Exam vocabulary
Practice of Real Estate Glossary
15 Practice of Real Estate terms the exam expects you to know, in plain English.
- Agency Disclosure
- A required notification informing consumers which party or parties a real estate licensee represents in a transaction.
- Americans with Disabilities Act (ADA)
- A federal law requiring places of public accommodation to be accessible to people with disabilities.
- Blockbusting
- The illegal practice of inducing owners to sell by suggesting a protected class is moving into the area.
- Earnest Money
- A buyer's good-faith deposit made when submitting an offer, held in trust and credited at closing.
- Group Boycott
- An illegal antitrust violation where competitors agree to exclude another business from fair competition.
- Misrepresentation
- A false statement of fact, whether intentional or negligent, that induces another party to enter a transaction.
- Multiple Listing Service (MLS)
- A cooperative database where brokers share property listing information to facilitate transactions between member firms.
- NAR Code of Ethics
- A voluntary standard of conduct for REALTOR® association members, distinct from and stricter than state license law.
- Price Fixing
- An illegal agreement between competing brokerages to set uniform commission rates.
- Protected Class
- A group of people legally shielded from discrimination, such as race, color, religion, sex, national origin, familial status, and disability under federal law.
- Reasonable Accommodation
- A change to rules or policies that allows a person with a disability equal use and enjoyment of housing.
- Redlining
- The illegal practice of denying loans or services in an area based on the residents' protected characteristics.
- RESPA
- The Real Estate Settlement Procedures Act, a federal law that prohibits kickbacks for referring settlement services.
- Sherman Antitrust Act
- A federal law prohibiting anti-competitive practices such as price fixing between competing real estate brokerages.
- Steering
- The illegal practice of guiding homebuyers toward or away from neighborhoods based on a protected class.
Study the concepts behind these terms: Practice of Real Estate study guide
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