FREE Real Estate Sales Process Question and Answers Flashcards

During a real estate transaction, when does the buyer typically submit earnest money?

Answer: After the purchase agreement is signed

Earnest money is typically submitted shortly after the purchase agreement is executed to demonstrate the buyer's good faith.

What is the primary purpose of a Comparative Market Analysis (CMA) in the sales process?

Answer: To determine an appropriate listing price

A CMA compares recent sales of similar properties to help determine a competitive and realistic listing price.

Which of the following is considered a counteroffer in a real estate negotiation?

Answer: The seller accepts the offer but changes the closing date

Any modification to the original offer terms, such as changing the closing date, constitutes a counteroffer that the buyer must accept or reject.

What typically triggers the due diligence period in a residential real estate sale?

Answer: Mutual acceptance of the purchase agreement

The due diligence period generally begins once both parties have mutually accepted and executed the purchase agreement.

In a real estate closing, what does the term 'proration' refer to?

Answer: Dividing shared expenses between buyer and seller based on the closing date

Proration is the process of dividing ongoing expenses like property taxes and HOA dues between buyer and seller proportionally based on the closing date.

Which document provides the buyer with a detailed breakdown of all closing costs and financial terms of the transaction?

Answer: Closing Disclosure

The Closing Disclosure, required under TRID rules, itemizes all loan terms, projected payments, and closing costs for the buyer at least three days before closing.