ACEABLE REAL ESTATE EXAMS SCRIPT 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔asbestos - ✔✔a naturally occurring mineral fiber that is commonly used in insulation
but if airborne or inhaled, can cause severe respiratory health issues
✔✔assemblage - ✔✔the combining of multiple contiguous pieces of real property into a
single tract of land, often resulting in an increase in value
✔✔assessed value - ✔✔the value placed on a property by a governmental unit for use
in calculating property taxes
✔✔assessment - ✔✔the determination of the value of a property for tax purposes
✔✔asset - ✔✔item of value
✔✔assignment - ✔✔the transference of rights and obligations in a contract from one
party to another
✔✔associate broker - ✔✔an individual who meets the licensure requirements to be a
real estate broker but provides real estate brokerage services as an independent
contractor to a real estate broker
✔✔avulsion - ✔✔the sudden loss of land by flood or when a stream or river changes
course.
✔✔balloon payment - ✔✔a payment at the end of a loan period which includes the total
outstanding balance of the loan.
✔✔bargain and sale deed - ✔✔a deed without any covenants or warranties against
encumbrances that only implies the grantor has possession of the property and holds
the right to convey title
✔✔base line - ✔✔an imaginary line of latitude used in the rectangular survey system of
land description to identify townships in relation to proximity to a principal meridian
✔✔benchmark - ✔✔permanent markers of known location and elevation above sea
level as established by a government survey team (such as the USGS)
✔✔beneficiary - ✔✔the recipient of advantage or gain from an act or instrument such as
a trust, will, or insurance policy
,✔✔bilateral contract - ✔✔a contract wherein both parties are obligated to perform in an
exchange of promises
✔✔binder - ✔✔a preliminary agreement for the sale of a property secured by a valuable
deposit from the potential buyer, which binds the seller to a good faith agreement to sell
the subject property, provided that a sale contract meeting the conditions determined is
executed within the prescribed period; also known as a *Letter of Intent (LOI)*
✔✔blanket mortgage - ✔✔a loan for which more than one collateral property acts as
security
✔✔block and lot system - ✔✔a system of legal land description that identifies a piece of
platted property by referring to the section, lot, and block numbers in a subdivision;
a.k.a. the recorded plat method
✔✔blockbusting - ✔✔the illegal act of causing owners to sell their homes by creating
fear that members of a protected class are moving into the area
✔✔branch office - ✔✔any office that is geographically separate from the main or home
office
✔✔bridge loan - ✔✔short-term loan used to transition from one loan to another; can
connect borrower from construction loan to eventual mortgage loan (or current home to
their new home)
✔✔broker - ✔✔a person who is licensed to represent one of the parties in a real estate
transaction in exchange for a commission or other valuable consideration
✔✔brownfield - ✔✔real property, the expansion, redevelopment, or reuse of which may
be complicated by the presence or potential presence of a hazardous substance,
pollutant, or contaminant
✔✔building code - ✔✔a set of regulations pertaining to building design, materials,
safety, sanitation, and structure
✔✔bundle of rights - ✔✔ownership of land with all of the legal rights of possession,
control, quiet enjoyment, exclusion, transfer, and encumber
✔✔buydown - ✔✔the paying of money upfront to reduce a loan's interest rate and
monthly payments
✔✔buyer's market - ✔✔any market that is experiencing an excess of sellers or supply,
creating more favorable conditions for buyers.
