Question 1

Title Insurance

Accepted Answer

A form of insurance that protects the policyholder against financial loss due to defects in the property's title.

Question 2

Comparative Market Analysis

Accepted Answer

An evaluation of similar properties in the area to determine the fair market value of a property.

Question 3

Certificate of Occupancy

Accepted Answer

A document issued by the local government stating that a property complies with all building codes and is safe to occupy.

Question 4

Multiple Listing Service (MLS)

Accepted Answer

A database used by real estate agents to share property listings and facilitate cooperation between agents.

Question 5

Condominium

Accepted Answer

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

Question 6

Escrow

Accepted Answer

A neutral third party that holds funds and documents during a real estate transaction until all conditions are met.

Question 7

Mortgage Pre-approval

Accepted Answer

The process of obtaining a lender's commitment to provide a mortgage loan based on an evaluation of the borrower's financial information.

Question 8

Contingency

Accepted Answer

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

Question 9

Capitalization Rate

Accepted Answer

The rate of return on an investment property, calculated by dividing the property's net operating income by its purchase price.

Question 10

Homeowners Association (HOA)

Accepted Answer

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

Question 11

Deed

Accepted Answer

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

Question 12

Earnest Money

Accepted Answer

A deposit made by the buyer to show their commitment to purchasing the property.

Question 13

Fair Housing Act

Accepted Answer

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

Question 14

Property Inspection

Accepted Answer

An evaluation of a property's condition, typically performed by a professional inspector, to identify any issues or defects.

Question 15

Zoning

Accepted Answer

The division of land into specific zones or districts with regulations on how the land can be used.

Question 16

Appraisal

Accepted Answer

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

Question 17

Radon

Accepted Answer

A colorless, odorless gas that can seep into homes and pose a health risk. Radon testing is often required during real estate transactions.

Question 18

Lease Agreement

Accepted Answer

A legal contract outlining the terms and conditions of a rental property.

Question 19

Capital Gains Tax

Accepted Answer

A tax on the profit made from the sale of a property or other investments.

Question 20

Due Diligence

Accepted Answer

The process of thoroughly investigating a property and its related documents before completing a real estate transaction.

Question 21

Easement

Accepted Answer

The right to use someone else's property for a specific purpose, such as a shared driveway or utility access.

Question 22

Encroachment

Accepted Answer

When a structure or improvement on one property extends onto another property without permission.

Question 23

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 24

Closing Costs

Accepted Answer

The fees and expenses incurred during the transfer of property ownership, including title insurance, attorney fees, and loan origination fees.

Question 25

Home Inspection

Accepted Answer

A detailed examination of a property's structure, systems, and components to identify potential issues or deficiencies.

Question 26

Eminent Domain

Accepted Answer

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

Question 27

Disclosure

Accepted Answer

The requirement for sellers to reveal any known defects or issues with a property to potential buyers.

Question 28

Dual Agency

Accepted Answer

When a real estate agent represents both the buyer and the seller in a transaction, which can present conflicts of interest.

Question 29

Adjustable-Rate Mortgage (ARM)

Accepted Answer

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

Question 30

Amortization

Accepted Answer

The gradual repayment of a loan through regular payments that include both principal and interest.

Question 31

Real Estate Broker

Accepted Answer

A licensed professional who assists clients in buying, selling, or renting properties and may also supervise other agents.

Question 32

Radon Mitigation

Accepted Answer

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

Question 33

Flood Zone

Accepted Answer

An area designated by FEMA that is at risk of flooding, which may affect insurance requirements and property value.

Question 34

Curb Appeal

Accepted Answer

The attractiveness of a property when viewed from the street, often influencing a buyer's first impression.

Question 35

Counteroffer

Accepted Answer

A response to an initial offer that modifies the terms and conditions, initiating a negotiation process.

Question 36

Right of First Refusal

Accepted Answer

A contractual right that gives someone the first opportunity to purchase a property before it is offered to others.

Question 37

Conveyance

Accepted Answer

The legal process of transferring ownership of a property from one party to another.

Question 38

Broker Price Opinion (BPO)

Accepted Answer

An estimate of a property's value provided by a real estate broker or agent, often used for non-lending purposes.

Question 39

Material Fact

Accepted Answer

Any information about a property that could affect a buyer's decision, which must be disclosed by the seller or agent.

Question 40

Homestead Exemption

Accepted Answer

A tax benefit that reduces the assessed value of a homeowner's primary residence for property tax purposes.

Question 41

Leasehold

Accepted Answer

The right to occupy and use a property for a specific period, typically associated with lease agreements for rental properties.

Question 42

Prepayment Penalty

Accepted Answer

A fee imposed by a lender if a borrower pays off a mortgage loan before a specified period, discouraging early repayment.

Question 43

Chain of Title

Accepted Answer

The historical record of a property's ownership, showing a sequential transfer of ownership from one owner to the next.

Question 44

Rescission

Accepted Answer

The cancellation or annulment of a contract, restoring the parties involved to their original positions before the contract was formed.

Question 45

Real Estate Investment Trust (REIT)

Accepted Answer

A company that owns, operates, or finances income-generating real estate, often providing investors with dividend income.

US New Jersey Real Estate Agent Flashcards