Question 1

Right of Survivorship

Accepted Answer

A legal concept where upon the death of a co-owner, the surviving co-owner automatically inherits the deceased owner's share of the property.

Question 2

Contingency

Accepted Answer

A condition or requirement that must be met in order for a real estate contract to be binding.

Question 3

Easement

Accepted Answer

A legal right to use another person's land for a specific purpose, such as access to a neighboring property.

Question 4

Lis Pendens

Accepted Answer

A notice filed in the public records to indicate that there is a pending lawsuit involving a property.

Question 5

Due Diligence

Accepted Answer

The process of investigating and researching a property before making a decision to purchase or sell it.

Question 6

Covenant

Accepted Answer

A promise or agreement in a deed or contract that imposes certain obligations or restrictions on the parties involved.

Question 7

Escheat

Accepted Answer

The transfer of property to the state when a person dies without leaving a valid will and without any known heirs.

Question 8

Encroachment

Accepted Answer

The unauthorized intrusion of a structure or improvement onto another person's property.

Question 9

Zoning

Accepted Answer

The division of land into different designated zones or districts for specific uses, such as residential, commercial, or industrial.

Question 10

Appurtenance

Accepted Answer

A right or privilege that is attached to a property and transfers with the property when it is sold.

Question 11

Assessed Value

Accepted Answer

The value of a property as determined by a government assessor for the purpose of calculating property taxes.

Question 12

Brokerage

Accepted Answer

A business or firm that employs real estate agents and brokers to assist clients in buying, selling, or renting properties.

Question 13

Marketable Title

Accepted Answer

A title that is free from defects and encumbrances, and can be readily transferred or sold to another party.

Question 14

Title Insurance

Accepted Answer

An insurance policy that protects the owner or lender against any loss or damage due to defects in the title of a property.

Question 15

Dual Agency

Accepted Answer

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

Question 16

Net Listing

Accepted Answer

A listing agreement where the seller sets a minimum acceptable price and the agent retains any amount above that price as commission.

Question 17

Rescission

Accepted Answer

The cancellation or termination of a contract, resulting in both parties being released from their obligations under the contract.

Question 18

Seller's Disclosure

Accepted Answer

A document in which the seller discloses any known defects or issues with the property being sold.

Question 19

Homestead Exemption

Accepted Answer

A tax benefit that allows homeowners to reduce the assessed value of their property for the purpose of calculating property taxes.

Question 20

Leasehold Estate

Accepted Answer

The right to possess and use a property for a specified period of time, typically through a lease agreement.

Question 21

PITI

Accepted Answer

An acronym that stands for principal, interest, taxes, and insurance, representing the components of a mortgage payment.

Question 22

Comparative Market Analysis (CMA)

Accepted Answer

An analysis of recently sold properties in the area to determine the market value of a property.

Question 23

Earnest Money

Accepted Answer

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

Question 24

Escrow

Accepted Answer

A neutral third party that holds funds, documents, and other assets during a real estate transaction until all conditions are met.

Question 25

Flood Zone

Accepted Answer

An area designated by FEMA as being at risk for flooding, which may impact insurance requirements and property values.

Question 26

Metes and Bounds

Accepted Answer

A method of describing land using physical features and measurements, typically used in legal descriptions.

Question 27

Procuring Cause

Accepted Answer

The actions or efforts of a real estate agent or broker that result in the successful sale or lease of a property.

Question 28

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal law that regulates the disclosure of settlement costs and prohibits certain practices in real estate transactions.

Question 29

Tenancy in Common

Accepted Answer

A form of co-ownership where each owner holds an undivided interest in the property and has the right to transfer or sell their share independently.

Question 30

Deed Restriction

Accepted Answer

A provision in a deed that limits the use or development of a property, often imposed by a previous owner or a homeowners' association.

Question 31

Radon

Accepted Answer

A colorless, odorless gas that can seep into buildings from the ground and pose health risks. Testing for radon levels is recommended in real estate transactions.

Question 32

Eminent Domain

Accepted Answer

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

Question 33

Fair Housing Act

Accepted Answer

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

Question 34

Capitalization Rate

Accepted Answer

The rate of return on an investment property based on the expected income and the property's value.

