Fundamentals Of Real Estate: Accurate Exam Elaboration *Q&A* (100% Correct) 2025/2026 |VERIFIED|
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Course
Real Estate
Institution
Real Estate
Fundamentals Of Real Estate: Accurate
Exam Elaboration *Q&A* (100% Correct)
2025/2026 |VERIFIED|
What is the role of a real estate broker in a transaction?
A real estate broker acts as an intermediary between buyers and sellers, ensuring the legal
aspects of a property transaction are f...
Fundamentals Of Real Estate: Accurate
Exam Elaboration *Q&A* (100% Correct)
2025/2026 |VERIFIED|
What is the role of a real estate broker in a transaction?
A real estate broker acts as an intermediary between buyers and sellers, ensuring the legal
aspects of a property transaction are fulfilled and facilitating negotiations.
What does "closing" mean in a real estate transaction?
Closing refers to the final step in a real estate transaction where the sale is officially completed,
ownership is transferred, and all financial obligations are settled.
What is the purpose of a property title search?
A property title search is conducted to verify the ownership history and check for any legal issues,
such as liens or disputes, that could affect the property transfer.
What is a real estate appraisal?
A real estate appraisal is an unbiased estimate of a property's market value, often required by
lenders before issuing a mortgage.
What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM)?
A fixed-rate mortgage has an interest rate that remains constant throughout the loan period,
while an ARM has an interest rate that can fluctuate based on market conditions.
What is the concept of "equity" in real estate?
Equity is the difference between the market value of a property and the amount owed on the
mortgage, representing the owner's financial interest in the property.
What is the purpose of a real estate escrow account?
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, An escrow account is used to hold funds on behalf of both the buyer and seller during a
transaction, ensuring that conditions are met before money is disbursed.
What are the key elements of a legally binding real estate contract?
A legally binding real estate contract must include an offer, acceptance, consideration, legal
purpose, and the capacity of the parties involved.
What is a listing agreement in real estate?
A listing agreement is a contract between a property owner and a real estate agent that
authorizes the agent to sell or lease the property on behalf of the owner.
What is the difference between an open listing and an exclusive listing?
An open listing allows multiple brokers to market the property, whereas an exclusive listing grants
one broker exclusive rights to sell the property.
What is the Fair Housing Act?
The Fair Housing Act is a federal law that prohibits discrimination in housing based on race, color,
national origin, religion, sex, familial status, or disability.
What is the significance of a deed in real estate?
A deed is a legal document that transfers ownership of a property from one party to another, and
it must be recorded to be effective.
What is the difference between a general warranty deed and a quitclaim deed?
A general warranty deed provides the buyer with the highest level of protection, ensuring the
title is free from defects, while a quitclaim deed transfers any interest the seller has without warranties.
What is "zoning" in real estate?
Zoning refers to local government regulations that dictate how properties in certain areas can be
used, such as residential, commercial, or industrial purposes.
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, What does "homeowner’s association" (HOA) mean?
An HOA is an organization that manages a residential community and enforces rules and
regulations, often collecting fees to maintain common areas.
What is a "buyer’s market" in real estate?
A buyer’s market occurs when there are more properties available than buyers, which typically
leads to lower prices and increased negotiating power for buyers.
What is the "seller’s market" in real estate?
A seller’s market occurs when there are more buyers than available properties, leading to higher
prices and more competition among buyers.
What is the definition of "mortgage insurance"?
Mortgage insurance protects the lender in case the borrower defaults on the loan, typically
required for loans with less than a 20% down payment.
What is the role of a title company in real estate?
A title company ensures that the title to the property is clear of any issues and facilitates the
closing process by managing the disbursement of funds.
What is "closing cost" in real estate?
Closing costs are the fees and expenses associated with finalizing a real estate transaction, which
can include appraisal fees, inspection fees, and title insurance.
What is a "real estate investment trust" (REIT)?
A real estate investment trust (REIT) is a company that owns, operates, or finances income-
producing real estate and allows investors to buy shares of the trust.
What is an "earnest money deposit"?
An earnest money deposit is a sum of money paid by the buyer to show serious intent to
purchase the property, which is later applied to the purchase price.
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