Chapter 26 and 27 - Requirements Governing Licenses and Transaction Related Issues

When the final payment is made on a mortgage in Massachusetts, how many days does the lender have to cause the discharge to be recorded?

45 days

Escrow, trust funds

- consideration held by a neutral 3rd party to fulfill an obligation at a later date - includes earnest money and rental deposits

Condominium Conversion

- conversion procedure covered by MA Condominium Act - Let residents know

Real Estate Owned (REO Property)

- foreclosed properties owned by lender; property failed to sell to 3rd party - try to recoup

Handling Offers and Trust Money

- licensees must present all offers to the buyers

Trust (Escrow) accounts

- must deposit trust funds in separate trust account located in MA -> must be 'beyond reach' of creditors -> interest or non-interest bearing - may use one account to hold

Escrow documentation

- must keep record of activities including dates, amounts, etc. - cannot withdraw funds as cash - must retain deposit, withdrawal slip

mccarthy vs tobin

- offers are binding contracts - if you submit an offer and a seller accepts it, it is binding and is the intention that you want to go through with a sale

"Super lien" law

- per MA condominium act, against an owner for unpaid expenses has priority over first mortgage lien - requires association notice to owner

Short Sales

- property's debt exceeds the price/value - mortgagee agrees to less-than-full loan payoff to avoid less desirable consequences

Property Taxes and tax sale

- tax levies become lien on property - if not paid in two years, property can be sold at tax sale - right of redemption -> following tax sale, owner has right to pay owed taxes and interest to redeem the property within 6 months -> after one year of no redemption, tax sale buyer can get deed and register title from land court

Conflict of Interest

- whenever agent transacts properties in which they have an interest, such interest must be disclosed to all parties in writing - applies to kin, meaning blood relatives, marriage, or business association - parties must also acknowledge in writing having received the disclosure - if licensee takes an option on a listing, the licensee must disclose to the owner and withdraw if they want the property for themselves

Who does a salesperson have to work under?

A broker

What is a super lien?

A properly filed lien that has priority over the first mortgage on a condominium

Julie's birthday is June 3. Her salesperson license was issued on May 29, 2017? When is Julie's initial license renewal date?

June 3, 2019

When may the broker claim the funds in a trust account?

Never

Which type of license requires the licensee to file a power of attorney with the Board so the Board can accept legal notices on behalf of the licensee?

Non-resident license

What was the final result of McCarthy v. Tobin?

Offers to purchase are binding contracts based on the intention of the offer

Who must register out-of-state property developments being sold in Massachusetts?

The property owner or developer

Real estate salespersons in Massachusetts are exempt from the independent contractor statute. True or False?

True

Which of the following statements is FALSE? a. A real estate transaction is an exception to MUETA. b. MUETA requires that all involved parties agree to conduct the transaction by electronic means. c. MUETA determines that contracts in electronic format are legally enforceable. d. Retention of electronic records satisfies laws that require records to be retained.

a. A real estate transaction is an exception to MUETA

In which case would homestead exemption laws protect a homeowner from losing his home to a debt collector? a. The home is being sold to pay local property taxes. b. The home is being sold to satisfy a lien that was placed on the property before the homestead estate was created. c. The home is being sold to pay court-ordered spousal support d. The home is being sold to pay a large credit card debt.

d. The home is being sold to pay a large credit card debt

Record Maintenance

documents, remember 3 years to keep!