Question 1

Agency Relationship

Accepted Answer

An arrangement in which a real estate agent acts on behalf of a client in a real estate transaction.

Question 2

Appraisal

Accepted Answer

A professional assessment of a property's market value.

Question 3

Assemblage

Accepted Answer

Combining two or more parcels of property into one.

Question 4

Buyer's Agent

Accepted Answer

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

Question 5

Chain of Title

Accepted Answer

A history of all of the documents that transfer title to a parcel of real estate.

Question 6

Closing

Accepted Answer

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

Question 7

Comparative Market Analysis (CMA)

Accepted Answer

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

Question 8

Contingency

Accepted Answer

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

Question 9

Deed

Accepted Answer

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

Question 10

Dual Agency

Accepted Answer

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

Question 11

Earnest Money

Accepted Answer

A deposit made by a buyer to a seller, indicating the buyer's intent to complete the purchase.

Question 12

Easement

Accepted Answer

A right to cross or otherwise use a portion of another's land for a specific purpose.

Question 13

Equity

Accepted Answer

The difference between the current market value of a property and the amount the owner still owes on the mortgage.

Question 14

Escrow

Accepted Answer

A neutral third party holds funds or documents until specified conditions are met.

Question 15

Fair Housing Act

Accepted Answer

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

Question 16

Fixtures

Accepted Answer

Personal property that becomes real property when attached in a permanent manner to real estate.

Question 17

General Warranty Deed

Accepted Answer

A type of deed where 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 assessment by a professional to determine the condition of a home before buying.

Question 19

HUD-1 Settlement Statement

Accepted Answer

A standard form used to itemize services and fees charged to the borrower by the lender or broker.

Question 20

Joint Tenancy

Accepted Answer

A form of ownership where two or more people have equal ownership of a property, with rights of survivorship.

Question 21

Land Contract

Accepted Answer

A contract between a buyer and seller of real estate where the seller provides the financing.

Question 22

Listing Agent

Accepted Answer

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

Question 23

Market Value

Accepted Answer

The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller.

Question 24

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 25

Non-Disclosure State

Accepted Answer

A state in which the sale price of a home is not a matter of public record.

Question 26

Open Listing

Accepted Answer

A property listing that uses multiple real estate agents in a nonexclusive arrangement to find potential buyers.

Question 27

Plottage

Accepted Answer

The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot.

Question 28

Pre-Approval

Accepted Answer

A lender's commitment to loan money to a borrower before the borrower has found a home to purchase.

Question 29

Pre-Qualification

Accepted Answer

An informal determination by a lender or mortgage broker stating how much mortgage you can afford.

Question 30

Principal

Accepted Answer

The amount of money originally borrowed in a mortgage, minus any payments made subsequently.

Question 31

Property Management

Accepted Answer

The operation, control, and oversight of real estate management in a broad sense.

Question 32

Quitclaim Deed (continued)

Accepted Answer

clear or that the seller has the right to sell the property.

Question 33

Real Estate Owned (REO)

Accepted Answer

Property that is owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.

Question 34

Realtor®

Accepted Answer

A real estate professional who is a member of the National Association of REALTORS®.

Question 35

Right of First Refusal

Accepted Answer

A provision in a lease or other agreement that gives a potential buyer the right to be the first party to be offered a property if it is going to be sold.

Question 36

Seller's Agent

Accepted Answer

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

Question 37

Short Sale

Accepted Answer

A sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.

Question 38

Subagent

Accepted Answer

A real estate broker who works for another broker in a real estate transaction, typically representing the buyer.

Question 39

Title Insurance

Accepted Answer

Insurance that protects the holder from financial loss resulting from defects in the title to a property.

Question 40

Title Search

Accepted Answer

A detailed examination of the historical records concerning a property to verify the seller's right to transfer ownership.

Question 41

Trust Deed

Accepted Answer

A legal document that can be used in some states to pledge real property to secure a loan.

Question 42

Underwriting

Accepted Answer

The process of evaluating a loan application to determine the risk involved for the lender.

Question 43

Usury

Accepted Answer

Charging an interest rate on a loan that is higher than the legal limit.

Question 44

VA Loan

Accepted Answer

A mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs.

Question 45

Variance

Accepted Answer

Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws.

Question 46

Walk-through

Accepted Answer

The final inspection of a property being sold by the buyer to confirm that any contingencies have been met.

Question 47

Zoning

Accepted Answer

Governmental regulations that control the use of land within a jurisdiction.

Question 48

Ad Valorem

Accepted Answer

Taxes charged according to the value of the property.

Question 49

Amortization

Accepted Answer

The process of gradually reducing a debt through installment payments of principal and interest.

Question 50

Balloon Payment

Accepted Answer

A large payment that may be charged at the end of a mortgage loan or lease.

Question 51

Bundle of Rights

Accepted Answer

The rights of an owner to possess, control, enjoy, sell, lease, or give away a property.

Question 52

Constructive Eviction

Accepted Answer

When a landlord's action or failure to act makes the premises unfit for occupancy.

Question 53

Eminent Domain

Accepted Answer

The power of the government or a public utility to take private property for public use, with payment of compensation.

Question 54

Ground Lease

Accepted Answer

A lease of land only, on which the tenant usually owns a building or is required to build as specified in the lease.

Question 55

Habendum Clause

Accepted Answer

The clause in a deed that defines the type of interest and rights to be enjoyed by the grantee.

Question 56

Lis Pendens

Accepted Answer

A recorded notice stating that a lawsuit has been filed concerning the title, or some claimed interest in the parcel of real property.

Question 57

Net Lease

Accepted Answer

A lease in which the tenant pays, in addition to rent, certain costs associated with a leased property, including property taxes, insurance premiums, repairs, utilities and maintenance.

West Virginia Real Estate Agent Flashcards