Question 1

Seller's Market

Accepted Answer

A real estate market condition where demand from buyers exceeds the supply of available properties, giving sellers an advantage.

Question 2

Buyer's Market

Accepted Answer

A real estate market condition where the supply of properties exceeds the demand from buyers, giving buyers an advantage.

Question 3

MLS (Multiple Listing Service)

Accepted Answer

A database that real estate agents use to list properties and share information with other agents, facilitating cooperation and property marketing.

Question 4

CMA (Comparative Market Analysis)

Accepted Answer

A report prepared by real estate agents to determine the value of a property by comparing it to similar recently sold properties in the area.

Question 5

Appraisal

Accepted Answer

An assessment of a property's value conducted by a licensed appraiser to determine its fair market value.

Question 6

Escrow

Accepted Answer

The period between an accepted offer and the closing of a real estate transaction, during which the necessary paperwork and funds are processed and held by a neutral third party.

Question 7

Title Insurance

Accepted Answer

Insurance that protects a property owner and the lender against any legal claims or disputes regarding ownership of the property.

Question 8

Easement

Accepted Answer

A legal right that allows someone to use another person's property for a specific purpose, such as accessing a neighboring property or utility lines.

Question 9

Deed

Accepted Answer

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

Question 10

Contingency

Accepted Answer

A condition or event that must occur or be fulfilled for a real estate contract to be binding, such as a satisfactory home inspection or mortgage approval.

Question 11

Closing Costs

Accepted Answer

The fees and expenses associated with finalizing a real estate transaction, including lender fees, title insurance, appraisal fees, and legal fees.

Question 12

Earnest Money

Accepted Answer

A deposit made by a buyer to show their commitment to purchasing a property, typically held in escrow until the closing of the transaction.

Question 13

Home Inspection

Accepted Answer

A thorough examination of a property's condition by a professional inspector to identify any potential issues or defects.

Question 14

Pre-Approval

Accepted Answer

The process of obtaining a commitment from a lender to provide a mortgage loan for a specific amount, based on a preliminary review of the buyer's financial information.

Question 15

Comparative Market Analysis (CMA)

Accepted Answer

A report prepared by a real estate agent to determine a property's value by comparing it to recently sold similar properties in the area.

Question 16

Dual Agency

Accepted Answer

A real estate agency relationship in which a single agent represents both the buyer and the seller in a transaction, with the informed consent of both parties.

Question 17

Mortgage

Accepted Answer

A loan provided by a lender to finance the purchase of a property, typically repaid with interest over a set period of time.

Question 18

Down Payment

Accepted Answer

The initial payment made by a buyer toward the purchase price of a property, usually expressed as a percentage of the total price.

Question 19

Title Search

Accepted Answer

An examination of public records to verify the ownership history of a property and uncover any existing liens or claims that could affect its ownership.

Question 20

Contingent Offer

Accepted Answer

An offer to purchase a property that is dependent on the occurrence of certain events, such as the sale of the buyer's current home.

Question 21

1031 Exchange

Accepted Answer

A provision in the U.S. tax code that allows real estate investors to defer capital gains taxes on the sale of an investment property by reinvesting the proceeds into a similar property.

Question 22

Radon

Accepted Answer

A radioactive gas that can seep into homes through cracks in the foundation or walls, posing health risks. Radon testing is important in certain areas.

Question 23

Homeowners Association (HOA)

Accepted Answer

An organization within a residential community that establishes and enforces rules and regulations, typically requiring members to pay fees for shared amenities and maintenance.

Question 24

Absorption Rate

Accepted Answer

The rate at which available homes in a particular market are sold or leased over a given period, indicating the market

Question 25

Mortgage Broker

Accepted Answer

A licensed professional who assists borrowers in obtaining mortgage loans by connecting them with potential lenders and helping them navigate the loan application process.

Question 26

Comparative Market Analysis (CMA)

Accepted Answer

A report prepared by a real estate agent to determine a property's value by comparing it to recently sold similar properties in the area.

Question 27

Dual Agency

Accepted Answer

A real estate agency relationship in which a single agent represents both the buyer and the seller in a transaction, with the informed consent of both parties.

Question 28

Mortgage

Accepted Answer

A loan provided by a lender to finance the purchase of a property, typically repaid with interest over a set period of time.

Question 29

Down Payment

Accepted Answer

The initial payment made by a buyer toward the purchase price of a property, usually expressed as a percentage of the total price.

Question 30

Title Search

Accepted Answer

An examination of public records to verify the ownership history of a property and uncover any existing liens or claims that could affect its ownership.

Question 31

Contingent Offer

Accepted Answer

An offer to purchase a property that is dependent on the occurrence of certain events, such as the sale of the buyer's current home.

