Glossary
Real Estate Agent Terms & Vocabulary
15 essential real estate agent terms with plain-English definitions: the vocabulary you’ll hear in training and on day one.
Key real estate agent vocabulary
These 15 terms come up constantly in real estate agent training, on the job and in interviews. Knowing them helps you follow instructions, document accurately and sound prepared.
- Appraisal
- A professional estimate of value, usually required by lenders.
- Buyer representation agreement
- A written agreement between a buyer and their agent’s brokerage, now commonly required before touring homes.
- Closing
- The final step where ownership transfers and funds are disbursed.
- CMA
- Comparative market analysis: estimating value using comparable sales.
- Comparable sales (comps)
- Recently sold similar properties used to estimate value.
- Contingency
- A condition that must be met for the contract to proceed, such as inspection or financing.
- Dual agency
- Representing both buyer and seller: restricted or prohibited in some states.
- Earnest money
- A deposit showing a buyer’s good faith.
- Escrow
- A neutral third party holding funds and documents until closing.
- Fair Housing Act
- Federal law prohibiting discrimination in housing.
- Fiduciary duty
- An agent’s legal duty to act in the client’s best interest.
- Listing agreement
- A contract between a seller and brokerage to market a property.
- MLS
- Multiple Listing Service: a database of properties for sale shared among brokers.
- Pre-approval
- A lender’s conditional commitment to loan a specific amount.
- Title insurance
- Insurance protecting against defects in ownership.
Practice these terms
Test yourself with the free Real Estate Agent practice test: it includes vocabulary questions built from this list. For a complete course, see Real Estate Agent training.
Browse terms from every career in our career glossary.