MA Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Salesperson pre-license hours

In Massachusetts, a salesperson applicant must complete 40 hours of approved pre-license education and pass the licensing exam before working under a licensed broker.

Broker experience requirement

A Massachusetts broker applicant needs 40 hours of broker pre-license education plus three years of full-time experience as a licensed salesperson.

Continuing education cycle

Massachusetts real estate licenses renew every two years, and renewal requires 12 hours of continuing education completed during that two-year cycle.

Escrow records retention

Massachusetts brokers must place client funds in a separate trust account and retain escrow records for three years.

Dual agency consent

A Massachusetts licensee may represent both the buyer and the seller in the same transaction only with the written informed consent of both parties.

Facilitator status

A facilitator helps a consumer through a transaction without representing either party, owes honesty and accuracy, and requires written consent.

OLD CAR duties

Obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care are the six fiduciary duties an agent owes to a principal.

Designated agency

The broker assigns one licensee to represent the buyer and a different licensee to represent the seller, with written consent from both parties.

Statute of Frauds

Massachusetts requires land contracts to be in writing and signed by the party to be charged, such as the seller or the buyer.

Purchase and sale agreement

In Massachusetts the P&S is the binding contract that follows the offer to purchase and contains price, deposit, closing date, and contingencies.

Mortgage contingency clause

It lets a buyer cancel and recover the deposit if the buyer cannot obtain the financing specified in the contract within the stated period.

Unauthorized practice of law

Massachusetts licensees may fill in blanks on standard forms but may not draft contract language or give legal advice to consumers.

Tenancy by the entirety

A form of co-ownership available only to married couples in Massachusetts that includes a right of survivorship between the spouses.

Adverse possession period

Massachusetts requires 20 years of actual, open, notorious, exclusive, adverse, and continuous use before a claimant can acquire title.

Variance vote requirement

A Massachusetts zoning board of appeals may grant a variance only with four affirmative votes from a five-member board.

ANR plan

A plan showing a division of land that does not create a subdivision, endorsed by the planning board under M.G.L. c. 41.

Capitalization rate formula

The cap rate equals net operating income divided by property value, so value equals net operating income divided by the cap rate.

Gross rent multiplier

The GRM is sale price divided by gross rent, and estimated value equals the GRM multiplied by the subject property's gross rent.

Sales comparison adjustments

When a comparable property is superior to the subject, the appraiser subtracts value; when the comparable is inferior, the appraiser adds value.

Cost approach formula

Value equals land value plus the cost new of improvements minus accrued depreciation from physical deterioration, functional obsolescence, and external obsolescence.

Loan Estimate timing

Under TRID, the lender must deliver the Loan Estimate within three business days after receiving the borrower's mortgage application.

Closing Disclosure timing

The borrower must receive the Closing Disclosure at least three business days before closing, allowing time to compare final terms.

Loan-to-value ratio

LTV equals the loan amount divided by the lesser of the appraised value or the purchase price, expressed as a percentage.

PMI cancellation threshold

Under the Homeowners Protection Act, a borrower may request cancellation of private mortgage insurance when the loan reaches 80 percent loan-to-value.

Deed excise tax rate

Massachusetts charges $4.56 per $1,000 of consideration for the deed excise stamp, which is customarily paid by the seller at closing.

Quitclaim deed

It transfers whatever interest the grantor has with no warranties or covenants of title, leaving the grantee to bear the risk.

Recording gives notice

Recording a deed at the Registry of Deeds gives constructive notice to later purchasers and helps protect the grantee's priority.

Massachusetts homestead protection

Massachusetts provides automatic homestead protection of $125,000, and recording a declaration of homestead raises the protection to $500,000.

Blockbusting

Inducing owners to sell by telling them that members of a protected class are moving into the neighborhood, which is illegal under fair housing law.

Reasonable accommodation

A housing provider must adjust rules, policies, or practices when needed so a person with a disability has an equal opportunity to use and enjoy housing.

Massachusetts protected classes

Beyond the federal classes, Massachusetts law adds marital status, sexual orientation, gender identity, age, ancestry, veteran status, and source of income.

Chapter 93A

Massachusetts consumer protection statute prohibiting unfair or deceptive acts or practices in trade or commerce, including real estate brokerage conduct.