Social Science Economics
Real Estate Exam Vocabulary Questions
Verified and Provided with Complete A+
Graded Answers Latest Updated 2026
Surrender the voluntary giving up of a lease
Subordination Clause A clause in which the holder of a trust deed permits a subsequent loan
to take priority
manufactured home Home built in a factory after June 15, 1976 that conforms to the federal
Manufactured Home Construction and Safety Standards.
Stigmatized Property psychologically impacted property that buyers or tenants may avoid, for
reasons that are unrelated to its physical conditions or features
landlord lessor; property owner
Missrepresentation an innocent or negligent misstatement of a material fact which causes
someone loos or harm
acceleration clause A clause in the loan document describing certain events that would
cause the entire loan to be due
partition act a court action to divide a property held by co-owners
margin a fixed percentage rate that is added to an index to determine the fully
indexed interest rate of an adjustable rate mortgage (ARM)
, loan estimate disclosure statement created by the Consumer Financial Protection
Bureau to provide borrowers with good-path estimates of credit costs
and transaction terms.
security interest the interest of a creditor (lender) in the property of a debtor (borrower)
replacement cost the cost of replacing improvement with modern materials and
techniques
income approach a method of appraising property based on the property's anticipated
future income
easement in gross an easement that is not appurtenant (belonging) to any one parcel, for
example, public utilities
life estate An estate that is limited in duration to the life of its owner or the life of
some other chosen person
standard policy a policy of title insurance covering only matters of record
beneficiary the lender under a deed of trust
accession The acquisition of title to additional land or to improvements as a
result of the annexation of fixtures or as a result of alluvial deposits
along the banks of streams by accretion
townships a land description used in the U.S. Public Land Surgery System
consisting of a six-by-six mile area containing 36 sections, each one
mile square.
Reverse Annuity Loan A loan that enables elderly homeowners to borrow against the equity in
their homes by receiving monthly payments, from a lender, that are
needed to help meet living costs; due upon a specific date or upon the
occurrence of a specific event, such as the sale of the property or the
death of the borrower.
agency A relationship in which one party (principal) authorizes another party
(agent) to act as the principal's representative in dealing with third
parties
Grantor the person conveying or transferring the property
ingress a way to enter property; access
estoppel A legal doctrine which prevents a person from denying something to be
true or a fact, if the denial is contrary to previous statements or actions
made by that same person
baseline a survey line running east to west, and used as a reference when
mapping land
escrow the deposit of funds or documents with a neutral third party who is
instructed to carry out the provisions of an agreement
Closed-End Loan Loan in which the borrower receives all loan proceeds in one lump sum
at the time of closing. These loans are secured with collateral, i.e.,
auto and home loans.
Real Estate Exam Vocabulary Questions
Verified and Provided with Complete A+
Graded Answers Latest Updated 2026
Surrender the voluntary giving up of a lease
Subordination Clause A clause in which the holder of a trust deed permits a subsequent loan
to take priority
manufactured home Home built in a factory after June 15, 1976 that conforms to the federal
Manufactured Home Construction and Safety Standards.
Stigmatized Property psychologically impacted property that buyers or tenants may avoid, for
reasons that are unrelated to its physical conditions or features
landlord lessor; property owner
Missrepresentation an innocent or negligent misstatement of a material fact which causes
someone loos or harm
acceleration clause A clause in the loan document describing certain events that would
cause the entire loan to be due
partition act a court action to divide a property held by co-owners
margin a fixed percentage rate that is added to an index to determine the fully
indexed interest rate of an adjustable rate mortgage (ARM)
, loan estimate disclosure statement created by the Consumer Financial Protection
Bureau to provide borrowers with good-path estimates of credit costs
and transaction terms.
security interest the interest of a creditor (lender) in the property of a debtor (borrower)
replacement cost the cost of replacing improvement with modern materials and
techniques
income approach a method of appraising property based on the property's anticipated
future income
easement in gross an easement that is not appurtenant (belonging) to any one parcel, for
example, public utilities
life estate An estate that is limited in duration to the life of its owner or the life of
some other chosen person
standard policy a policy of title insurance covering only matters of record
beneficiary the lender under a deed of trust
accession The acquisition of title to additional land or to improvements as a
result of the annexation of fixtures or as a result of alluvial deposits
along the banks of streams by accretion
townships a land description used in the U.S. Public Land Surgery System
consisting of a six-by-six mile area containing 36 sections, each one
mile square.
Reverse Annuity Loan A loan that enables elderly homeowners to borrow against the equity in
their homes by receiving monthly payments, from a lender, that are
needed to help meet living costs; due upon a specific date or upon the
occurrence of a specific event, such as the sale of the property or the
death of the borrower.
agency A relationship in which one party (principal) authorizes another party
(agent) to act as the principal's representative in dealing with third
parties
Grantor the person conveying or transferring the property
ingress a way to enter property; access
estoppel A legal doctrine which prevents a person from denying something to be
true or a fact, if the denial is contrary to previous statements or actions
made by that same person
baseline a survey line running east to west, and used as a reference when
mapping land
escrow the deposit of funds or documents with a neutral third party who is
instructed to carry out the provisions of an agreement
Closed-End Loan Loan in which the borrower receives all loan proceeds in one lump sum
at the time of closing. These loans are secured with collateral, i.e.,
auto and home loans.
