RE Ch1-2

Police power

The right of the government to enact laws to protect the public

The Board of Registration of Real Estate Brokers & Salespersons

issues the licenses and oversees administration and enforcement o A part of the Division of Professional Licensure o Established in 1960 o The Governor appoints its 5 members  3 of them are brokers with at least 7 years of experience  2 of them are unlicensed members that represent the public  One of them is appointed chairperson  All members serve a 5-year unpaid term & meet at least 4 times a year  Quorum of at least 3 members  Written meeting records are available to the public on the Division of Professional Licensures website

What are the requirements for obtaining a Salesperson license?

Must be 18 years old, take a 40-hour class, pass the state exam, pay a fee, and affiliate with a broker

What are the requirements for obtaining a Broker's license?

Must have 3 years of experience as a salesperson, take another 40-hour class, pass another state exam, be bonded for $5,000, and pay a fee. Can work independently, accept client payments, and handle escrow accounts.

What is the main requirement for Realtors?

Membership in a trade association

What is the name of the largest trade association for Realtors?

National Association of Realtors (NAR)

When was the National Association of Realtors established?

1908

What is the significance of the National Association of Realtors?

One of the most powerful lobbying groups in North America

What is required to join the local chapter of the Massachusetts Association of Realtors?

Pay a fee

What is the rule for agents associated with an office that is part of a local Realtor chapter?

They must be Realtors

What is the first step in the real estate transaction process?

Being hired as a real estate agent by a seller

What happens after advertising the property on MLS and online?

Buyers will contact the agent to see the property

What occurs if the seller accepts the buyer's offer in a real estate transaction?

A Purchase and Sale (P&S) Agreement will be made and signed

What happens once the terms and conditions of the contract are met in a real estate transaction?

The closing will take place, and both the buyer and seller agents will be paid

Broker (or special agent)

only one who can be hired and paid directly from the principal

Subagent (agent's agent)

client's subagent and brokers agent

paid by the broker Insurance

Client (or principal)

the person who hires an agent in a real estate transaction

Professional liability insurance (or "errors and omissions insurance)

provides protection against the inevitable human mistakes brokers and salesperson make while providing real estate services

General liability insurance:

provides coverage for personal or property damage that might occur either at the brokerage or during showing

Property

Anything you can own

What are the two types of property?

Real and Personal

What does real property include?

Land and anything attached to it

What does personal property include?

Anything that is not attached to the land

Real Property

Transferred with a deed

Deed

A receipt for real estate

transfers title to real estate from one party to another

Bundle of rights

The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property.

Land and Surface Rights

Rights associated with the land and often extend to approximately 30ft. below the earth's surface

Improvements on the Land

any fixed structures such as buildings, fences, walls, and decks

anything permanently attached to the land

Fixtures

individual improvements attached to the property

Air Rights and Mineral Rights

The rights to the space above and below the land, along with any natural resources such as oil, precious metals, etc.

What is the definition of Air Rights?

The space starting 80-500 feet above the land is navigable air space.

Who has jurisdiction over Air Rights?

The Federal Aviation Authority.

Doctrine of capture

The owner of land has the right to capture any liquid minerals, such as gas or oil under their land

Utilization pooling

Landowner owns a fraction of whatever liquid mineral rights exist under their property

Mineral rights

Rights to the subsurface, including rights to oil, gas, coal, and other substances that are mined, and can be separated from land ownership. Extends to the earth's core

What are Riparian Rights?

Rights for landowners whose property borders a river or other waterway

Where are Riparian Rights used?

In Massachusetts and the 13 colonies

What rights do properties bordering navigable rivers have under Riparian Rights?

Rights up to the accretion line

What rights do properties bordering non-navigable rivers have under Riparian Rights?

Rights up to the midpoint of the water

Doctrine of prior appropriation

Bases ownership on whoever used the water first (Western states)

Littoral Rights

Ownership rights of property bordering lakes and oceans

Appurtenances

Any property rights that exist outside the boundaries of the property itself

What is the test for determining attachment of property to land?

Attachment: whether or not the property is permanently attached to the land

Colonial Ordinances of 1641 - 1647

littoral rights extend from mean high-water line to mean low-water line, or 100 rods from mean high-water line, whichever is less

What is the test for determining adaptability of property?

Adaptability: whether the property is custom built to fit, or generically fits anywhere

What is the test for determining intention of property installation?

Intention: the intent of the person who installed the property

What are examples of items treated as personal property?

Trade fixtures: items of business property permanently attached to the land

What are emblements in property law?

Emblements: crops that are planted, and harvested, annually or biannually

Agreement

buyer and seller can agree to treat property as personal or real .Overrides the other tests

Changing property types

Annexation: when property was personal and is now real  Planting a tree

Severance: when property was real and is now personal  Ex: digging up a tree