BARNEY FLETCHER REAL ESTATE TEST PAPER 2025/2026
QUESTIONS WITH SOLUTIONS GRADED A+
✔✔avulsion - ✔✔the addition or removal of land due to the movement of a body of
water
✔✔axial growth - ✔✔city growth that occurs outward along main transportation
✔✔ballon mortgage - ✔✔a mortgage that requires a large sum payment at the end
✔✔bankrupt - ✔✔a person whose liabilities exceed his assets making him unable to
meet all fininacil obligations. Does not automatically absolve a person from all financial
obligations
✔✔bargain an sale deed - ✔✔a deed containing no warranties; only implies that the
grantor wont the property being conveyed and has done nothing to cause a defect in
title
✔✔basis - ✔✔the price paid for property; used in calculating capital gains
✔✔benchmark - ✔✔a formal reference marker, placed by a surveyor at a known
elevation point from which elevations in a topographical survey may be calculated
✔✔beneficiary - ✔✔one designated to receive proceeds or benefits under a will , trust,
insurance policy
✔✔beneficiary statement - ✔✔provided by lender to show unpaid balance on a note
secured by deed trust
✔✔bequeath - ✔✔personal property left by will
✔✔Bilateral Contract - ✔✔a contract which both parties are obligated to perform
✔✔bill of sale - ✔✔an instrument that transfers title to PERSONAL property
✔✔binder - ✔✔a preliminary agreement to perform , accompanied by a valuable
consideration as good faith
✔✔blanket mortgage - ✔✔a mortgage covering more than one parcel of land
✔✔blended-rate loan - ✔✔a refinance plan that combines the interest rate on an
existing mortgage with current rates
, ✔✔blind ad - ✔✔an advertisement that does not identify the person placing it.( All ads
must be placed by a real estate brokers specifying the individual also indicating that he
is an agent)
✔✔blockbusting - ✔✔the illegal practice of inducing panic selling in a neighborhood for
financial gain
✔✔bona fide - ✔✔in good faith; without fraud
✔✔breach - ✔✔to fail to live up to the terms and conditions of a contract
✔✔budget mortgage - ✔✔features loan payments that include principal, interest, taxes
and insurance (often called PITI)
✔✔building code - ✔✔local ordinances specifying the materials and methods of
construction
✔✔building line - ✔✔a line set by ordinance specifying the materials and methods of
construction
✔✔bundle of rights - ✔✔legal rights that go with the ownership of property
✔✔buy-down - ✔✔a cash payments to a lender so as to reduce the interest rates a
borrower must pay
✔✔canons - ✔✔standards of conduct
✔✔capital gain - ✔✔the profit on the sale of an appreciated asset
✔✔capitalization - ✔✔a method of determining the present value of a future income
stream
✔✔capitalization rate - ✔✔The percentage rate of return used in capitalization.
✔✔cash flow - ✔✔the number of dollars remaining each year after collecting rents and
paying operating expenses and mortgage payments
✔✔cash on cash - ✔✔the cash flow produced by a property divide by the amount of
cash necessary to purchase it
✔✔caveat emptor - ✔✔let the buyer beware
✔✔ Arbitrage - ✔✔the spread of difference between interest rates
QUESTIONS WITH SOLUTIONS GRADED A+
✔✔avulsion - ✔✔the addition or removal of land due to the movement of a body of
water
✔✔axial growth - ✔✔city growth that occurs outward along main transportation
✔✔ballon mortgage - ✔✔a mortgage that requires a large sum payment at the end
✔✔bankrupt - ✔✔a person whose liabilities exceed his assets making him unable to
meet all fininacil obligations. Does not automatically absolve a person from all financial
obligations
✔✔bargain an sale deed - ✔✔a deed containing no warranties; only implies that the
grantor wont the property being conveyed and has done nothing to cause a defect in
title
✔✔basis - ✔✔the price paid for property; used in calculating capital gains
✔✔benchmark - ✔✔a formal reference marker, placed by a surveyor at a known
elevation point from which elevations in a topographical survey may be calculated
✔✔beneficiary - ✔✔one designated to receive proceeds or benefits under a will , trust,
insurance policy
✔✔beneficiary statement - ✔✔provided by lender to show unpaid balance on a note
secured by deed trust
✔✔bequeath - ✔✔personal property left by will
✔✔Bilateral Contract - ✔✔a contract which both parties are obligated to perform
✔✔bill of sale - ✔✔an instrument that transfers title to PERSONAL property
✔✔binder - ✔✔a preliminary agreement to perform , accompanied by a valuable
consideration as good faith
✔✔blanket mortgage - ✔✔a mortgage covering more than one parcel of land
✔✔blended-rate loan - ✔✔a refinance plan that combines the interest rate on an
existing mortgage with current rates
, ✔✔blind ad - ✔✔an advertisement that does not identify the person placing it.( All ads
must be placed by a real estate brokers specifying the individual also indicating that he
is an agent)
✔✔blockbusting - ✔✔the illegal practice of inducing panic selling in a neighborhood for
financial gain
✔✔bona fide - ✔✔in good faith; without fraud
✔✔breach - ✔✔to fail to live up to the terms and conditions of a contract
✔✔budget mortgage - ✔✔features loan payments that include principal, interest, taxes
and insurance (often called PITI)
✔✔building code - ✔✔local ordinances specifying the materials and methods of
construction
✔✔building line - ✔✔a line set by ordinance specifying the materials and methods of
construction
✔✔bundle of rights - ✔✔legal rights that go with the ownership of property
✔✔buy-down - ✔✔a cash payments to a lender so as to reduce the interest rates a
borrower must pay
✔✔canons - ✔✔standards of conduct
✔✔capital gain - ✔✔the profit on the sale of an appreciated asset
✔✔capitalization - ✔✔a method of determining the present value of a future income
stream
✔✔capitalization rate - ✔✔The percentage rate of return used in capitalization.
✔✔cash flow - ✔✔the number of dollars remaining each year after collecting rents and
paying operating expenses and mortgage payments
✔✔cash on cash - ✔✔the cash flow produced by a property divide by the amount of
cash necessary to purchase it
✔✔caveat emptor - ✔✔let the buyer beware
✔✔ Arbitrage - ✔✔the spread of difference between interest rates
