Real Estate Exam Vocab (1-30)

Question 1

Property Manager

Answer 1

A Property Manager is someone hired to maintain and manage real estate property. They handle the day-to-day tasks of running a rental property, like screening new tenants, collecting rent, or maintaining property. In simple terms, a property manager makes a landlord’s life a lot easier.

Question 2

Active Property

Answer 2

An Active Property is a real estate listing that’s still on the market and open for offers. When a property is labeled ‘active,’ it means the seller is still accepting bids, making it a potential opportunity for buyers searching for their perfect home.

Question 3

Co-Ownership

Answer 3

Co-ownership is when a title to one parcel of real estate is held by two or more individuals. Those parties are called co-owners or concurrent owners. Individuals may co-own property as tenants in common, joint tenants, or tenants by the entirety, or community property.

Question 4

Joint Tenancy

Answer 4

Joint Tenancy occurs when two or more people own a property together. When a property is owned by joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owners.

Question 5

Lease

Answer 5

A Lease is a contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for a periodic payment.

Question 6

Sandwich Lease

Answer 6

A Sandwich Lease is a rent agreement where a property owner rents their property to an investor who, in turn, rents that property to a tenant.

Question 7

Constructive Eviction

Answer 7

Constructive Eviction is a term used in real estate law to describe a circumstance in which a landlord fails to uphold their legal duty towards the tenant forcing them to leave the property.

Question 8

Satisfaction Of Mortgage

Answer 8

A Satisfaction Of Mortgage is a legal document that confirms that the mortgage is finished, releasing the loan’s lien on the property and transferring title to the borrower. The document includes the borrower and lender’s contact details, loan and property details, and verification of authenticity.

Question 9

Amendments

Answer 9

An Amendment is used to change or modify the terms of an original contract.

Question 10

Recovery Fund

Answer 10

A fund set up by real estate commissions in a few states to protect the public from real estate agents committing harmful acts. Basically, an insurance policy for states, homeowners, and their agents.

Question 11

Tenant Turnover

Answer 11

Tenant Turnover is the portion of tenants who stay at a rental property versus those who vacate the property. Tenant turnover can also be used to describe the time gap between an old tenant leaving and a new tenant moving in.

Question 12

Principle Of Substitution

Answer 12

The Principle Of Substitution states that a buyer will not pay more for a property than the cost of an equally desirable property.

Question 13

The Clean Water Act (CWA)

Answer 13

Passed in 1972 and amended in 1977 and 1987, The Clean Water Act was originally known as the Federal Water Pollution Control Act. It is a federal law intended to regulate pollutants discharged into waterways. It’s objective is to ensure clean waters.

Question 14

Mortgage

Answer 14

A Mortgage is a loan agreement between the lender and the borrower to buy a home. This is a type of secured loan where the home is the collateral. It is a long-term debt that the borrowers can obtain from any financial institution for a term of 15, 20, or 30, years.

Question 15

Down Payment

Answer 15

Down Payment is the amount that the borrower pays to the lender as a percentage of the purchase price. Depending on the borrower and the lender, the down payment may be between 2% to 20% or more–