Question 1

CMA

Accepted Answer

Comparative Market Analysis: An evaluation of the prices of similar properties in the area to determine a property's value.

Question 2

Escrow

Accepted Answer

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

Question 3

Title search

Accepted Answer

An examination of public records to verify a property's legal ownership and uncover any potential liens or encumbrances.

Question 4

Pre-approval

Accepted Answer

A lender's assessment of a buyer's creditworthiness and ability to secure a mortgage before house hunting.

Question 5

MLS

Accepted Answer

Multiple Listing Service: A database that real estate agents use to share property listings with other agents.

Question 6

Dual agency

Accepted Answer

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

Question 7

Easement

Accepted Answer

A legal right to use or access another person's property for a specific purpose.

Question 8

Deed

Accepted Answer

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

Question 9

Earnest money

Accepted Answer

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

Question 10

Appraisal

Accepted Answer

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

Question 11

Due diligence

Accepted Answer

The process of investigating a property's condition, legal status, and potential risks before completing a transaction.

Question 12

Contingency

Accepted Answer

A condition that must be met for a real estate transaction to proceed, such as a satisfactory home inspection or mortgage approval.

Question 13

Condominium

Accepted Answer

A type of housing where individuals own their units and share ownership of common areas with other unit owners.

Question 14

Homeowners Association (HOA)

Accepted Answer

An organization that manages and enforces rules and regulations for a community or condominium complex.

Question 15

Mortgage insurance

Accepted Answer

Insurance that protects the lender in case the borrower defaults on the mortgage loan.

Question 16

Assessed value

Accepted Answer

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

Question 17

Closing costs

Accepted Answer

Expenses paid by the buyer and seller during the closing of a real estate transaction, including fees for services like title insurance, inspections, and attorney fees.

Question 18

Zoning

Accepted Answer

Regulations that control land use and determine what types of structures can be built in a particular area.

Question 19

Lien

Accepted Answer

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

Question 20

Counteroffer

Accepted Answer

A response to an initial offer, suggesting different terms or conditions for a real estate transaction.

Question 21

Radon

Accepted Answer

A colorless, odorless gas that can seep into homes and pose a health risk.

Question 22

Short sale

Accepted Answer

When a property is sold for less than the amount owed on the mortgage, with the lender's approval.

Question 23

PITI

Accepted Answer

Principal, Interest, Taxes, and Insurance: The components of a monthly mortgage payment.

Question 24

Lease agreement

Accepted Answer

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

Question 25

Adjustable-rate mortgage (ARM)

Accepted Answer

A mortgage with an interest rate that can change over time based on market conditions.

Question 26

1031 exchange

Accepted Answer

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

Question 27

Dual tracking

Accepted Answer

Simultaneously pursuing a loan modification and foreclosure process by a lender, which is now illegal in Rhode Island.

Question 28

Flood zone

Accepted Answer

An area designated by FEMA as being at risk of flooding, potentially affecting insurance rates and property values.

Question 29

Commission

Accepted Answer

The fee paid to a real estate agent for their services in a transaction, usually a percentage of the sale price.

Question 30

Open house

Accepted Answer

A scheduled period during which a property is available for potential buyers to tour without an appointment.

Question 31

Listing agreement

Accepted Answer

A contract between a property owner and a real estate agent, outlining the terms of their professional relationship.

Question 32

Walk-through

Accepted Answer

A final inspection of a property conducted by the buyer before closing to ensure that agreed-upon repairs and conditions have been met.

Question 33

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 34

Seller's disclosure

Accepted Answer

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

Question 35

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 36

Radon mitigation

Accepted Answer

The process of reducing radon levels in a property to ensure safe living conditions.

Question 37

Certificate of occupancy

Accepted Answer

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

Question 38

Comparative market analysis

Accepted Answer

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

Question 39

Counteroffer

Accepted Answer

A response to an offer that introduces new or modified terms and conditions for negotiation.

Question 40

Dual agency

Accepted Answer

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

Question 41

Home inspection

Accepted Answer

A thorough examination of a property's condition, systems, and structure conducted by a qualified inspector.

Question 42

Pre-qualification

Accepted Answer

An informal assessment of a buyer's financial situation to estimate their borrowing capacity.

Question 43

Purchase agreement

Accepted Answer

A legally binding contract that outlines the terms and conditions of a real estate transaction.

Question 44

Real estate broker

Accepted Answer

A licensed professional who can act as an intermediary between buyers and sellers in real estate transactions.

Question 45

Tenancy in common

Accepted Answer

A form of property ownership where multiple individuals have an undivided interest in the property, with no right of survivorship.

Question 46

Title insurance

Accepted Answer

Insurance that protects against losses resulting from defects in the property's title or ownership rights.

Question 47

As-is condition

Accepted Answer

The sale of a property without any warranties or guarantees regarding its condition or repairs.

Question 48

Encumbrance

Accepted Answer

A claim or liability on a property that may affect its transferability or value, such as a mortgage, easement, or lien.

Question 49

Fair Housing Act

Accepted Answer

Federal legislation that prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, or disability.

Question 50

Gross income multiplier

Accepted Answer

A formula used to estimate the value of income-producing properties by multiplying the property's gross income by a predetermined factor.

Question 51

Homeowners insurance

Accepted Answer

Insurance coverage that protects against damage to a property and its contents, as well as liability for accidents that may occur on the property.

Question 52

Listing agent

Accepted Answer

The real estate agent who represents the seller and markets the property for sale.

Question 53

Net operating income (NOI)

Accepted Answer

The income generated by a property after deducting operating expenses but before deducting debt service and taxes.

Question 54

Purchase offer

Accepted Answer

A written proposal submitted by a buyer to purchase a property, including the proposed price and terms of the transaction.

Question 55

Rent-to-own

Accepted Answer

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

Question 56

Seller financing

Accepted Answer

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

Question 57

Exclusive right-to-sell

Accepted Answer

A listing agreement that grants the listing agent exclusive rights to represent the seller and earn a commission upon the sale of the property.

Question 58

Fair market value

Accepted Answer

The price at which a property would sell between a willing buyer and a willing seller, with neither party being under any compulsion to buy or sell.

Question 59

Multiple offers

Accepted Answer

When more than one buyer submits competing purchase offers for a property, creating a competitive bidding situation.

Question 60

Purchase and sale agreement

Accepted Answer

A legally binding contract that outlines the terms and conditions of a real estate transaction after an offer has been accepted.

Question 61

Radon test

Accepted Answer

A test conducted to measure the levels of radon gas in a property, typically performed by a licensed professional.

Question 62

Right of first refusal

Accepted Answer

A contractual right that gives a party the opportunity to match or better an offer before the property is sold to someone else.

Question 63

Amortization

Accepted Answer

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

Question 64

Comparative lease analysis

Accepted Answer

An evaluation of rental rates and terms for similar properties in the area to determine appropriate lease terms for a property.

Rhode Island Real Estate Agent Flashcards