- Agency
- A legal relationship in which one party (the agent, such as a real estate salesperson) is authorized to act on behalf of another party (the principal or client) in dealings with third parties.
- Fiduciary Duty
- The legal obligation an agent owes to a client to act with loyalty, confidentiality, obedience, disclosure, accounting, and reasonable care, always placing the client's interests first.
- Escrow
- A neutral third party holds funds or documents on behalf of a buyer and seller until all conditions of the transaction are satisfied, then disburses them accordingly.
- Earnest Money
- A good-faith deposit a buyer submits with an offer to show serious intent to purchase, typically held in escrow and applied toward the purchase price at closing.
- Encumbrance
- Any claim, lien, charge, or liability attached to a property, such as a mortgage or easement, that may affect its title or transferability.
- Easement
- A right granted to one party to use another person's land for a specific purpose, such as a utility line or a shared driveway, without owning the land.
- Lien
- A legal claim placed against a property as security for a debt or obligation, which must typically be satisfied before the property can be sold with clear title.
- Fee Simple
- The most complete form of property ownership, giving the holder full rights to use, sell, lease, or bequeath the property indefinitely, subject only to law.
- Amortization
- The process of paying off a loan through regular scheduled payments that gradually reduce the principal balance and interest over the life of the loan.
- Comparative Market Analysis (CMA)
- An evaluation of similar recently sold properties used to estimate a fair market price for a subject property, helping guide listing or offer decisions.
- Contingency
- A condition written into a purchase contract that must be met for the transaction to proceed, such as financing approval, a satisfactory inspection, or an appraisal.
- Pre-Licensing Education
- The mandatory coursework a candidate must complete before being eligible to sit for the Real Estate Salesperson Exam, covering core real estate principles and practices.