Statutory & Regulatory Requirements

Question 1

Compensation paid a broker for services in a real estate transaction; usually a percentage of sales price, rather than a flat fee

Answer 1

Commission

Question 2

A written agency contract between seller and a real estate broker, stating the broker will be paid a commission for finding a buyer for the sellers real property.

Answer 2

Listing

Question 3

A contract that has not been put into words, but is implied by the actions of the part

Answer 3

Implied contract

Question 4

A non-exclusive listing, given by a seller to as many brokers as they choose. If the property is sold, a broker is only entitled to a commission if they are the procuring cause of the sale.

Answer 4

Open listing

Question 5

1. Agreeing to the terms of an offer to enter into a contract, thereby creating a binding contract. 2. Taking delivery of a deed.

Answer 5

Acceptance

Question 6

A listing agreement that entitles the broker to a commission if anyone, including the seller, find a buyer for the property during the listing term.

Answer 6

Exclusive right to sell

Question 7

Money offered as an indication of good faith regarding the future performance of a purchase agreement.

Answer 7

Earnest money

Question 8

A response to an offer to enter into a contract, changing some of the terms of the original offer. It is a rejection of the original offer, and does not create a binding contract unless the new is accepted by the original offer.

Answer 8

Counter offer

Question 9

Anything value, such as money, services, goods, or promises, given to induce another to enter into a contract.

Answer 9

Consideration

Question 10

A contract that has been put into words, either spoken or written.

Answer 10

Express contract

Question 11

Any present right to acquire legal title to
Property

Answer 11

Equitable title

Question 12

The interest in property held by the rightful owner. Also, the vendor’s (sellers) interest in property under a land contract.

Answer 12

Legal title

Question 13

A legal remedy in which a court orders someone who has breached a contract to perform as agreed, rather than simply paying money damages.

Answer 13

Specific Performance

Question 14

A law that requires certain types of contracts to be in writing and signed in order to be enforceable.

Answer 14

Statute of Frauds

Question 15

A contract in which a seller promises to convey title to real property to a buyer in exchange for the purchase price.

Answer 15

Purchase Agreement

Question 16

A contract that one of the parties can disaffirm, without liability, because of a lack of capacity or a negative factor such as fraud or duress.

Answer 16

Voidable contract

Question 17

Person to whom an option is given

Answer 17

Optionee

Question 18

When only one party makes a legally binding promise and the other has not. The promise will become legally binding if the other party chooses to accept it (similar to an offer).

Answer 18

Unilateral contract

Question 19

The seller in a land contract

Answer 19

Vendor

Question 20

The buyer in a land contract

Answer 20

Vender

Question 21

Person who gives an option

Answer 21

Optionor

Question 22

An alternative to going to court whereby the parties agree to submit facts and evidence to an impartial third property

Answer 22

Arbitration

Question 23

The process in which a higher court reviews the decision of a lower court or an administrative tribunal

Answer 23

Appeal

Question 24

Any public notification of property being offered for sale, which this must follow guidelines of Regulation Z of Truth-In-Lending Act.

Answer 24

Advertising

Question 25

A court order prohibiting an act or compelling an act to be done

Answer 25

Injunction

Question 26

The document a plaintiff files with the court to start a lawsuit

Answer 26

Complaint

Question 27

A principle affecting value in real estate which says that all factors which influence real estate—economic, governmental, social, physical— are constantly changing, and thus property value itself is subject to constant change as well.

Answer 27

Change

Question 28

Legally responsible

Answer 28

Liable

Question 29

A persons lineal descendants— children, grandchildren, great grandchildren, and so on

Answer 29

Issue

Question 30

The process whereby cases already filed with the court are speeded up by referring certain matters to a court referee.

Answer 30

Mediation

Question 31

A court that oversees the distribution of property under a will or intestate succession

Answer 31

Probate court

Question 32

Document ordering a person to appear at a deposition or court proceeding to testify or produce evidence

Answer 32

Subpoena

Question 33

A prescribed period of time; especially, the length of time a borrower has to pay off a loan, or the duration of a lease

Answer 33

Term

Question 34

The body of law concerned with the rights and liabilities of one individual in relation to another; includes contract, tort, and property law.

Answer 34

Civil law

Question 35

The fundamental court proceeding in a lawsuit, in which a judge (and in some cases, a jury) hears evidence presented by the plaintiff and defendant and issues a judgement.

Answer 35

Trial

Question 36

A provision in a contract or fees that makes the parties’ rights and obligations depend on the occurrence (or nonoccurrence) of a particular event. Also: condition

Answer 36

Contingency clause