Real Estate Flashcards
What is the primary purpose of a real estate appraisal?
To determine the value of a property.
True or False: A buyer’s agent represents the seller in a real estate transaction.
False
Fill in the blank: The legal document that transfers property ownership is called a __________.
deed
What does MLS stand for in real estate?
Multiple Listing Service
Which of the following is not a type of mortgage? A) Fixed-rate B) Adjustable-rate C) Interest-only D) Variable-rate
D) Variable-rate
What is the term for the process of evaluating a property’s value based on comparable sales?
Comparative Market Analysis (CMA)
True or False: A lease agreement must always be in writing to be enforceable.
False
What is the maximum allowable debt-to-income ratio for most conventional loans?
43%
Fill in the blank: An easement allows a person to use someone else’s __________.
property
What is the purpose of a home inspection?
To assess the condition of a property before purchase.
Which type of ownership allows multiple people to own a property together with equal rights?
Joint Tenancy
True or False: A contingent offer means the sale is certain to close.
False
What is the primary function of a title company?
To ensure the title is clear and to facilitate the closing process.
Which of the following is a common closing cost? A) Appraisal fee B) Home inspection C) Title insurance D) All of the above
D) All of the above
What does the term ‘escrow’ refer to?
A financial arrangement where a third party holds funds until conditions are met.
Fill in the blank: A __________ provides a legal description of property boundaries.
survey
What is the purpose of earnest money in a real estate transaction?
To demonstrate the buyer’s commitment to purchase.
True or False: An open listing agreement provides exclusive rights to the agent.
False
What is the role of a real estate broker?
To oversee real estate transactions and agents.
What term describes a decrease in property value?
Depreciation
Fill in the blank: A __________ is a legal claim against a property for unpaid debts.
lien
What is the difference between ‘real property’ and ‘personal property’?
Real property refers to land and anything permanently attached, while personal property is movable.
True or False: A short sale occurs when a property is sold for less than the amount owed on the mortgage.
True
What does ‘zoning’ regulate in real estate?
The use of land and buildings.
Which of the following is a type of real estate investment? A) REIT B) Mutual Fund C) Bond D) All of the above
A) REIT
What is the primary benefit of homeownership?
Building equity over time.
What is the primary purpose of a real estate license?
To legally represent buyers and sellers in real estate transactions.
True or False: A real estate agent must disclose known defects in a property.
True
Fill in the blank: The __________ is the document that transfers ownership of real property.
deed
What does MLS stand for in real estate?
Multiple Listing Service
Which of the following is not a type of property ownership? A) Sole ownership B) Tenancy in common C) Joint tenancy D) Property management
D) Property management
What is the term for the right of the government to take private property for public use?
Eminent domain
True or False: A broker can operate independently without a supervising broker.
False
What is the purpose of a property appraisal?
To determine the market value of a property.
Fill in the blank: The __________ is a legal document that outlines the terms of a mortgage loan.
mortgage agreement
What does the term ‘escrow’ refer to in real estate transactions?
A financial arrangement where a third party holds funds until certain conditions are met.
Which of the following is a common type of financing? A) Conventional loan B) Lease option C) Property swap D) All of the above
A) Conventional loan
True or False: A real estate agent can represent both the buyer and the seller in the same transaction.
True
What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?
A fixed-rate mortgage has a constant interest rate, while an adjustable-rate mortgage can change over time.
Fill in the blank: A __________ is a legal claim against a property for unpaid debts.
lien
What is the purpose of a listing agreement?
To establish the relationship between a seller and a real estate agent.
What does ‘Zoning’ refer to?
The regulation of land use by local governments.
Which of the following is a characteristic of a fiduciary relationship? A) Loyalty B) Disclosure C) Confidentiality D) All of the above
D) All of the above
True or False: A buyer’s market occurs when there are more homes for sale than buyers.
True
What is the term for the process of preparing a property for sale?
Staging
Fill in the blank: The __________ is a government program that provides insurance for certain mortgages.
FHA (Federal Housing Administration)
What is the role of a title company in a real estate transaction?
To ensure that the title to the property is clear and to facilitate the closing process.
What does ‘due diligence’ mean in real estate?
The process of investigating a property before completing a transaction.
True or False: A short sale occurs when a property is sold for less than the amount owed on the mortgage.
True
What is the purpose of a home inspection?
To assess the condition of a property before purchase.
Which of the following is a common closing cost? A) Title insurance B) Appraisal fee C) Recording fee D) All of the above
D) All of the above
