Entrepreneurials‎ > ‎

Real Estate

Difference between 
Real Estate (RE): Anything that is nailed, glued or screwed. The item is permanently affixed
Real Property
Personal Property (PP) 
- Personalty (personal, movable property
- Chattel (an item of property other than real estate)

A pot rack that is bolted to the ceiling is real estate. the pots that are hanging are personal property

1) Cliché: is the item permanently a-fixed. 
2) Is the item special built for the location
3) Intent: What was the intent of the person who located the item at the property
4) Agreement of the parties
Inclusions: Seller wants to leave behind. 
Washer/Dryer is a personal property. However, you could make an argument a gas dryer is permanently fixed and is real estate
Exclusions: Seller wants to remove
A fancy chandelier

Listing -> Offer (2 pages) -> Purchase and sale agreement (8-20 pages). The ultimate agreement.

A giant rock with name of owners on it besides the mailbox: since the buyer didn't want it and it was with the intent to have their name on it they argued that it's personal property and should be removed by the buyer.
Same rock with house number is real estate, it's special built for the location, so rock is real estate.

Emblement: crop. "reap what you sow"
IF you plant in April, sell in July, in October you can Harvest your pumpkin even though it's not your property any more. A crop is personal property.
Applies for only one season
In modern days it is usually waived

Trade fixture: Something that is built in. You make money with, is part of your business or your trade, so it's your personal property. Like a car lift, a barber shop chair, specialty cabinets in salons


Last step of a residential sale.
Thursday 3-5pm, wear a t-shirt, bring plastic trash bag, 20 minutes, trash, extra mail in mailbox, if there is major problem there is time to fix or let buyer know and don't have any surprises. 
Friday 9am: Walk thru of the property. Make sure it's in the same condition as you saw it a month ago. Make sure it's free of debree, clients. and is broom clean. 
Buyer, buyer agent and seller agent
Usually be there at 8:50, good is early and on time is late. Being late is disrespectful of other people's time and unprofessional
Friday 10am is the time of closing, "time of performance"

Cit's name disposal curb side pick up to pick up any excess items from curbside that seller left behind was ~ $12
If anything is left behind the buyer can ask seller for concessions e.g. $1000 to remove a desk.
If you have a $500 problem you ask for $1500, you always ask for more. 

Swing sets: is personal property. It's large awkward and is not permanently fixed. Maybe you don't have kids, or want to worry about hazard. If seller doesn't want it, keep it written in agreement. Seller was lazy to put it on Facebook market place or want to go to length of removing it. 
If the seller doesn't want it, they call it they left if behind for you. They dump it on you. 

Stack of matching kitchen tiles. thy left it behind.
Cans of paint. they left it behind. Too lazy to go to hazardous waste removal. Gently remind seller agent they need to remove it.

A truck load of trash the seller left behind results in $2500 price reduction 

Nothing motivates like a hard deadline. Soft deadlines don't happen. Hard deadlines they do!

The value of agent is not in taking pictures or setting up an open house. It's in negotiations. Making your clients more money than your fee

Benefits of owning real estate.

App: ease
ur: of 
tenance: tenant ==> owner

Things that make life easier for the owner. Ownership benefits

Subjacent support
Dig tunnel below to another parcel

Lateral support
You can not destabilize the neighboring property by digging a large hole by their side

Air right
You own everything below and above surface except for air traffic control (FAA, or DOD),
you can lease airspace for at most 99 years. 
You can't separate surface and air rights. 

City of Boston own the sidewalk and the street
They had to lease the air right for the seats hanging on the sidewalk

They have leased the space above the road to build a building over the highway. or above rail road

largest air right lease in New York hudson yard 

Riparian rights: rights near a small body of water
navigable: You can move a boat from one part to another. You right go to edge of water
non-navigable: Your rights go to mid point, you can swim, for household use, no crops. You can not water your crops with riparian rights

Doctrine of prior appropriation
whoever used the water first owns the water.

The water that transfers over is owned by the city but the river bed and bank are owned by the private property.

Littoral rights large body of water
the ownership extends to the Mean high water mark 

The land between high tide and low tide (Tidal flat) is owned by state. 

In Massachusetts some small parts the tidal flat is private.

Net loss of real estate due to wind and water:
Net gain of real estate due to wind and water

Alluvium: the actual material that either gets added or subtracted 

Mineral rights: The only right in the bundle that you can sell or severe, (separate ownership)
Solid mineral rights: below ground, that coal is part of the real estate., one you mine it and dig it up it becomes part of personal property.

Liquid: natural gas or oil. Law of capture. if you pump it you keep it even if really wasn't under their land, drink your milkshake

Obligations = Encumbrance
Right (easement) or interest (debt) in property by someone other than the owner

deed is an official written document declaring a person's legal ownership of a property, while a title refers to the concept of ownership rights.

deed of trust: like a mortgage, pledges real property to secure a loan. This document is used instead of a mortgage in some states. While a mortgage involves two parties, a deed of trust involves three:
    the trustor (the borrower)
    the lender (sometimes called a "beneficiary"), and
    the trustee.

    The trustee is an independent third party that holds "bare" or "legal" title to the property. The trustee's primary function is to sell the property at a public auction if the trustor defaults on payments.

$1000 bank account, wrote check for $100, You no longer own $1000 even if they haven't cashed it. The $100 is spoken for. You own $1000-$100.

Interest or debt -> we record debt against properties . 
Lien Record fo a real estate debt.  A lien is a record of debt against a property.
Home equity line of credit
secondary mortgage

Court judgement
tax lien. income tax, property tax, ...
Mechanics lien: owed to the contractor time and material, not paid.

How do they know what liens are out there? through the title search

Consummation: the completion of a thing

Conveyance: transporting something. legal process of transferring property from one owner to another. When property is sold. 
The attorney who consummates the conveyance (closing attorney)  needs to make sure all the debts are paid so the new owner gets a clean title

Closing attorney represents the buyer. If they are paying cash they represent the buyer, if using mortgage they represent the lender. In other states this task is done by a title company, but in Massachusetts it's performed by an attorney

The rule the closing attorney follows to pay the parties who hold lien on the property. through the title search

Lien priority ruleFirst to record, first to right, AKA,   First in line, first to get paid in full.

Through the title search, the title company or attorney is going to find all the prior liens and they figre out which one have been discharged or paid off. Let's say they find two outstanding liens, one from a mortgage company and one from a home equity line credit. Let's say mortgage was filed in 2002 when they bought the property and the home equity line was filed in 2010. Mortgage company would be the superior lien holder (first) would be paid in full before the junior lien holder gets any money from any proceeds of the sale. 