,✔✔capital expenditure - ✔✔an expense paid in order to improve a property
✔✔capital improvement - ✔✔any upgrade or improvement to a property that falls
outside the scope of normal repair and maintenance, usually with the intention of
increasing value
✔✔capitalization rate (cap rate) - ✔✔a rate of return that calculates the percentage of
expected annual income earned over a property's value; the present value for expected
future income earned
✔✔carbon monoxide - ✔✔an odorless, colorless gas that occurs as a by-product due to
incomplete combustion when burning such fuels as wood, oil, and natural gas
✔✔cash reserve - ✔✔a portion of funds allocated to pay for variable expenses
✔✔CERCLA - ✔✔the Comprehensive Environmental Response, Compensation, and
Liability act, aka the Superfund
✔✔certificate of occupancy (CO) - ✔✔legal document from a local authority that
authorizes a building to be occupied; issued after the building has passed all required
inspections
✔✔certificate of title - ✔✔a document prepared by a title attorney detailing the chain of
title and offering an opinion on the marketability of the seller's title
✔✔chain of title - ✔✔the entire chronological record of a property's ownership
✔✔chlordane - ✔✔a chemical compound formerly used in pesticides that is dangerous
to human health
✔✔chlorofluorocarbons (CFCs) - ✔✔chemical compounds containing chlorine, fluorine,
and carbon atoms that were once used in refrigerator coolant, air conditioners, and
dehumidifiers
✔✔Civil Rights Act of 1866 - ✔✔a federal law that prohibits discrimination in housing
based on race
✔✔cloud - ✔✔any claim to or encumbrance on the title to a property which affects
transferability
✔✔collateral - ✔✔property liened by a lender in order to assure payment of the loan
and protect the lender's investment
, ✔✔collusion - ✔✔an unlawful agreement between competitors to monopolize a market,
disadvantage other competitors, or otherwise undertake activities in violation of fair
trade laws
✔✔color of title - ✔✔a title transfer that is defective in a way that is unknown to the new
owner
✔✔commingling - ✔✔the illegal act of mixing personal funds with a client's funds
✔✔commission - ✔✔the regulatory body responsible for regulating the brokerage
industry and licensing real estate practitioners; formally known as the Georgia Real
Estate Commission (GREC)
✔✔common elements - ✔✔portions of a shared ownership property not controlled by
any one owner or tenant. examples include parking lots, lobbies, fitness centers,
elevators, etc.
✔✔common law - ✔✔the side of law which arises from judgements and decisions made
in courts rather than explicit legislation
✔✔community association manager - ✔✔individual who provides administrative and
operational services to a community association in exchange for consideration; requires
specific licensure
✔✔community property - ✔✔a system of property co-ownership, most commonly
applied to married couples, which describes what is joint property and what is individual
property
✔✔comparable (comp) - ✔✔any property which has sold and is similar enough in
features, location, and proximity in time to inform the value of a subject property
✔✔comparative market analysis (CMA) - ✔✔a report that compares the prices of
recently sold or listed homes ("comparables") in order to estimate the market value of a
similar property (the "subject property") located in the same area
✔✔condominium - ✔✔property where each owner has a separate interest in their own
unit and undivided interest in the common areas
✔✔consideration - ✔✔something of value exchanged by the parties as evidence of
agreement to the terms of a contract
✔✔construction mortgage - ✔✔a temporary mortgage used to finance a construction
project
QUESTIONS AND SOLUTIONS RATED A+
✔✔asbestos - ✔✔a naturally occurring mineral fiber that is commonly used in insulation
but if airborne or inhaled, can cause severe respiratory health issues
✔✔assemblage - ✔✔the combining of multiple contiguous pieces of real property into a
single tract of land, often resulting in an increase in value
✔✔assessed value - ✔✔the value placed on a property by a governmental unit for use
in calculating property taxes
✔✔assessment - ✔✔the determination of the value of a property for tax purposes
✔✔asset - ✔✔item of value
✔✔assignment - ✔✔the transference of rights and obligations in a contract from one
party to another
✔✔associate broker - ✔✔an individual who meets the licensure requirements to be a
real estate broker but provides real estate brokerage services as an independent
contractor to a real estate broker
✔✔avulsion - ✔✔the sudden loss of land by flood or when a stream or river changes
course.
✔✔balloon payment - ✔✔a payment at the end of a loan period which includes the total
outstanding balance of the loan.
✔✔bargain and sale deed - ✔✔a deed without any covenants or warranties against
encumbrances that only implies the grantor has possession of the property and holds
the right to convey title
✔✔base line - ✔✔an imaginary line of latitude used in the rectangular survey system of
land description to identify townships in relation to proximity to a principal meridian
✔✔benchmark - ✔✔permanent markers of known location and elevation above sea
level as established by a government survey team (such as the USGS)
✔✔beneficiary - ✔✔the recipient of advantage or gain from an act or instrument such as
a trust, will, or insurance policy
,✔✔bilateral contract - ✔✔a contract wherein both parties are obligated to perform in an
exchange of promises
✔✔binder - ✔✔a preliminary agreement for the sale of a property secured by a valuable
deposit from the potential buyer, which binds the seller to a good faith agreement to sell
the subject property, provided that a sale contract meeting the conditions determined is
executed within the prescribed period; also known as a *Letter of Intent (LOI)*
✔✔blanket mortgage - ✔✔a loan for which more than one collateral property acts as
security
✔✔block and lot system - ✔✔a system of legal land description that identifies a piece of
platted property by referring to the section, lot, and block numbers in a subdivision;
a.k.a. the recorded plat method
✔✔blockbusting - ✔✔the illegal act of causing owners to sell their homes by creating
fear that members of a protected class are moving into the area
✔✔branch office - ✔✔any office that is geographically separate from the main or home
office
✔✔bridge loan - ✔✔short-term loan used to transition from one loan to another; can
connect borrower from construction loan to eventual mortgage loan (or current home to
their new home)
✔✔broker - ✔✔a person who is licensed to represent one of the parties in a real estate
transaction in exchange for a commission or other valuable consideration
✔✔brownfield - ✔✔real property, the expansion, redevelopment, or reuse of which may
be complicated by the presence or potential presence of a hazardous substance,
pollutant, or contaminant
✔✔building code - ✔✔a set of regulations pertaining to building design, materials,
safety, sanitation, and structure
✔✔bundle of rights - ✔✔ownership of land with all of the legal rights of possession,
control, quiet enjoyment, exclusion, transfer, and encumber
✔✔buydown - ✔✔the paying of money upfront to reduce a loan's interest rate and
monthly payments
✔✔buyer's market - ✔✔any market that is experiencing an excess of sellers or supply,
creating more favorable conditions for buyers.
