Real Estate Agency and Compliance Quiz

Real estate agencies generally do not provide legal advice, as this falls under the purview of lawyers.

MLS is a database where real estate brokers share information about properties for sale, making it easier to find buyers.

Real estate agents must be licensed to legally conduct real estate transactions in many jurisdictions.

Fiduciary duty requires real estate agents to prioritize their clients' interests above their own.

E&O insurance protects real estate professionals from liability for errors or omissions in their work.

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, or national origin.

A listing agreement is a contract that allows a real estate agent to represent a seller in the sale of their property.

RESPA requires lenders to provide borrowers with certain disclosures about loan terms and prohibits certain practices, such as kickbacks and referral fees, that can increase the cost of obtaining a mortgage.

Open listing agreements are less common than exclusive right-to-sell or exclusive agency agreements, as they provide fewer guarantees for the agent.

Real estate brokers are licensed to oversee real estate transactions, including the buying and selling of property.

Personal information such as the seller's social security number is not typically included in a property listing for privacy reasons.

HOA stands for Homeowners Association, which is an organization that manages a residential community, typically collecting fees for maintenance and upkeep.

An escrow account holds funds during a real estate transaction, ensuring that they are safely transferred between parties according to the terms of the sale.

A buyer's agent works exclusively on behalf of the buyer in a real estate transaction.

Comps refer to recently sold properties that are similar to the property being evaluated, used to determine its market value.

A pocket listing is a property for sale that is not listed on a multiple listing service (MLS) or advertised to the public.

Procuring cause refers to the actions or efforts that result in the successful sale of a property, typically determining which agent is entitled to the commission.

HUD is responsible for enforcing the Fair Housing Act and other fair housing laws in the United States.

A CMA is a report that helps determine a home's value by comparing it to similar properties that have recently sold.

Comparables are properties that are similar to the subject property and are used to determine its fair market value.

A contingency is a condition that must be met before a real estate contract becomes legally binding, such as the buyer obtaining financing or the property passing a home inspection.

Due diligence is the process of investigating a property to ensure that there are no issues or risks associated with it before completing the purchase.

A cloud on title is any claim or encumbrance that may affect the ownership of a property, such as a lien or easement.

A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting the proceeds from the sale of one property into another similar property.

A lien is a legal claim against a property that serves as security for the repayment of a debt or obligation, such as a mortgage or tax lien.