Question 32

1031 Exchange

Accepted Answer

A provision in the U.S. tax code that allows real estate investors to defer capital gains taxes on the sale of an investment property by reinvesting the proceeds into a similar property.

Question 33

Radon

Accepted Answer

A radioactive gas that can seep into homes through cracks in the foundation or walls, posing health risks. Radon testing is important in certain areas.

Question 34

Homeowners Association (HOA)

Accepted Answer

An organization within a residential community that establishes and enforces rules and regulations, typically requiring members to pay fees for shared amenities and maintenance.

Question 35

Absorption Rate

Accepted Answer

The rate at which available homes in a particular market are sold or leased over a given period, indicating the market's ability to absorb new inventory.

Question 36

Condominium

Accepted Answer

A type of housing where individuals own individual units within a larger building or community, while sharing common areas and amenities with other unit owners.

Question 37

Capitalization Rate

Accepted Answer

A measure used by real estate investors to estimate the potential return on an investment property, calculated by dividing the property's net operating income by its purchase price.

Question 38

Lease Agreement

Accepted Answer

A legal contract between a landlord and a tenant that outlines the terms and conditions of renting a property, including rent amount, lease duration, and responsibilities of both parties.

Question 39

Section 8 Housing

Accepted Answer

A federal assistance program that provides rental subsidies to low-income individuals or families, with the aim of making housing more affordable and accessible.

Question 40

Due Diligence

Accepted Answer

The process of conducting a thorough investigation and analysis of a property before completing a real estate transaction, including inspections, financial reviews, and legal research.

Question 41

Zoning

Accepted Answer

Local government regulations that divide land into different zones or districts, specifying permissible land use, building types, and density in each zone.

Question 42

1033 Exchange

Accepted Answer

A provision in the U.S. tax code that allows real estate owners to defer capital gains taxes on the involuntary conversion of property, such as through condemnation or destruction, by reinvesting the proceeds into a similar property.

Question 43

Good Faith Estimate (GFE)

Accepted Answer

An estimate provided by a lender to a borrower, detailing the expected closing costs, loan terms, and monthly payments associated with a mortgage loan.

Question 44

Open House

Accepted Answer

A scheduled period during which a property for sale is open to the public for viewing, allowing potential buyers to tour the property without an appointment.

Question 45

PITI

Accepted Answer

An acronym representing the four components of a typical monthly mortgage payment: Principal, Interest, Taxes, and Insurance.

Question 46

Walkability

Accepted Answer

A measure of how friendly an area is to pedestrians, often considering factors such as sidewalk availability, proximity to amenities, and traffic conditions.

Question 47

Comparative Market Analysis (CMA)

Accepted Answer

A report prepared by a real estate agent to determine a property's value by comparing it to recently sold similar properties in the area.

Question 48

Dual Agency

Accepted Answer

A real estate agency relationship in which a single agent represents both the buyer and the seller in a transaction, with the informed consent of both parties.

Question 49

Mortgage

Accepted Answer

A loan provided by a lender to finance the purchase of a property, typically repaid with interest over a set period of time.

Question 50

Down Payment

Accepted Answer

The initial payment made by a buyer toward the purchase price of a property, usually expressed as a percentage of the total price.

Question 51

Title Search

Accepted Answer

An examination of public records to verify the ownership history of a property and uncover any existing liens or claims that could affect its ownership.

Question 52

Contingent Offer

Accepted Answer

An offer to purchase a property that is dependent on the occurrence of certain events, such as the sale of the buyer's current home.

Question 53

1031 Exchange

Accepted Answer

A provision in the U.S. tax code that allows real estate investors to defer capital gains taxes on the sale of an investment property by reinvesting the proceeds into a similar property.

Question 54

Radon

Accepted Answer

A radioactive gas that can seep into homes through cracks in the foundation or walls, posing health risks. Radon testing is important in certain areas.

Question 55

Homeowners Association (HOA)

Accepted Answer

An organization within a residential community that establishes and enforces rules and regulations, typically requiring members to pay fees for shared amenities and maintenance.

Question 56

Absorption Rate

Accepted Answer

The rate at which available homes in a particular market are sold or leased over a given period, indicating the market's ability to absorb new inventory.

Question 57

Condominium

Accepted Answer

A type of housing where individuals own individual units within a larger building or community, while sharing common areas and amenities with other unit owners.

Question 58

Capitalization Rate

Accepted Answer

A measure used by real estate investors to estimate the potential return on an investment property, calculated by dividing the property's net operating income by its purchase price.

Question 59

Lease Agreement

Accepted Answer

A legal contract between a landlord and a tenant that outlines the terms and conditions of renting a property, including rent amount, lease duration, and responsibilities of both parties.

Question 60

Section 8 Housing

Accepted Answer

A federal assistance program that provides rental subsidies to low-income individuals or families, with the aim of making housing more affordable and accessible.

Michigan Real Estate Agent Flashcards