Sold for $500k, real-estate that consummates the conveyance pays everyone in order of first in first out:
- outstanding balance of $100k primary mortgage to mortgage company, 
- $50k to home equity line
- real estate fees
- lawyer fees
- record deed
- prepare deed
= seller's proceeds

who can skip the line?
Government (e.g. taxes)
condo association can file for super lien and represents up to 6 months of unpaid condo fees, they can even foreclose your property on you

How states interpret mortgage law:
Title theory:
Lender holds the legal title. They own the house, the owner doesn't. Easier to foreclose since the lender already own the house
Equitable title = possession     In a title theory state when the lender holds the legal title, the borrower holds equitable title
Lien theory:
Borrower holds the legal title. Harder to foreclose, has to go through court. It's a judicial foreclosure process

a right to cross or use someone else's land for a specified purpose.
Runs with the land. Goes with the property on property's sale, you can not separate them

A dominant estate (or dominant premises or dominant tenement) is the parcel of real property that has an easement over another piece of property (the servient estate or servient tenement)
tenement = tenet = owner

Created: when an owner owns both properties. One property owns the easement and the other is subject to easement
Dissolved: when both parcels are owned by one individual

Common easements:
Utility easement
Travel easement: 
ability to walk to beach
shared driveway

A developer buys a land and it is already subdivided into two pieces A and B. A doesn't have access to road (it is land locked). The developer's attorney writes an easement to mark it permanently. 
A will have right to travel over B to have access to the road
A is the dominant tenement. because they have right to travel over B, and B is the servient tenement in a shared driveway 
Drainage for water runoff
Septic easement
View easement: neighboring lot had a view easement over the property he was selling. Neighboring lot was the beneficiary and the selling lot was subject to the easement. If the trees grow too tall the then the other parcel can cut down the trees to preserve their view. It was to view the ocean. 

all easements will be discovered as part of title search

Easement in Gross: Does NOT run with the land
An easement that runs to a person or individual or entity or corporation, and when they pass along or move along it goes away. 

Deed in trust
Lender (beneficiary) gives money to trustor (borrower), trustor gives title to trustee. OR gives and EE receives. They hold title during the outstanding duration of the mortgage. At the time mortgage it's paid the title is returned to trustor (reconveyance).  IF not paid, beneficiary will file trustee to foreclose on unpaid mortgage payments.

Reconveyance is the transfer of a title to the borrower after a mortgage has been fully paid.


A temporary permission, it's not an encumbrance / easement. It can be revoked. Like allowing somebody tot park their boat on your land, or ticket to game or park cars over for a party

Unauthorized use of land
If you build your shed on the neighbor property. It's offsides! Encroachment. Sally is encroaching upon Bob's property.  
Open + hostile + uninterrupted without objection. 20 years. Sally could make a claim of squatters rights. Claim of adverse possession to the court. Grant her ownership of that piece of land. 

You do need to defend your property. Defend it or lose it!

Easement by prescription
You get to use part of land without ownership


Anti-trust violation: Violations of laws designed to protect trade and commerce from abusive practices such as price-fixing, restraints, price discrimination, rigging contract bids, and monopolization.

Types of Estates
Basic ownership = Fee simple
Unlimited duration
possession. you don't own it, you possess it. Like a leased apartment or a rental car
lease hold
less than

Lessor gives possession to leasee, when lease ends, the possession revert back to owner. Reversionary right of possession

In deed of freehold estate, seller can put condition on that deed. (Deed is a sales slip, receipt of sale, receipt of real estate transaction). Deed restrictions or deed requirements
Condition subsequent
prevents the new owner and all future owners from using the property in whatever is prevented. House of worship, faith based beliefs, e.g. no consumption of alcohol, no liquor license in the future at that property. 
Stop and shop -> potential grocery stores, you can't sell dairy, meat, fish.  You can have a mechanics but not market basket. It could lead to an anti-trust violation but it never came to that. 

Condition determinable
Requires you use the property in certain way. an open space situation. Marry Cummings Park, 200 acres, it must be used as a public pleasure park.  

Life estate: Attorney + accountant
Life estate in reversion: Person A grants to person B a life tenancy. Person B is life tenant. They are require to pay taxes and cannot do waste to the property (damage the property) for the rest of their lives. When they pass away it reverts back to person A. Usually setup with relatives
A -> B            A-> B X -> A

Life estate in remainder:  Person A grants a life estate to person B who is the life tenant. they have to pay the taxes and cannot commit waste. When B dies, the estate passes along to person R known as remainder man, setup by person A in the beginning. 
A -> B           A -> B X -> R

PurAurteVie: for another's life: A grants a life estate to person B who is a life tenant,  Person B gets the life estate for as long as another's life. e.g. Person M, when M dies the life estate goes to another party, Q and they become the remainder man
A -> B           A -> B, M dies -> Q

In all these cases the life tenant is person B and life tenant must pay taxes and cannot commit waste, the person after B is called remainder man. 

to severe alty. You have severed or disconnected your ownership from all potential others. One owner

Corporation is one one person in the eye of the law. 


Multi-party ownership

Tenants by the entirety
tenant = owner
type to own property by spouse
survivorship: Who ever is left over takes over.

A+B are spuses and own a house. One spuse can not sell the house or part of it without consent from other. If one spuse passes away, their share goes to the other person. It's a survivorship.
if B dies, A owns all of it. 

Tenants in common: Anyone, there is no survivorship. A+B own a property (not spouse e.g. a business partners autobody shop). if B passes away and there is no survivorship, A + heirs of B will be the owner

Joint tenancy: Anyone, but with survivorship, unities. 
unities are prerequisites, they are required to achieve joint tenancy. Property must be held at a deed that's required at teh same time, the equal share of the property 
same time
equal share
same deed.

You can sell your shares. Because there is survivorship if everybody else dies, the person remaining becomes sole owner.

In joint tenancy when all co-owners pass away except one, that single owner owns it in severalty.They have severed (separated) their ownership stake from others due to the death of the other parties, 

Condo Association
2 or more units. 
Master deed = Rules of the condo association
pay fees

prove paid fees, you can sell to anyone at any price at any time, no approval needed as long as they have their 6D certificate.
You can not close your condo sale without 6D certificate
Email seller and their closing attorney to make clear who does it

Each condo has its unit deed, 

private business venture.
Business is owning the real estate, you don't actually buy the real estate, you buy stock in the cooperative corporation and stock is connected to the unit lease. 
more common in Manhattan

There is one deed for the entire property

They get to ask you a lot of questions like background check. In a generic, non-coop, lender can only ask about your ability to pay and value of property. In cooperative, they can literally interview you. what your favorite color is, 
it's like a business partnership

you can not outwardly or secretly discriminate, say this class is allowed this class is not. no specific rules. No actions that outcomes clear discriminatory.

Time share
group of people come to buy a housing unit. very common in resort location. They buy a certain fraction of increments 52 weeks, how many week. During that week you have possession. e.g. buy via lottery, or trader your time share with another timeshared in another city. 

Deed and Title

Real estate
Deed: proof of purchase. written intent to transfer ownership. a piece of paper
Title: an abstract concept. A history of ownership. it's not written down. 

Personal property: 
For smaller transactions you get a bill of sale or sale slip or receipt. Its a proof you bought it
For bigger car or boat: title: if you have a lien the title is owned by the lender. and is a piece of paper you can get from RMV/DMV. 

Types of deeds
General warranty deed: similar to a store's receipt.
no claims
From the time of closing and before the seller owned that and even before that there is not claim of ownership. 
If somebody comes up with a claim, the seller is giving you a general warranty it will be a seller's problem not yours

Special warranty deed
no claim up to seller got ownership, if new claim come up it's new buyer's problem.

Quit claim deed
from day of closing, they are giving you no warranty. Buyer assumes all risk
Seller is selling their interest as it exists. 
Somebody might come and say they have an encumbrance (interest=debt or right=easement) on your property.

