Question 1

Agency relationship

Accepted Answer

Legal relationship between a real estate agent and a client, based on mutual consent and fiduciary duties.

Question 2

Dual agency

Accepted Answer

Representation of both the buyer and the seller by the same real estate agent or brokerage.

Question 3

Listing agreement

Accepted Answer

Contract between a property owner and a real estate agent, authorizing the agent to market and sell the property.

Question 4

Buyer representation agreement

Accepted Answer

Contract between a buyer and a real estate agent, outlining the agent's duties and responsibilities to the buyer.

Question 5

Earnest money

Accepted Answer

Deposit made by the buyer to demonstrate their serious intent to purchase a property.

Question 6

Escrow

Accepted Answer

Neutral third party that holds and disburses funds and documents during a real estate transaction.

Question 7

Comparative market analysis (CMA)

Accepted Answer

Evaluation of similar properties in the area to determine a property's fair market value.

Question 8

Appraisal

Accepted Answer

Assessment of a property's value by a licensed appraiser.

Question 9

Title insurance

Accepted Answer

Insurance policy that protects against losses resulting from title defects or liens on a property.

Question 10

Conventional loan

Accepted Answer

Mortgage loan not insured or guaranteed by a government agency, typically requiring a higher down payment.

Question 11

FHA loan

Accepted Answer

Mortgage loan insured by the Federal Housing Administration, allowing for a lower down payment and more lenient credit requirements.

Question 12

VA loan

Accepted Answer

Mortgage loan guaranteed by the Department of Veterans Affairs, available to eligible veterans and military service members.

Question 13

PMI (Private Mortgage Insurance)

Accepted Answer

Insurance policy required for conventional loans with a down payment of less than 20%.

Question 14

Homeowners association (HOA)

Accepted Answer

Organization that establishes and enforces rules and regulations for a community or condominium complex.

Question 15

Due diligence

Accepted Answer

Investigation and verification of property information, legal documents, and financial records before completing a real estate transaction.

Question 16

Contingency

Accepted Answer

Condition or requirement that must be met for a real estate contract to be binding.

Question 17

Title search

Accepted Answer

Examination of public records to ensure that the seller has a clear and marketable title to the property.

Question 18

Closing costs

Accepted Answer

Fees and expenses paid by the buyer and/or seller during the real estate closing.

Question 19

Deed

Accepted Answer

Legal document that transfers ownership of a property from the seller to the buyer.

Question 20

Easement

Accepted Answer

Right to use a specific portion of another person's property for a designated purpose.

Question 21

Zoning

Accepted Answer

Local government regulations that control land use and development within a specific area.

Question 22

Pre-approval

Accepted Answer

Process of obtaining a lender's commitment to provide a mortgage loan, based on a preliminary assessment of the borrower's creditworthiness.

Question 23

PITI

Accepted Answer

Acronym for principal, interest, taxes, and insurance—the components of a monthly mortgage payment.

Question 24

1031 exchange

Accepted Answer

Tax-deferred exchange of one investment property for another, allowing the investor to defer capital gains taxes.

Question 25

Radon

Accepted Answer

Colorless, odorless gas that can seep into buildings and cause health problems, often tested during a home inspection.

Question 26

Eminent domain

Accepted Answer

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

Question 27

Fair Housing Act

Accepted Answer

Federal law that prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, or disability.

Question 28

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

Federal law that ensures consumers are provided with accurate and timely information about the costs of the real estate settlement process.

Question 29

Covenants, Conditions, and Restrictions (CC&Rs)

Accepted Answer

Rules and regulations that govern the use and maintenance of properties within a specific development or community.

Question 30

Dual tracking

Accepted Answer

Simultaneous processing of a loan modification and foreclosure by a mortgage servicer, which is now restricted by regulations.

Question 31

Net listing

Accepted Answer

Listing agreement where the agent's commission is based on the amount by which the sale price exceeds a certain minimum price set by the seller.

Question 32

Escalation clause

Accepted Answer

Provision in an offer to purchase real estate that allows the buyer to increase their offer if competing offers are received.

