NEW YORK REAL ESTATE EXAM KEY TERMS
GLOSSARY FINAL PAPER 2026 QUESTIONS
WITH ANSWERS GRADED A+
◉ abstract of title. Answer: summary of all the recorded instrument and
proceeding which affect the title to property, arranged in the order in
which they were recorded
◉ acceleration clause. Answer: term given to the practice of paying off a
mortgage loan faster than required by terms of the mortgage agreement
◉ accession. Answer: mode of acquiring property that involves the
addition of value to property through labor or the addition of new
materials. For example, a person who owns a property on.a river delta
also takes ownership of any additional land that builds up along that
riverbank due to natural deposits or man made deposits
◉ accessory apartment uses. Answer: a second residential unit that may
be contained within an existing single-family home, garage, or carriage
house. An accessory apartment is usually required to be a complete
housekeeping unit that can function independently with separate access,
kitchen, bedroom, and sanitary facilities
,◉ accessory uses. Answer: the use of land that is subordinate, incidental
to, and customarily found in connection with the principal use allowed
on a lot by the zoning law. A garage is incidental to the principal use of a
lot of as a single-family residence and customarily found on a single-
family parcel
◉ accretion. Answer: The addition of land through processes of nature,
as by water or wind.
◉ acknowledgement. Answer: a formal declaration before a duly
authorized officer by a person who has executed an instrument that such
execution if the person's act and deed.
◉ acre. Answer: a measure of land equaling 43,560 sq feet
◉ act of waste. Answer: describes a cause of action that can be brought
in court to address a change in condition of a property brought about by
a current tenant that damages or destroys the value of that property
◉ Active income. Answer: income for which services have been
performed
◉ actual cash value. Answer: a method of valuing insured property
,◉ actual eviction. Answer: where one is either by force or by process of
law, actually put out of possession
◉ actual notice. Answer: notice delivered in such a way as to give
legally sufficient assurance that actual knowledge of the matter has been
conveyed to the recipient
◉ ad valorem taxes. Answer: according to valuation
◉ adjusted basis. Answer: the original cost of a property minus
depreciation and sales or portions thereof plus allowable additions such
as capital improvements and certain carrying costs and assessments. a
bookkeeping rather than appraisal term
◉ Adjustable Rate Mortgage (ARM). Answer: interest rate on the note
periodically adjusted based on an index which reflects the cost to the
lender of borrowing on the credit markets
◉ Administrative disciple. Answer: the Department of State's ability to
enforce license laws through reprimand and denial as well as the
suspension and revocation of licenses
◉ Advance consent to duel agency. Answer: the seller or buyer agrees to
dual agency before it occurs by indicating the same on the agency
disclosure form
, ◉ adverse possession. Answer: a means of acquiring title where an
occupant has been in actual, open, notorious, exclusive and continuous
occupancy of property under a claim of right for the required statutory
period
◉ after tax cash flow. Answer: the net profit/loss realized after taxes are
deducted
◉ agency disclosure form. Answer: a written explanation, to be signed
by a prospective buyer or seller of real estate, explaining to the client the
role that the broker plays in the transaction
◉ agent. Answer: one who undertakes to transact some business or to
manage some affair for another by authority of the latter
◉ air rights. Answer: rights in real property to use the space about the
surface of the land
◉ alienation clause. Answer: allows lender to require the balance of a
loan to be paid in full if the collateral is sold (due on sale clause)
◉ alluvion. Answer: increase in the aria of land due to sediment
deposited by a river. this changes the size of a piece of land (accession)
and thus in value over time
GLOSSARY FINAL PAPER 2026 QUESTIONS
WITH ANSWERS GRADED A+
◉ abstract of title. Answer: summary of all the recorded instrument and
proceeding which affect the title to property, arranged in the order in
which they were recorded
◉ acceleration clause. Answer: term given to the practice of paying off a
mortgage loan faster than required by terms of the mortgage agreement
◉ accession. Answer: mode of acquiring property that involves the
addition of value to property through labor or the addition of new
materials. For example, a person who owns a property on.a river delta
also takes ownership of any additional land that builds up along that
riverbank due to natural deposits or man made deposits
◉ accessory apartment uses. Answer: a second residential unit that may
be contained within an existing single-family home, garage, or carriage
house. An accessory apartment is usually required to be a complete
housekeeping unit that can function independently with separate access,
kitchen, bedroom, and sanitary facilities
,◉ accessory uses. Answer: the use of land that is subordinate, incidental
to, and customarily found in connection with the principal use allowed
on a lot by the zoning law. A garage is incidental to the principal use of a
lot of as a single-family residence and customarily found on a single-
family parcel
◉ accretion. Answer: The addition of land through processes of nature,
as by water or wind.
◉ acknowledgement. Answer: a formal declaration before a duly
authorized officer by a person who has executed an instrument that such
execution if the person's act and deed.
◉ acre. Answer: a measure of land equaling 43,560 sq feet
◉ act of waste. Answer: describes a cause of action that can be brought
in court to address a change in condition of a property brought about by
a current tenant that damages or destroys the value of that property
◉ Active income. Answer: income for which services have been
performed
◉ actual cash value. Answer: a method of valuing insured property
,◉ actual eviction. Answer: where one is either by force or by process of
law, actually put out of possession
◉ actual notice. Answer: notice delivered in such a way as to give
legally sufficient assurance that actual knowledge of the matter has been
conveyed to the recipient
◉ ad valorem taxes. Answer: according to valuation
◉ adjusted basis. Answer: the original cost of a property minus
depreciation and sales or portions thereof plus allowable additions such
as capital improvements and certain carrying costs and assessments. a
bookkeeping rather than appraisal term
◉ Adjustable Rate Mortgage (ARM). Answer: interest rate on the note
periodically adjusted based on an index which reflects the cost to the
lender of borrowing on the credit markets
◉ Administrative disciple. Answer: the Department of State's ability to
enforce license laws through reprimand and denial as well as the
suspension and revocation of licenses
◉ Advance consent to duel agency. Answer: the seller or buyer agrees to
dual agency before it occurs by indicating the same on the agency
disclosure form
, ◉ adverse possession. Answer: a means of acquiring title where an
occupant has been in actual, open, notorious, exclusive and continuous
occupancy of property under a claim of right for the required statutory
period
◉ after tax cash flow. Answer: the net profit/loss realized after taxes are
deducted
◉ agency disclosure form. Answer: a written explanation, to be signed
by a prospective buyer or seller of real estate, explaining to the client the
role that the broker plays in the transaction
◉ agent. Answer: one who undertakes to transact some business or to
manage some affair for another by authority of the latter
◉ air rights. Answer: rights in real property to use the space about the
surface of the land
◉ alienation clause. Answer: allows lender to require the balance of a
loan to be paid in full if the collateral is sold (due on sale clause)
◉ alluvion. Answer: increase in the aria of land due to sediment
deposited by a river. this changes the size of a piece of land (accession)
and thus in value over time
