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Real estate exam vocabulary list
300 terms that come up on the national portion of the salesperson exam, each with a one-line, plain-English definition. Grouped by the 10 national topics, with the law or standard behind the term where one applies. Print it, cover the definitions and test yourself.
What is inside
- 300 terms, no duplicates. Taken from our reviewed flashcards; each definition is the first sentence of the card, word for word.
- 63 terms with a legal source. The statute, rule, case or standard that one of our reviewed practice questions cites, such as 42 U.S.C. § 3604 for fair housing or 12 C.F.R. § 1026.19 for TRID.
- Print-friendly. Two columns, a contents page and page numbers, sized for US Letter paper.
- 01Property Ownership & Interests35 terms · p. 3
- 02Land Use Controls & Regulations30 terms · p. 5
- 03Agency & Brokerage Relationships35 terms · p. 7
- 04Contracts & Leasing35 terms · p. 9
- 05Real Estate Finance40 terms · p. 11
- 06Valuation & Market Analysis25 terms · p. 14
- 07Transfer of Title & Closing25 terms · p. 16
- 08Fair Housing, Ethics & Federal Disclosures30 terms · p. 18
- 09Property Management & Specialty Areas20 terms · p. 20
- 10Real Estate Math25 terms · p. 22
Preview: 20 terms from the list
Two terms from each topic, exactly as they appear in the PDF.
Property Ownership & Interests
- Fee simple absolute
- The most complete form of private ownership: unlimited in duration, freely transferable, and inheritable, subject only to government powers and existing private restrictions.
- Joint tenancy
- Co-ownership in which owners hold equal undivided shares with a right of survivorship; it requires the four unities.
Land Use Controls & Regulations
- Eminent domain
- The government's power to take private property for a public use, through condemnation, after paying just compensation.Source U.S. Const. amend. V (Takings Clause)
- Variance
- Permission from a zoning board to depart from a specific requirement of the zoning ordinance, such as a setback, because strict application would cause unique hardship.Source Standard State Zoning Enabling Act § 7 (U.S. Dep't of Commerce, 1926)
Agency & Brokerage Relationships
- Dual agency
- A situation in which one broker represents both the buyer and seller in the same transaction.
- Fiduciary duty
- The highest standard of care in law, owed by an agent to the principal.
Contracts & Leasing
- Option contract
- A contract in which an owner, for consideration, gives another the exclusive right to buy or lease property at a set price within a set time.
- Statute of frauds
- A law requiring certain contracts, including those for the sale of real estate and leases longer than a year (in most states), to be in writing and signed by the party to be charged to be enforceable.
Real Estate Finance
- Due-on-sale clause
- A provision, also called an alienation clause, that lets the lender demand full repayment if the borrower sells or transfers the property.Source 12 U.S.C. § 1701j-3 (Garn-St Germain Depository Institutions Act, due-on-sale)
- RESPA
- The Real Estate Settlement Procedures Act, which governs settlement of federally related residential loans, requires disclosures, and bans kickbacks and unearned fees among settlement service providers.Source 12 U.S.C. § 2607 (prohibition against kickbacks and unearned fees)
Valuation & Market Analysis
- Highest and best use
- The use of land that is legally permissible, physically possible, financially feasible, and maximally productive.
- Sales comparison approach
- An appraisal approach that estimates value by comparing recent sales of similar properties and adjusting for differences.
Transfer of Title & Closing
- Adverse possession
- A way to acquire title by occupying another's land openly, notoriously, hostilely, continuously, and exclusively for the period set by state law.
- Quitclaim deed
- A deed that transfers whatever interest, if any, the grantor has, with no warranties at all.
Fair Housing, Ethics & Federal Disclosures
- Blockbusting
- Inducing owners to sell by claiming that people of a protected class are moving in and values will fall; it is also called panic selling.Source 42 U.S.C. § 3604(e)
- Steering
- Directing buyers or renters toward or away from certain neighborhoods based on a protected class.Source 42 U.S.C. § 3604(a)
Property Management & Specialty Areas
- 1031 exchange
- An Internal Revenue Code Section 1031 transaction that lets an investor defer capital gains tax by exchanging investment or business real property for like-kind real property, within strict deadlines of 45 days to identify and 180 days to close.Source 26 U.S.C. § 1031(a)(1), (d)
- CAM charges
- Common area maintenance charges: tenants' share of the cost of maintaining shared areas such as parking lots, hallways, and landscaping, usually billed in proportion to leased space in commercial properties.
Real Estate Math
- Capitalization rate
- A property's annual net operating income divided by its value or price: Cap rate = NOI ÷ Value.
- Loan-to-value ratio
- The loan amount divided by the lesser of the sales price or the appraised value: LTV = Loan ÷ Value.
How to study with it
- Cover the definitions with a sheet of paper and say each one out loud.
- Circle the terms you miss. Come back to only those the next day.
- Then test the words in context with a free 20-question practice quiz: exam questions rarely ask for a definition directly.
Study material only, not legal advice. Independent exam prep. Not affiliated with any state real estate commission or testing provider. Not an approved pre-licensing course. Not legal advice. State law varies, and your state’s portion of the exam has its own rules: check your state’s candidate handbook.