When lending standards are tightened, lenders typically require
Answer(s): B
The loan-to-value ratio (LTV) is the loan amount compared to the property's value or purchase price.A lower LTV ratio means that the borrower must make a larger down payment, reducing the lender's risk.A higher LTV ratio (A) increases risk and is more common in loose lending markets.C (balloon payments) is a loan feature, not directly related to tightening standards.D (waiving ECOA) is illegal; lenders cannot require waiving anti-discrimination protections.Thus, in tighter credit markets, lenders protect themselves by requiring lower LTV ratios.
Massachusetts Real Estate Salesperson Candidate Handbook Financing; Federal Reserve Lending Guidelines.
A prescriptive easement is proven by a
A prescriptive easement is established through open, notorious, continuous, and adverse use of another's land for a statutory period (in Massachusetts, typically 20 years).To legally recognize and establish the easement, the claimant must usually bring a quiet title action in court. This court proceeding clarifies ownership rights and confirms the existence of the easement.A (deed): not applicable since prescriptive easements arise without written agreements.C (abstract): summarizes recorded documents but would not establish prescriptive rights.D (title policy): insures title, does not prove an easement.Thus, the correct answer is B: quiet title action.
Massachusetts Real Estate Salesperson Candidate Handbook Easements & Rights; M.G.L. c.187, §2.
A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two-car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck. The ranch house is most likely to sell for around
Answer(s): C
Which of the following best completes the following metes and bounds description? "Beginning at the intersection of Bunker Hill Road and Munson Avenue, thence 150 feet south; thence 85 feet west; thence 150 feet north; thence"
Answer(s): D
Comprehensive and Detailed Explanation (150250 words):A metes and bounds description closes by returning to the Point of Beginning (POB) using the necessary final course to complete the perimeter. Here, the sequence runs: 150 feet south, 85 feet west, and 150 feet north. After going south 150' and later north 150', you are back aligned with the original east-west line at the POB but 85 feet west of it. To close, you must travel 85 feet east back to the POB. Therefore, the only correct final call is "85 feet east to the Point of Beginning." This reflects the standard principle that metes and bounds must form a closed polygon, ending exactly where they started. Massachusetts exam content treats metes and bounds as a valid legal description method emphasizing a closed traverse that returns to the POB and uses calls of direction and distance to define boundaries precisely.
Massachusetts Real Estate Salesperson Candidate Handbook Property Ownership & Legal Descriptions; Modern Real Estate Practice (legal descriptions: metes and bounds).
Who establishes zoning ordinances?
Comprehensive and Detailed Explanation (150250 words):Zoning ordinances are enacted at the local (municipal) level--cities and towns--under police power delegated by the state. While states pass enabling legislation and can set broad land-use frameworks, the actual creation and administration of zoning (district maps, permitted uses, dimensional regulations, variances, special permits) is done by local authorities such as city or town councils and implemented by local planning and zoning boards. Federal and regional bodies may influence land use through funding or environmental regulations, but they do not enact local zoning ordinances. On the Massachusetts exam, candidates are expected to know that municipalities adopt zoning bylaws/ordinances to promote public health, safety, and welfare, and administer them via local boards, inspectors, and appeals processes. Thus, the correct answer is D.
Massachusetts Real Estate Salesperson Candidate Handbook Land Use Controls (Public restrictions: zoning); M.G.L. c. 40A (The Zoning Act).
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