Title insurance
Coordinated between Closing attorney who consummates the conveyance and they get a commision off of you of selling you title insurance. But they don't mention that. 
they use the registry of deeds to do this research for the past 50 years. 
registry of deeds is a public library of land records

Everything is negotiable, if you don't like the quote you get from them negotiate

They look into chain of title, they don't have any more info than you might have accessing public deed records
Right -> easement
Interest -> debt / mortgage
The title examiner who is working for title insurance company looks for any title against the property in the last 50 years. 
Find outstanding mortgage
Clouds in title: flaws in prior transactions. minor things 

30 years ago property passed down through will, no proof the person actually died. Go to local townhall and get death certificate. title insurance fixes them. If this goes to court, The court case will quiet the title and resolve the dispute.

Seller is responsible for delivering a clean title, the buyer checks for clean title buying title insurance.

Record the deed
bring the deed to registry of deeds (a public library of land records)

- almost always pays (but everything is negotiable) for the recording fee:
stamp, tax, excise tax, transfer tax
- prepare the deed

Big picture: Provides stability for society with confidence that nobody can take away your ownership, it's stable. you build stability with stability people are willing to invest and nations build wealth.
small picture: constructive notice. Legal fiction that everyone is deemed notified. (assumed notified) provides legitimacy to the transaction. 

Essentials of the deed
1) Written
2) delivered (by seller) and accepted (by buyer) 
3) Consideration: What the seller gets and must be acceptable to the seller. Usually money
4) Identify the buyer and seller 
5) Legal way to identify the property
6) Legl description: Conveyance / Granting clause. I do hereby grant ...
Grantor : Seller (give)
Grantee: buyer (receive)

Metes + bounds
point of beginning , how many steps in what direction
lat , lon
lot + block
subdivision each subdivision is a referenced by number 


Steps of a residential transaction
Single family home
Condo sale

Listing agent perspective
Open hoise at seller's house
have sign out

1) Leads: Getting leads, phone to ring/text/facebook/email. 95% of time focusing on how to get leads. Manage transactions while generating new leads
2) Listing appoitment and sign that you'll be their listing agent. Sit at someone's kitchen and ask to get the business
3) Market the property, MLS, Pics, OpenHouse, Door knocking hey we have a new house listing on the neighborhood. 
Constantly add value to neighborhood homes, news letter about thngs that happen in neighborhood, and a glimps of bought and sold homes, events, activities, How to get leads
4) Receive an offer
5) Download offer and send it separately, keep the communications separate from seller/buyer
5) Seller acceptance of offer
6) Home inspection 7-10 days from accepted offer to do the inspection and get back to you. Buyer can back out at their "Sole", refund deposit
7) Varying upon market, renegotiate. We found this issues, either fix it or lower the price
8) Purchase and sale agreement usually 15 days / two weeks after the offer. About 5 days after inspection negotiations. 
The offer itself, any inclusions, exclusions, Swingset is removed, chandelier, 
Attorneys play a much bugger role, start communicating with attorney before this and introducing yourself.
9) Appraisal: After a week or two from purchase and sale agreement. appraiser sets an appointment with you. You should go to the appraisal, be low profile
10) mortgage commitment letter. In offer and purchase and sale agreement there will usually be set a deadline to accomplish the receipt of this mortgage commitment letter. Usually after 30- days from the offer
Ask for extension
Back out from the deal, refund of the deposit

11) Fire department inspection Smoke and carbon monoxide Book it before inspection.  Do these or order them 3 weeks prior to closing. 
12) Water and sewer reading. department
13) walk through, if closing is at 10am, walk through would be at 9am. This is setup after the closing is setup. check the property yourself the day before. 
14) Closing: at registry of deeds, or law firm office or real estate office. 
15) Have it on record at registry of deeds.
16) give keys, check to buyer agent after the closing is on registry of deeds website. As soon as we are on record.  

"Buyer beware" state
Caveat Emptor
When buyer buys piece of real estate and they don't like their chance of recourse is extremely limited. Unlike most other consumer products where laws favor the consumer. 
The seller can't sell the item at checkout for higher price than posted on the shelf.
Chapter 98: Consumer protection act: protection against deceptive business. A defective item is seller's responsibility to fix it refund it or train you. 
In Massachusetts favors the seller in real estate.

what the seller must disclose to the buyer
Seller (owner) standard of disclosure. Minimum disclosures necessary. Only two things!
1) Lead paint: Dwellings built before 1978. They can say they don't know anything. They should fill a form. 

2) Septic = Title 5. Private sewage

Agent/broker standard of conduct + disclosure
Applies to all relationships whether your client or other clients
Must be honest and accurate
Must disclose any known material defect (not trivial defect), in the real estate
change the price
buyer back out

boiler /AC doesn't work
basement floods?
Have no duty to investigate

- Don't ask otherwise you'd have to disclose it
- I want to know, my enlightened self interest. # 1 asset in life is time. get the problem undiscovered and it gets accepted and inspector figure it out.

Disclose by law if known
1) Soil and water pollution
2) Structural issue, foundation, basement flood
3) systems, electrical, plumbing, appliance, ...
4) Pest, mold(serious health issue)
5) Location hazard stability of the land, flood, erosion, lava

Disclose by MLS rule
Lot #
Lot size
Sq footage
year built
assessed value

In person to assessor's office, they will sell you the field card. $1. A copy of town's answers
Town/city website
MLS link
The problem with internet is it could get updated but when you looked at it was not. Not a good liability

Board of health: confirm the size of the septic system

Broker is the ultimate authority how its done by agency how to disclose
Not in listing. Only speak about house itself and let the buyer know about in person
maybe if it needs a lot of rehab

- Verbally 
- via email. 
Don't reach out to buyer directly, talk to their agent

Disclose before offer. collect emails and email them.

Don't text. it's informal and unprofessional and incovenience

misrepresentation: withhold a known material defect. e.g. you o to take picture and a drop falls on you from ceiling. 
withhold a known material defect at request of seller, seller can ot unilaterally cancel the contract if they don't like you. 

seller would throw agent under the bus about misrepreenataion.

top agent issues
lying about your continued education (12 hours)

"must not disclose" and stigma
must OK
must not => non-material facts
Talk about the property and not the people
Protected class
Why are they selling?
They want to learn and low ball and get leverage 

- They decided to move along
- everyone sells eventually
- They're looking for something different

Your opinion about a verbal offer?
You should submit your highest and best qualified offer

Only if asked, you don't have an obligation or need to disclose it
Stigma tized property
loss of value because of something that happened
negative association
haunted house (paranormal activity)

if asked you must be honest and accurate

AIds and HIV are not an stigma and you must not disclose it

Crime, School, sex offenders

As buyer agent
School: How are the schools
- OK: Demand for school district, a school district is sought after OK
- Not OK: School performance: You can't do that. You can refer to mass.gov, local school administrators. You should not give your opinion of performance of school districts, not only give opinion but also advise to take certain actions

Crime: is the neighborhood safe
sense of safety is subjective based on the eye of beholder
Don't quote crime statistics 
ask them to go back to the neighborhood, tell the if they like it instead of you tell them where they belong

People use it to discriminate and should not be discussed

Sex offenders. it's not in the real estate it's in the area. You don't have an obligation to disclose because it is not a known material defect of the real estate, unless asked for which you have to be honest and accurate.
Sex offender registry board https://www.mass.gov/orgs/sex-offender-registry-board

Accuracy and financial disclosure

Poffing = when you over sell the listing. Real estate or pictures have been poffed up. e.g. 
the water view
Seasonal water view
Size of the apartment. Spacious, ample, ... 

