Question 1

Appraisal

Accepted Answer

A professional assessment of a property's value conducted by a licensed appraiser.

Question 2

Asbestos

Accepted Answer

A hazardous material that was commonly used in older homes and can cause health issues if disturbed.

Question 3

Buyer's Agent

Accepted Answer

The real estate agent who represents the buyer in a real estate transaction.

Question 4

Closing Costs

Accepted Answer

Fees and charges associated with the closing of a real estate transaction, beyond the price of the property itself.

Question 5

Contingency

Accepted Answer

A condition that must be met before a real estate contract is legally binding.

Question 6

Deed

Accepted Answer

A legal document that transfers ownership of property from one person to another.

Question 7

Easement

Accepted Answer

A right to cross or otherwise use someone else's land for a specified purpose.

Question 8

Fair Housing Act

Accepted Answer

A federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, or national origin.

Question 9

Gross Living Area

Accepted Answer

The total area of a residential property that is finished, livable, and above ground level.

Question 10

Homeowners Association (HOA)

Accepted Answer

An organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction.

Question 11

Inspection

Accepted Answer

A thorough examination of a property's structure and systems by a licensed inspector.

Question 12

Jumbo Loan

Accepted Answer

A loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.

Question 13

Lien

Accepted Answer

A legal claim or hold on a property as security for a debt or charge.

Question 14

Market Value

Accepted Answer

The most probable price that a property should bring in a competitive and open market.

Question 15

Net Listing

Accepted Answer

A type of listing where the agent's commission is the difference between the selling price and an agreed-upon net price for the seller.

Question 16

Open Listing

Accepted Answer

A property listing that offers commission to the first agent who brings a qualified buyer.

Question 17

Principal

Accepted Answer

The amount of money originally borrowed in a mortgage.

Question 18

Quitclaim Deed

Accepted Answer

A deed that transfers only that title or right to a property that the holder has at the time of the transfer, without any warranty or covenants of title.

Question 19

Realtor®

Accepted Answer

A real estate professional who is a member of the National Association of Realtors.

Question 20

Survey

Accepted Answer

A graphic depiction of a property's physical features and dimensions, including its boundaries and structures.

Question 21

Title

Accepted Answer

Legal ownership of property, represented by a deed.

Question 22

Underwriting

Accepted Answer

The process a lender uses to determine if the risk of offering a mortgage loan to a specific borrower under certain parameters is acceptable.

Question 23

VA Loan

Accepted Answer

A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing.

Question 24

Warranty of Habitability

Accepted Answer

A legal doctrine that requires landlords to offer and maintain livable premises for their tenants.

Question 25

Zoning

Accepted Answer

Governmental regulations that control how land in a specific geographic area can be used.

Question 26

Abstract of Title

Accepted Answer

A summary of the public records relating to the title to a particular piece of land.

Question 27

Balloon Mortgage

Accepted Answer

A mortgage that requires a large final payment, typically the entire principal, at the end of the term.

Question 28

Comparable Sales

Accepted Answer

Recent sales of similar properties in nearby areas used to help determine the market value of a property.

Question 29

Dual Agency

Accepted Answer

When a real estate agent represents both the seller and the buyer in a real estate transaction.

Question 30

Escrow

Accepted Answer

A neutral third party or account held in trust while a real estate transaction is in process.

Question 31

Fixture

Accepted Answer

An item of personal property that has been converted to real property by being permanently affixed to the realty.

Question 32

HUD-1 Settlement Statement

Accepted Answer

A document that provides an itemized listing of the funds that were paid at closing.

Question 33

Interest

Accepted Answer

The cost of borrowing money, typically expressed as a yearly percentage rate.

Question 34

Judicial Foreclosure

Accepted Answer

A type of foreclosure process that is handled as a civil lawsuit and conducted entirely under the auspices of a court.

Question 35

Kickback

Accepted Answer

The act of giving money, property, or anything of value with the intent to influence the recipient's decision-making process in a real estate transaction.

Question 36

Leasehold Estate

Accepted Answer

An estate that gives the holder (Tenant) a temporary right to possession, with the landlord (Freeholder) retaining a reversion interest.

Question 37

Mortgage Insurance Premium (MIP)

Accepted Answer

An insurance policy that compensates lenders or investors for losses due to the default of a mortgage loan.

Question 38

Nonconforming Use

Accepted Answer

A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established.

Question 39

Option

Accepted Answer

An agreement to keep open for a set period an offer to sell or purchase property.

Question 40

Property Management

Accepted Answer

The administration of residential, commercial and/or industrial real estate.

Question 41

Quit Claim Deed

Accepted Answer

A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made.

Question 42

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A consumer protection statute, first passed in 1974, requiring lenders to give homebuyers advance notice of closing costs.

Question 43

Statute of Frauds

Accepted Answer

The requirement that certain contracts must be in writing to be enforceable, including real estate contracts.

Question 44

Tenancy in Common

Accepted Answer

A type of joint tenancy in a property where two or more owners possess the property simultaneously.

Question 45

Unilateral Contract

Accepted Answer

A contract in which one party makes an obligation to perform without receiving in return any express promise of performance from the other party.

Question 46

Vendor

Accepted Answer

The seller in a land contract.

Question 47

Water Rights

Accepted Answer

The legal right to use water from a water source.

Question 48

X-Efficiency

Accepted Answer

A measure of the effectiveness with which a given set of inputs is used to produce an output.

Question 49

Yield

Accepted Answer

The return on an investor's capital investment.

Advanced Concepts for the Arkansas Real Estate Agent Exam