Question 1

Buyer's Agent

Accepted Answer

Represents the interests of the buyer in real estate transactions.

Question 2

Seller's Agent

Accepted Answer

Represents the interests of the seller in real estate transactions.

Question 3

Listing Agreement

Accepted Answer

A contract between a seller and a real estate agent that authorizes the agent to market and sell the property.

Question 4

Exclusive Right to Sell

Accepted Answer

A type of listing agreement where the seller agrees to work exclusively with one agent to sell the property.

Question 5

Comparative Market Analysis (CMA)

Accepted Answer

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

Question 6

Dual Agency

Accepted Answer

A situation where a real estate agent represents both the buyer and the seller in a transaction.

Question 7

Earnest Money

Accepted Answer

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

Question 8

Contingency

Accepted Answer

A condition that must be met before a contract becomes binding, such as a home inspection or mortgage approval.

Question 9

Title Insurance

Accepted Answer

Insurance that protects against any defects in the title of a property.

Question 10

Appraisal

Accepted Answer

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

Question 11

Escrow

Accepted Answer

A neutral third party that holds funds and documents during a real estate transaction.

Question 12

Closing Costs

Accepted Answer

Expenses incurred by buyers and sellers during the transfer of ownership of a property.

Question 13

Conventional Loan

Accepted Answer

A mortgage loan that is not insured or guaranteed by a government agency.

Question 14

FHA Loan

Accepted Answer

A mortgage loan insured by the Federal Housing Administration, typically requiring a lower down payment.

Question 15

VA Loan

Accepted Answer

A mortgage loan guaranteed by the Department of Veterans Affairs for eligible veterans and their spouses.

Question 16

USDA Loan

Accepted Answer

A mortgage loan offered to rural property owners by the U.S. Department of Agriculture.

Question 17

Multiple Listing Service (MLS)

Accepted Answer

A database of properties listed for sale by real estate agents.

Question 18

Title Search

Accepted Answer

An examination of public records to ensure that the title of a property is clear and can be legally transferred.

Question 19

Deed

Accepted Answer

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

Question 20

Zoning

Accepted Answer

Regulations that dictate how land can be used in a specific area.

Question 21

Easement

Accepted Answer

A right granted to someone to use another person's property for a specific purpose.

Question 22

Pre-Approval

Accepted Answer

A lender's conditional commitment to provide a mortgage loan, based on a preliminary review of the borrower's financial information.

Question 23

Homeowners Association (HOA)

Accepted Answer

An organization that manages and enforces rules in a residential community.

Question 24

Property Disclosure

Accepted Answer

A document in which the seller reveals any known defects or issues with the property.

Question 25

Lease Agreement

Accepted Answer

A contract between a landlord and a tenant that outlines the terms and conditions of renting a property.

Question 26

Fair Housing Act

Accepted Answer

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

Question 27

Real Estate Professional

Accepted Answer

A licensed individual who works in the real estate industry, including agents, brokers, and appraisers.

Question 28

Capitalization Rate

Accepted Answer

A measure used to evaluate the potential return on an investment property.

Question 29

1031 Exchange

Accepted Answer

A tax-deferred exchange of like-kind properties, allowing investors to defer capital gains taxes.

Question 30

Amortization

Accepted Answer

The gradual repayment of a mortgage loan through regular payments.

Question 31

Assessed Value

Accepted Answer

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

Question 32

Cash Flow

Accepted Answer

The net income generated by a property after deducting expenses.

Question 33

Concessions

Accepted Answer

Incentives or discounts offered by a seller to attract buyers, such as covering closing costs.

Question 34

Due Diligence

Accepted Answer

The process of conducting research and investigation to gather information about a property before making a decision.

Question 35

Equity

Accepted Answer

The difference between the market value of a property and the outstanding mortgage balance.

Question 36

Foreclosure

Accepted Answer

The legal process by which a lender takes possession of a property due to the borrower's failure to make mortgage payments.

Question 37

Gross Rent Multiplier (GRM)

Accepted Answer

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

Question 38

Home Inspection

Accepted Answer

A thorough examination of a property's condition conducted by a professional inspector.

Question 39

Ingress/Egress

Accepted Answer

The right to enter and exit a property, often associated with easements or access rights.

Question 40

Lien

Accepted Answer

A legal claim or encumbrance on a property to secure the payment of a debt.

Question 41

Market Value

Accepted Answer

The estimated price a property would sell for on the open market.

Question 42

Net Operating Income (NOI)

Accepted Answer

The income generated by a property after deducting operating expenses.

Question 43

Offer

Accepted Answer

A proposal made by a buyer to purchase a property at a specific price and under certain terms.

Question 44

Principal

Accepted Answer

The original amount of money borrowed for a mortgage loan, excluding interest.

Question 45

Quiet Enjoyment

Accepted Answer

The right of a tenant to use and enjoy a property without interference from the landlord or others.

Question 46

Real Estate Owned (REO)

Accepted Answer

Properties that have been foreclosed upon and are now owned by the lender.

Question 47

Survey

Accepted Answer

A professional measurement and mapping of a property's boundaries, structures, and features.

Question 48

Tax Lien

Accepted Answer

A claim imposed on a property by the government for unpaid taxes.

Question 49

Underwriting

Accepted Answer

The process of evaluating a borrower's creditworthiness and risk in order to approve or deny a mortgage loan.

Question 50

Virtual Tour

Accepted Answer

A digital presentation that provides a 360-degree view of a property, allowing potential buyers to explore it remotely.

Question 51

Walkthrough

Accepted Answer

A final inspection of a property before closing to ensure that agreed-upon repairs and conditions have been met.

Question 52

Xeriscaping

Accepted Answer

Landscaping design that minimizes water usage and emphasizes drought-tolerant plants.

Question 53

Yield

Accepted Answer

The return on investment generated by a property, typically expressed as a percentage.

Question 54

Zero Lot Line

Accepted Answer

A property where the structure is built very close to one or both property lines, maximizing the use of space.

Question 55

Home Warranty

Accepted Answer

A service contract that covers the repair or replacement of home systems and appliances for a specific period.

Question 56

Mineral Rights

Accepted Answer

Ownership rights to underground resources, such as oil, gas, or minerals, associated with a property.

Comprehensive Montana Real Estate Agent Flashcards