Make it good, realistic, attract the right buyer

Financial interest = ownership stake
list agent or seller agent has ownership in the listing, it must be disclosed.
You = 
Family = kin
business partner

Listing MLS field. e.g. agent is the seller, agent is family member of seller
Offer (2 page)
purchase and sale agreement (8-20 pages)

As buyer agent you disclose it as courtesy, but don't have to

The seller pays the commission that's how its setup in teh industry
5% is the commision
half to buyer and half to seller agency. 

Buy and sell for yourself as agent
If you are the seller as listing agent as well, instead of paying 5% commission, you can pay 3% (0.5% goes to your agency and 2.5% to buyer agency). If you don't want to pay 0.5% to your broker you would have to list it as sale by owner and won't be able to use MLS

If you are buying for yourself. the commissions going to be in the listing agreement. 5% (2.5%, 2.5%). Your agency gets 2.5% commission and you get a share whatever your deal is with your agency, e.g. 70% of that 2.5%

Buyer Dewolfe vs. Hingham Ctr Ltd Agency
Seller told the seller agent that the property is business zoned. but it was not, agent tried it blame the seller, but reality is agent is responsible for posting accurate 
buyer agent is not legally responsible because there assumption of reasonable accuracy
seller agency is also liable under the concept of vicarious liability  One party is held partly responsible for the unlawful actions of a third party. The third party also carries his or her own share of the liability.
Every agency needs to have errors (lac of action) and omissions (actions that you shouldn't do) insurance (e+o) aka malpractice insurance.

Agent is working with the client on behalf of the client. That's why it's the agency that's on the court case

Buyer (Dewolfe) won the court case

Massachusetts is a buyerbe ware unless the seller agent makes an inaccuracy

Law of agency

Agency: act of representing another person. Whenever for another for a fee it must be licensed. 

Universal agent:
Business + personal (health care)
General = business
Special agent = one matter only. real estate agents are special agents, we are there for the real estate only. 
Special always means limited.  like special warranty deed. deed giving special warrantee

Types of Agency in Massachusetts
Single agent = work for only one side
Buyer or seller
Dual agent: REQUIRES advanced written consent. represent both buyer and seller
As a seller agent include clause in the listing agreement special advance to include dual agency OR use special state form
Buyer -> Have a right to represent agreement with the buyer, have the clause consent to dual agency OR use special state form
right to represent agreement locks the buyer with you for a period of time 

Consequently, a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and the duty to account for funds.

If you agree to this you are waiving, a lot of the duties that come with having your own agent. 

For the consumer is less service. As agent you are going to get DOUBLE commission.
on a 400,000 home, 5% commission = 20,000, each agency gets 10,000. On dual agent situation the agency gets the whole 20,000 and you get your commission based on that.

Sometimes the seller negotiates the commission on dual agency e.g. instead of 5% set it for 4%.

Ti be able to get dual agent you first need to get the seller lead!

Designated agent
Advanced written consent

One agency, one deal (transaction) with two agents (one buyer one seller).
the two agents co-broke the deal.

 if designated agents affiliated with the same broker represent the seller and buyer in a transaction, the appointing broker shall be a dual agent and neutral as to any conflicting interests of the seller and buyer, but will continue to owe the seller and buyer the duties of confidentiality of material information and to account for funds

The brokers authority flows through the buyer and seller agent.  
In a designated agency situation what type of agency is the brokerage providing?
dual agency


Non-designated agency. broker will not allow you to do it. Not many of these. At small agency, when you work with us, all of our team works for you. Nobody in our office works for the other side. This is a good punchline to get market share when you are new

advantage of designated agency: brokerage get more money

Sub agency
very rare
prior to 90's no buyer agency in Massachusetts. 
Federal governemnt forced MA to created buyer agency. and hence sub-agency ceased to exist. 

Seller has an agent, and agent has sub-agents which could be from other agencies. Seller is responsible for the deeds of all agent and subagents. 
buyer has no representation and all agents work for seller. e.g. when you buy car. Ford>dealership>sales agent > you

Non-agent. License does not work for anyone. 

Listing appointment (when you go to someone's property and convince them to list their property).  You bring CMA comparative market analysis, your opinion of market value of Sam's, lowest price he is willing to accept. You ask for the listing, they say no, and I'm going to think about it. Agent Amy got the listing. A week later you find a buyer for the property. Can you share the lowest price Sam told you he'd be willing to accept? 

I betrayed Sam I went to his house and got all that info and he already had a buyer. and legal part gets accepted. 

Agency by implication: Even though I didn't sign anything with him made him feel I'm there to help. My responsibilities to him will be implied, (agency by implication) 

Unless I get Sam to sign the paperwork acknowledging me as a facilitator. It's a confidentiality waiver

In first meeting with Sam You'd have to ask them to sign the Facilitator agreement that regardless of what happens at the listing meeting if I'd be able to bring a buyer over. Nobody reads what they sign!!!
As soon as you pull out a form for them to sign even before the meeting you've lost. They are not going to do business with you

OR don't represent the buyer, send it as a referral. It's bad reputation 

On MLS subagent not offered, facilitator 0. Net sale price, If seller makes cncessions ina buyers market the seller does nt have to give comission on those concessions

OLDCAR - Fiduciary responsibility

Faithful performance: must follow lawful and ethical instruction

Always clients best interest first
In a buyers market somebody says is seller motivated to sell the 500k offer that has been on the market for a while? and want to give a low ball offer e.g. 425. From an economical point of view for yourself you'd rather take the 425 now rather than 500 that might not come. but from client's perspective you want to wait.
Send your highest and best qualified offer. I know my client takes listing price or higher
Don't hold other offers to write your dual agency offer

Buyer agent must share with the buyer any known material defect in the real estate 
Be critical thinker maybe even talk buyer out of it. next home is going to be a 5 story house to block your ocean view

Survives the end of agency
No gossiping about clients

Accounting of funds
Earnest money a deposit to show buyer is in good faith when making an offer. If the offer is accepted, money goes to down payment, if buyer backs out sellers gets to keep it, if deal falls through due to contingency buyer gets the money back.

Deposits offer ~$1000
Upon acceptance of offer this goes to seller agent and will be deposited into escrow account
buyer is there for real / earnest

when you make purchase and sale agreement you deposit another 10k-20k

VA loan and 100% LTV
The VA cash-out loan allows up to 100% loan-to-value ratio (LTV). That means VA homeowners can potentially tap all of their home equity, no matter how large
Account of funds
Deposit at offer time $1k + Purchace and sale agreement $16k + Rent, other fees a tenant pays + Sec deposit (goes to escrow account until sent to owner)
All the rental funds must be forwarded to the renter before the beginning fo the tenancy
Security deposit and you can not hold it in escrow account during term of tenancy
Send it to property owner, they have to open a separate bank account to hold it
Usually a non interest bank account so you don't have to worry about it (?)

Sales persons cannot hold clients funds or get direct compensation. It goes to the brokerage first and they send you back via comission plan.

