Question 1

Connecticut Real Estate Commission

Accepted Answer

The governing body that regulates real estate licensing and practice in the state of Connecticut.

Question 2

Exclusive Right to Sell

Accepted Answer

An agreement where the real estate agent is guaranteed commission regardless of who sells the property.

Question 3

Joint Tenancy

Accepted Answer

A form of ownership where two or more parties have equal shares and rights to a property.

Question 4

Listing Agreement

Accepted Answer

A contract between a homeowner and a real estate agent, giving the agent the right to list the property for sale.

Question 5

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of similar, recently sold homes (called "comparables") to determine the current market value of a property.

Question 6

Dual Agency

Accepted Answer

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

Question 7

Fair Housing Act

Accepted Answer

Federal law prohibiting discrimination in the sale, rental, and financing of housing based on race, color, national origin, religion, sex, familial status or disability.

Question 8

Title Search

Accepted Answer

A detailed examination of the historical records concerning a property.

Question 9

Deed

Accepted Answer

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

Question 10

Prequalification

Accepted Answer

The process by which a lender determines how much money a potential buyer can borrow.

Question 11

Escrow

Accepted Answer

A neutral third party holds and regulates payment of the funds required for two parties in a given transaction.

Question 12

Net Listing

Accepted Answer

A real estate listing agreement where the agent keeps everything over a certain agreed-upon price as commission.

Question 13

Easement

Accepted Answer

The right to use the property of another for a specific purpose.

Question 14

Encumbrance

Accepted Answer

A claim, lien, charge, or liability attached to and binding real property.

Question 15

Mortgage

Accepted Answer

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property.

Question 16

Contingency

Accepted Answer

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

Question 17

Exclusive Agency Listing

Accepted Answer

A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period.

Question 18

Fiduciary Duty

Accepted Answer

The legal obligation of a real estate agent to act in the best interests of their client.

Question 19

Adverse Possession

Accepted Answer

A method of gaining legal title to real property by the actual, open, hostile, and continuous possession of it to the exclusion of its true owner for the period prescribed by state law.

Question 20

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

An act that allows consumers to review information on known or estimated settlement costs once after application and once prior to or at a settlement.

Question 21

Closing Costs

Accepted Answer

Expenses over and above the price of the property in a real estate transaction.

Question 22

Abstract of Title

Accepted Answer

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

Question 23

Broker's Price Opinion (BPO)

Accepted Answer

An estimate of the probable selling price of a property, made by a real estate broker.

Question 24

Home Inspection

Accepted Answer

A limited, non-invasive examination of the condition of a home, often in connection with the sale of that home.

Question 25

Tenancy in Common

Accepted Answer

A type of joint tenancy of an estate in land where each co-tenant has an independent share that can be conveyed separately.

Question 26

Quitclaim Deed

Accepted Answer

A deed that conveys a seller's complete interest or right to a property but that does not assert that the title is valid.

Question 27

Redlining

Accepted Answer

A discriminatory practice by which banks, insurance companies, etc. refuse or limit loans, mortgages, insurance within specific geographic areas, especially inner-city neighborhoods.

Question 28

Lease Purchase Agreement

Accepted Answer

A contract in which a landlord and tenant agree that, at the end of a specified period, the renter may buy the property.

Question 29

Purchase Agreement

Accepted Answer

A legal document outlining the terms and conditions of a real estate transaction.

Question 30

Real Property

Accepted Answer

Land and anything permanently affixed to it, including buildings, fences, and things attached to the buildings.

Question 31

Personal Property

Accepted Answer

All property that is not considered real property, often movable property.

Question 32

Appraisal

Accepted Answer

An estimate of the value of a property, made by a qualified professional appraiser.

Question 33

Adjustable-Rate Mortgage (ARM)

Accepted Answer

A type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.

Question 34

Fixed-Rate Mortgage

Accepted Answer

A mortgage in which the interest rate does not change during the entire term of the loan.

Question 35

Prepayment Penalty

Accepted Answer

A clause in a mortgage agreement that states that a penalty will be assessed if the mortgage is prepaid within a certain time period.

Question 36

Subordination Agreement

Accepted Answer

A legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor.

Question 37

Subdivision

Accepted Answer

A housing development that is created by dividing a tract of land into individual lots for sale or lease.

Question 38

Foreclosure

Accepted Answer

The legal process by which a borrower's interest in mortgaged property is taken because of a default on the loan.

Question 39

Short Sale

Accepted Answer

A sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.

Question 40

Earnest Money

Accepted Answer

A deposit made to a seller showing the buyer's good faith in a transaction.

Question 41

Lien

Accepted Answer

A claim or charge on property for payment of some debt, obligation or duty.

Question 42

Zoning

Accepted Answer

The legislative process regulating the use of land and construction of buildings in a city, town, or county.

Question 43

Home Equity

Accepted Answer

The difference between the market value of a home and the amount the owner still owes on the mortgage.

Question 44

Seller's Disclosure

Accepted Answer

A document provided by a home seller to a buyer, disclosing known issues and defects of the property.

Question 45

Amortization

Accepted Answer

The process of paying off a debt over time through regular payments.

Question 46

Real Estate Owned (REO)

Accepted Answer

Property owned by a lender—usually a bank—after an unsuccessful foreclosure auction.

Question 47

Eminent Domain

Accepted Answer

The power of the state to take private property for public use with payment of compensation.

Question 48

Power of Attorney

Accepted Answer

A legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal).

Question 49

Certificate of Occupancy

Accepted Answer

A document issued by a local government agency or building department certifying a building's compliance with applicable building codes and other laws, and indicating it to be in a condition suitable for occupancy.

Question 50

Covenant

Accepted Answer

A written agreement or promise of two or more parties by which either pledges to perform or not to perform specified acts on a property, or which specifies certain uses or non-uses of the property.

Connecticut Real Estate Agent Flashcard Set