Purchase agreements, contingencies, and the closing and settlement process tested on state real estate licensing exams.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is an earnest money deposit?
Show answer
A partial payment by the buyer demonstrating serious intent, held in escrow until closing.- When does a purchase agreement become binding?
Show answer
When both buyer and seller have signed and accepted all terms.- Define a contingency.
Show answer
A condition that must be satisfied for the contract to remain binding on both parties.- What is a home inspection contingency?
Show answer
A condition allowing the buyer to have the property inspected and cancel if major defects are found.- Define title in real estate.
Show answer
Legal ownership and the right to possess, use, and transfer a property.- What is title insurance?
Show answer
Insurance protecting against financial loss from title defects discovered before or after purchase.- What does a title search reveal?
Show answer
The property's ownership history and any liens, mortgages, or encumbrances against it.- What is a settlement statement?
Show answer
A document itemizing all credits, debits, and funds paid or received at closing.- Define proration in closing.
Show answer
Dividing recurring expenses (taxes, utilities, HOA fees) between buyer and seller based on occupancy dates.- What is the purpose of a final walkthrough?
Show answer
To verify the property condition matches the contract and any agreed repairs are complete.- When must a closing disclosure be provided to the buyer?
Show answer
At least 3 business days before closing.- What is a deed?
Show answer
The legal document transferring ownership of real property from seller (grantor) to buyer (grantee).- What is a quitclaim deed?
Show answer
A deed transferring whatever interest the grantor has, with no warranties or guarantees.- What is a warranty deed?
Show answer
A deed guaranteeing the grantor owns the property and has authority to transfer it free of liens.- Define a lien in real estate.
Show answer
A legal claim against a property securing payment of a debt, giving the creditor the right to sell it.
FlashKeepers