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Our Top KEYWORDS AND CONCEPTS For the Real Estate Exam.

Updated: Nov 6, 2018

These keywords apply to both National and State Real Estate Exam . However, every state has certain keyword topics that repeat themselves over and over again every year. If you are looking for Top Keywords for your state as well , then we suggest you become a member of continue your research.

We suggest you Under the Keywords by using Practice Questions that give you explanation. Visit Agentexambank for real estate practice questions You will also get access to over 300 Real Estate Exam Questions starting at $14.99 for 7 day access.

Top Keywords in Alphabetical Order

Abatement - a reduction in property taxes; must file taxes before requesting

Abstract of Title - a condensed history of legal title, summarizing all instruments in chain of ownership; provided by lender's

attorney and paid by borrower

Abutting - neighboring land with a common boundary

Acceleration Clause – a clause in note protecting lender; upon default, balance of debt becomes due immediately instead of

maturity date; prelude to foreclosure

Acceptance - indication by signature of offeree that he is willing to be bound by terms of offer from offeror

Accretion – increase of property by gradual natural additions, as of land by alluvion

Acknowledgement - an act of executing a legal instrument such as a deed, mortgage or discharge before a lawyer or other officer

of state such as a notary public; this act declares signing to be free and voluntary; this is necessary before recording at registry

Acre - 43,560 square feet

Ad Valorem - tax assessment based on actual value

Adverse possession: occupant's right to acquire legal title to private property held by title holder by deed if occupant holds land

openly, notoriously, adversely and without permission for 20 years; also known as squatter's rights.

Air rights - ownership or lease of air space over a specific parcel of realty, such as a building over a turnpike

Alluvion – increasing of land area along a shore by deposited alluvium or by the recession of water

Alluvium – clay, silt, sand, gravel, or similar detrital material deposited by running water

Amenities - features of property making it desirable and thus adding value, such as scenic views, convenient shopping, etc.

Amortization - paying indebtedness by equal and periodic payments; each payment is equal but ratio of principal and interest

changes with an increasingly larger portion credited to reducing debt

Appraisal - an estimate of value

Appreciation - increase in value resulting from market forces such as demand stronger than supply

Appurtenance - a right belonging to and passing with a property such as having a right of way through adjoining property

Assets - all real and personal property one owns; assets minus liabilities such as mortgages, equal net worth (equity) transfer of

title or interest in writing; assignor gives and assignee receives

Associate broker - a broker who chooses to work as a salesperson for another broker (the employing broker)

released and in event of foreclosure and deficiency, mortgagee can look to either original mortgagor or new grantee or both

Attachment - a writ issued, beginning or during a legal action commanding sheriff to attach (“seize”) property, rights and effects of

defendant to satisfy possible credit demands of plaintiff if judgment comes out in plaintiff’s favor

Balloon mortgage - principal loan amount paid off in lump sum at end of term as opposed to amortized direct reduction method

Benchmark - mark on stone or cement permanently fixed to ground; used as measuring point by surveyors

Betterments - improvements adding to value of realty, done by local government and paid for by gainers of value; sidewalks,

streets, etc. Results in a special assessment

Bilateral contract - one person’s promise in exchange for another person’s promise such as purchase and sale agreement

Bill of sale - a written instrument that is the evidence of transfer of one person’s right in personal property to another

Binder - deposit or earnest money given as evidence of good faith by buyer to secure property until sale is consummated; it can

also refer to a temporary memorandum outline a real estate deal, similar to a letter of intent.

Blanket mortgage - a single mortgage instrument securing more than one parcel of property as security for the loan

Blockbusting - employing fear tactics to induce panic selling or panic peddling in a neighborhood: illegal

Bona fide - in good faith and without fraud

Bond - guarantee by third party that it will make good any loss, up to a certain amount, incurred by a party dealing with a broker

not acting in good faith; bonding company is Surety and obligor and State is oblige. Broker bond is made payable to State

Bundle of rights - all rights that go with ownership of realty

Capital expenditures - investments of cash for improvements to remain competitive in a business

Capitalization - process of computing current value from expected future income by dividing annual net income by selected rate of

return desired for that type of property; the cap rate

Capitalization rate - Profit expressed as a percentage that an investor expects from an investment on a yearly basis.