Paperwork & Rules
What is a contract?
An agreement between two or more parties that is legally enforceable.
What is the purpose of a mortgage loan?
To help a buyer finance the purchase of a property.
What is an appraisal?
An estimate of a property’s value performed by a licensed appraiser.
What document answers the question, “Where exactly is my property line?”
A Survey
Who helps buyers and sellers buy and sell property?
Real estate agent.
What are the four basic elements of a valid contract? (hint: acceptance is one of them)
Offer, acceptance, consideration, and legal capacity.
Which loan type is backed by the Federal Housing Administration?
FHA loan
Who usually requires an appraisal in a real estate transaction?
The lender.
Which legal description method uses lot numbers and subdivision names?
Lot and block.
Who determines the value of a property for lending purposes?
Appraiser.
What type of agency represents the buyer only?
Buyer's Agency or Buyer's Agent
What does “DTI” stand for in lending?
Debt-to-Income ratio.
Which valuation method compares similar properties that have sold recently?
Sales Comparison Approach.
Which legal description method uses distances and directions?
Metes and bounds.
Who researches ownership, liens, and ensures a clear title?
Title company or title officer.
What document is used to inform buyers of known defects in a property?
Seller’s disclosure notice.
Which loan program is typically available to veterans and active-duty military?
VA loan.
Which valuation approach is commonly used for rental or income-producing properties?
Income Approach.
What document shows property boundaries, easements, and encroachments?
A survey.
Who provides the loan for a real estate purchase?
Lender or mortgage broker.
What fiduciary duty requires an agent to put the client’s interests above their own? (Think OLD CAR)
Loyalty
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an estimate; pre-approval is verified by a lender.
What is the difference between market value and appraised value?
Market value is what buyers are willing to pay; appraised value is an expert estimate.
What is an easement?
The legal right to use someone else’s property for a specific purpose.
Which real estate career is responsible for inspections, appraisals, lending, and closing coordination—but does NOT represent buyers or sellers?
Title company.