Earnest money in real estate is a deposit that demonstrates the buyer's serious intent to purchase. Learn how it works, refund rules, and what to expect on the real estate license exam.
Functional obsolescence in real estate is a loss in property value due to outdated design, layout, or features. Learn curable vs incurable types, common examples, and what to expect on the real estate license exam.
The gross rent multiplier (GRM) estimates property value by dividing sale price by gross rental income. Learn the GRM formula, when to use it, and what to expect on the real estate license exam.
A defeasance clause in real estate requires the lender to release the mortgage lien once the loan is fully repaid. Learn how it protects borrowers, when it triggers, and what to expect on the real estate license exam.
Equitable title is the right to obtain full ownership, while legal title is the actual ownership of record. Learn the key differences, how they apply in land contracts, and what to expect on the real estate license exam.
A net listing in real estate allows the broker to keep any sale price above the seller's minimum net amount. Learn why net listings are controversial, legality by state, and what to expect on the real estate license exam.