Even money paid as tip you need to give it to brokerage

escrow agent is the seller agent or seller attorney or anyone buyer seller agree to

escrow account = trust account

Broker of record
Agent = employee
broker (person)
agency LLC
Sole proprietorship
you can't hire agents,
must be your own name
can have escrow
Associate/affiliated broker
no employees
no escrow
allowed to sign the escrow account as the allowed signer but not the one ultimately responsible. That would be the broker of record

Three rules of moving escrow money. Broker is a custodian of the parties, it's not up to the discretion of the broker. Allowed and obligated
1) When closed = on record. Clerck at the registry of deeds has stamped the paperwork, stamped the deed saying that its on record. Go to registry of deeds and check it
2) Joint Instruction, when buyer wants to back out due to inspection. Release of funds both parties must sign, distribute the money back to buyer. Everything works by check, always give the option, pick up or mail
3) Court order 

Bank accounts
personal account
operating account
escrow account

Top 5 mistakes
1- misrepresentation
2- dual agent without sign
3- designated agent without advanced written consent
4- commingle: escrow money anywhere but the escrow account
5- conversion: private use , crime embezzelment
escrow money is not future commission
always keep track of escrow account balance

Reasonable care
Due diligence
Home walk, double check: siding, zoning, size of septic system/board of health, heat source
Agency is vicariously liable for agents actions

From offer date you have a month to get your mortgage in order
Lead paint inspection contingency

when cloaing buyer agent send an invoice to lisitng agent about fee as well as w9 with their tax id

at offer they put down $1k, at P/S agreemtnt $9k, for $350k unit with 0.5% fee we need 17500. So the outstanding balance of 7500 from the current escrow account is communicated with the closing attorney to issue check. a lot of the money in escrow eventually becomes comission after clsing!
buyer pays 5% fee to the listing agency, and they pay buying agency

disclosing agency

OLDCAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care

Broker is the dual agent in designated agency
Facilitator is the waiver of confidentiality

  Buyer SellerDual DesignatedFacilitator 
 O X X  X 
 L X X  X 
 D X X  X 
 C X X X X 
 A X X X X X
 R X X Jack X Jack

How agency starts/ends
1) express contract, listing agreement or right to represent agreement
2) Implication = feel you are their agent in a professional appointment
3) Ratification = pitch the idea, get yes, confirm and radify you as their agent

1) completed transaction
2) agreement expired. Some people build careers out of expired listings, go knock on door and talk the owner into doing business with them. Can I come in and chat with you about that? Have you thought about getting an agent with right energy and attitude...
3) Destruction: burn, float, ...
4) Cancelled: needs consent of both parties.
If you want to cancel selling we will take out the listing, remove the signs and stop the showings, but our exclusive contract remain until expiration. sellers usually do that when they find a buyer. and don't want to pay your comission.
5) Force of law: property got seized, lost license, legal impediment (obstruction) to parties being able to perform their function. probate case.


Rental fees

Boston area: paid for by the tenant. 
Suburbs, paid by the landlord.

pay to agent for finding an apartment
up to 1 month in rent

if tennant pays any portion of the fee it must be disclosed. time money and effort
How do you disclose this fee?

JackGately LLC charges a fee for finding you a rental unit. JackGately LLC witll obtain a brokerage fee equal to one month's rent from you, less any portion paid by the lessor (landlord). we try to get the owner to pay for it, but of not you will be charged. We often act as dual agent representing both lessor and lessee in rental transaction.

We do charge a rental fee for our services. We have a paper to acknowledge that we charge a fee. 

To do rental use brokerage's rental charge disclosure form.
to sell, MASSACHUSETTS MANDATORY REAL ESTATE LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE must be given at first visit for a specific property.
at the first personal meeting with you to discuss a specific property.

All real estate licensees, regardless of the working relationship with a consumer must, by law, present properties honestly and accurately, and disclose known material defects in the real estate.

Gets you off the hook!
The duties of a real estate licensee do not relieve consumers of the responsibility to protect their own interests. If you need advice for legal, tax, insurance, zoning, permitted use, or land survey matters, it is your responsibility to consult a professional in those areas. Real estate licensees do not and cannot perform home, lead paint, or insect inspections, nor do they perform septic system, wetlands or environmental evaluations

in the Dewolfe case they tried to use this paragraph, but this does not relieve you from being in accurate, if you don't comment on e.g. zoning that's fine, but if you make a claim, it darn better be accurate.

if they don't want to sign it  Check here if the consumer declines to sign this notice.
keep all broker forms for three years.
Facilitaror - confidentiality waiver: 
Unless otherwise agreed, the facilitator has no duty to keep information received from a seller or buyer confidential.
The agent owes the seller client undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accounting.

This document is designed to protect who? Consumer? no, it's not even consumer friendly. it's protecting industry, the person asking for their signature, protecting agencies and brokers.

How do you an elephant? A bite at a time...

Setting listing appointments


Market value/price and short sales

Market value
How much is house worth

Estimates =  3 approaches

Market price: what was actually paid for the property, net sales price
sold house for $500k, seller contributed $5k to closing costs, then net sale price is $495k
Gross is total earned, net is after expenses

Arms length transaction = open and free marketplace
open and free marketplace: like yard sale, no force or preferential treatment
If you give your nephew a break in the price it is not an arms length transaction
In order to achieve market price it needs to be an arms length transaction

If you sell it to a trust for a $1 but you are a beneficiary of the trust. Is that an arms length transaction? NO

Short sale: You owe more than it's worth. You owe $360k, but sell $225k. You are short $75k
ask for partial loan forgiveness
Bank can deny accepting it
stop paying mortgage
bank foreclosing the property
damaged credit, still better than bankruptcy. 

The last thing bank want to do is to own property. 
Pay tax on $75k loan forgiveness , it's a money gained(!), but didn't pay tax on!

Mortgage fraud: sell to your cousin for $225k for wipe off $75k of mortgage


abutter: a person whose property is adjacent to the property of another.. If the property is too small only abutters might be interested in buying it.

Essentials of value
1) Utility: practical use of property. E.g. flood, or street access, zoning town won't let you use it
2) Sense of scarcity: hard to come by. different market place, same thing, in one it's plentyful and valueless, in the other rare and valuable. This is what trade is
toilet paper. self fulfilling prophecy, tesla
3) Demand 
Overall: overall people interested in
Effective: pre-qualified
4) Ability to transfer
if title insurance comes back with a problem you won't get a clean title. IRS, court probate

Assessed property value is $400k but it's missing one of these, therefore the property value is zero until the issue is resolved.
Comes from city/town  for tax purposes

Assessed val * tax rate = property tax

it lags behind the real market. inform clients about this before it becomes a problem

Appraised value: Can only be achieved by a licensed appraiser. make sure bank doesn't over lend.
Borrower -> lender -> management company -> appraiser employee

Offer -> inspection -> purchase and sale agreement -> appraiser come to house (3-4 weeks in to process)

Appraisal must be at or above the agreed price
Using the 80% ratio: loan to value ratio (LTV), bank only lends up to 80% of appraisal. On a $500k appraised house bank only lends $400k. 
On a 95% LTV, you put down 5%. LTV is the inverse of what you put down. You have to put down the rest.
All is based on appraised value. Not agreed price!

The appraisal came in low. ame in below agreed price. instead of $500, they appraise it for $480. $480 * 0.8 = 384k loan amount, 100k down payment you have to put down an additional $16k.
Cut price
More down
Financing (Mortgage) contingency and back out of offer
usually in Spring appraiseal data is not on par with market
buyer already paid the appraiser


Factors of value

Highest + best value = opportunity -> ROI

1951 you build a ranch of 1250sqft in Lexington MA right on Ma-128 zone Single Family, 
in 2021, you can add an addition to it and make it 2500 sqft, better investment would be to tear it down and build a McMansion. Route 128 has a lot of high paying jobs and you can attract high payers, 

Some of these towns Needham allows you to build as much to proprty line because the bigger the property is the higher assessed value and they collect higher taxes.

