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ACEABLE AGENT PRINCIPLES OF REAL ESTATE 2
EXAM 2025 ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALL ANSWERED {280 Q & A} ALREADY
GRADED A+ | FREQUENTLY TESTED QUESTIONS |
GUARANTEED PASS
A unit of measurement used to determine the size of land; 1 acre
= 43560 square feet - ✔✔✔ Correct Answer > Acreage
The literal age of a property; a home built 30 years ago has a
________________ age of 30 - ✔✔✔ Correct Answer > Chronological age
The repayment of a loan principle over time - ✔✔✔ Correct Answer >
Amortization
What is achieved when a property is used for the most
appropriate purpose with the highest returns - ✔✔✔ Correct Answer >
Highest and Best Use
A property that is owned by a lender as a result of foreclosure
and a failure to find a third-party buyer at a foreclosure auction -
✔✔✔ Correct Answer > REO (Real Estate Owned)
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The sale of a property, with permission of the lender, for less that
the balance of the mortgage loan; normally occurs when the
borrower is no longer able tomake their mortgage payments and
hopes to avoid foreclosure proceedings - ✔✔✔ Correct Answer > Short
Sale
An auction in which a seller reserves the right to accept or reject
the highest bid within a predetermined time - ✔✔✔ Correct Answer >
Reserve Auction
Also known as a no-reserve auction, it is an auction in which
there is no reserve or restriction on price - ✔✔✔ Correct Answer >
Absolute Auction
An auction in which a minimum acceptable sale price (reserve),
disclosed or not, is set - ✔✔✔ Correct Answer > Minimum Bid Auction
The legal process by which a lender takes possession of a
property when a borrower (mortgagor) fails to make their
obligated mortgage payments - ✔✔✔ Correct Answer > Foreclosure
A clause that allows the lender to require full payment of the
loan under certain conditions - ✔✔✔ Correct Answer > Acceleration
Clause
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The implementation of money to realize profit or gain, usually
with an understanding that some degree of risk may be involved
- ✔✔✔ Correct Answer > Investment
A percentage ratio of the amount of profit or loss to the original
cost of investment - ✔✔✔ Correct Answer > Rate
The numeric amount of profit - ✔✔✔ Correct Answer > Return
The percentage gain (loss) on the cost investment over a period
of time - ✔✔✔ Correct Answer > Rate of Return
The present value of a property is affected by the anticipated
income or utility that property will give to the property owner -
✔✔✔ Correct Answer > Principle of Anticipation
Payment for an item or service after it's received - ✔✔✔ Correct
Answer > Arrears
The initial payment made when buying something on credit, a
____________ is paid directly by the buyer to the seller - ✔✔✔ Correct
Answer > Down Payment
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The allocation or distribution of an annual expense across
smaller chunks of time - ✔✔✔ Correct Answer > Proration
The value of property, based on factors determined by a certified
appraiser - ✔✔✔ Correct Answer > Appraisal
Information about the area surrounding a property, this could
include the city, region, and neighborhood in which the property
is situated - ✔✔✔ Correct Answer > General data
Information regarding the property itself - ✔✔✔ Correct Answer >
Specific Data
A simple, abbreviated version of a regular appraisal - ✔✔✔ Correct
Answer > Limited Appraisal
The price for which a property would sell if offered openly under
normal conditions. This refers to the economic principle, it's the
price that a buyer and seller would probably accept - ✔✔✔ Correct
Answer > Market Value
Refers to the value given by a licensed appraiser during the
mortgage origination process. Appraisers are chosen by the
ACEABLE AGENT PRINCIPLES OF REAL ESTATE 2
EXAM 2025 ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) ALL ANSWERED {280 Q & A} ALREADY
GRADED A+ | FREQUENTLY TESTED QUESTIONS |
GUARANTEED PASS
A unit of measurement used to determine the size of land; 1 acre
= 43560 square feet - ✔✔✔ Correct Answer > Acreage
The literal age of a property; a home built 30 years ago has a
________________ age of 30 - ✔✔✔ Correct Answer > Chronological age
The repayment of a loan principle over time - ✔✔✔ Correct Answer >
Amortization
What is achieved when a property is used for the most
appropriate purpose with the highest returns - ✔✔✔ Correct Answer >
Highest and Best Use
A property that is owned by a lender as a result of foreclosure
and a failure to find a third-party buyer at a foreclosure auction -
✔✔✔ Correct Answer > REO (Real Estate Owned)
,2|Page
The sale of a property, with permission of the lender, for less that
the balance of the mortgage loan; normally occurs when the
borrower is no longer able tomake their mortgage payments and
hopes to avoid foreclosure proceedings - ✔✔✔ Correct Answer > Short
Sale
An auction in which a seller reserves the right to accept or reject
the highest bid within a predetermined time - ✔✔✔ Correct Answer >
Reserve Auction
Also known as a no-reserve auction, it is an auction in which
there is no reserve or restriction on price - ✔✔✔ Correct Answer >
Absolute Auction
An auction in which a minimum acceptable sale price (reserve),
disclosed or not, is set - ✔✔✔ Correct Answer > Minimum Bid Auction
The legal process by which a lender takes possession of a
property when a borrower (mortgagor) fails to make their
obligated mortgage payments - ✔✔✔ Correct Answer > Foreclosure
A clause that allows the lender to require full payment of the
loan under certain conditions - ✔✔✔ Correct Answer > Acceleration
Clause
,3|Page
The implementation of money to realize profit or gain, usually
with an understanding that some degree of risk may be involved
- ✔✔✔ Correct Answer > Investment
A percentage ratio of the amount of profit or loss to the original
cost of investment - ✔✔✔ Correct Answer > Rate
The numeric amount of profit - ✔✔✔ Correct Answer > Return
The percentage gain (loss) on the cost investment over a period
of time - ✔✔✔ Correct Answer > Rate of Return
The present value of a property is affected by the anticipated
income or utility that property will give to the property owner -
✔✔✔ Correct Answer > Principle of Anticipation
Payment for an item or service after it's received - ✔✔✔ Correct
Answer > Arrears
The initial payment made when buying something on credit, a
____________ is paid directly by the buyer to the seller - ✔✔✔ Correct
Answer > Down Payment
, 4|Page
The allocation or distribution of an annual expense across
smaller chunks of time - ✔✔✔ Correct Answer > Proration
The value of property, based on factors determined by a certified
appraiser - ✔✔✔ Correct Answer > Appraisal
Information about the area surrounding a property, this could
include the city, region, and neighborhood in which the property
is situated - ✔✔✔ Correct Answer > General data
Information regarding the property itself - ✔✔✔ Correct Answer >
Specific Data
A simple, abbreviated version of a regular appraisal - ✔✔✔ Correct
Answer > Limited Appraisal
The price for which a property would sell if offered openly under
normal conditions. This refers to the economic principle, it's the
price that a buyer and seller would probably accept - ✔✔✔ Correct
Answer > Market Value
Refers to the value given by a licensed appraiser during the
mortgage origination process. Appraisers are chosen by the
