Question 1

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of comparable properties used to determine the market value of a property.

Question 2

Dual Agency

Accepted Answer

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

Question 3

Escrow

Accepted Answer

The holding of funds or documents by a neutral third party until all the conditions of a real estate transaction are met.

Question 4

Easement

Accepted Answer

A legal right to use or cross another person's land for a specific purpose.

Question 5

Zoning

Accepted Answer

The division of land into different zones or areas for specific land use purposes, such as residential, commercial, or industrial.

Question 6

Title Insurance

Accepted Answer

An insurance policy that protects the buyer and lender against any defects or claims against the property's title.

Question 7

Amortization

Accepted Answer

The process of gradually paying off a debt, such as a mortgage, through regular payments over a specified period of time.

Question 8

MLS (Multiple Listing Service)

Accepted Answer

A database of property listings shared among real estate agents, providing information about available properties for sale.

Question 9

Assessed Value

Accepted Answer

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

Question 10

Contingency

Accepted Answer

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

Question 11

Appraisal

Accepted Answer

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

Question 12

Homeowner's Association (HOA)

Accepted Answer

An organization in a residential community that enforces rules and regulations and collects fees for maintaining common areas.

Question 13

Conventional Loan

Accepted Answer

A mortgage loan that is not insured or guaranteed by a government agency, such as Fannie Mae or Freddie Mac.

Question 14

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 15

PITI

Accepted Answer

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

Question 16

Listing Agreement

Accepted Answer

A contract between a property owner and a real estate agent, granting the agent the exclusive right to market and sell the property.

Question 17

Earnest Money

Accepted Answer

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

Question 18

Certificate of Occupancy

Accepted Answer

A document issued by a local government authority, confirming that a property complies with building codes and is safe for occupancy.

Question 19

Lien

Accepted Answer

A legal claim against a property as security for the repayment of a debt.

Question 20

Due Diligence

Accepted Answer

The process of investigating and verifying information about a property before entering into a real estate transaction.

Question 21

Condominium

Accepted Answer

A type of housing where individual units are owned by the residents, and common areas are jointly owned and maintained.

Question 22

1031 Exchange

Accepted Answer

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

Question 23

Lease Option

Accepted Answer

A contract that combines a lease agreement with an option for the tenant to purchase the property at a later date.

Question 24

Deed

Accepted Answer

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

Question 25

Radon

Accepted Answer

A naturally occurring radioactive gas that can accumulate in buildings, potentially causing health risks.

Question 26

Closing Costs

Accepted Answer

The fees and expenses associated with the purchase or sale of a property, paid at the closing of a real estate transaction.

Question 27

Down Payment

Accepted Answer

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

Question 28

Pre-approval

Accepted Answer

The process of obtaining a lender's commitment to provide a mortgage loan, based on an evaluation of the buyer's creditworthiness.

Question 29

Concession

Accepted Answer

A negotiated incentive or benefit offered by a seller to the buyer as part of a real estate transaction.

Question 30

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A federal law that requires lenders to provide borrowers with certain disclosures and protections during the mortgage loan process.

Question 31

Contingent Offer

Accepted Answer

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

Question 32

Comparative Market Analysis (CMA)

Accepted Answer

An evaluation of comparable properties used to determine the market value of a property.

Question 33

Fiduciary Duty

Accepted Answer

The legal obligation of a real estate agent to act in the best interest of their client, including loyalty, confidentiality, and full disclosure.

Question 34

Landlord-Tenant Act

Accepted Answer

State-specific laws that govern the rights and responsibilities of landlords and tenants in rental agreements.

Question 35

Home Inspection

Accepted Answer

A professional assessment of a property's condition, typically conducted by a certified home inspector, to identify any issues or defects.

Question 36

Buyer's Agent

Accepted Answer

A real estate agent who represents the buyer's interests in a transaction and helps them navigate the home buying process.

Question 37

Seller's Disclosure

Accepted Answer

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

Question 38

Counteroffer

Accepted Answer

A response to an offer that proposes different terms or conditions, initiating a negotiation between the buyer and seller.

Question 39

Exclusive Right to Sell

Accepted Answer

A listing agreement that grants the listing agent the exclusive right to earn a commission by representing the seller and marketing the property.

Question 40

Capitalization Rate

Accepted Answer

A measure used to estimate the potential return on an investment property, calculated by dividing the net operating income by the property's value.

Question 41

Contingent upon Financing

Accepted Answer

A condition in a purchase agreement that states the buyer's offer is contingent upon securing financing for the property.

Question 42

Eminent Domain

Accepted Answer

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

Question 43

Net Listing

Accepted Answer

A type of listing agreement where the seller sets a minimum acceptable price, and any amount above that price becomes the agent's commission.

Question 44

Quitclaim Deed

Accepted Answer

A legal document that transfers a property owner's interest in the property to another party without guaranteeing a clear title.

Question 45

Title Search

Accepted Answer

An examination of public records to verify the ownership history of a property and identify any encumbrances or liens.

Question 46

Section 8 Housing

Accepted Answer

A federal program that provides rental assistance to low-income individuals and families, administered by local public housing agencies.

Question 47

Breach of Contract

Accepted Answer

A violation of the terms and conditions specified in a legally binding agreement, potentially resulting in legal consequences or remedies.

Pennsylvania Real Estate Agent Flashcards