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?
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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?
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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?
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A law requiring real estate contracts to be in writing to be enforceable.- What is specific performance in real estate?
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A court order requiring a party to complete the terms of a real estate contract rather than pay damages.- What are liquidated damages?
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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?
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A response to an offer that changes one or more material terms, terminating the original offer.- What is consideration in a real estate contract?
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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?
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A provision allowing the buyer to terminate if the seller cannot deliver marketable title or clear title by closing.- What is a financing contingency?
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A clause allowing the buyer to cancel the contract if they cannot obtain a mortgage loan at agreed terms.- What is an inspection contingency?
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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?
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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?
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Failure by one party to perform their obligations under the contract by the required deadline.- What is escrow?
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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?
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An event or act that must occur before a party's performance obligation begins under the contract.- What does a title commitment provide?
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An insurance company's promise to issue a title insurance policy, listing exceptions and requirements before closing.
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