ADREC Broker Exam key terms

The formal process by which an individual or firm is entered on the official register kept by the real estate regulator, granting legal authority to conduct brokerage activity in the jurisdiction.

The credential issued by the regulator confirming that a person has met qualification, experience and fitness requirements to act as a real estate broker, renewable and subject to conditions.

Mandatory periodic training hours a licensed broker must complete to renew a license, keeping knowledge of law, ethics and market practice current.

A published set of professional conduct standards requiring honesty, fairness, confidentiality and disclosure of conflicts, breach of which can lead to disciplinary action against a licensee.

A legal obligation of utmost good faith owed by an agent to a principal, covering loyalty, obedience to lawful instructions, disclosure of material information, confidentiality and accounting for money received.

The legal arrangement in which a broker is authorised to act on behalf of a client and to bind that client in dealings with third parties, creating duties and liabilities on both sides.

A written brokerage contract appointing one broker as the sole agent for a property for a stated period, setting out commission, marketing obligations and termination terms.

The remuneration a broker earns for completing a brokerage transaction, normally a percentage of the price, payable under the terms of the signed agreement.

A situation where a broker's personal, financial or family interest could improperly influence advice or dealing, which must be disclosed and managed or declined.

Acting for both buyer and seller, or landlord and tenant, in the same transaction, permitted only with informed written consent of both parties and full disclosure of the implications.

Payment made by one broker to another for introducing a client or transaction, which must be disclosed to the client and is often regulated or restricted by law.

The official document recorded with the land registry that identifies the registered owner of a property and evidences their legal interest in it.

The government office that records ownership, transfers and charges over real property, providing public proof of title and priority of interests.

Any right, charge, mortgage or restriction registered against a property that limits the owner's free use or transfer of it and must be disclosed to buyers.

A form of co-ownership in which two or more persons hold equal undivided shares, with the surviving owner automatically taking the deceased's share.

Co-ownership in which each owner holds a distinct, possibly unequal share that can be sold or inherited separately, without automatic survivorship.

A registered right granting a person the use and enjoyment of another's property for a defined period, after which the right reverts to the owner.

The sale of a property that is not yet built or completed, based on plans and specifications, usually governed by special rules on disclosure, escrow and handover.

A regulated bank account into which buyer payments for off-plan units are deposited and released to the developer only against verified construction milestones.

The periodic amount owners pay towards the management, maintenance and insurance of shared parts of a building or community, calculated according to registered ownership share.

A body of unit owners responsible for managing, maintaining and insuring the common areas of a development, funded by service charges collected from its members.

The process of inspecting a newly completed property to identify defects and unfinished work that the developer must rectify before or shortly after handover.

The point at which a completed property is formally delivered from developer to buyer, triggering transfer of risk, payment of remaining sums and service charge liability.

The written agreement between landlord and tenant setting out the property, rent, term, payment schedule and obligations, often required to be registered with the rental authority.

A refundable sum paid by a tenant at the start of a lease to cover unpaid rent or damage beyond fair wear and tear, returned according to the contract terms.

A formal written notice from a landlord requiring a tenant to vacate, stating the legal ground and the notice period required by tenancy law.

A specialised tribunal or authority that hears disagreements between landlords and tenants over rent, increases, repairs or eviction, and issues binding decisions.

The advance written communication a landlord must give before raising rent, within the limits and timing set by tenancy law or a rental index.

The entry of a lender's charge against a property title at the land registry, giving the lender priority rights over the property until the loan is repaid.

The amount of a mortgage expressed as a percentage of the property's value, used by lenders and regulators to cap borrowing and manage risk.

The share of a borrower's income committed to loan repayments, used by lenders to assess whether the borrower can afford the proposed mortgage.

The set of legal duties requiring brokers to identify clients, understand transactions, keep records and report suspicious activity to the financial intelligence authority.

Evidence explaining where the money for a property purchase came from, which brokers must obtain and verify as part of customer due diligence.

A confidential report a broker files with the financial intelligence unit when a transaction shows unusual features suggesting possible money laundering or terrorist financing.

The legal rules governing how personal information about clients is collected, used, stored and shared, giving individuals rights over their own data.

Permission obtained from a person before sending them promotional messages or using their details for advertising, which must be recorded and can be withdrawn.

The duty not to disclose a client's private or commercially sensitive information obtained through the brokerage relationship, except where law requires or the client agrees.

A valuation approach that estimates a property's price by analysing recent sales and listings of similar properties in the same location and condition.

The estimated amount a property would fetch between a willing buyer and willing seller in an arm's-length transaction after proper marketing, neither party under pressure.

The annual rental income from a property expressed as a percentage of its purchase price or current value, used to compare investment returns.