,✔✔capital expenditure - ✔✔an expense paid in order to improve a property
✔✔capital improvement - ✔✔any upgrade or improvement to a property that falls
outside the scope of normal repair and maintenance, usually with the intention of
increasing value
✔✔capitalization rate (cap rate) - ✔✔a rate of return that calculates the percentage of
expected annual income earned over a property's value; the present value for expected
future income earned
✔✔carbon monoxide - ✔✔an odorless, colorless gas that occurs as a by-product due to
incomplete combustion when burning such fuels as wood, oil, and natural gas
✔✔cash reserve - ✔✔a portion of funds allocated to pay for variable expenses
✔✔CERCLA - ✔✔the Comprehensive Environmental Response, Compensation, and
Liability act, aka the Superfund
✔✔certificate of occupancy (CO) - ✔✔legal document from a local authority that
authorizes a building to be occupied; issued after the building has passed all required
inspections
✔✔certificate of title - ✔✔a document prepared by a title attorney detailing the chain of
title and offering an opinion on the marketability of the seller's title
✔✔chain of title - ✔✔the entire chronological record of a property's ownership
✔✔chlordane - ✔✔a chemical compound formerly used in pesticides that is dangerous
to human health
✔✔chlorofluorocarbons (CFCs) - ✔✔chemical compounds containing chlorine, fluorine,
and carbon atoms that were once used in refrigerator coolant, air conditioners, and
dehumidifiers
✔✔Civil Rights Act of 1866 - ✔✔a federal law that prohibits discrimination in housing
based on race
✔✔cloud - ✔✔any claim to or encumbrance on the title to a property which affects
transferability
✔✔collateral - ✔✔property liened by a lender in order to assure payment of the loan
and protect the lender's investment
, ✔✔collusion - ✔✔an unlawful agreement between competitors to monopolize a market,
disadvantage other competitors, or otherwise undertake activities in violation of fair
trade laws
✔✔color of title - ✔✔a title transfer that is defective in a way that is unknown to the new
owner
✔✔commingling - ✔✔the illegal act of mixing personal funds with a client's funds
✔✔commission - ✔✔the regulatory body responsible for regulating the brokerage
industry and licensing real estate practitioners; formally known as the Georgia Real
Estate Commission (GREC)
✔✔common elements - ✔✔portions of a shared ownership property not controlled by
any one owner or tenant. examples include parking lots, lobbies, fitness centers,
elevators, etc.
✔✔common law - ✔✔the side of law which arises from judgements and decisions made
in courts rather than explicit legislation
✔✔community association manager - ✔✔individual who provides administrative and
operational services to a community association in exchange for consideration; requires
specific licensure
✔✔community property - ✔✔a system of property co-ownership, most commonly
applied to married couples, which describes what is joint property and what is individual
property
✔✔comparable (comp) - ✔✔any property which has sold and is similar enough in
features, location, and proximity in time to inform the value of a subject property
✔✔comparative market analysis (CMA) - ✔✔a report that compares the prices of
recently sold or listed homes ("comparables") in order to estimate the market value of a
similar property (the "subject property") located in the same area
✔✔condominium - ✔✔property where each owner has a separate interest in their own
unit and undivided interest in the common areas
✔✔consideration - ✔✔something of value exchanged by the parties as evidence of
agreement to the terms of a contract
✔✔construction mortgage - ✔✔a temporary mortgage used to finance a construction
project
