RE Law MidTerm Ch 5 -9

Question 1

What are the 3 types of Legal Descriptions?

Answer 1

1. Metes and Bounds (MA)
2. Gov’t Survey (Grid)
3. Plat Description (Refs Survey)

Question 2

What are 4 Major things a Real Estate Broker does?

Answer 2

1. MLS Listing
2. Open Houses / Property Access
3. Establish Mkt Value & Listing Price
4. Explaining Buying Selling Process & Getting Signatures

Question 3

What does Respondeat Superior mean?

Answer 3

Let the Master Answer - Legal Doctrine holds Principal legally responsible for the agent

Question 4

What are two types of listing agreements?

Answer 4

1. Exclusive Right to Sell - Listing broker gets commission no matter who procures a buyer.
2. Exclusive Agency

Question 5

What does Tristam’s Landing tell us?

Answer 5

When commission is due - when the deed is recorded - not just when there is a ready willing able buyer.

Question 6

Things a Paralegal needs to look for in a P&S Agreement

Answer 6

DATES!!! - Contingency, Closing, Financing

Property Description

Question 7

What does the Statute of Frauds tell us?

Answer 7

That a real estate transaction must be in writing

Question 8

Who must insure a property in a real estate transaction?

Answer 8

The seller assumes the risk in Massachusetts right up until closing.

Question 9

What is a deed?

Answer 9

A title and a written transfer of land

Question 10

What is a Fiduciary Deed?

Answer 10

An Estate Deed - Need a certif of Death & a No Tax Affadavit

Question 11

What are 2 major formatting items in deeds?

Answer 11

A 3” margin and putting prop address in left hand margin

Question 12

Where do you look to find the Percentage of Common Interest for a Condo Deed?

Answer 12

Always refer to the prior deed

Question 13

Who signs the Deed?

Answer 13

The GRANTOR

Question 14

Items in a deed - The magic 15

Answer 14

ACCDDDEGHNRRSTW
Address 
Covenants & Restrictions 
Consideration
Description 
Delivery & Acceptance
Date
Excise Tax Stamp
Grantor / Grantee
How the title is transferred
Notory
Recorded 
Reference to Prior Deed
Signatures
Type of Deed
Words of Intent

Question 15

What are the 2/3 kinds of Warrantys?

Answer 15

1. General Warranty - Most assurance to the buyer - I did nothing wrong and neither did anyone before me (forever)
   2.Special Warranty - Protecting grantee from current owner only (used in other states) In Mass this is called a Quitclaim
   In other states a Quitclaim offers no protection - AS IS

Question 16

What is a Bonfide Purchaser (BFP)?

Answer 16

One who acts in good faith w/o notice and pays value.

Question 17

What is Race?

Answer 17

When there are 2 deeds and 1st person to registery wins

Question 18

What is Notice?

Answer 18

Subsequent BFP has no notice of another deed - This is primary in Mass

Question 19

What is Race Notice?

Answer 19

Most Common in other states - Subsequent No Notice & 1st to Registry

Question 20

What is a lien?

Answer 20

Claim against a property when the owner owes a creditor - The title is no longer clean

Question 21

What is a Mortgage lien?

Answer 21

This lien attaches to the property the mortgage note is for Only.

Question 22

What is subordination?

Answer 22

Priority - Tax liens are always first but the rest of the folks have to line up in a specific order.

Question 23

What is a mechanics lien?

Answer 23

A construction lien - Claim on property to cover improvements, furnishings etc. used in new construction a lot.

Question 24

What is a Judgement Lien?

Answer 24

Monetary debt attached to real property - If you were sued and lost - An attachment is done right away to secure the property - An execution is done after the case is over to take the property.

Question 25

What is Lis Pendens?

Answer 25

A notice recorded when a lawsuit affects title to a particular parcel of real property.

Question 26

How long is a mortgage no longer enforceable?

Answer 26

35 years or 5 yrs past the maturity date if it has not been discharged. `