THE CE SHOP REAL ESTATE
COMPREHENSIVE EXAM BUNDLE 2026
QUESTIONS AND ANSWERS 100% CORRECT
⩥"
abutting. Answer: "Land sharing a common border
Ex. Many neighbors find that fences make abutting properties more
tolerable.
⩥"
acceleration clause. Answer: "Allows a lender to demand immediate and
full payment of all debt owed if a buyer defaults
Ex. When Wendy stopped making home loan payments, her lender told
her she must pay off her entire balance or risk foreclosure.
⩥"
accession. Answer: "The addition of value to property through labor or
the addition of new materials, including an increase in land through
natural processes
Ex. Jonathan's property borders a bay. The bay receded, and Jonathan
gained an extra 10 feet of property to his land through accession.
⩥"
,accessory use. Answer: "An incidental or subordinate use to the primary
use of the property
Ex. Andy's military bunker in his back yard constituted an accessory use
of the property.
⩥"
accounting. Answer: "One of the fiduciary duties, accounting means an
agent is accountable for any funds or properties entrusted to the agent.
This is a duty that survives termination of an agency agreement.
Ex. Cameron accepted an earnest money deposit from his buyer. His
duty of accounting means that he must safeguard the funds and handle
them according to the agreement with his client and the policies of his
firm.
⩥"
accretion. Answer: "Land build up over water by sand, silt, or gravel
Ex. Jillian's property grew through accretion when a landslide wiped out
an adjacent creek.
⩥"
accrued items. Answer: "Expenses that are accruing but are not yet
payable (e.g., property taxes)
Ex. At closing, accrued items must be accounted for on the settlement
statement. If the seller has accrued expenses not yet payable, the amount
accrued will be a seller debit and buyer credit.
,⩥"
acknowledgment. Answer: "A requirement for deed transfer; a public
official must acknowledge the grantor's signature
Ex. Gary purchased a duplex. The grantor signed the deed; a notary
public acknowledged his signature.
⩥"
acre. Answer: "43,560 square feet
Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600
square feet.
⩥"
active fraud. Answer: "Intentional misstatement of a material fact
Ex. ""Sure, the foundation is perfectly safe!"" Lisa said, even though she
knew full well that there was a crack the size if Toledo in it.
⩥"
act of waste. Answer: "Abuse of a property by a person who holds
possession through a life estate
Ex. When Minerva inherited the historic mansion and turned it into an
illegal video gaming parlor, this was an act of waste that caused her to
lose title to the property.
, ⩥"
actual notice. Answer: "Express notice given directly to a person
Ex. Karen told her neighbors she would be moving; this was actual
notice.
⩥"
addendum. Answer: "An addition to a real estate contract that's added
before contract acceptance
Ex. Steve decided to ask for the washer and dryer after all, so he asked
his broker to write up an addendum to the sales contract.
⩥"
adjustable rate mortgage (ARM). Answer: "A mortgage with a rate that
adjusts based on changes in a market index
Ex. Caleb had a 5/1 ARM. His loan had a fixed interest rate for the first
five years, and after 5 years, it could change annually depending changes
to the market index.
⩥"
adjusted basis. Answer: "The final basis for taxing purposes computed
by taking acquisition costs plus capital improvements and subtracting
depreciation taken
Ex. When Mark computed the adjusted basis in his property, he had to
subtract $10,000 in depreciation he had taken over the years.
COMPREHENSIVE EXAM BUNDLE 2026
QUESTIONS AND ANSWERS 100% CORRECT
⩥"
abutting. Answer: "Land sharing a common border
Ex. Many neighbors find that fences make abutting properties more
tolerable.
⩥"
acceleration clause. Answer: "Allows a lender to demand immediate and
full payment of all debt owed if a buyer defaults
Ex. When Wendy stopped making home loan payments, her lender told
her she must pay off her entire balance or risk foreclosure.
⩥"
accession. Answer: "The addition of value to property through labor or
the addition of new materials, including an increase in land through
natural processes
Ex. Jonathan's property borders a bay. The bay receded, and Jonathan
gained an extra 10 feet of property to his land through accession.
⩥"
,accessory use. Answer: "An incidental or subordinate use to the primary
use of the property
Ex. Andy's military bunker in his back yard constituted an accessory use
of the property.
⩥"
accounting. Answer: "One of the fiduciary duties, accounting means an
agent is accountable for any funds or properties entrusted to the agent.
This is a duty that survives termination of an agency agreement.
Ex. Cameron accepted an earnest money deposit from his buyer. His
duty of accounting means that he must safeguard the funds and handle
them according to the agreement with his client and the policies of his
firm.
⩥"
accretion. Answer: "Land build up over water by sand, silt, or gravel
Ex. Jillian's property grew through accretion when a landslide wiped out
an adjacent creek.
⩥"
accrued items. Answer: "Expenses that are accruing but are not yet
payable (e.g., property taxes)
Ex. At closing, accrued items must be accounted for on the settlement
statement. If the seller has accrued expenses not yet payable, the amount
accrued will be a seller debit and buyer credit.
,⩥"
acknowledgment. Answer: "A requirement for deed transfer; a public
official must acknowledge the grantor's signature
Ex. Gary purchased a duplex. The grantor signed the deed; a notary
public acknowledged his signature.
⩥"
acre. Answer: "43,560 square feet
Ex. The Jones farmhouse was on 10 acres. Their parcel had 435,600
square feet.
⩥"
active fraud. Answer: "Intentional misstatement of a material fact
Ex. ""Sure, the foundation is perfectly safe!"" Lisa said, even though she
knew full well that there was a crack the size if Toledo in it.
⩥"
act of waste. Answer: "Abuse of a property by a person who holds
possession through a life estate
Ex. When Minerva inherited the historic mansion and turned it into an
illegal video gaming parlor, this was an act of waste that caused her to
lose title to the property.
, ⩥"
actual notice. Answer: "Express notice given directly to a person
Ex. Karen told her neighbors she would be moving; this was actual
notice.
⩥"
addendum. Answer: "An addition to a real estate contract that's added
before contract acceptance
Ex. Steve decided to ask for the washer and dryer after all, so he asked
his broker to write up an addendum to the sales contract.
⩥"
adjustable rate mortgage (ARM). Answer: "A mortgage with a rate that
adjusts based on changes in a market index
Ex. Caleb had a 5/1 ARM. His loan had a fixed interest rate for the first
five years, and after 5 years, it could change annually depending changes
to the market index.
⩥"
adjusted basis. Answer: "The final basis for taxing purposes computed
by taking acquisition costs plus capital improvements and subtracting
depreciation taken
Ex. When Mark computed the adjusted basis in his property, he had to
subtract $10,000 in depreciation he had taken over the years.
