Question 1

Ad Valorem

Accepted Answer

Based on the value of the property; often used in relation to taxes or levies.

Question 2

Amortization

Accepted Answer

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

Question 3

Appraisal

Accepted Answer

A professional estimate of a property's market value.

Question 4

Assemblage

Accepted Answer

The process of combining two or more adjoining lots into one larger tract.

Question 5

Buyer's Agent

Accepted Answer

A real estate agent who represents the buyer in a real estate transaction.

Question 6

Chain of Title

Accepted Answer

A history of the ownership of a parcel of land.

Question 7

Closing

Accepted Answer

The final step in a real estate transaction where the title is transferred from the seller to the buyer.

Question 8

Comparative Market Analysis (CMA)

Accepted Answer

An estimate of a home's value based on similar properties in the same area.

Question 9

Contingency

Accepted Answer

A condition that must be met before a contract is legally binding.

Question 10

Deed

Accepted Answer

A legal document that conveys ownership of a property.

Question 11

Dual Agency

Accepted Answer

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

Question 12

Earnest Money Deposit

Accepted Answer

A deposit made by the buyer to the seller to show good faith in a transaction.

Question 13

Easement

Accepted Answer

A right to cross or otherwise use a portion of someone else's land for a specified purpose.

Question 14

Escrow

Accepted Answer

A neutral third party or account that holds funds during a transaction.

Question 15

Fair Market Value

Accepted Answer

The price a property would sell for on the open market.

Question 16

Foreclosure

Accepted Answer

The legal process by which a lender takes back property due to non-payment.

Question 17

General Warranty Deed

Accepted Answer

A deed in which the seller guarantees that he or she holds clear title to a piece of real estate and has a right to sell it.

Question 18

Home Inspection

Accepted Answer

A thorough examination of a property's condition conducted by a professional.

Question 19

Listing Agreement

Accepted Answer

A contract between a real estate broker and a homeowner authorizing the broker to represent the seller and the home in a real estate transaction.

Question 20

Market Value

Accepted Answer

The price at which a property is likely to sell at the current time.

Question 21

Negative Amortization

Accepted Answer

When the amount of a loan increases because the monthly payments do not cover the full amount of interest owed.

Question 22

Open Listing

Accepted Answer

A property listing that uses multiple real estate agents in a nonexclusive arrangement.

Question 23

Prequalification

Accepted Answer

A preliminary assessment of a buyer's ability to pay for a home.

Question 24

Principal

Accepted Answer

The amount of money originally borrowed in a loan.

Question 25

Private Mortgage Insurance (PMI)

Accepted Answer

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

Question 26

Quitclaim Deed

Accepted Answer

A deed that transfers a property's title without any warranties about the title's validity.

Question 27

Real Estate Settlement Procedures Act (RESPA)

Accepted Answer

A law requiring full disclosure of closing costs to buyer and seller.

Question 28

Real Property

Accepted Answer

Land and anything permanently affixed to it, including buildings.

Question 29

Seller's Agent

Accepted Answer

A real estate agent who represents the seller in a real estate transaction.

Question 30

Short Sale

Accepted Answer

A sale in which the lender agrees to accept less than the amount owed on a mortgage.

Question 31

Title

Accepted Answer

Legal evidence of ownership in a property.

Question 32

Underwriting

Accepted Answer

The process a lender uses to determine if the risk of lending to a specific borrower under certain parameters is acceptable.

Question 33

Zoning

Accepted Answer

Regulations established by local governments regarding the use of property in certain areas.

Question 34

Lis Pendens

Accepted Answer

A written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it.

Question 35

Joint Tenancy

Accepted Answer

A form of ownership by two or more individuals together, each owning an undivided interest in the property.

Question 36

Lien

Accepted Answer

A claim or charge on property for payment of some debt, obligation or duty.

Question 37

Mortgage

Accepted Answer

A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property.

Question 38

Nonconforming Use

Accepted Answer

A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established.

Question 39

Option

Accepted Answer

A contract to purchase property at a specified price within a specified period of time.

Question 40

Real Estate Owned (REO)

Accepted Answer

Property owned by a lender—usually a bank—after an unsuccessful sale at a foreclosure auction.

Question 41

Subdivision

Accepted Answer

The division of a single property into smaller parcels.

Question 42

Tax Lien

Accepted Answer

A claim against property for unpaid taxes.

Question 43

Tenancy in Common

Accepted Answer

A type of shared ownership of property, where each owner owns a portion of the property separately from the others.

Question 44

Usury

Accepted Answer

Charging an illegally high interest rate on a loan.

Question 45

Variance

Accepted Answer

A request to deviate from current zoning requirements.

Question 46

Abstract of Title

Accepted Answer

A condensed history of the title to a piece of land that lists any transfers in ownership, as well as any liabilities attached to it.

Question 47

Bundle of Rights

Accepted Answer

Legal rights of the real estate title holder, including possession, control, exclusion, enjoyment, and disposition.

Question 48

Installment Sale

Accepted Answer

A real estate transaction in which the buyer makes payments over a period of time.

Question 49

Leasehold Estate

Accepted Answer

An estate that gives the holder (Tenant) a temporary right to possession, with the ownership of the property remaining with the landlord (Lessor).

Question 50

Plat Map

Accepted Answer

A map of a town, section, or subdivision indicating the location and boundaries of individual properties.

South Dakota Real Estate Agent Flashcards