Chapter 1 - An Introduction to Real Estate

Question 1

Listing

Answer 1

A written contract between a seller and a broker, in which the seller hires the broker to find a buyer for the property. Also called a listing agreement.

Question 2

Listing Agent

Answer 2

A real estate agent who assists in finding a buyer for a property.

Question 3

Multiple Listing Service

Answer 3

An organization of real estate agents that share information about listed properties with each other.

Question 4

Offer to Purchase

Answer 4

A seller’s offer to purchase which states the offered price as well as the closing date and other terms of sale.

Question 5

Closing

Answer 5

The final step in a real estate transaction, in which the purchase price and deed are exchanged and title is transferred. Also called settlement.

Question 6

Closing Date

Answer 6

The date on which closing takes place and the title is transferred.

Question 7

Purchase Agreement

Answer 7

The sales contract between the buyer and seller. Also called a purchase and sale agreement or deposit receipt.

Question 8

Real Estate Salesperson

Answer 8

A real estate agent licensed to work under the supervision of a real estate broker.

Question 9

Real Estate Broker

Answer 9

A real estate agent licensed to assist and represent buyers and sellers in real estate transactions, in exchange for compensation.

Question 10

Staging

Answer 10

Cleaning and redecorating a listed home in order to make it as attractive as possible.

Question 11

FSBO

Answer 11

A property that is for sale by owner, not listed with a real estate agent.

Question 12

Open House

Answer 12

A scheduled period of time when the listing agent is available at a listed home to greet drop in buyers and clients and answer questions about the property.

Question 13

Keybox

Answer 13

A box holding a key for visiting agents to use to gain access to a house. Agents use a combination obtained from the MLS to open the keybox.

Question 14

Floor Duty

Answer 14

Assigned time during which an agent must be present at the office to handle incoming phone calls and prospective buyers and sellers who drop in.

Question 15

Selling Agent

Answer 15

A real estate agent that assists a buyer in finding a property to purchase.

Question 16

Commission Split

Answer 16

An arrangement in which the listing broker and selling broker share the commission paid to a listing broker by the seller.

Question 17

Independent Contractor

Answer 17

A person hired to perform a particular job and to carry out those duties without extensive supervision or instruction.

Question 18

Statutory Law

Answer 18

Laws enacted by a federal, state, or local legislative body.

Question 19

Administrative Regulations

Answer 19

Rules adopted by a federal, state, or local administrative body.

Question 20

Case Law

Answer 20

Judicial rulings that form a body of law, setting precedents to be followed in later court cases.

Question 21

Common Law

Answer 21

Long established judicial rules.

Question 22

What are the steps and stages in a typical residential real estate transactions?

Answer 22

1. ) Listing the property;
2. ) Showing the property;
3. ) Offers to purchase;
4. ) Negotiations;
5. ) Contract (Purchase Agreement);
6. ) Property inspection;
7. ) Financing;
8. ) Appraisal;
9. ) Closing Preparations;
10. ) Walk-through; and
11. ) Closing.

Question 23

Deposit

Answer 23

A sum of money tendered to a seller to show that the offer is serious and made in good faith.

Question 24

Competitive Market Analysis

Answer 24

Process of a real estate agent using his familiarity with the area, knowledge or recent sales and listings, and understanding of what factors matter the most in determine market value to accurately price property.

Question 25

License Law

Answer 25

Requirements that must be met in order to become a licensed real estate broker or salesperson in the state.

Question 26

Agency Law

Answer 26

Rules that govern the relationship between an agent and the person she is representing.