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Must-Know Real Estate Exam Terms (1-30) (2024)
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Dec 11, 2024
Thirty of the most important terms to help you with your real estate exams. 👍 Ready to pass your exams effortlessly? Use this link to get 30% off: https://bit.ly/3W4dZbB 📝 Not ready for a course? Try our free practice exam: https://realestatelicensewizard.com/real-estate-practice-exam/ 🕒 Chapters: 0:00 Introduction 1:10 T1: Property Manager 1:42 T2: Active Property 2:03 T3: Co-Ownership 2:39 T4: Joint Tenancy 3:16 T5: Lease 3:40 T6: Sandwich Lease 4:18 T7: Constructive Eviction 4:52 T8: Satisfaction of Mortgage 5:26 T9: Amendments 5:56 T10: Recovery Fund
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0:00
have you ever wished that you have the
0:02
cheat sheet for life's most complicated
0:06
situations well we've got you covered
0:08
for your real estate
0:15
exam imagine that you are just about to
0:18
embark on a thrilling adventure and you
0:22
have this guide book that holds all the
0:24
secrets to this exciting Journey let's
0:27
replace the word Adventure with real
0:30
estate exam and know that your guide
0:33
book is this video with 30 essential
0:37
terms that will help you pass your 2024
0:40
real estate exam ready to dive
0:43
in then buckle up get your virtual
0:46
passport and get ready to Journey
0:48
Through the exciting and occasionally
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complicated landscape of real estate
0:54
terminology by the end of this video you
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will be earned with knowledge and
0:59
confidence to pass your exam property
1:02
manager now guess what the first term
1:04
means take a few
1:11
seconds a property manager is a
1:13
professional who takes care of real
1:15
estate properties for owners they handle
1:18
daily tasks like finding new tenants
1:21
collecting rent and maintaining the
1:23
property in short they make life easier
1:27
for landlords by ensuring smooth
1:30
operation and upkeeping of rental
1:32
properties next one coming up active
1:36
property let's see if you can nail this
1:39
definition what does active property
1:42
mean an active property is a real estate
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listing that's still on the market and
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open for offers when a property is
1:50
labeled active it means the salary is
1:53
still accepting bids making it a
1:55
potential opportunity for buyers
1:58
searching for their perfect home
2:00
moving on term number three co-ownership
2:04
take a few seconds and think about
2:13
it co-ownership is when two or more
2:16
people share ownership of a single
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property these co-owners May hold the
2:22
title as tenants in common joint tenants
2:25
or tenants by the entirety the type of C
2:29
ownership that determines the legal
2:30
rights and responsibilities of each
2:33
party in relation to the property let's
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jump to the next one joint tency take a
2:40
crack at it you've got
2:47
this joint tency is when multiple people
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co-own a property in this Arrangement if
2:54
one owner passes away their share of the
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property automatically transfers to the
2:59
surviving in owners this ensures a
3:02
smooth transition of ownership without
3:04
the need for probate or other legal
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complications in a nutshell you should
3:10
think of joint tency as a type of Co
3:14
ownership lease let's see if you know
3:17
what lease
3:23
means a lease is a contractual agreement
3:26
where one party grants the use of
3:29
property services or lend to another for
3:32
a set of period in exchange the user
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typically pays a regular fee easy
3:39
right sandwich leas let's see if you can
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nail this delicious
3:51
definition a sandwich lease is a unique
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rental Arrangement where a property
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owner leases their property to an
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investor who then leases it to a tenant
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in this scenario the investor acts as a
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middleman between the property owner and
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a tenant therefore the investor is
4:10
sandwiched between the property owner
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and the Tenant now that sandwich time is
4:15
over next term activate constructive
4:19
eviction time to flex those definition
4:22
muscles take a few seconds and then
4:25
let's see the
4:28
definition constructive eviction occurs
4:32
when a landlord's neglect or actions
4:34
make a rental property uninhabitable
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forcing the tenant to leave this breach
4:40
of the landlord's legal responsibilities
4:43
May entitle the tenant to seek legal
4:46
remedies or terminate the lease
4:48
agreement
4:51
altogether satisfaction of
4:57
[Music]
4:58
mortgage a satisfaction of the mortgage
5:02
is like a certificate of completion for
5:04
a mortgage it's a legal document that
5:07
shows the mortgage has been paid off
5:09
lifting the lender's claim on the
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property and transferring ownership to
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the borrower this document contains
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essential details about the loan
5:19
property and parties involved along with
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proof of
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authenticity let's jump straight to the
5:25
next one amendments give this term a
5:29
shot
5:36
an amendment is a modification to an
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existing contract that updates or Alters
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the original terms allowing the
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agreement to better suit the needs of
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the involved parties for instance sales
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price closing date or correcting
5:52
mistakes all right what's
5:55
next Recovery Fund what's this term all
5:59
about
6:06
a Recovery Fund is a safeguard
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established by some states real estate
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commissions to protect the public from
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potential misconduct by real estate
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agents it acts as an insurance policy
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ensuring financial compensation for
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homeowners and agents affected by
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fraudulent or harmful actions in real
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estate
6:28
transactions tenant turnover give it
6:31
your best shot what's this term
6:39
about tenant turnover is the rate at
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which renters come and go from a
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property it can also refer to the time
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it takes for a new tenant to move in
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after the previous one leaves principle
6:53
of substitution time to play Guess the
6:56
term take a few seconds and think about
6:59
it
7:04
buyers won't pay for a property if a
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similar cheaper option exists this
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principle keeps property prices
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competitive and reflective of True
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Market
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Value here comes another one the Clean
7:19
Water Act
7:26
CWA the Clean Water Act pass in 1972 and
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amended in 1977 and
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1987 is a federal law aimed at
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controlling pollution in US waterways it
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seeks to preserve the quality of Water
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Resources by regulating pollutant
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discharges and protecting Wetlands
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ensuring clean and safe water for
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all mortgage think you've got what a
7:54
mortgage is prove
7:58
it
8:05
a mortgage is a long-term loan deal
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between a lender and a borrower to
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purchase a property the home itself
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serves as collateral for this secure
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loan mortgages typically last 15 20 or
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30 years and borrowers can obtain them
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from various financial institutions to
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finance their dream
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homes bring on the next term down
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payment a down payment is the initial
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cash you pay upfront when buying a
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property typically ranging from 2% to
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20% or more of the purchase price
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lenders often offer lower interest rates
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for larger down payments the specific
9:00
