Contracts, agency relationships, and fair housing law tested on state real estate licensing exams, distinct from the core terminology deck.
46 cards · basic cards · AI-written, checked twice. Edit anything.
- What is earnest money?
- Money deposited by a buyer to show serious intent to purchase, held in escrow and applied to the purchase price at closing.
- What is a contingency in a purchase contract?
- A condition that must be satisfied before the buyer is obligated to proceed with the purchase.
- What is the statute of frauds in real estate?
- A law requiring real estate contracts to be in writing to be enforceable.
- What is specific performance in real estate?
- A court order requiring a party to complete the terms of a real estate contract rather than pay damages.
- What are liquidated damages?
- A predetermined sum that parties agree one will pay to the other if the contract is breached, as stated in the contract.
- What is a counteroffer?
- A response to an offer that changes one or more material terms, terminating the original offer.
- What is consideration in a real estate contract?
- Something of value given by each party to the contract (such as money from buyer and property from seller) that makes the contract binding.
- What is a title contingency?
- A provision allowing the buyer to terminate if the seller cannot deliver marketable title or clear title by closing.
- What is a financing contingency?
- A clause allowing the buyer to cancel the contract if they cannot obtain a mortgage loan at agreed terms.
- What is an inspection contingency?
- A provision allowing the buyer a period to inspect the property and cancel or request repairs if defects are found.
- What is an appraisal contingency?
- A clause protecting the buyer if the lender's appraisal comes in lower than the agreed purchase price.
- What is default in a real estate contract?
- Failure by one party to perform their obligations under the contract by the required deadline.
- What is escrow?
- A neutral third party that holds money or documents on behalf of both parties until all contract conditions are met.
- What is a condition precedent?
- An event or act that must occur before a party's performance obligation begins under the contract.
- What does a title commitment provide?
- An insurance company's promise to issue a title insurance policy, listing exceptions and requirements before closing.