Question 1

Mortgage Broker

Accepted Answer

A licensed professional who helps individuals find and secure mortgage loans.

Question 2

Land Transfer Tax

Accepted Answer

A tax paid by the buyer when purchasing a property in New Brunswick.

Question 3

Condominium

Accepted Answer

A type of property ownership where individuals own their individual units and share common areas.

Question 4

Multiple Listing Service (MLS)

Accepted Answer

A database that real estate agents use to list and search for properties.

Question 5

Appraisal

Accepted Answer

An evaluation of a property's value conducted by a licensed appraiser.

Question 6

Buyer's Market

Accepted Answer

A market condition where there are more properties for sale than buyers, giving buyers an advantage in negotiations.

Question 7

Seller's Market

Accepted Answer

A market condition where there are more buyers than properties for sale, giving sellers an advantage in negotiations.

Question 8

Title Search

Accepted Answer

An examination of public records to ensure that the property's title is clear and transferable.

Question 9

Down Payment

Accepted Answer

The initial payment made by a buyer when purchasing a property, usually a percentage of the total purchase price.

Question 10

Commission

Accepted Answer

The fee paid to a real estate agent for their services in helping to buy or sell a property.

Question 11

Pre-approval

Accepted Answer

A process where a lender evaluates a buyer's creditworthiness to determine the maximum loan amount they are eligible for.

Question 12

Easement

Accepted Answer

A right granted to a third party to use a portion of another person's property for a specific purpose.

Question 13

Counteroffer

Accepted Answer

A response to an offer made during negotiations, proposing different terms than those initially offered.

Question 14

Conveyancing

Accepted Answer

The legal process of transferring property ownership from the seller to the buyer.

Question 15

Capitalization Rate

Accepted Answer

The rate of return on an investment property based on the income it generates.

Question 16

Exclusive Listing

Accepted Answer

An agreement between a seller and a real estate agent where the agent has sole rights to market the property.

Question 17

Earnest Money Deposit

Accepted Answer

A deposit made by the buyer to demonstrate their intention to purchase the property.

Question 18

Zoning

Accepted Answer

The division of land into different areas with specific permitted uses and restrictions.

Question 19

Real Property

Accepted Answer

Physical property, including land and any improvements on it, such as buildings.

Question 20

Escrow

Accepted Answer

A third-party account where funds are held during a real estate transaction until all conditions are met.

Question 21

Assessed Value

Accepted Answer

The value assigned to a property by a municipality for the purpose of calculating property taxes.

Question 22

Leasehold

Accepted Answer

A type of property ownership where the land is leased, and the owner only has rights to the building or unit.

Question 23

Caveat Emptor

Accepted Answer

Latin for "buyer beware," indicating that buyers are responsible for assessing the condition of a property.

Question 24

Home Inspection

Accepted Answer

An evaluation of a property's condition by a professional inspector before completing a purchase.

Question 25

Encroachment

Accepted Answer

When a property owner's structure or improvement extends beyond their property boundaries onto another's land.

Question 26

Fixture

Accepted Answer

An item attached to a property that becomes part of the real estate and is transferred with the property upon sale.

Question 27

Capital Gains Tax

Accepted Answer

A tax on the profit earned from selling an investment property.

Question 28

Dual Agency

Accepted Answer

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

Question 29

Right of First Refusal

Accepted Answer

A contractual right that gives someone the first opportunity to purchase a property before the seller considers other offers.

Question 30

Amortization

Accepted Answer

The process of gradually paying off a mortgage loan through regular payments over time.

Question 31

Gross Rent Multiplier (GRM)

Accepted Answer

A ratio used to estimate the value of an investment property based on its rental income.

Question 32

Depreciation

Accepted Answer

A decrease in the value of a property over time due to wear and tear or other factors.

Question 33

Conveyance Tax

Accepted Answer

A tax imposed by the government when transferring property ownership.

Question 34

Eminent Domain

Accepted Answer

The government's power to seize private property for public use, with fair compensation to the property owner.

Question 35

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of similar properties in the area to determine a property's market value.

Question 36

Due Diligence

Accepted Answer

The process of investigating a property and its legal and financial aspects before completing a purchase.

Question 37

Capital Improvement

Accepted Answer

Renovations or enhancements made to a property that increase its value or extend its useful life.

Question 38

Encumbrance

Accepted Answer

A claim or liability on a property, such as a mortgage, easement, or lien, that may affect the owner's rights.

Question 39

Joint Tenancy

Accepted Answer

A form of property ownership where two or more individuals have an equal share and right of survivorship.

Question 40

Rent-to-Own

Accepted Answer

A leasing agreement that allows tenants to rent a property with an option to purchase it within a specified period.

Question 41

Radon

Accepted Answer

A radioactive gas that can be found in some properties and may pose health risks if present in high levels.

Question 42

Adjustable-Rate Mortgage (ARM)

Accepted Answer

A mortgage loan with an interest rate that can change over time, typically based on market conditions.

Question 43

Open House

Accepted Answer

An event where a property is showcased to potential buyers without the need for individual appointments.

Question 44

Real Estate Investment Trust (REIT)

Accepted Answer

A company that owns, operates, or finances income-generating real estate properties.

Question 45

Seller Financing

Accepted Answer

When the seller provides financing to the buyer instead of or in addition to a traditional mortgage loan.

Question 46

Strata Council

Accepted Answer

A governing body elected by owners in a condominium or strata development to manage the property's affairs.

Question 47

Restrictive Covenant

Accepted Answer

A legal agreement that imposes limitations on the use or development of a property.

Question 48

Lease Agreement

Accepted Answer

A legally binding contract between a landlord and a tenant, outlining the terms and conditions of renting a property.

Question 49

Gross Lease

Accepted Answer

A lease agreement where the tenant pays a fixed rent amount, and the landlord covers operating expenses.

Question 50

Exclusive Buyer Agency Agreement

Accepted Answer

An agreement between a buyer and a real estate agent, ensuring the agent's exclusive representation and fiduciary duty to the buyer throughout the transaction.

Comprehensive Flashcards for New Brunswick Real Estate Agents