Massachusetts Real Estate License Practice Test

What is the definition of estoppel in real estate?

1. It is a legal concept where one party is harmed due to another's broken promise

2. It refers to the illegal intrusion onto someone else's property

3. A system used for geographical survey and land boundaries

4. A type of mortgage originating from secondary markets

The correct answer is: It is a legal concept where one party is harmed due to another's broken promise

Estoppel in real estate is indeed a legal doctrine that prevents one party from asserting something contrary to what is implied by a previous action or statement of that same party. When applied, estoppel can protect a party who has relied on a representation or promise made by another, and it serves to ensure fairness and prevent injustice. In the context of the choices provided, the definition highlights how estoppel plays a critical role in real estate transactions, particularly regarding the rights and expectations of parties involved, such as landlords and tenants, buyers and sellers, and more. The other options do not accurately capture the essence of estoppel. One mentions illegal intrusion, which pertains to trespass laws rather than the legal concepts of promises or representations. Another choice refers to geographical surveying systems, which is a completely different area within real estate and does not connect to estoppel in any way. The last option about a type of mortgage relates to financing in real estate, which again diverges from the legal principle of estoppel focused on preventing inconsistency in claims made by parties. Thus, option A correctly encapsulates the core idea of estoppel in real estate contexts.