percentage depends on the borrower
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circumstances lender requirements and a
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type of mortgage loan
9:07
chosen amenities there you go you got
9:18
this amenities or desirable features or
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extras that enhance a properties appeal
9:25
and comfort ultimately adding value to
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the home
9:30
let's see another
9:31
one inverse condemnation give it a go
9:35
what does inverse condemnation
9:42
mean inverse condemnation is a legal
9:45
process allowing Property Owners to seek
9:48
compensation from the government when
9:50
their land or property is taken used or
9:54
damaged for public purposes without Fair
9:57
payment ensuring their right rights are
10:00
in fact protected you've got this you
10:03
see another term on
10:05
Deck notice of default go ahead think
10:09
about it for a couple
10:15
seconds a notice of default is a public
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warning that A lender issues when a
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borrower falls behind on mortgage
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payments filed in court it signals that
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the borrower is in default allowing the
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lender to proceed with foreclosure this
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notice is the second phase in the
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foreclosure process following a
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borrower's failure to make their
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mortgage payments on time here we go
10:41
Switching gears to the next word
10:44
underwriting ready to take a guess let's
10:47
do
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this underwriting is the lender's
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process of assessing a borrower's
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eligibility for a loan an underwriter
11:00
analyzes the risk and decides if it's
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wise for the lender to approve the
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loan don't worry a simple term is coming
11:10
your
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way
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contract a contract is a legally binding
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agreement between two or more parties
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outlining their rights and obligations I
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told you it's easy next up is prime
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rate the prime rate is the interest rate
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Banks typically offer to their most
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creditworthy customers often used as a
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basis for determining rates on mortgages
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personal loans and small business loans
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this rate is particularly important for
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calculating interest on variable rat
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rate mortgages and other Financial
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products rent I'm sure you know this
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one rent is the regular payment made by
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a tenant to a landlord typically on a
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monthly basis in exchange for well the
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right to occupy a
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property moving on income approach
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the income approach is an appraisal
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method that calculates a property's
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market value based on its potential
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income generation using discounted cash
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flow analysis appraisers estimate the
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property's current value by considering
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the present worth of future cash flows
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that the owner can anticipate in a sense
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it's about a determining a property's
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value based on its money-making
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potential principal payment guess it if
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you
13:12
can a principal payment is the portion
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of a loan payment that goes towards
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reducing the initial borrowed amount by
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making principal payments borrowers can
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decrease the total debt owed and work
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towards paying off their loan more
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quickly
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next one let's get
13:32
it
13:40
addendum an addendum is an addition to a
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contract or agreement clarifying or
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expanding upon the original terms to
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ensure all parties have a clear
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understanding material defect think fast
13:57
do you know what a material defect
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is a material defect is a substantial
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issue with a property that significantly
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affects its value or poses a
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considerable risk to the occupants or
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users of the property almost there let's
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crack open the next
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word a pertinence take a step at this
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strange term's meaning
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go
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a perance refers to an item such as a
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fixture or Improvement that is attached
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to a property and is transferred to the
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new owner when the property is sold and
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the little brother of a pertinence is a
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pertinent a pertinent describ Vibes
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something that is connected or belongs
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to another thing either physically
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attached or legally bound it's an
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objective that highlights the
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relationship between two connected
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elements for instance a fancy chandelier
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or a steel water tank things that are
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installed onto the property and will
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remain even if the property gets
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sold conventional loan take a couple of
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seconds and think this through
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a conventional loan is a mortgage
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provided by private lenders such as
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Banks or credit unions without
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government backing these loans available
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through various lending institutions
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typically require good credits and a
15:48
down payment offering an alternative to
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government-backed options like FHA or VA
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loans Bravo here comes the lesson one
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amortization quick think on your feet
16:03
what is
16:11
amortization amortization is the
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systematic process of paying off a loan
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in equal installments over a set period
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it's an accounting method that gradually
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reduces the book value of a loan or
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intangible asset through regular
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payments ensuring a consistent and
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predictable repayment
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schedule you've made it now you're 30
16:37
Terms closer to passing your real estate
16:39
licensing exam now take a minute and
16:42
appreciate your new found knowledge and
16:45
the effort that you put in but do not
16:47
stop here if you want to Ace the exam
16:51
then check out our other videos stay
16:53
curious and persistent and we'll see you
16:56
in our other videos have happy studying
16:59
future real estate license Wizards
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