Question 1

Mortgage

Accepted Answer

A loan used to finance the purchase of a property.

Question 2

Title search

Accepted Answer

An examination of public records to verify the legal ownership of a property.

Question 3

Appraisal

Accepted Answer

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

Question 4

Escrow

Accepted Answer

The holding of funds and important documents by a neutral third party during a real estate transaction.

Question 5

Dual agency

Accepted Answer

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

Question 6

CMA (Comparative Market Analysis)

Accepted Answer

An evaluation of a property's value based on comparable sales in the area.

Question 7

Easement

Accepted Answer

The right to use another person's property for a specific purpose.

Question 8

Contingency

Accepted Answer

A condition that must be met for a real estate contract to be binding.

Question 9

Lien

Accepted Answer

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

Question 10

MLS (Multiple Listing Service)

Accepted Answer

A database that agents use to list and find properties for sale.

Question 11

Home inspection

Accepted Answer

A professional assessment of a property's condition, usually conducted before a purchase.

Question 12

Deed

Accepted Answer

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

Question 13

Zoning

Accepted Answer

Local regulations that determine how a property can be used and developed.

Question 14

Counteroffer

Accepted Answer

A new offer made in response to a previous offer during negotiations.

Question 15

PITI (Principal, Interest, Taxes, Insurance)

Accepted Answer

The components of a mortgage payment.

Question 16

Down payment

Accepted Answer

The initial payment made by a buyer toward the purchase of a property.

Question 17

Pre-approval

Accepted Answer

The process of determining the maximum amount a buyer can borrow for a mortgage.

Question 18

Condominium

Accepted Answer

A type of housing where individuals own their units and share common areas.

Question 19

Closing costs

Accepted Answer

The fees and expenses paid by the buyer and seller at the closing of a real estate transaction.

Question 20

Amortization

Accepted Answer

The gradual repayment of a mortgage loan through regular payments.

Question 21

PMI (Private Mortgage Insurance)

Accepted Answer

Insurance that protects the lender in case the borrower defaults on the loan.

Question 22

Assessed value

Accepted Answer

The value assigned to a property for tax purposes.

Question 23

Contingent offer

Accepted Answer

An offer on a property that depends on the occurrence of specific conditions.

Question 24

Due diligence

Accepted Answer

The process of investigating a property and its potential risks before making a purchase.

Question 25

Eminent domain

Accepted Answer

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

Question 26

Listing agreement

Accepted Answer

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

Question 27

Net listing

Accepted Answer

A listing agreement where the seller receives the net proceeds from the sale.

Question 28

Seller's market

Accepted Answer

A market condition where there are more buyers than available properties.

Question 29

Buyer's market

Accepted Answer

A market condition where there are more properties for sale than potential buyers.

Question 30

1031 Exchange

Accepted Answer

A tax-deferred exchange of one investment property for another, allowing the deferral of capital gains taxes.

Question 31

Title insurance

Accepted Answer

Insurance that protects against financial loss due to defects in the property's title.

Question 32

Conventional loan

Accepted Answer

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

Question 33

Equity

Accepted Answer

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

Question 34

HOA (Homeowners Association)

Accepted Answer

An organization that manages common areas and enforces rules in a community.

Question 35

Short sale

Accepted Answer

A sale of a property for less than the outstanding mortgage balance, requiring lender approval.

Question 36

Comparative market analysis

Accepted Answer

An evaluation of a property's value based on recent sales of similar properties.

Question 37

Contingent offer

Accepted Answer

An offer on a property that depends on certain conditions being met.

Question 38

Multiple offers

Accepted Answer

When more than one buyer submits an offer on a property at the same time.

Question 39

Radon

Accepted Answer

A colorless, odorless gas that can seep into homes and pose health risks.

Question 40

Disclosure

Accepted Answer

The legal requirement for sellers to provide information about the condition of a property.

Question 41

EMD (Earnest Money Deposit)

Accepted Answer

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

Question 42

Rent-to-own

Accepted Answer

An agreement where a tenant has the option to purchase the property after a specified period of renting.

Question 43

FIRPTA (Foreign Investment in Real Property Tax Act)

Accepted Answer

A law that imposes taxes on the sale of U.S. real estate by foreign sellers.

Question 44

1033 Exchange

Accepted Answer

A provision allowing the replacement of property involuntarily converted by a casualty or condemnation.

Question 45

Radon mitigation

Accepted Answer

The process of reducing radon levels in a property through ventilation or other methods.

Question 46

Exclusive right-to-sell

Accepted Answer

A listing agreement giving the agent the exclusive right to sell the property, regardless of who finds the buyer.

Question 47

Covenants

Accepted Answer

Restrictions or rules imposed on a property by a homeowner's association or previous owner.

Comprehensive Real Estate Agent Flashcards: Maine Edition