Question 35

Encumbrance

Accepted Answer

Any claim, lien, or liability that affects or limits the title to a property, such as mortgages, easements, or judgments.

Question 36

Principal Broker

Accepted Answer

The licensed broker who is responsible for the actions and transactions of the real estate agents affiliated with a brokerage firm.

Question 37

Exclusive Right to Sell

Accepted Answer

A listing agreement where the seller grants the real estate agent the sole right to sell the property, regardless of who finds the buyer.

Question 38

Material Fact

Accepted Answer

Any information about a property that could affect a buyer's decision or the value of the property, which must be disclosed by the seller or their agent.

Question 39

Real Estate Owned (REO)

Accepted Answer

Properties that have been foreclosed upon by a lender and are now owned by the bank or financial institution.

Question 40

Dual Tracking

Accepted Answer

A practice by lenders where they simultaneously pursue foreclosure proceedings while considering a borrower's application for loan modification.

Question 41

Lease Option

Accepted Answer

A lease agreement that includes an option for the tenant to purchase the property within a specified period of time.

Question 42

Marketable Title Act

Accepted Answer

A state law that provides a process to clear title defects and establish a marketable title to real property.

Question 43

Probate

Accepted Answer

The legal process of administering the estate of a deceased person, including the distribution of assets, which may include real estate.

Question 44

Material Breach

Accepted Answer

A significant violation of the terms and conditions of a contract, which may entitle the injured party to terminate the contract and seek damages.

Question 45

Listing Agreement

Accepted Answer

A contract between a property owner and a real estate agent, authorizing the agent to market and sell the property on the owner's behalf.

Question 46

Survey

Accepted Answer

A professional measurement and mapping of a property's boundaries, structures, and features, often required for financing or property disputes.

Question 47

Fair Market Value

Accepted Answer

The price at which a property would sell between a willing buyer and a willing seller, neither being under duress or compulsion.

Question 48

Cloud on Title

Accepted Answer

Any claim, lien, or encumbrance that casts doubt on the ownership or marketability of a property's title.

Question 49

Riparian Rights

Accepted Answer

The legal rights of a property owner to use and access water from a river, stream, or other water bodies that are adjacent to or flow through their property.

Question 50

1031 Exchange

Accepted Answer

A tax-deferred exchange of like-kind properties, allowing real estate investors to defer capital gains taxes by reinvesting proceeds into a similar property.

Question 51

Capital Gains

Accepted Answer

The profit realized from the sale of an investment property, subject to taxation based on the difference between the purchase price and the sale price.

Question 52

Dual Water Meter

Accepted Answer

A system where separate water meters are installed to measure and bill water usage for indoor and outdoor purposes, commonly used in areas with high water costs.

Question 53

Procurement Fee

Accepted Answer

A fee charged by a real estate agent or broker for their services in locating and securing a property for a buyer or tenant.

Question 54

Chain of Title

Accepted Answer

The chronological sequence of historical ownership documents and transfers that establishes the current ownership and validity of a property's title.

Question 55

Loan-to-Value Ratio (LTV)

Accepted Answer

The ratio of a loan amount to the appraised value or purchase price of a property, used by lenders to assess risk and determine loan terms.

Question 56

Adjustable Rate Mortgage (ARM)

Accepted Answer

A mortgage loan with an interest rate that can fluctuate over time based on changes in a specified financial index.

Question 57

Exclusive Buyer Agency Agreement

Accepted Answer

A contract between a buyer and a real estate agent, granting the agent the exclusive right to represent the buyer in purchasing property.

Question 58

Millage Rate

Accepted Answer

The tax rate applied to the assessed value of a property to calculate property taxes, typically expressed in mills (thousandths of a dollar).

Question 59

Right to Farm

Accepted Answer

State laws that protect agricultural activities from nuisance lawsuits by establishing guidelines for neighboring property owners.

Question 60

Real Estate Investment Trust (REIT)

Accepted Answer

A company that owns, operates, or finances income-generating real estate, allowing investors to own shares and receive dividends.

Question 61

Time is of the Essence

Accepted Answer

A contractual provision that emphasizes punctual performance and adherence to deadlines, making timely completion essential.

Louisiana Real Estate Agent Flashcards