It's the american way to maximize the value.

Conformity: Context, what;s going on in the overall area. Will the overall use of the neighborhood stay the same, a lot of things won't change in boring suburbs! Occasionaliy you see change of things in city or zone.

Plottage: benefit
Process is called Assembly
$2M plottage benefit. Just like in monopoloy if you outbuy alowners of a city block you can build something bigger and better that the 4 owners couldn't do. 

Loss or gain in value due to future event

Build rail road / street car at a loss (not a profitable business) to areas that you own, to sell them property at higher prices.

The economic life ends first and physical life continues on and gets repurposed.

burro = donkey / ass

be mindful of where your property is in its economic life cycle and where your city/state/country is at its life cycle. It's easy to look back and say, but much harder when you are in the middle of it in forrest and so many trees.

Obsolescence = loss of value
due to changing market standards.
Fewer people want whatever you are selling
manual drive is functionally obsolete. market standard is automatic. 
suburbs used to be 3/1 bath, now 3 and 2.5 bath. expectation is changed so you get a loss
dining room is functionally is obsolete. nobody ever eats there.  this floor plan is not as desirable as the open floor plan.
external: loss of value outside of your control. e.g. 
if economy takes a dip. 
Interest rates spike, fewer people can afford the property and loss of value for property. 
Reputation that affect value = 
bad school
bad commute
Wobern associate with Cancer until people forget


3 approaches to value

Sales comparison approach, market data approach
Economic concept of substitution

Comparative market analysis CMA

On MLS -> sold section -> software tool -> automatically generate CMA or manually adjust parameters

You always make adjustment off of comp not subject property. 
Let's stipulate. the bathroom is worth ~$10k. Let's say garage is $8k

 Subject property #1 sold comp #2 #3 
 3 bed
2.5 bath
2 car garage

Sold price
Adjusted price


399 + 10 = 409

420 - 8

So the average of adjusted prices is (405 + 409 + 412) / 3 = 408.666 expected sale price

What do you list at?
424,900 didn't sell, 419 didn't sell, 414 get an offer for 410 and concession due to inspection issue - 2 = 408, ultimate sale price
399 lower than market value, since you are under 400k your search shows up in a lot more MLS searches of max search of $400k. 
You drive everyone during open house and hopefully get a bidding war.
If you can't get  any offers you can't mark up the price, because the market has spoken and even the initial 

induced panic buying and is legal, get people very excited about buying the house
induced panic selling is illegal and a fair market violation.

Income approach = $/mo 3 family
NOI = value * cap rate          OR       NOI / value = cap rate

NOI (Net operating income) = the gross income - operating expenses (monthly bills)       
Don't include any capital expense : one time big expense, like new roof, new boiler

3 family cap rate should be around 8%

Net operating income 700,000 = value * 11% cap rate = ~6.3M market value

Cost approach
there are no comps and there are no incomes. one of a kind property, Gov/non-profit properties

Value = price  of land + improvements (buildings, etc) - depreciations on the buildings

Mortgage and note
Mortgage is promised by promissory note
Note is the primary evidence of debt
Borrower gives promise to lender, and lender receives this promise and give money to buy the house. Borrower is known as mortgagor (they give the promise) lender is the mortgagee they receive the promise. 
We got the mortgae to buy the house ------------ in fact you did not get a mortgage to buy the house, the bank agreed to accept your promise. 

Five clauses of a promissory note

1) Acceleration clause = mature 30 years -> fail at the promise, pay at the monthly basis. The mortgage closing date is in 30 years. 
Default: failure to fulfill an obligation, especially to repay a loan or appear in a court of law.
If borrower fails at promise (default) then the lender can accelerate the closing date, to next month. Since you've missed all your payments in the past 6 months you probbaly won't be able to do that. Then they close the loan before they otherwise close. fore-close . close mortgage ahead of time.

2) Defeasance = Defeat the mortgage -> pay-off the mortgage, Discharge the lien (expunge (delete) record of the debt). Get filed at registry of deeds
Got money paid off
sell it and pay via sale proceeds
reach maturity date
3) Due on sale when you sell you must pay off the outstanding balance. payoff figure. 
Partial waiver of due on sale clause: a short-sale - partial loan forgiveness. 
4) Subordination: allows for additional financing. Primary lender (first mortgage) allows for 2nd. the primary mortgage company gets paid first and in full
5) Estoppel: prevents challenging terms if loan sold. Sold mortgage to new company. 


Fully amortized mortgage
paid off at end of term

Mortgage pieces
tax            -> lender puts in escrow for you 
insurance (home owners insurnace)-> lender puts in escrow for you

Amortization table

 Principleinterest  month
 5995  1
 6 994 2
 995 5 360

compound interest.
If you pay an extra payment per year, you pay off eight years earlier

How to compute amortization table
It's relatively easy to produce a loan amortization schedule if you know what the monthly payment on the loan is. 

Starting in month one, take the total amount of the loan and multiply it by the interest rate on the loan. Then for a loan with monthly repayments, divide the result by 12 to get your monthly interest. Subtract the interest from the total monthly payment, and the remaining amount is what goes toward principal. For month two, do the same thing, except start with the remaining principal balance from month one rather than the original amount of the loan. By the end of the set loan term, your principal should be at zero.

Take a simple example: Say you have a 30-year mortgage for $240,000 at a 5% interest rate that carries a monthly payment of $1,288. In month one, you'd take $240,000 and multiply it by 5% to get $12,000. Divide that by 12, and you'd have $1,000 in interest for your first monthly payment. The remaining $288 goes toward paying down principal.

For month two, your outstanding principal balance is $240,000 minus $288, or $239,712. Multiply that by 5% and divide by 12, and you get a slightly smaller amount -- $998.80 -- going toward interest. Gradually over the ensuing months, less money will go toward interest, and your principal balance will get whittled down faster and faster. By month 360, you owe just $5 in interest, and the remaining $1,283 pays off the balance in full.

 = remaining principal * rate / 12 - monthly payment = paid in principal

Buy 420, appraisal at 420 (at or above purchase price). LTV (loan to value ratio) of 80%, after 3 months what is the outstanding principle balance? with 1000 monthly payments

Downpayment is 420 * 0.8 = 336 is loan
336000  - (5+6+7) = 336000 - 18 = 335,982 principle. 

Partially amortized mortgage = not paid off at end of term , common for CRE (commercial real estate)
A partially amortized loan doesn't settle the loan in full. It repays it partially. The part of the loan that hasn't been repaid yet is called a balloon payment. You and the lender decide when the balloon payment is scheduled. It can either be at the start of the loan or it could be at the end of the loan term. With these loans, the remaining balance of the loan is due at the end of the amortization period.

Pros : commercial, start with land, low value, develop it to shopping strip, much higher value 
There are a few benefits, most of which are geared toward for-profit mortgages. These loans often have low monthly payments and a short period of time in which installments are meant to be paid. Upfront, borrowers with partially amortized loans save tons of money.
in single family the relative value is almost the same. at all times there is a single family home. 
Because of this, making all monthly payments on a 60-month loan for 60 months straight will not pay the entire balance. Partially amortized loans are designed to include a balloon payment at the time of the loan’s maturity date. The partially amortized loan balloon payment must be paid in full, or the borrower defaults on the loan.

