ACEABLE AGENT PRINCIPLES OF REAL ESTATE
2 FINAL PAPER 2026 QUESTIONS WITH
VERIFIED ANSWERS
◍ Loss - a financial loss or decrease in value.
◍ Interest - money repaid regularly at a specified rate as compensation
for money lent.
◍ Principal - the amount lent to a borrower to purchase a house.
◍ Mortgage - a secured loan that is tied to real estate, where the
borrower has to pay the money back to the lender on a set schedule and
amount of payments; also "liens against property" or "claims on
property"
◍ Amortization - repayment of a loan principal over time based on
predetermined schedule of payments.
◍ Arrears - payment for an item or service after it is received.
,◍ Proration - the allocation or distribution of an annual expense across
smaller chunks of time.
◍ Appraisal - the value of a property, based on factors determined by the
opinion of a certified appraiser.
◍ General Data - information about the area surrounding a property; this
could include the city, region, and neighborhood in which the property is
situated.
◍ Specific Data - information regarding the property itself.
◍ Limited appraisal - a simpler, abbreviated version of a regular
appraisal.
◍ Market Value - the price for which a property will 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.
◍ Appraised Value - refers to the value given by a licensed appraiser
during the mortgage origination process. Appraisers are chosen by
lenders but paid for by the home-buyer.
◍ Assessed Value - refers to the value placed on a property by a
governmental unit for use in levying annual real estate taxes.
, ◍ Loan-to-value Ratio (LTV) - the limit on the value of a loan, usually a
certain percentage of the home's appraised value or sales price,
whichever is lower.
◍ Principle of Anticipation - the present value of a property is affected
by the anticipated income or utility that property will give its property
owner.
◍ Principle of Contribution - A property's overall value is made up of
the combined value of each of its parts.
◍ Principle of Substitution - the value of something is affected by the
cost of getting a similar (substitute) item elsewhere.
◍ Principle of Change - the condition of a property, the desirability of
its location, and the market in which it exists can always change.
◍ Principle of Conformity - values are highest when the hoes in a
neighborhood look roughly the same.
◍ Principle of Regression - lower-value properties surrounding a subject
property can drag down the value of the property.
2 FINAL PAPER 2026 QUESTIONS WITH
VERIFIED ANSWERS
◍ Loss - a financial loss or decrease in value.
◍ Interest - money repaid regularly at a specified rate as compensation
for money lent.
◍ Principal - the amount lent to a borrower to purchase a house.
◍ Mortgage - a secured loan that is tied to real estate, where the
borrower has to pay the money back to the lender on a set schedule and
amount of payments; also "liens against property" or "claims on
property"
◍ Amortization - repayment of a loan principal over time based on
predetermined schedule of payments.
◍ Arrears - payment for an item or service after it is received.
,◍ Proration - the allocation or distribution of an annual expense across
smaller chunks of time.
◍ Appraisal - the value of a property, based on factors determined by the
opinion of a certified appraiser.
◍ General Data - information about the area surrounding a property; this
could include the city, region, and neighborhood in which the property is
situated.
◍ Specific Data - information regarding the property itself.
◍ Limited appraisal - a simpler, abbreviated version of a regular
appraisal.
◍ Market Value - the price for which a property will 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.
◍ Appraised Value - refers to the value given by a licensed appraiser
during the mortgage origination process. Appraisers are chosen by
lenders but paid for by the home-buyer.
◍ Assessed Value - refers to the value placed on a property by a
governmental unit for use in levying annual real estate taxes.
, ◍ Loan-to-value Ratio (LTV) - the limit on the value of a loan, usually a
certain percentage of the home's appraised value or sales price,
whichever is lower.
◍ Principle of Anticipation - the present value of a property is affected
by the anticipated income or utility that property will give its property
owner.
◍ Principle of Contribution - A property's overall value is made up of
the combined value of each of its parts.
◍ Principle of Substitution - the value of something is affected by the
cost of getting a similar (substitute) item elsewhere.
◍ Principle of Change - the condition of a property, the desirability of
its location, and the market in which it exists can always change.
◍ Principle of Conformity - values are highest when the hoes in a
neighborhood look roughly the same.
◍ Principle of Regression - lower-value properties surrounding a subject
property can drag down the value of the property.