Question 33

Exclusive right to sell

Accepted Answer

Listing agreement granting the agent the exclusive right to represent the seller and receive a commission, regardless of who sells the property.

Question 34

Walk-through

Accepted Answer

Final inspection of a property by the buyer before closing to ensure that agreed-upon repairs have been completed and the property is in the expected condition.

Question 35

Absorption rate

Accepted Answer

The rate at which available properties are sold in a specific market or area, often used to gauge market conditions.

Question 36

Leasehold

Accepted Answer

The right to use and occupy a property for a specific period of time, usually through a lease agreement.

Question 37

Cloud on title

Accepted Answer

Any claim, lien, or encumbrance that may affect the ownership or marketability of a property.

Question 38

Trust account

Accepted Answer

Separate account held by a broker or agent to hold clients' funds, such as earnest money or security deposits.

Question 39

Material fact

Accepted Answer

Important information about a property that may influence a buyer's decision and must be disclosed by the seller or agent.

Question 40

Exclusive buyer's agent

Accepted Answer

Agent who exclusively represents the buyer's interests in a real estate transaction, not representing any sellers.

Question 41

NAR (National Association of Realtors)

Accepted Answer

Trade association for real estate professionals that promotes ethical standards and provides educational resources.

Question 42

Seller financing

Accepted Answer

Arrangement in which the seller provides financing to the buyer, typically through a promissory note and mortgage.

Question 43

Radon mitigation

Accepted Answer

Process of reducing radon levels in a building to ensure a safe living environment.

Question 44

1033 exchange

Accepted Answer

Tax-deferred exchange of real property that has been involuntarily converted, allowing the investor to defer capital gains taxes.

Question 45

Fair Credit Reporting Act

Accepted Answer

Federal law that regulates the collection, dissemination, and use of consumer credit information.

Question 46

MLS (Multiple Listing Service)

Accepted Answer

Database used by real estate agents to share property listings and cooperate in the sale of properties.

Question 47

Open listing

Accepted Answer

Non-exclusive listing agreement where the seller can engage multiple agents, and only the agent who procures the buyer receives a commission.

Question 48

1035 exchange

Accepted Answer

Tax-free exchange of one life insurance or annuity contract for another, allowing policyholders to change policies without incurring tax consequences.

Question 49

Ad valorem tax

Accepted Answer

Property tax based on the assessed value of the property.

Question 50

Counteroffer

Accepted Answer

Response to an offer that modifies the terms and conditions of the original offer, creating a new negotiation point.

Question 51

Title company

Accepted Answer

Company that conducts the title search, issues title insurance, and facilitates the closing of a real estate transaction.

Question 52

RESPA Section 8

Accepted Answer

Section of the Real Estate Settlement Procedures Act that prohibits kickbacks or referral fees for services related to a real estate settlement.

Question 53

Due-on-sale clause

Accepted Answer

Provision in a mortgage or deed of trust that allows the lender to demand full repayment of the loan if the property is sold or transferred.

Question 54

Capitalization rate

Accepted Answer

Ratio used to estimate the value of an income-producing property by dividing the net operating income by the purchase price or value.

Question 55

Section 1031(a)(3) exchange

Accepted Answer

Exchange of like-kind property held for productive use in a trade or business or for investment, allowing for tax deferral.

Question 56

Chain of title

Accepted Answer

Historical record of property ownership, showing the succession of owners from the original grant to the present owner.

Question 57

Property condition disclosure

Accepted Answer

Document completed by the seller, disclosing known defects or issues with the property.

Question 58

Radon-resistant construction

Accepted Answer

Building techniques and materials used to minimize radon entry into new constructions, such as sealing foundation cracks and installing radon mitigation systems.

Question 59

Manufactured home

Accepted Answer

Factory-built dwelling designed to be transported to a specific location, commonly referred to as mobile homes.

Question 60

Real Estate Recovery Fund

Accepted Answer

Fund established to provide compensation to individuals who have suffered financial losses due to the actions of a licensed real estate professional.

Question 61

Oregon Property Disclosure Statement

Accepted Answer

Document required by Oregon law, which sellers must complete to disclose material facts and known defects about the property they are selling.

Comprehensive Oregon Real Estate Agent Flashcards