Question 1

Escrow

Accepted Answer

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

Question 2

Earnest money

Accepted Answer

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

Question 3

Listing agreement

Accepted Answer

A contract between a seller and a real estate agent that outlines the terms and conditions for marketing and selling the property.

Question 4

Comparative market analysis (CMA)

Accepted Answer

An evaluation of recently sold properties similar to a subject property, used to determine its fair market value.

Question 5

Dual agency

Accepted Answer

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

Question 6

Appraisal

Accepted Answer

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

Question 7

Title insurance

Accepted Answer

Insurance that protects the buyer and lender against any losses due to defects in the property's title.

Question 8

Seller's disclosure

Accepted Answer

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

Question 9

Counteroffer

Accepted Answer

A response to an offer that modifies the terms and conditions originally proposed by the buyer or seller.

Question 10

Condominium

Accepted Answer

A type of housing where individuals own separate units within a larger building or community.

Question 11

Homeowners association (HOA)

Accepted Answer

An organization that enforces rules and collects fees from residents in a planned community or condominium.

Question 12

Pre-approval

Accepted Answer

A lender's written commitment to provide a borrower with a specific loan amount based on their financial information.

Question 13

Down payment

Accepted Answer

The initial payment made by the buyer toward the purchase price of a property.

Question 14

Closing costs

Accepted Answer

Fees and expenses associated with finalizing a real estate transaction, including taxes, title insurance, and lender fees.

Question 15

Contingency

Accepted Answer

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

Question 16

Multiple Listing Service (MLS)

Accepted Answer

A database that real estate agents use to share information about properties for sale.

Question 17

Fair Housing Act

Accepted Answer

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

Question 18

Leverage

Accepted Answer

The use of borrowed funds to finance an investment in real estate.

Question 19

Deed

Accepted Answer

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

Question 20

Closing statement

Accepted Answer

A detailed breakdown of all costs and fees associated with a real estate transaction.

Question 21

Easement

Accepted Answer

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

Question 22

Certificate of occupancy

Accepted Answer

A document issued by the local government stating that a property meets the required building and safety codes.

Question 23

1031 exchange

Accepted Answer

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

Question 24

Rent-to-own

Accepted Answer

An agreement in which a tenant has the option to purchase the property they are renting at a predetermined price.

Question 25

Amortization

Accepted Answer

The gradual repayment of a mortgage loan through regular payments of principal and interest.

Question 26

Title search

Accepted Answer

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

Question 27

Lien

Accepted Answer

A legal claim or right against a property as security for the payment of a debt.

Question 28

Brokerage

Accepted Answer

A real estate firm or agency that employs real estate agents and brokers.

Question 29

Radon

Accepted Answer

A radioactive gas that can seep into homes and pose health risks. Testing is recommended in certain areas.

Question 30

Zoning

Accepted Answer

Local government regulations that dictate how land can be used within a specific area or district.

Question 31

Home inspection

Accepted Answer

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

Question 32

Comps

Accepted Answer

Abbreviation for "comparables," referring to recently sold properties used to determine the value of a subject property.

Question 33

Title company

Accepted Answer

A company that ensures the title to a property is legitimate and provides title insurance.

Question 34

Capitalization rate (Cap rate)

Accepted Answer

A measure used to evaluate the potential return on an investment property by dividing the net operating income by the purchase price.

Question 35

Depreciation

Accepted Answer

The decrease in value of a property over time, often used as a tax deduction for income-producing properties.

Question 36

Exclusive right to sell

Accepted Answer

A type of listing agreement where the seller agrees to work exclusively with one real estate agent to sell the property.

Question 37

Fair market value

Accepted Answer

The price that a willing buyer and seller would agree upon in an open and competitive market.

Question 38

PITI

Accepted Answer

An acronym for the components of a mortgage payment: Principal, Interest, Taxes, and Insurance.

Question 39

Encroachment

Accepted Answer

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

Question 40

Mortgage insurance

Accepted Answer

Insurance required by lenders for borrowers who make a down payment of less than 20% to protect against default.

Question 41

Conventional loan

Accepted Answer

A mortgage loan not insured or guaranteed by a government agency, typically requiring a higher down payment.

Question 42

Adjustable-rate mortgage (ARM)

Accepted Answer

A mortgage with an interest rate that adjusts periodically based on market conditions.

Question 43

Assessed value

Accepted Answer

The value placed on a property by the local government for tax purposes.

Question 44

Short sale

Accepted Answer

A sale of a property in which the proceeds fall short of the outstanding mortgage balance, requiring lender approval.

Question 45

Lease agreement

Accepted Answer

A contract between a landlord and a tenant that outlines the terms and conditions of renting a property.

Question 46

Seller financing

Accepted Answer

When the seller provides financing to the buyer instead of a traditional mortgage lender.

Question 47

Gross rent multiplier (GRM)

Accepted Answer

A formula used to estimate the value of an income-producing property by multiplying the gross rental income by a factor.

Question 48

Real Estate Owned (REO)

Accepted Answer

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

Question 49

Concessions

Accepted Answer

In real estate, these are negotiated terms or benefits provided by the seller to the buyer to facilitate the sale.

Question 50

Net operating income (NOI)

Accepted Answer

The income generated by a property after subtracting operating expenses but before deducting mortgage payments or taxes.

Question 51

Code of Ethics

Accepted Answer

A set of guidelines and standards established by real estate professional organizations to promote professionalism, integrity, and ethical conduct among agents.

Oklahoma Real Estate Agent Flashcards