Points and PMI
You give a mortgage as a promise and get mortgage loan

PMI is private mortgage insurance

downpayment < 20%. ------ LTV > 80%

To get rid of PMI
Reach of 20% equity goal maybe an appraisal needed.
refinance to a loan that doesn't require 

points = prepaid interest, discount points. upfront fee borrower paid at closing.
A point is 1% of the loan (not the sale price)

you get offered, zero points and 9.8% or 2 points and 8.1% ---> pay two points and get lower interest rate
if want to keep it for long, 8.1% is much better
if you want to buy and flip it you'd bettter go for 9% and be out of hte house in a year. and use teh extra point money for renovation.

agreed price of 500k, appraised at 500k, LTV is 85%, paying 2.5 points at closing. Total cash buyer needs at closing

75k is down payment, 425k loan
425 * 2.5% = 10625. points are percentages and need to be converted and come off from the loan amoutn
Total cash buyer needs at closing = 75 + 10625 = $85,625

confirming your answer by the answers is wrong! confirmation bias!


Mortgage types

Purchase money mortgage
more in commercial real estate, rare in residential
At closing the buyer delivers to the seller
downpayment + mortgage
no bank involved. The seller is the bank. the seller is the mortgagee. 
On monthly basis payments go to the seller
tax benefits. Delay getting whole chunk of money
If the buyer defaults, the seller will have a mortgage lien against the document and the mortgage promissory will have accelleration clause to foreclose if they don't pay

Package mortgage
Combine Real estate and personal property in the same loan (RE+PP)
Bank does not want to lend money against a depreciating asset like a washing machine.
They want something that they can foreclose upon or an appreciating asset like real estate

Buy farm
real estate
cows, tractor

Get package mortgage

Auto parts

Business opportunity: list complete business on MLS

Blanket mortgage
2 or more parcels
partial release clause: finance a subdivision of a property or primary home and vacation home
subdivision: subdivide a property

when you have on conventional mortgage or regular loan on a whole property you have one lien over all subdivisions. and can't sell one parcel unless you pay off the entire mortgage. 

partial mortgage with a partial release clause allows you to sell a subdivision parcel. e.g. on a 4 subdivision property you can sell a parcel, pay off 1/4 of the loan and bank discharges the lien from that house lot. the new owner gets a clean title

Reverse mortgage
you must be 62+ years old
with a house $700k, you are house rich but cash poor
Each time you get a check you send part of equity to the lender.
Then you ay all of it when you die and heirs sell it

Adjustable rate mortgage (ARM)
fixed rate for the first years (e.g. 3 years)
after those 3 years, your payment is recalculated yearly or quarterly
subprime -> buyer was not optimally qualified

Bridge loan
new loan secured against another house, you have one year to sell the old house
high interest rate (e.g. 9%), you have to get out of town, but can't sell current house

Contract for deed
seller becomes the mortgagee, but for only a short window e.g. 1 year, during this window of time, the buyer gets a regular mortgage. 
delay full payment.
if interest rate is 20% securing regular loan takes a lot of time


Government loan programs (FHA)
Federal housing administration
provides insurance for the loan
Federally (US government) backed loan
help especially with downpayment
not exclusive to first time home buyers
with FHA you can get an LTV of 96.5%! You only have to put down 3.5%

it takes longer to close. IF with regular loan it takes 45 days, with FHA at least 60 days.
appraisal and inspection. not all inspectors qualify for FHA so you have to wait for them to do it

if property doesn't satisfy safety inspection seller has to make adjustments before loan

a lot o FHA loans collapse. most sellers go with conventional loans because there is not ifs 

subprime loans: risky mortgages
need to pay PMI

VA loan
Veteran administration: helps buy house, pay for college
LTV of 100%. 0% down
seller wanted $500 down payment to make sure the offer is earnest
takes 60 days to get
Some seller repairs like FHA

FHA offers insurance VA offers guarantee
Veteran can pass down the loan, Assume Vet or non-vet
VA loans don't collapse and stick to the closing

USDA loan
Agriculture, helps farmers in rural location and now suburban locations
insured by the government
private loan
need to pay PMI

in any one govt doesn;t give the loan but just insures


equal credit opportunity act


IRS classes

A trust is a legal entity that is created under state law and is taxed under federal law. The trust can be created to perform one act or a series of acts.

All types of trusts including 
irrevocable trusts
revocable trusts

An estate (or decedent estate) or succession is a legal entity created as a result of a person's death. The estate consists of the real estate and/or personal property of the deceased person. The estate pays any debts owed by the decedent, and distributes the balance of the estate's assets to the beneficiaries of the estate.

A corporation is a legal entity established by a charter granting it certain legal powers, rights, privileges, and liabilities. A corporation can be established by a person or group of people with a charter from the state's secretary of state. After a corporation is created, it becomes its own entity and generally has an indefinite lifespan.

S corporations
personal service corporations
real estate investment trusts (REIT): 
A real estate investment trust is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and commercial forests.
regulated investment conduits (RIC)
settlement funds


Landlords cannot charge a finder's fee to a prospective tenant. Only a licensed broker or salesperson can lawfully collect a fee for bringing together a landlord and a tenant.
You may only increase the rent of a tenant under a lease after the lease terms expires, unless the lease states otherwise. Typically, the lease includes a deadline for renewal which should be observed when seeking a rent increase of a tenant under lease.

Late payment penalty  
You cannot charge late fees or penalty for rent paid past the due date unless it is paid 30 days or more past the due date. However, the landlord can begin the eviction process immediately, even if the rent is only one day overdue. 

It is also illegal to encourage early payment by offering a reverse penalty. For instance, rent will be reduced by 10 % if the rent is paid within the first five days of the month. However, because there is no "grace period," you may begin eviction if the rent is only one day late.

Snow Removal: Every exit used or intended for use by occupants of more than one dwelling unit or rooming unit shall be maintained free from obstruction

 The right to enter the apartment
A landlord may generally enter the apartment at reasonable times and upon reasonable notice for these reasons:
    To show the apartment to prospective tenants, purchasers, lenders or their agents
    To inspect the premises
    To make repairs
    To inspect within 30 days of the end of the tenancy to determine damages to be deducted from the security deposit
    If the premises appear to be abandoned
    Pursuant to Court order

The landlord should be reasonable and attempt to arrange a mutually convenient time to visit the apartment. If the landlord insists on entering your apartment in an unreasonable fashion, you may file for a temporary restraining order at your local district court.

You cannot cause the removal or shutoff of the utilities except for a temporary period during repair or emergencies

In the event your account will be shut off for non-payment, the utility company must notify the tenant 30 days before the scheduled termination. The tenant can be asked to pay part of the overdue bill to the utility, and deduct that payment from their rent

habitable premises 
The heating season runs from September 16 through June 14th, during which every room must be heated to between 68˚F and not more than 78˚F between 7:00 a.m. to 11:00 p.m., and at least 64˚F at all other hours.

Infestation: Common areas and apartments must be kept clean and free from rodent, insect and other infestation if there are two or more apartments in the building.

Maintenance of Exits: Each exit used or intended for use by the building's occupants must be maintained and kept free of all snow, trash and other obstructions.

