain and manage a property on behalf of its owners,
and who are to maximize the owner's returns.
Real Estate Counsellors Correct Ans - These people provide clients
with competent, independent real estate advice without representing them as
an agent.
Special Flood Hazard Area Correct Ans - Properties in this area are
required by federal law to have special insurance as part of any federally-
backed mortgages.
Subdivision Correct Ans - The process of splitting a single property
into smaller parcels.
Residential Correct Ans - The type of properties that include single
and multi-family homes.
,Industrial Correct Ans - The types of properties that include
warehouses, factories, power plants, and other manufacturing areas, even if
the property has a storefront attached.
Agricultural Correct Ans - The types of properties that include
farmlands, timberlands, orchards, and ranches.
Special Purpose Correct Ans - The types of properties that include
churches, schools, cemeteries, and government-held lands.
Real Estate Market Correct Ans - The setting where real property is
bought and sold and prices are established.
Submarket Correct Ans - A real estate market defined by property
type and/or geographic location.
National Association of Realtors Correct Ans - A professional real
estate organization that requires members to uphold a specific set of ethics
and pay dues. In turn, the members can call themselves Realtors.
Seller's Market Correct Ans - The situation where demand for real
property is greater than the supply, which causes sale prices to rise and
builders to become more motivated to build.
Location Correct Ans - This characteristic of real property is important
because a parcel's value is impacted by surrounding land uses.
Demographics Correct Ans - This factor determines the quantity and
type of housing in demand in a particular area. It evaluates family sizes, ratio
of adults to children, number of senior citizens, family incomes, lifestyles, etc.
Property Correct Ans - This term refers to both a physical article and
the rights and interests involved in its use of ownership.
Rights of Ownership Correct Ans - A "bundle" of legal rights associated
with owned property. These rights include possession, control of the property
(within legal bounds), enjoyment of the property, exclusion, and disposition.
, Appurtenance Correct Ans - Anything that is used with land for its
benefits. Examples include subsurface, air, and water rights, as well as
gardens and certain easements.
Exclusion Correct Ans - The right to legally ban other people from
entering your property without your consent.
Air Rights Correct Ans - These rights are for the use of space above a
piece of real property. They can be transferred and subdivided.
Subsurface Rights Correct Ans - These rights are for the use of
anything found beneath a piece of real property, such as oil, coal, or gas. These
rights can be transferred separately from the property itself, and include an
implied easement that allows the owner access to the property so that they
can exercise their rights.
Land Correct Ans - The earth's surface down to the center of the earth
and upwards to infinity ("heaven to hell"), including all things attached by
nature. Also known by the term real estate.
Littoral Rights Correct Ans - The rights granted to owners of land that
are adjacent to large, navigable, non-flowing lakes and oceans. These rights
state the owner may make use of the water for legal purposes, but they only
own the land down to the average high water mark.
Percolating Water Correct Ans - Another name for subsurface water.
Prior Appropriation Correct Ans - A law used in states where water is
scarce. This law limits homeowners' use of any domestic water found on or
abutting their property.
Riparian Rights Correct Ans - The rights granted to owners of land
that are adjacent to flowing waters and/or land that has subsurface water.
These rights state the owner can use the water in any legal way as long as it
doesn't interfere with the same rights of owners downstream.
Water Table Correct Ans - The name for the level at which subsurface
water is located below ground.
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