Question 1

FSBO

Accepted Answer

For Sale By Owner

Question 2

MLS

Accepted Answer

Multiple Listing Service

Question 3

CMA

Accepted Answer

Comparative Market Analysis

Question 4

Easement

Accepted Answer

A right to use someone else's property for a specific purpose

Question 5

Title search

Accepted Answer

An examination of public records to determine the ownership and status of a property's title

Question 6

Escrow

Accepted Answer

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

Question 7

Mortgage pre-approval

Accepted Answer

A lender's written commitment to provide a loan amount for a specific property

Question 8

Conveyance

Accepted Answer

The transfer of property ownership from one party to another

Question 9

Dual agency

Accepted Answer

Representing both the buyer and the seller in a real estate transaction

Question 10

Earnest money

Accepted Answer

A deposit made by a buyer to demonstrate their seriousness about purchasing a property

Question 11

Encumbrance

Accepted Answer

A claim or liability on a property, such as a mortgage or easement

Question 12

Zoning

Accepted Answer

Local government regulations that dictate how a property can be used

Question 13

Deed

Accepted Answer

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

Question 14

Listing agreement

Accepted Answer

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

Question 15

Appraisal

Accepted Answer

An estimate of a property's value, conducted by a licensed appraiser

Question 16

Contingency

Accepted Answer

A condition that must be met for a real estate contract to be binding

Question 17

Fair Housing Act

Accepted Answer

A federal law that prohibits discrimination in housing based on race, color, religion, sex, etc.

Question 18

Title insurance

Accepted Answer

Insurance that protects against loss arising from defects in a property's title

Question 19

Lien

Accepted Answer

A legal claim on a property for the payment of a debt

Question 20

Comparative market analysis

Accepted Answer

An evaluation of similar properties to determine a property's market value

Question 21

Due diligence

Accepted Answer

The process of investigating a property's condition and legal status before purchasing

Question 22

PITI

Accepted Answer

Principal, Interest, Taxes, and Insurance (components of a mortgage payment)

Question 23

Contingent offer

Accepted Answer

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

Question 24

Walk-through

Accepted Answer

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

Question 25

Dual tracking

Accepted Answer

Simultaneously processing a foreclosure and a loan modification application for the same borrower

Question 26

Amortization

Accepted Answer

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

Question 27

1031 exchange

Accepted Answer

A tax-deferred exchange of investment properties that allows for the deferral of capital gains tax

Question 28

Counteroffer

Accepted Answer

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

Question 29

Radon

Accepted Answer

A naturally occurring radioactive gas that can seep into buildings and pose health risks

Question 30

Listing agent

Accepted Answer

The real estate agent who represents the seller in a transaction

Question 31

Assessed value

Accepted Answer

The value placed on a property by a public tax assessor for the purpose of determining property taxes

Question 32

Purchase agreement

Accepted Answer

A legally binding contract between a buyer and a seller outlining the terms of the sale

Question 33

Clear title

Accepted Answer

A title that is free from any liens or encumbrances

Question 34

Dual contract

Accepted Answer

A situation where a real estate agent represents both the buyer and the seller in a transaction without disclosing it to either party

Question 35

Certificate of occupancy

Accepted Answer

A document issued by a local government authority that certifies a property is safe and suitable for occupancy

Question 36

Equity

Accepted Answer

The value of a property beyond any outstanding mortgage or other debts secured against it

Question 37

Down payment

Accepted Answer

A portion of the purchase price paid upfront by the buyer in a real estate transaction

Question 38

HOA

Accepted Answer

Homeowners' Association

Question 39

Balloon payment

Accepted Answer

A large lump sum payment due at the end of a loan term, typically associated with certain types of mortgages

Question 40

Contingent upon sale

Accepted Answer

A condition in a purchase agreement that requires the buyer to sell their current property before completing the purchase

Question 41

Net listing

Accepted Answer

A listing agreement where the seller receives the net proceeds from the sale, and the agent's commission is any amount above that

Question 42

Deed restriction

Accepted Answer

Limitations placed on a property's use by the previous owner or developer

Question 43

Dual tracking

Accepted Answer

Simultaneously processing a foreclosure and a loan modification application for the same borrower

Question 44

Earnest money deposit

Accepted Answer

A sum of money paid by the buyer to demonstrate their serious intent to purchase a property

Question 45

Eminent domain

Accepted Answer

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

Question 46

Exclusive agency listing

Accepted Answer

A listing agreement where only one agent is authorized to sell the property, but the seller retains the right to sell independently

Question 47

Lender's title insurance

Accepted Answer

Insurance that protects the lender against any losses resulting from title defects or disputes

Question 48

Open listing

Accepted Answer

A non-exclusive listing agreement where the seller can engage multiple agents and only pay commission to the agent who brings the successful buyer

Question 49

Principal broker

Accepted Answer

The licensed broker who is responsible for supervising real estate agents within a brokerage

Question 50

Real estate disclosure

Accepted Answer

Required statements and documents that provide information about the condition and history of a property to prospective buyers

Question 51

Seller financing

Accepted Answer

A financing arrangement where the seller provides a loan to the buyer instead of the buyer obtaining traditional financing from a lender

Question 52

Subdivision

Accepted Answer

The division of a large parcel of land into smaller lots or parcels for development or sale

Question 53

Survey

Accepted Answer

A detailed measurement and mapping of a property's boundaries, structures, and features

Question 54

Time is of the essence

Accepted Answer

A contractual provision indicating that punctual performance is essential and any delay may result in legal consequences

Question 55

Title company

Accepted Answer

A company that examines title records, issues title insurance, and facilitates the closing process in a real estate transaction

Question 56

Title defect

Accepted Answer

Any legal issue or claim that affects the ownership or marketability of a property's title

Question 57

Underwriting

Accepted Answer

The process of evaluating a borrower's creditworthiness and the risk associated with a mortgage loan application

Question 58

Walkability

Accepted Answer

The measure of how easily a property's location allows for walking to nearby amenities and services

Question 59

Zero lot line

Accepted Answer

A property where the structure is built very close to one or more property lines, maximizing the usable space within the lot

Question 60

Adjustable-rate mortgage (ARM)

Accepted Answer

A mortgage with an interest rate that may change periodically based on market conditions

Question 61

Escrow account

Accepted Answer

A designated account where funds are held by a third party for the purpose of paying taxes, insurance, and other property-related expenses

Question 62

Gross rent multiplier (GRM)

Accepted Answer

A metric used to estimate the value of an income-producing property by dividing the sale price by the annual rental income

Question 63

Homestead exemption

Accepted Answer

A legal provision that reduces the property taxes for a homeowner who uses the property as their primary residence

North Dakota Real Estate Agent Flashcards