Question 1

Title search

Accepted Answer

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

Question 2

Appraisal

Accepted Answer

An estimation of a property's value, typically conducted by a licensed appraiser.

Question 3

Escrow

Accepted Answer

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

Question 4

Dual agency

Accepted Answer

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

Question 5

Easement

Accepted Answer

A legal right to use someone else's property for a specific purpose, such as a shared driveway.

Question 6

Listing agreement

Accepted Answer

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

Question 7

Comparative market analysis (CMA)

Accepted Answer

An evaluation of similar properties to determine a realistic asking price for a home.

Question 8

Contingency

Accepted Answer

A condition that must be met before a real estate transaction can be finalized, such as a satisfactory home inspection.

Question 9

Multiple Listing Service (MLS)

Accepted Answer

A database that enables real estate agents to share and access property listings.

Question 10

Counteroffer

Accepted Answer

A response to an offer that changes the terms and conditions of the original offer.

Question 11

Certificate of occupancy

Accepted Answer

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

Question 12

Due diligence

Accepted Answer

The process of investigating a property's condition and legal status before completing a purchase.

Question 13

Fair Housing Act

Accepted Answer

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

Question 14

Homeowners Association (HOA)

Accepted Answer

An organization that sets and enforces rules and regulations for a community or development.

Question 15

Marketable title

Accepted Answer

A title that is free from defects and liens, allowing the owner to transfer ownership to another party.

Question 16

Radon

Accepted Answer

A radioactive gas that can seep into buildings and pose health risks. Testing for radon is recommended during real estate transactions.

Question 17

Seller's disclosure

Accepted Answer

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

Question 18

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal law that regulates the closing process and prohibits certain practices, such as kickbacks.

Question 19

Deed

Accepted Answer

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

Question 20

Mortgage pre-approval

Accepted Answer

A lender's conditional commitment to provide a mortgage loan, based on a borrower's financial information and creditworthiness.

Question 21

Zoning

Accepted Answer

Local government regulations that dictate how land can be used and developed.

Question 22

Earnest money

Accepted Answer

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

Question 23

Tenancy in common

Accepted Answer

A form of property ownership in which multiple individuals hold undivided interests in a property.

Question 24

Capitalization rate

Accepted Answer

A measure used to estimate the potential return on an investment property.

Question 25

Flood zone

Accepted Answer

An area designated by FEMA as being at risk of flooding, which can affect insurance requirements and property value.

Question 26

Lease agreement

Accepted Answer

A contract between a landlord and a tenant, outlining the terms and conditions of renting a property.

Question 27

Amortization

Accepted Answer

The process of gradually paying off a mortgage loan through regular payments over time.

Question 28

Encroachment

Accepted Answer

When a property owner's structure or improvement extends beyond their property boundaries and onto another's property.

Question 29

Home inspection

Accepted Answer

An evaluation of a property's condition, typically conducted by a professional inspector, to identify any issues or defects.

Question 30

Good faith estimate

Accepted Answer

An estimate of the closing costs and other expenses associated with obtaining a mortgage loan.

Question 31

Quitclaim deed

Accepted Answer

A type of deed that transfers a person's interest in a property without making any guarantees or warranties about the title.

Question 32

Lien

Accepted Answer

A legal claim against a property as security for a debt or obligation.

Question 33

Condominium

Accepted Answer

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

Question 34

Leasehold

Accepted Answer

A type of property ownership where the buyer leases the land or property from the owner for a specific period.

Question 35

Power of attorney

Accepted Answer

A legal document that grants someone the authority to act on behalf of another person in legal or financial matters.

Question 36

Right of first refusal

Accepted Answer

A provision that gives a person or entity the opportunity to purchase a property before it is offered to others.

Question 37

Depreciation

Accepted Answer

The decrease in the value of a property or asset over time due to wear and tear, obsolescence, or market conditions.

Question 38

Short sale

Accepted Answer

A sale of a property where the proceeds fall short of the outstanding mortgage balance, and the lender agrees to accept a reduced payoff.

Question 39

Capital gains

Accepted Answer

The profits earned from the sale of a property or investment, subject to taxation.

Question 40

Assessed value

Accepted Answer

The value placed on a property by a government authority for the purpose of calculating property taxes.

Question 41

Fair market value

Accepted Answer

The price at which a property would sell in a competitive and open market, determined by the forces of supply and demand.

Question 42

Net listing

Accepted Answer

A listing agreement where the agent's commission is based on the amount the property sells for above a specified minimum amount.

Question 43

Right of way

Accepted Answer

The legal right to pass through a property owned by another person, typically for access or utility purposes.

Question 44

Cloud on title

Accepted Answer

Any claim or encumbrance that casts doubt on the legal ownership or validity of a property's title.

Question 45

Tenancy at will

Accepted Answer

A rental agreement that allows a tenant to occupy a property without a fixed lease term or agreement.

Question 46

Ad valorem tax

Accepted Answer

Property tax assessed based on the value of the property being taxed.

North Carolina Real Estate Agent Flashcards