Tenant under lease
Tenant at will
Increase rent at any time
provided they send proper legal notice terminating the tenancy and offers to allow the tenant to remain in the apartment for the increased rent
request eviction with 30 days notice

landlord is responsible for the utilities unless noted in the lease

Rent withholding

The Massachusetts Supreme Judicial Court ruled that when a landlord fails to maintain a dwelling in habitable condition, a tenant may properly withhold a portion of the rent from the date the landlord has notice of this breach of warrant of habitability. Rent withholding can be a useful tool to force repairs, but it is a serious step and should be dealt with carefully. You may want to get legal advice before withholding your rent since the landlord may try to evict you for non-payment of rent.

You may withhold a portion of your rent if:

    You have appealed to your landlord in writing to make the necessary repairs; or
    Your local Board of Health has inspected your apartment and found health code violations and notified your landlord; or
    You are current in your rent up until the time your landlord learns of the problem, you are not the cause of the problem, and the unsanitary conditions do not require the apartment to be vacated to make repairs.

Deciding how much to withhold is based on each situation. You need only pay the fair rent for your unit given its defective condition. Once the landlord has repaired all defects, the tenant must pay all withheld rent.

You may also make emergency repairs in an apartment or common living area and deduct up to four months future rent to pay for them, if three conditions are met:

  • The local Board of Health or other code enforcement agency has certified that the present conditions endanger your health or safety; and
  • The landlord receives written notice of the existing violations from the inspecting agency; and
  • The landlord is given five days from the date of notice to begin repairs or to contract for outside services and 14 days to substantially complete all necessary repairs. (The inspecting agency or court may shorten this time frame.)

Remember: If you contract to make repairs and then deduct the cost from the rent, you must retain a receipt. Further, if the costs are deemed to be unreasonable, you will only be able to deduct that portion which is reasonable.

If you qualify under the requirements of "repair and deduct," you may treat your lease as void. You then have the right to move out if you choose not to make repairs. However, you must pay the fair rental value for the period you occupied the apartment, and you must vacate within a reasonable period of time.

Unlawful discrimination

Massachusetts Fair Housing law prohibits discrimination in housing on the basis of race, religion, national origin, age, ancestry, military background or service, sex, sexual preference, marital status, disability or the need of a guide dog, except owner-occupied two family dwellings. A landlord also cannot refuse to rent you an apartment because you receive a rental subsidy, because the apartment contains lead, or, with some exceptions, because you have children.

Obligation to delead the apartment

If a child under 6 lives in a residential premises containing unlawful levels of lead, the landlord is obligated to remove it.

Landlords or their agents are required to give their tenants a copy of the Massachusetts Lead Law Notification form which explains the dangers of lead paint, and the requirement to remove lead paint in apartments where children under 6 intend to reside.

If you need to remove lead paint from your property, make sure your contractor complies with the Division of Labor and Workforce Development Lead-Safe Renovation regulations (454 CMR 22.00).

Rights against retaliation

Although the landlord of a tenant at will or under lease can terminate the tenancy or raise the rent without reason, s/he cannot do so in response to your exercising your legal rights. If the landlord tries to raise the rent, terminate or otherwise change your tenancy within six months of when you contact the Board of Health, join a tenants' organization, or exercise other legal rights, the landlord's action will be considered retaliation against you, unless the landlord can prove otherwise. The landlord will have the burden to prove that your tenancy was changed for reasons other than your having exercised your rights.

Basement apartment laws
At least two working exits in the event of an emergency. 
Under the guidelines of the Boston housing code, all basement apartments must also contain a window that makes up at least eight percent of the rental unit. For example, if the basement is 100 square feet, the window has to be at least eight square feet.
In Boston, each basement apartment must have a minimum of 150 square feet of living space and an additional 100 square feet for each additional person who occupies the apartment. 
If one person occupies a bedroom, it must have at least 70 square feet of space and 100 square feet if a couple is sharing the bedroom.

Non-conforming basement bedroom
not conforming to a municipality's building codes
lacks the necessary egress window
Egress window size requirements may vary, but according to the International Residential Code, a standard window opening must have a net opening of 5 7/10 feet and must be no more than 44 inches from the floor. Twenty-four inches is the minimum net clear opening height and 20 inches is the minimum net clear opening width. The outdoor window well must be at least 36 inches wide and be no higher than 44 inches. The window and well should be free of obstructions and the window should be accessible from the inside.

If you have a tenant staying in the basement, you could be illegally leasing a non-conforming space. If you sell your home and misrepresent the number of legal bedrooms, you could be sued by the new homeowner.

Section 8
Housing Choice Voucher Program
The Section 8 program allows private landlords to rent apartments and homes at fair market rates to qualified low income tenants, with a rental subsidy administered by Home Forward. “Section 8is a common name for the Housing Choice Voucher Program, funded by the U.S. Department of Housing and Urban Development.

most tenants will pay 30% of their monthly income. The Public Housing Authority that issued and approved the voucher will pay the landlord the remainder of the rent and utility costs.

Equal credit oppotunity act
prohibit discrimination in loans
color national origin sex gender, faith relationship 

front end ratio
mortgage payment (principal, insurance, interest, taxes PITI) over gross income. no more than 33%

backend ratio
PITI + other debt(credit card, car loan, student loan...) over gross income , no more than 42%


secondary mortgage market

where the bank gets the moeny to loan you

brorrower gices promis to lender , lender lends the money to the borrower. 
where dd the lender get it from?  https://www.rocklandtrust.com/wealth-and-investments#individuals-families

2/3 of the time, the original lender, will sell the mortgage using the estoppel clause. They sell the mortgage to Fannie-Mae (est 1939, a warehouse / wholeseller fo mortgages) or one of its sister companies. and get the money to lend/ 

Fannie-Mae takes your mortgages and bundles all to mortgage debt. to a bank its an asset, they make money from it. submits to rating agency, to objectively to put a value on the bundle. they assesthe risk of hte bundle, they estimate the price of the vundle, like the appraiser/ 
then annie mae sells the bundle to investors. and they pay fanie mae money to buy mortgages. wallstreet and name brand banks.
investors dont want to buy singe mortgages, they buy bundle to minimzie the risk
investors get the money rfom teh borrowers. checking savings retirement account, insurance plicy. they invest money on your behalf, you are wallsteets. its your money! macro economic circle

you lend the noney to your neighbor to buy their house they lend the money to you to buy your house. it/s all a circle.

Fnniemae was creaed for local lender to diversify their lending portfoloio . back then cmmunites wree agricultural. Wareham is a cranberry town. if cranberry has a bad year you cant get money back from farmers! bad for hte bank there!
loans to hardware store, car dealreship, restaurant all drop because money doesnt circulate. 
FM allows these local banks to sell loans to FM and FM could spread that risk all over country. so if cranberry crop had a bad year the local bank would not go out of business!! if hings go well profit is shared. if not loss is shared. 

when a bank is lacking confidence. 
local bank doesn't get ovwerwhelmed by lack of confidence https://www.rogerebert.com/reviews/great-movie-its-a-wonderful-life-1946
https://www.youtube.com/watch?v=iPkJH6BT7dM    It's A Wonderful Life Bank Run

rting agencies. standard and poor or moodies. they get a flat fee 

The big short - if I don't give them the ratings, they go to the other shop down the block. subprime mortgages are not qualified


Consumer financial protection bureau