Question 1

Dual Agency

Accepted Answer

A situation in which a real estate agent represents both the buyer and seller in a transaction.

Question 2

Escrow

Accepted Answer

A neutral third party who holds funds and documents during a real estate transaction.

Question 3

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of comparable properties to determine a realistic listing price for a property.

Question 4

Radon

Accepted Answer

A colorless, odorless gas that can be found in homes and poses health risks.

Question 5

Contingency

Accepted Answer

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

Question 6

Title Insurance

Accepted Answer

Insurance that protects against any defects in the title of a property.

Question 7

Condominium (Condo)

Accepted Answer

A type of housing where individual units are owned, while common areas are shared.

Question 8

Amortization

Accepted Answer

The process of paying off a loan through regular payments of both principal and interest.

Question 9

Homeowners Association (HOA)

Accepted Answer

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

Question 10

Eminent Domain

Accepted Answer

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

Question 11

Assessed Value

Accepted Answer

The value placed on a property by a tax assessor for the purpose of calculating property taxes.

Question 12

Exclusive Right to Sell

Accepted Answer

A listing agreement that gives the real estate agent the exclusive right to sell a property.

Question 13

Earnest Money

Accepted Answer

A deposit made by the buyer to show their serious intent to purchase a property.

Question 14

Appraisal

Accepted Answer

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

Question 15

Listing Agreement

Accepted Answer

A contract between a property owner and a real estate agent, outlining the terms of the agent's representation.

Question 16

Seller's Disclosure

Accepted Answer

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

Question 17

Radon Mitigation System

Accepted Answer

A system designed to reduce radon levels in a building.

Question 18

Market Value

Accepted Answer

The price a willing buyer would pay and a willing seller would accept for a property in the current market.

Question 19

Counteroffer

Accepted Answer

A response to an offer that includes modified terms, initiating a negotiation.

Question 20

Landlord-Tenant Laws

Accepted Answer

Laws that govern the rights and responsibilities of landlords and tenants in rental agreements.

Question 21

Title Search

Accepted Answer

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

Question 22

Net Listing

Accepted Answer

A listing agreement where the agent's commission is based on the amount the property sells for, minus the seller's desired amount.

Question 23

Procuring Cause

Accepted Answer

The effort that leads to a successful real estate transaction.

Question 24

Quitclaim Deed

Accepted Answer

A legal document used to transfer interest in real property without making any warranties or guarantees.

Question 25

Open House

Accepted Answer

An event where a property is available for potential buyers to view without an appointment.

Question 26

Due Diligence

Accepted Answer

The process of investigating a property before entering into a transaction.

Question 27

Chain of Title

Accepted Answer

The sequence of historical transfers of title to a property.

Question 28

Fair Housing Act

Accepted Answer

A federal law that prohibits discrimination in housing based on race, color, religion, sex, national origin, disability, and familial status.

Question 29

Broker Price Opinion (BPO)

Accepted Answer

An estimate of a property's value by a real estate broker, often used by lenders.

Question 30

Deed Restriction

Accepted Answer

A provision in a deed that limits the use or occupancy of a property.

Question 31

Walk-through

Accepted Answer

A final inspection of a property before closing to ensure that it is in the agreed-upon condition.

Question 32

Radon Disclosure

Accepted Answer

A requirement to inform potential buyers about the presence of radon in a property.

Question 33

Good Faith Estimate (GFE)

Accepted Answer

An estimate of the closing costs a borrower will incur when obtaining a mortgage loan.

Question 34

Multiple Listing Service (MLS)

Accepted Answer

A database used by real estate agents to share property listings and facilitate cooperation among agents.

Question 35

Contingent Offer

Accepted Answer

An offer to purchase a property that is dependent on certain conditions being met.

Question 36

Zoning

Accepted Answer

Local government regulations that dictate how land can be used, such as residential, commercial, or industrial.

Question 37

Real Estate Commission

Accepted Answer

The fee paid to a real estate agent or broker for their services in a transaction.

Question 38

Certificate of Occupancy

Accepted Answer

A document issued by a local government indicating that a building meets all required codes and is safe for occupancy.

Question 39

Comparative Market Analysis (CMA)

Accepted Answer

A report prepared by a real estate agent that compares similar properties to determine a property's market value.

Question 40

Capitalization Rate

Accepted Answer

The rate of return on an investment property, calculated by dividing the net operating income by the purchase price.

Question 41

Easement

Accepted Answer

A right granted to a person or entity to use another person's property for a specific purpose.

Question 42

1031 Exchange

Accepted Answer

A tax-deferred exchange of like-kind properties that allows investors to defer capital gains taxes.

Question 43

Building Code

Accepted Answer

Local regulations that set standards for the construction and maintenance of buildings to ensure safety and compliance.

Question 44

Purchase Agreement

Accepted Answer

A legally binding contract between a buyer and seller that outlines the terms and conditions of a property sale.

Question 45

Home Inspection

Accepted Answer

A professional assessment of a property's condition, including its structure, systems, and potential issues.

Question 46

Pre-Approval

Accepted Answer

The process of obtaining a lender's commitment to provide a mortgage loan, based on a preliminary assessment of the borrower's financials.

Question 47

Cloud on Title

Accepted Answer

A claim or encumbrance that affects the ownership of a property, such as an unresolved lien or legal dispute.

Question 48

Real Estate Agent

Accepted Answer

A licensed professional who represents buyers or sellers in real estate transactions.

Question 49

Market Analysis

Accepted Answer

An evaluation of current market conditions, trends, and property values to assist in making informed decisions.

Question 50

Fiduciary Duty

Accepted Answer

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

Question 51

Counteroffer

Accepted Answer

A response to an offer that proposes different terms, initiating a negotiation process.

Question 52

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of similar properties in the area to determine a property's market value.

Question 53

Due-On-Sale Clause

Accepted Answer

A provision in a mortgage that requires the full repayment of the loan when the property is sold or transferred.

Question 54

Equity

Accepted Answer

The difference between the market value of a property and the outstanding balance of any loans or mortgages.

Question 55

Real Estate Investment Trust (REIT)

Accepted Answer

A company that owns, operates, or finances income-generating real estate and allows investors to buy shares.

Question 56

Lead-Based Paint Disclosure

Accepted Answer

A requirement to inform buyers of any known presence of lead-based paint in a property, commonly found in homes built before 1978.

Question 57

Escalation Clause

Accepted Answer

A provision in a purchase offer that allows the buyer to increase their bid if competing offers are received.

Question 58

Conveyance

Accepted Answer

The transfer of property ownership from one party to another.

Question 59

Right of First Refusal

Accepted Answer

A contractual right that gives a party the option to purchase a property before the owner sells it to someone else.

Question 60

Special Assessment

Accepted Answer

Additional charges imposed by a government or homeowners association for specific improvements or services in a property's vicinity.

Question 61

Home Warranty

Accepted Answer

A service contract that covers the repair or replacement of specific home systems and appliances for a specified period after purchase.

Minnesota Real Estate Agent Flashcards